Sterlite Tech in Talks with Telecom Companies for Durable Smart Networks

Our India Customer, Sterlite Technologies, optic fiber and telecom cable maker, is in talks with carriers to deploy smart networks, which will have a life span of up to 25 years, far higher than the typical 7-8 years, a top executive said, according to a leading business daily. The news further reported that the company has completed a proof of concept, or pilot, with Bharti Airtel in Faridabad where it has laid optic fiber which it claims will be viable for over two decades, although upfront cost incurred by the telcos is 40 percent higher.

“Discussions are on with other telcos and we’ll guarantee that the network stays for 25 years,” said Anand Agarwal, chief executive officer of Sterlite Technologies in the daily. “While upfront cost in laying the network is low, it recurs every 7-8 years, which increases overall cost for deploying the network. In smart network, we’re telling telcos to make investment upfront but the network will remain for a longer period.”

The cost of laying the smart network comes to Rs 12-15 lakh per km distance, compared with Rs 8-9 lakh per km. The company said that it was working towards offering different payment modes, including pay-as-you-go, to encourage adoption of this network among telcos, and was open to taking up management of the network.

Agarwal has been quoted as saying that the company was in talks with the country’s No. 1 carrier for expanding the pilots to other cities. The newspaper though reported that Bharti Airtel has declined to comment on these developments.