RIL plans low-cost telecom towers costing just Rs 1 lakh

. Reliance Industries group is believed to be working on ultra-low cost base stations, which are used to transmit signals for telecom services, costing just Rs one lakh each. . . At this price point, the cost of the proposed towers would as low as 1/40th of the base stations deployed by some leading mobile phone service providers. . . These low-cost towers are part of the strategy of country's largest private sector enterprise as it gears up for its foray into telecom space through Infotel Broadband. . . Industry sources said some leading telecom companies are using telecom towers costing as high as Rs 30-40 lakh, while some of the low-cost towers cost Rs 15-20 lakh. . . Some Chinese firms, however, claim to have developed telecom towers worth Rs 5-10 lakh. Costs vary as per the volume of the order and transmission capabilities, among other factors, said experts. . . "Infotel is planning to build its network with a mix of rented mobile towers and its own BTSs (base tower station or mobile towers). The BTSs that Infotel is working on are expected to cost it Rs 1 lakh each," a source said. . . A RILBSE 5.35 % spokesperson declined to comment on the issue. The rentals for telecom towers also varies between Rs 30,000-50,000 per month, making the proposed base stations of RIL group a very cost-effective model, sources said. . . Besides an estimated one lakh towers of its own, RIL group would also consider leasing out the base stations from third parties, sources aware of the developments said. . . Infotel is focussing on a low-cost model so that it can keep the rates of 4G telecom services lower than that of other players. The services may be launched as early as 2012-end, but there is more likelihood of launch in 2013. . . In earlier days, the cost of setting-up of stand-alone BTSs (mobile towers) was Rs 50-60 lakh. With advancement in technology, it has come down to Rs 30-40 lakh for a high quality tower. . . Infotel Broadband had earlier floated tender for its plans to deploy base stations at around one lakh locations, after which some tower companies offered to rent out their towers. . . This it would have to share with other telecom companies as well. The rentals were offered in a wide range of Rs 15,000-50,000 per month, excluding various on-site costs. . . Infotel is also likely to manage on its own the network, IT infrastructure and other services, which are normally outsourced by telecom operators to keep operational costs low. . . At present, only Bhart Airtel and state-run telecom company BSNL provide 4G services in the country out of eight firms that hold BWA spectrum.

RIL plans low-cost telecom towers costing just Rs 1 lakh

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