Asia Press Agency

Tag: Telecom

  • REC Commits Funding to Boost India’s Railway IT Infrastructure

    REC Commits Funding to Boost India’s Railway IT Infrastructure

    In a significant move to strengthen India’s railway communication and information technology infrastructure, state-owned REC Ltd. has inked an agreement to provide ₹30,000 crore in funding to RailTel Corp. of India. This partnership was formalized through a memorandum of understanding (MoU) signed on Thursday and is set to bolster various projects over the next five years. These projects encompass telecom, IT services, railway signaling systems, and the implementation of the KAVACH train collision prevention system.

     

    The collaboration outlined in the MoU goes beyond domestic projects, extending to the possibility of financing overseas ventures. These international projects are related to high-speed rail, metro systems, IT network development, and the upgradation of railway networks. The focus will be on bilateral discussions and infrastructure projects in Southeast Asia and Eastern Africa, aligning with RailTel’s current areas of concentration.

     

    RailTel Corp. of India, a central public sector enterprise under the Ministry of Railways, is a prominent provider of telecom infrastructure and information and communication technology (ICT) services. The company operates an extensive optic fiber network that spans across India, making it an integral part of the country’s digital and communication infrastructure.

     

    The MoU was officially signed by T.S.C Bosh, REC’s executive director for Infrastructure and Logistics, and Jasmeet Singh Marwah, RailTel’s company secretary. Following the signing, both entities expressed interest in exploring further collaborative ventures, with a particular focus on areas such as renewable energy and smart metering.

     

    REC Ltd., which achieved Maharatna status in September 2022, has been diversifying its scope beyond the power sector. The company recently entered into a partnership with Punjab National Bank to co-finance up to ₹55,000 crore in power and infrastructure projects. Furthermore, REC has committed to funding various thermal and green hydrogen projects in Odisha, with a total investment of ₹40,358 crore.

     

    The financial commitment from REC to RailTel comes at a time of strong financial performance for the company. In the September quarter, REC reported a remarkable 38.71% year-on-year increase in its consolidated net profit, reaching ₹3,789.90 crore. The revenue from operations also witnessed a substantial rise, increasing by 17.39% during the same quarter to ₹11,688.24 crore. These figures underline REC’s financial stability and capacity to support vital infrastructure projects, such as those in the railway and information technology sectors.

     

    The collaboration between REC and RailTel is poised to play a pivotal role in advancing India’s railway communication and IT infrastructure. It reflects the nation’s commitment to enhancing its transportation and technology networks, thereby contributing to economic growth and modernization.

  • Indian Telecom Companies Invest ₹2,419 Crore Under PLI Scheme

    Indian Telecom Companies Invest ₹2,419 Crore Under PLI Scheme

    India’s Telecom Minister, Ashwini Vaishnaw, announced that telecom companies have invested ₹2,419 crore (approximately $320 million) in the country under the production-linked incentive (PLI) scheme, resulting in the employment of 17,753 people. He made this announcement during the virtual inauguration of a production line for manufacturing 4G and 5G connectivity modules and data cards at domestic firm VVDN Technologies.

     

    Vaishnaw stated that the telecom sector had achieved a significant milestone with PLI-supported companies making substantial investments. He highlighted key figures related to this initiative, including total investment, sales generated, exports, and employment. The minister also praised the success of the “Make in India” initiative, emphasizing the importance of local manufacturing and its alignment with Prime Minister Narendra Modi’s vision.

     

    Additionally, Vaishnaw emphasized the quality and global acceptance of Indian-made telecom equipment. He noted that products manufactured in India are exported to countries such as the United States, European nations, and Japan, highlighting the high standards and quality of these products.

     

    Regarding 5G technology, Vaishnaw mentioned that India had launched 5G last year, and within a short period, the country had become the third-largest ecosystem for 5G in the world. He commended the rapid progress and the country’s contribution to the global 5G landscape.

     

    Looking ahead, Vaishnaw mentioned that India is actively working on the development and standardization of 6G technology. He noted that the International Telecommunication Union (ITU) has accepted India’s inputs in the standardization of 6G, and the country aims to position itself as a leading contributor to the 6G journey.

     

    The Indian government’s PLI scheme has played a crucial role in attracting investments, promoting local manufacturing, and fostering growth in various sectors, including telecommunications. The scheme offers financial incentives to companies for manufacturing specified goods in India, with the aim of boosting domestic production, creating jobs, and enhancing exports. The success of this initiative is aligned with the Indian government’s broader “Make in India” campaign, which aims to promote self-reliance and domestic manufacturing across sectors.

  • Jio Platforms Reports Strong Growth: Net Profit Soars

    Jio Platforms Reports Strong Growth: Net Profit Soars

    Digital services company Jio Platforms recorded a substantial 12.5 percent YoY increase in net profit, reaching Rs. 5,098 crore during the June 2023 quarter. The company attributed this growth to the addition of new subscribers and higher revenue per user. Comparatively, Jio Platforms had reported a net profit of Rs. 4,530 crore in the same period the previous year.

     

    The revenue from operations for Jio Platforms surged to Rs. 26,115 crore during the quarter, marking an 11.3 percent rise from Rs. 23,467 crore in the year-ago period.

     

    Jio Platforms achieved a remarkable milestone by adding over 90 lakh net subscribers, with total data traffic soaring by more than 28 percent YoY, reaching 33.2 billion gigabytes for the quarter.

     

    The company’s average revenue per user (ARPU), which is a key performance metric, improved by 2.8 percent YoY, reaching Rs. 180.5. This growth was fueled by a better subscriber mix and the expansion of the wireline business. Jio Platforms encompasses various entities, including telecom arm Reliance Jio Infocomm, numerous startups, and music and video streaming apps.

     

    The company highlighted that the adoption of 5G technology and the expansion of its Fiber to the Home (FTTH) services played a crucial role in driving a strong 28.3 percent YoY growth in data usage. In the first quarter of FY’24, monthly data traffic on the Jio network surpassed 11 Exabytes, while the per capita monthly data usage increased by 20 percent YoY, reaching 24.9GB.

     

    Jio Platforms has made significant strides in rolling out its True5G network, with plans to complete the pan-India 5G rollout before December 2023, as confirmed by Reliance Jio Infocomm’s Chairman, Akash M Ambani.

     

    Additionally, JioBharat, the company’s platform, is ready for scale-up following successful initial trials of 1 million devices. Ambani expressed that the innovative JioBharat phone aims to accelerate the ‘2G-mukt Bharat’ vision and democratize internet access. These strategic investments will drive Jio’s growth momentum across connectivity and digital platforms in the coming years.

     

    CEO Kiran Thomas highlighted that around 98 percent of new JioFibre additions are opting for postpaid plans. The company plans to leverage air fibre technology to accelerate broadband connectivity to homes, with an ambitious goal of connecting 100 million homes at the earliest.

     

    In a related report, telecom arm Reliance Jio reported an impressive 12 percent YoY rise in net profit, reaching Rs. 4,863 crore during the June 2023 quarter. This substantial growth can be attributed to increased revenue and subscriber gains in the connectivity business and digital services scale-up. The total income of Reliance Jio during the reported quarter also witnessed a positive trajectory, rising to Rs. 24,127 crore from Rs. 21,995 crore in the corresponding period last year. The company’s revenue from operations reached Rs. 24,042 crore during the quarter, marking a significant 9.9 percent YoY increase from Rs. 21,873 crore in the June 2022 quarter. The notable growth in operating revenue was attributed to the surge in subscriber numbers and the expansion of digital services, as mentioned in a company statement. Moreover, Jio Platforms reported a 14.8 percent YoY increase in EBITDA, driven by revenue growth and improved margins. The company’s finance cost was lower due to the repayment of short-term loans in the first quarter of FY24.