15/04/2011

RAILTEL BAGS 600 CRORE PROJECT EDGING OUT BSNL- NEWS


KOLKATA: State-owned RailTel has edged out BSNL in the race to execute the Rs 600-crore OFC network expansion project in the Northeast.
The telecom department has also cleared a Rs 388-crore subsidy allocation for the project from the Universal Services Obligation Fund (USOF). The balance cost will be shouldered by RailTel.

The project involves laying in excess of 10,000 km of optical fibre cable across the Northeast (excluding Assam) to create a bulk bandwidth resource that will be shared by all IT and telecom service providers operating in the region at discounted rates. "RailTel emerged the L1 bidder for augmentation, creation and management of a greenfield OFC network across six northeastern states, where there is a serious bandwidth constraint. A letter of intent (LoI) will shortly be issued to the company," an official in the telecom department said. The government has split the Northeast telecom circle into two zones for execution of the upcoming OFC network expansion. Zone I includes Meghalaya, Mizoram and Tripura, while Zone II encompasses Arunachal Pradesh, Manipur and Nagaland.

"The USOF subsidy components for creating a bandwidth resource in Northeast Zone I and Zone II are pegged at Rs 89.50 crore and Rs 298.50 crore, respectively. The funds will shortly be made available to RailTel," said a senior official in the telecom department. Today, all mobile phone companies share 5% of their annual revenues towards the USOF and the unused sum is pegged at a shade below Rs 20,000 crore - news