RailTel Plans To Monetize A Wi-Fi Project Covering Over 6,100 Railway Stations
RailTel announced on 3 January that it has partnered with a technology firm to commercialize its Wi-Fi project at more than 6,100 railway stations across India.
According to a company statement, RailTel, a PSU under the Ministry of Railways, has signed a five-year contract with a consortium led by 3i Infotech Ltd, a global information technology firm based in Mumbai. Forensics Intelligence Surveillance and Security Technologies Private Limited (FISST) and Yellow Inc. are also members of the consortium.
The contract will generate revenue by monetizing Wi-Fi footfalls in one of the world’s largest integrated public Wi-Fi networks via targeted advertisements and by expanding multimedia infotainment services for rail passengers.
According to the statement, this is India’s first multi-year commercial agreement to monetize captive users of public Wi-Fi networks through joint efforts.
According to the agreement, the consortium led by 3i Infotech will pay RailTel either 14 crores annually or 40 per cent of the revenue earned (whichever is higher).
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According to 3i Infotech’s estimate, the consolidated revenue potential from the project is anticipated to be upwards of 250 crores over five years. The revenue will be primarily driven by advertising and supported by content/services-based revenue.
In India, there are currently 6,108 railway stations with public Wi-Fi; each day, more than 1.1 million people log on to use it. According to the statement, station Wi-Fi will advance users’ digital experiences due to this collaborative agreement.
RailTel reported consolidated earnings of 440 crores for the fiscal quarter that ended September 2022. This compares to a 14% increase in consolidated income of 385 crores in the first quarter of this fiscal year. As a result, the company’s consolidated income for the half year is Rs.825 crore, compared to Rs.696 crore in the previous fiscal year’s corresponding period.