Power Grid Corporation of India Ltd is spinning off its telecom vertical into a new wholly-owned subsidiary, Powergrid Teleservices Ltd, to attain a more “focused approach” and progress up the value chain, senior firm officers mentioned.
When the telecom sector is ramping up its 5G service across the nation to facilitate enterprise transformation that may contribute two percent to the national economy, the transfer by the state-run energy transmission company is timely.
The state-owned energy transmission main has additionally acquired approval from the Central Electricity Regulatory Commission (CERC) to function as a data center.
According to B Vamsi Rama Mohan, Powergrid Executive Director (telecom),
“The telecom division of Powergrid will be transferred to the new subsidiary Powergrid Teleservices after receiving all regulatory approvals to provide greater impetus to the business and move up the value chain by entering into the data center business. The process for regulatory clearance is in progress. The Pilots to demonstrate mobile BTS and FM Radio transmission on high voltage power transmission towers “have shown promising results and focus on high-speed data networks across the country, the telecom business holds immense potential going forward.”
Doman Yadav Chief General Manager (Telecom) at Power Grid Corporation of India Limited said:
“Telecom companies have announced plans to have a national 5G footprint in the next two years and Powergrid is “well positioned” to help telcos (telecom companies) to deploy their 4G or 5G base stations on the high voltage power transmission towers as PGCIL has one of the largest optical fiber ground network in the country providing communication services. We have one of the largest optic fiber networks of 76,000 km. Pilots to demonstrate 4G/5G BTS on high-voltage towers have shown promising results and are running smoothly. This gives us confidence that now Powergrid can leverage its two lakh strong tower network across the length and breadth of the country and help telecom companies to provide voice and data services to every village of the country.”
Powergrid will offer a “one-stop solution for the telecom operators with highly reliable power supply, tower to host antenna and base equipment, backhauling from fiber on the transmission line and unmatched reach” even in remote areas using the widespread transmission tower infrastructure of the company, the officials said.
Speaking about the data center, B Vamsi Rama Mohan said, “The CERC has granted approval to Powergrid to establish and operate data centers under PowerTel using surplus lands of the sub-stations.
“The first data center as a pilot is expected to come up near Delhi with a capacity of 250 racks and it will be ramped up to 1000 racks. Detailed business models on data centers are being worked out.”
The size of the telecom business is relatively small in the overall Powergrid revenue but the “business environment is very conducive to leapfrog,” Mohan said.
Speaking about the National Long-Distance Operation, B Vamsi Rama Mohan said, “Having the interconnect agreements with the neighboring countries like Nepal, Bangladesh and Bhutan, we are leveraging it to deliver optic fiber to these countries.”
Powergrid owns a large power transmission network of 1.76 lakh km to help supply energy across the country.
