RIL (Reliance IndustriesLimited) eyes on building ultra low cost stations that might cost them Rs.1 lakheach. These stations used to transmit signals for telecom services will be as low as 1/40 thof the cost of the base stations installed by leading telecom companies. Reliance Infotelhas been gearing for a successful launch after grappling with innovative strategies and ideas that will enable it to attain the same.
Setting up low cost towers will enable it to have an edge over other companies that have incurred over Rs.30 to 40 lakhs to build these towers. The low cost towers, atpresent, may cost anywhere between Rs.15 to Rs.20 lakh each. Sources claim that Infotel Broadband will turn the tide by setting up its tower at Rs. 1 lakh each . It will employ the right blend of rented mobile towers and its own BTSs (base tower station) to build its network. The proposed plan of RIL seems to be highly cost effective as renting these towers might also cost Rs 30,000-50,000 per month. Sources also claim that RIL intends to build around 1,00,000 towers on its own and engage in leasing out the base stations from third parties.
Infotel Broadband will perch on a model that will cost it much lesser than that of itscounterparts, in order to have an upper hand in the segment, after the launch. This will also enable it to roll out the rates of its 4G serviceslesser than that ofothers dealing with this segment. The time of launch has not been decided, yet. While earlier reports claimed that it to be around 2012-end, news at present claim it to be during 2013.
The price of building these towers has drastically reduced over time owing to technology growth and progress. While it used to cost Rs. 50 lakh to 60 lakh earlier, the rates have reduced to Rs. 30 to 40 lakh for building a high quality tower.
RIL earlier announced its decision of deploying base stations at around 1-lakhlocations, whichresulted in a number of companies offering to rent their towers. It would have had to share its towers with other companies and incur an amount of 15,000-50,000 per month for rents, had it agreed to deploy these base stations. Besides, it would have to shell extra amount for other on site costs, other than the rental amount.
MukeshAmbani led RIL is keen on embarking an independent network with respect to its IT infrastructure and other services exhibiting the mettle to take risks instead of taking a leaf out of other companies who prefer outsourcing these services with the intention of slashing these costs.