The standing committee on Petroleum and Natural Gas has recommended that GAIL should utilize its Optical fibre network, that it has set up for captive usage of monitoring its pipeline network, in an effort to boost revenues.
The committee recommends that GAIL should separate its arm GAILTEL as a separate subsidiary, so that GAILTEL can emerge as an independent telecom infrastructure provider. The standing committee on Petroleum also points out that with the 3G services roll out by telecom companies, the demand for optical fiber network will go up as for these services, a bigger bandwidth would be required.
GAIL is implementing another 2000 km of pipeline network to become a 7000 km pipeline company. And to monitor the network GAIL is adding another 5000 KM of optical fiber network to take its existing network to 18,000 KM. And that makes GAILTEL's assets one of the biggest optical fibre network in the country connecting more than 150 towns and cities.
Leasing out of the optical fiber infrastructure to telecom companies in short term basis doesn't give GAILTEL optimal returns, the committee feels. But by becoming a full-fledged and independent telecom infrastructure company, GAILTEL can command higher rates for leasing out its network under the TRAI determined rates.
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