RIL Plans To Build FTTH For Its 4G Services
Filed Under: Business | Posted: 01/24/2013 at 4:27AM
Comments | Region: India
Mukesh Ambani‘s 4G launch and developments have been kept under wraps, for some time. However, things are coming to light now with the conglomerate announcing its keenness on collaborating with Samsung and /or Huawei as it intends to roll out low cost devices .
Taking a leaf out of Aakash’s strategy, RIL (Reliance Industries Limited) believes it will win the race by emphasizing on cost- effectiveness. Right from dongles, SIM cards and tablets, the company will be keeping their prices low through mass production. Complying with the company’s core value and philosophy, the objective will be to cater to all sections of the society and hence launch value – for – money products. Mukesh Ambani had earlier churned out the same strategy for Reliance Infocomm (presently known as RCom) then while rolling out its handsets, which turned out to be really profitable for the company. They have yet not however decided on their revenue model.
Present analysis by experts reveals that the majority of the subscribers are not willing to spend more than Rs.1000 per month for a range of infotainment services, in the near future. It also stated that most of them are comfortable with the Rs.500 – Rs. 1000 range, if they are more high- speed connection.
The government has been backing the mass rural broadband project for Bharat Broadband Nigam Ltd. that will introduce National Optical Fibre Network to offer high-speed broadband at the Panchayat. The services are expected to roll out by April. However, the catch is that private players will be permitted last mile connectivity for renewable licenses costing R.5000 crore for a gamut of service including voice, data, video and other high speed internet services and RIL will undoubtedly leave no stones unturned to take advantage of the same. By setting up to the Fibre To The Home (FTTH) network, the government will offer high-speed internet connection in urban areas and will rope in neutral hosts for the same. While the neutral host will initially deal with the operations for around 6-7 months, it will later shift the responsibility to the service providers, based on a revenue sharing model.
Similarly, RIL also plans to offer FTTH network for 4G and collaborate with other service players for voice and data services. With this, it will be possible for the company to provide a range of services at reduced prices. Sources claim that RIL intends to connect 30 million homes and reach out to 100 cities through its FTTH in the coming five years.
The objective of the company is to offer 360°communication and build an ecosystem for 4G wherein the services will start with FTTH and later encompass backhaul, rural based services, and other low costing devices.