GIL to set up 6700 cell sites across India

25 August 2006

In a major expansion drive aimed at consolidating its business of providing cellular operators shared infrastructure, shared telecom infrastructure services provider GTL Infrastructure Limited (GIL) proposes to build, own, and operate shared passive telecom infrastructure for approx cell sites at an investment of over Rs2,030 crore.

GTL Infrastructure Limited (GIL) established by GTL Limited as an infrastructure company to provide shared infrastructure assets and services in the telecom sector, passive telecom infrastructure includes the tower, shelter, air-conditioning equipment, diesel generator, battery, etc. for cellular operators.

The fresh roll out in passive telecom infrastructure includes setting up of new greenfield sites will be based on cellular operator requirements who will be its anchor user. These sites will, however be capable of accommodating other operators for co-location and will be marketed by GIL to prospective telecom operators on a sharing basis. The sites would either be ground-based sites (GBS) or rooftop sites (RTS).

As part of its acquisition plans, GIL would acquire existing sites from various operators and refurbish them to suit sharing and co-location requirements.

Passive telecommunication infrastructure constitutes around 65 per cent of the total capital cost with active component making up the remaining 35 per cent. However, given the recent rise in property, steel and cement prices, the capital cost of passive infrastructure is going up while that of the active infrastructure is coming down with declining prices of electronic components.