Reliance Jio seeks nod to use more poles to draw cables
Reliance Infocomm has sought permission from Kerala state electricity board (KSEB) permission to use 45,000 more electric poles for drawing optical fibre cable to widen its 4G network coverage in the state. The board, following specific instructions from the state government in 2015, had given permission to the telecom major to use electric posts for a five-year period.
Former UDF government, while directing the KSEB to grant permission to the telecom company, cited the possibility of instant proliferation of 4G network as the reason for instructing the board to allow the telecom major to piggy back the KSEB network. The board had rejected similar requests from a couple of other telecom companies, saying that it needed specific directions from the government for entertaining such requests.
However, over the years, the board seems to have changed its approach towards requests for permission to use the electric poles at a specified rate.
“For long, we have been allowing cable TV operators to draw cables using electric poles. It’s a major source of non-tariff income to the board. If the government gives permission, board has no issues in allowing telecom companies to use more electric posts,” said KSEB chairman and managing director N S Pillai.
Reliance is currently using around 12,500 KSEB posts. The board has clearly been told by the government that any extension of contract or new contract with regard to the use of KSEB assets for telecom-data related activities should not be made without consulting the state government, which is working towards the roll out of K-Fibre Optic Network (K-FON). K-FON proposes to provide free internet connectivity to 20 lakh poor households and give connectivity to government establishments and schools.
“Since the very business model of the K-FON is to lease out the data carriage facility network to private players, the state government wouldn’t be encouraging other players setting up their OFC network. Since the K-FON network would be rolled out in another couple of years, it would be more beneficial to the private players to use that instead of drawing overhead cables or underground cables on their own,” sources in the state IT department said.