1. Economy Overview
Introduction
India, a South Asian Nation, is the seventh-largest country by area, the most populous country with over 1.44 billion people, and the most populous democracy in the world. India boasts of an immensely rich cultural heritage, including numerous languages, traditions, and people. The country holds its uniqueness in its diversity and hence has adapted itself to international changes with poise and comfort. While the economy has welcomed international companies to invest in it with open arms since liberalisation in the 1990s, Indians have been prudent and proactive in adopting global best practices and skills and now setting competitive benchmarks in the world. Indian villagers have proudly implementing advance technologies in farming and agriculture and unique handicrafts as their profession on one hand, while the modern industries and professional services sectors are coming up in a big way on the other. Thus, the country is attracting many global majors for strategic investments owing to the presence of a vast range of industries, investment avenues and a supportive government. A huge population, mostly comprising the youth, is a strong driver for demand and an ample source of manpower to the country and world. Further to that, India has become a major startup industries hub, incubating new age entrepreneurship in all sectors and creating value across nation and world.
India?s Real GDP or GDP at Constant Prices is estimated to attain a level of 173.82 lakh crore in the year 2023-24, against the First Revised Estimates (FRE) of GDP for the year 2022-23 of 160.71 lakh crore. The growth rate in Real GDP during 2023-24 is estimated at 8.2% as compared to 7.0% in the previous year the third successive year of 7% or above growth. This is one of the fastest growths of GDP across all major developed and developing countries. Between 2017 and 2023, while the global GDP per capita logged a compound annual growth rate (CAGR) of 3.4%, India?s was higher at 4.9%, supported by investments in utilities, infrastructure & public administration and corporate revenue growth. India is ranked 5th in world?s GDP rankings in 2024. India?s economy boasts diversity and swift growth, fuelled by key sectors such as information technology, services, agriculture, and manufacturing. The nation capitalises on its broad domestic market, a youthful and technologically adept labour force, and an expanding middle class. Future capital spending of the government in the economy is expected to be supported by factors such as tax buoyancy, the streamlined tax system with low rates, a thorough assessment and rationalisation of the tariff structure, and the digitization of tax filing.
In the medium run, increased capital spending on infrastructure and asset-building projects is set to increase growth multipliers. The contact-based services sector has demonstrated promise to boost growth by unleashing the pent-up demand. The sector?s success is being captured by a number of HFIs (High-Frequency Indicators) that are performing well, indicating the continuous growth of the country.
India has emerged as the fastest-growing major economy in the world and is expected to be one of the top three economic powers in the world over the next 10-15 years, backed by its robust democracy and strong partnerships. (source: https://www.ibef.org/economy/indian-economy-overview)
1.1 Market size
India?s Gross Domestic Product (GDP) at Current Prices in the year 2023-24 is estimated to attain a level of 293.90 lakh crore, against 269.50 lakh crore in 2022-23, showing a growth rate of 9.1 percent.
• The fast-moving consumer goods (FMCG) sector is India?s fourth-largest sector, expected to grow at a CAGR of 27.9% through 2021-27, reaching nearly USD 615.87 billion.
• Merchandise exports in March 2024 stood at USD 41.68 billion, with total merchandise exports of USD 437.06 billion during the period of April 2023 to March 2024.
• The market size of India?s ICT industry is currently estimated at USD 180 billion and projected to grow to USD 350 billion by 2025.
(Source: www.ibef.org )
1.2 Recent Developments
India is primarily a domestic demand-driven economy, with consumption and investments contributing to 70% of the economic activity. With an improvement in the economic scenario and the Indian economy, mostly recovered from the Covid-19 pandemic shock, several investments and developments have been made across various sectors of the economy. There have been various developments that have taken place in the recent past:
• As of April 12, 2024, India?s foreign exchange reserves stood at US$ 643.162 billion.
• In 2023, India saw a total of USD 49.8 billion in PE-VC investments.
• India was also named as the 48th most innovative country among the top 50 countries, securing 40th position out of 132 economies in the Global Innovation Index 2023. India rose from 81st position in 2015 to 40th position in 2023. India ranks 3rd position in the global number of scientific publications
Foreign Institutional Investors (FII) inflows between April-July (2023-24) were close to 80,500 crore (USD 9.67 billion), while Domestic Institutional Investors (DII) sold 4,500 crore (USD 540.56 million) in the same period. As per depository data, Foreign Portfolio Investors (FPIs) invested (USD 8.06 billion) in India during January-April 2024.
• In March 2024, the gross Goods and Services Tax (GST) collection stood at second highest monthly revenue collection at 1.78 lakh crore (USD 21.35 billion).
• India has the 3rd largest Start-up Ecosystem globally and is home to the fastest-growing unicorns. From just about 350 Startups in the year 2014, Startups in India grew over 300 times in over ten years. (source:www.ibef.org)
1.3 Government Initiatives for economy
Some of the initiatives and developments undertaken by the Government are listed below:
• The government is working towards achieving the goal of "Viksit Bharat by 2047", which means making India a developed Nation by 2047 by encompassing various areas of development, such as economy, environment, good governance and social progress. The government proposed a 50-year interest-free loan of Rs.75,000 crore to support the milestone-linked reforms by the State Governments, which will help to achieve Viksit Bharat 2047 goal.
• With a thrust on investment in infrastructure, the Union Ministry of Railways has been allocated
2.55 lakh crore for the financial year 2024-25, up by 5.8% from last year?s allocation of 2.41 lakh crore. Three major economic railway corridor programmes will be implemented - energy, mineral & cement corridors, Port connectivity corridors, and High traffic density corridors. Moreover, forty thousand normal rail bogies will be converted to the Vande Bharat standards to enhance safety, convenience and comfort of passengers.
• Research and Innovation for catalysing growth, employment and development. For the same a corpus of 1 lakh crore to be established with fifty-year interest free loan to provide long-term financing or refinancing tenors and low or nil interest rates. And a new scheme to be launched for strengthening deep-tech technologies for defence purposes and expediting ‘Atmanirbharta?.
• On April 1, 2023, Foreign Trade Policy 2023 was unveiled to create an enabling ecosystem to support the philosophy of ‘AtmaNirbhar Bharat? and ‘Local goes Global?.
• To enhance India?s manufacturing capabilities by increasing investment and production in the sector, the government of India has introduced the Production Linked Incentive Scheme (PLI) for Pharmaceuticals.
• Prime Minister?s Development Initiative for North-East Region (PM-DevINE) was announced in the Union Budget 2022-23 with a financial outlay of 1,500 crore (USD 182.35 million).
• The government will launch a scheme for adaptation and restoration measures, coastal aquaculture and mariculture with an integrated and multi-sectorial approach to promote climate-resilient activities for blue economy 2.0.
• The government approved an allocation of over Rs 10,300 crore for the IndiaAI Mission on 7th
March 2024, marking a significant step towards bolstering India?s AI ecosystem. This substantial financial infusion, slated over the next five years, is poised to catalyse various components of the IndiaAI Mission, including pivotal initiatives like the IndiaAI Compute Capacity, IndiaAI Innovation Centre (IAIC), IndiaAI Datasets Platform, IndiaAI Application Development Initiative, IndiaAI FutureSkills, IndiaAI Startup Financing, and Safe & Trusted AI.
• On June 28, 2023, the Ministry of Environment, Forests, and Climate Change introduced the ‘Draft Carbon Credit Trading Scheme, 2023?.
• The India Telecom Market size is estimated at USD 48.61 billion in 2024, and is expected to reach USD 76.16 billion by 2029, growing at a CAGR of 9.40% during the forecast period (2024-2029).
(source: www.cleartax.in, www.static.pib.in, www.thehindu.com) with
1.4 Road Ahead
In the second quarter of FY24, the growth momentum of the first quarter was sustained, and high-frequency indicators (HFIs) performed well in July and August of 2023. India?s comparatively strong position in the external sector reflects the country?s positive outlook for economic growth and rising employment rates.
India?s economic story during the first half of the current financial year highlighted the unwavering support the government gave to its capital expenditure, In the budget of 2023-24, govt. took lead by steeply increasing the capital expenditure outlay by 37.4 % in BE 2023-24 to Rs.10 lakh crore (USD 120.12 billion) over 7.28 lakh crore (USD 87.45 billion) in RE 2022-23. The ratio of revenue expenditure to capital outlay increased by 1.2% in the current year, signalling a clear change in favour of higher-quality spending. Stronger revenue generation because of improved tax compliance, increased profitability and increasing economic activity also contributed to rising capital spending levels. In February 2024, the Finance Ministry announced the total expenditure in Interim 2024-25, estimated at 47,65,768 crore (USD 571.64 billion) of which total capital expenditure is 11,11,111 crore (USD 133.27 billion).
(source: www.ibef.org, Conversion rate used for January 2024 is 1 = US$ 0.012)
2. Telecom Industry
2.1 Telecom Industry Characteristics
The Indian telecom services industry can be broadly segregated into wireless, wireline and enterprise services. Wireline services are traditional landline calling services and wired broadband services. Wireless service includes mobile calling, SMS (short message service), wireless broadband, triple play service, and over-the-top (OTT) platforms. Enterprise services provide network connectivity across locations and users in an organization as elaborated below:
Structure of the Indian telecom industry 2.1.1 Wireline services
• Landline Telephony: Traditional fixed-line services provided by operators like BSNL, MTNL, and private players such as Airtel, Jio.
While the market share has declined, it remains significant for business and residential users requiring reliable voice services.
• Fixed Broadband: Wired broadband services offering high-speed internet access through fiber-optic or DSL connections. Key providers are BSNL, Reliance Jio, Airtel, ACT Fibernet, and Hathway including RailWire of RailTel.
2.1.2 Wireless services
• Voice Calling: Mobile phone network by which end-users are connected to the network via wireless transmission technologies.
• SMS: This is a text messaging service component of most telephone, internet and mobile device systems. It uses standardized communication protocols to enable mobile devices to exchange short text messages. An intermediary service can facilitate a text-to-voice conversion to be sent to landlines.
• Broadband: Broadband is a high-speed internet connection that is always on and faster than traditional dial-up access. It allows for the transmission of large amounts of data over various types of networks and can support multiple forms of communication, including voice, video, and data, simultaneously.
2.1.3 Video conferencing: is a technology that allows people in different locations to hold face-to-face meetings without the need to travel. It enables real-time audio and video communication, which helps simulate an in-person meeting experience. This technology is widely used in various sectors, including business, education, healthcare, and personal interactions. It enhances collaboration through features like screen sharing, file sharing, and virtual whiteboards, and it offers significant benefits such as cost savings, increased productivity, and flexibility. This reduces and helps in achieving commitments & reduce Green House Gases (GHG). 2.1.4 Triple play: Triple play refers to a bundled telecommunications service offering that includes three primary services: high-speed internet, television, and telephone services, all delivered over a single broadband connection. This approach is designed to provide convenience and cost savings for consumers while enhancing the overall customer experience by integrating multiple services into one package.
2.1.5 OTT: Over-the-top (OTT) services refer to media services delivered directly to consumers via the internet, bypassing traditional distribution channels like cable or satellite television. This technology allows users to stream content, such as movies, TV shows, music, and live events, on-demand, using devices like smartphones, tablets, smart TVs, and computers. Examples of these services are social media apps (WhatsApp, Instagram, etc) and content streaming services (RailWire?s Tarang/Umang OTT bundled broadband plans including, Zee5, SonyLiv, Disney+ Hotstar, Amazon Prime, SunNXT, AHA/Telugu, Discovery+, Hungama, ALT Balaji etc). To adapt to the growing acceptance of OTT services, communication service providers are resorting to bundling of OTT and data subscription packs.
2.1.6 Enterprise services
• Dedicated leased fiber: Typically, dedicated fiber-leased lines fulfil two purposes: (i) provide corporate offices with high-capacity connection to the internet and (ii) connect the local network of several corporate offices to form a Wide Area
Network. In this case, individual subscribers could be organisations using fiber for business purposes. Having access to a leased fiber line has many benefits, such as faster connection speeds, connection reliability, stronger signal, low latency, symmetrical speed (in terms of equal download and upload speeds). RailTel Corporation of India Ltd., Reliance Jio Infocomm Ltd., Bharti Airtel Ltd., Bharat Sanchar Nigam Ltd. (BSNL), Tata Tele Services Communications Ltd. and Vodafone Idea Ltd are major players providing these services.
• Tower co-location: This is a service provided by Infrastructure Provider (IP) companies. Co-location involves mounting of nodes on existing tower infrastructure to receive and transmit data and voice packets wirelessly. IP companies receive rent from wireless telecom companies that do not have funds or do not want to undertake significant capex to set their own BTS network. RailTel Corporation of India Ltd, Bharti Infratel Ltd, Bharti Airtel Ltd, GTL Infrastructure Ltd, Indus Towers Ltd, Reliance Jio Infocomm Ltd, and Vodafone Idea Ltd are the main players providing tower co-location services. Tower co-location has become an important source of revenue for these companies with the rise in spectrum allocation, enhancing the need for more BTS units to be installed.
• VPN: A virtual private network (VPN) uses public telecommunication infrastructure, such as the internet, to securely connect remote sites/users to the organisation?s network. These services cost less than alternatives, such as traditional leased lines or remote access servers.
RailTel Corporation of India Limited, Tata tele business services, Sify technologies, Reliance Jio Infocomm are major services providers.
• MPLS-VPN: To provide traffic isolation differentiation
Multi-Protocol Label Switching (MPLS) is among the commonly used methods to create
VPNs. MPLS involves setting up a specific path for a given sequence of data packets, each identified by a label, which reduces the time for a router to look up the address of the node where the data packet is forwarded to. Besides speeding up internet traffic, MPLS makes it easy for a service provider to monitor the quality of service (QoS). MPLS-VPN technology allows service providers complete control over parameters that are critical to offering customers service guarantees with regard to bandwidth throughputs, latencies, and availability. It reduces network complexity and cost for the customer, and eliminates the need for an in-house technical workforce. RailTel, Tata tele business services, Sify technologies, Reliance Jio are major services providers.
• VSAT: Very small aperture terminal (VSAT) refers to a small fixed earth station, which provides a vital communication link required to set up a satellite-based communication network. It refers to receiving/ transmit terminals installed at dispersed sites connecting to a central hub via satellite using small diameter antenna dishes (0.6-3.8 metres). Bharti Airtel limited, Hughes Escorts communications ltd., ITI ltd., Tatanet services limited, are few service providers in the segment.
• NLD: National Long Distance (NLD) service refers to carriage of switched-bearer telecommunication services over a long distance network, i.e., a network connecting different short distance charging areas, or SDCAs. Such a service provider is usually a telecom operator providing the required digital capacity to carry long distance telecommunication services within the scope of their licence, which may include various tele-services, such as voice, data, fax, text, video and multimedia, etc. Major players in the NLD space are BSNL, Bharti Airtel, Mahanagar Telephone Nigam Ltd, Power Grid Corporation of India Ltd, Reliance Jio Infocomm,
Tata Communications and Vodafone Airtel, including RailTel Corporation of India Limited.
• ILD: International Long Distance (ILD) service is defined as a network carriage service, providing NLD operators in the country international connectivity, by connecting to network facilities operated by foreign carriers in other countries.
It involves setting up of undersea fiber cables to transmit voice and data globally. It provides most services an NLD licensee would provide, but internationally. Major players operating with
ILD licence are AT&T Global Network Services India, Bharti Airtel, BSNL, Reliance Jio Infocomm,
Sprint Telecom India, Tata Communications, Verizon Communications India and Vodafone Idea.
• DLC: Domestic Leased Circuits (DLC) refers to a leased circuit that is connected to a subscriber?s premises within India. The telecom service providers provide DLCs to connect two or more customer sites or customers to their own or other service provider?s network. Currently,
Reliance Jio Infocomm , Bharti Airtel, BSNL,
RailTel, Tata Communications, and Vodafone
Idea are the major players operating in the DLC business.
• IPLC: International Private Leased Circuit (IPLC) is a point-to-point private line used by an organisation to communicate between geographically dispersed offices that need dedicated international connectivity with a committed bandwidth. An IPLC can be used for internet access, business data exchange, video conferencing, and any other form of digital transmission. Currently Bharti Airtel, BSNL,
Reliance Jio Infocomm, Tata Communications and Vodafone India are major players providing international leased line services in India.
• Data Centre: A data centre is a facility used to house computer systems and associated components, such as telecommunications and storage systems. It typically includes backup powersupplies,redundantdatacommunications connections, environmental controls (like air conditioning and fire suppression), and various security devices. Data centres are essential for the continuous operation of IT services and are integral to business operations in the digital age. Data Centre services can be further classifiedinto two types: the captive model and the co-location model. Bharti Airtel, Ctrl-S, NTT, Tata Communications Sify Technologies, STT Global Data Centre, Vodafone Idea, Amazon including RailTel Corporation of India are some of the players providing data centre services in India.
2.2 Recent trends in Telecom and Telecom Data services industry in India
Currently, India is the world?s second-largest telecommunications market with a total telephone subscriber base of 1,199.28 million in March 2024 and has registered strong growth in the last decade. The Indian mobile economy is growing rapidly and will contribute to India?s Gross Domestic Product (GDP).
As of March 2024, the wireless subscribers base stood at 1,165.49 million. Total broadband subscriptions in the country grew from 149.75 million in FY16 to 924.07 million in FY24. The number of wired broadband subscriptions stood at 40.06 million in FY24. Wireless broadband subscribers stood at 884.01 million in FY24. As of March 2024, the top five service providers are Reliance Jio Infocom Ltd, Bharti Airtel, Vodafone Idea, MTNL and BSNL.
The total wireless data usage in India grew at a rate of 10% from 44,967 PB in June 2023 to 49,543 PB in
December 2023. Out of total data wireless usage, 2G data usage was 45 PB, 3G data usage was 324 PB, 4G data usage was 42,935 PB and 5G data usage was 6,239 PB during the Sept-Dec quarter. The contribution of 2G, 3G, 4G and 5G data usage in total volume of wireless data usage are about 0.09%, 0.65%, 86.66% and 12.59% respectively during the Quarter EndingDec-23.
Below are the key emerging trends that are essential for telecoms in the digital age and will be critical in shaping the future of the telecom industry:
5G fixed wireless access: The emergence of 5G is facilitating a ground-breaking convergence between mobile technology and the requirements of fixed-line services and pricing.
Catering to home and business needs in areas where laying and maintaining fibre is cost-prohibitive, FWA empowers network operators to provide ultra-high-speed broadband to suburban and rural regions, especially those in fibre-dark areas.
• Satellite communications: Satellite internet, or broadband, is a wireless internet connection facilitated by communication satellites orbiting the earth. Offering global coverage, it is location-independent, accessible from anywhere within the satellite range, providing a versatile and widespread internet service. Since satellite internet is location-independent and accessible from anywhere, it can address the telecom industry?s challenge of installing traditional network infrastructure in rural and remote areas with difficult terrains and issues.
In 2023, the Government of India approved the Indian Space Policy 2023, which allows non-government entities to use low earth orbit
(LEO) and medium earth orbit (MEO) satellites to provide broadband services in the country.
Jio Satellite Communications Ltd and OneWeb India Communications Pvt Ltd (Eutelsat OneWeb) have been provided with global mobile personal communication by satellite (GMPCS) licences.
• 5G application development labs: In Union Budget 2023, the Finance Minister of India announced the government?s plan to set up 100 labs in engineering institutions to develop applications using 5G services. These labs will play a crucial role in investigating possibilities across various industries, such as smart classrooms, precision farming, intelligent transport systems and healthcare. The central government has also made a provision of Rs 5.56 crore for 5G testbed in fiscal 2024.
• Investment in domestic telecom equipment manufacturing capabilities: The research and development arm of DoT — Centre for Development of Telematics — received Rs550 crore from the central government for fiscal
2024, compared with Rs50 crore in fiscal 2023. This financial commitment is anticipated to stimulate progress and creativity in the telecommunications industry, fostering advancements in technology and services.
The government?s PLI scheme for mobile, telecom and networking products aims to offer financial incentives to boost domestic manufacturing and attract investments in target segments. Such initiatives will boost the availability of equipment and devices in the domestic market, catering to both demand and supply markets. This, in turn, is expected to lower import bill and drive growth in the telecom sector.
• Green telecom: To align with sustainability and environmental protection goals, telecom companies are transitioning towards green telecom. To reduce greenhouse gas (GHG) emissions from power consumption related to tower assets, the telecom industry is exploring solutions such as distributed solar plants, lithium-ion storage plants and piped natural gas (PNG) gensets, which will help reduce diesel consumption by towers. According to TRAI, going green has become necessary for telecom operators, given that energy costs account for 25% of their operating expenses.
Amid rising environmental concerns related to GHG emissions, these sustainability initiatives in Telecom will help India achieve its Net Zero goals.
2.3 Key opportunities and Threats in the telecom services industry
The Indian telecom sector is experiencing a period of immense transformation. Fuelled by rapid technological advancements and government initiatives, the industry is brimming with exciting opportunities. From large-scale job creation and the establishment of manufacturing hubs to the embrace of next-generation technologies like 5G and 6G, the sector is poised for significant growth.
However, this growth trajectory is not without its challenges. Cybersecurity threats, financial scams, and a complex regulatory landscape pose significant risks that need to be addressed. This analysis will delve into both the key opportunities and threats shaping the future of the Indian telecom sector, providing a comprehensive overview of the industry?s current landscape.
2.3.1 Opportunities
a) Employment Boom: The Indian telecom sector is experiencing rapid growth, making it a top five battery charger production alone is expected to generate a whopping 800,000 jobs by 2025. Additionally, self-sustainability in telecom gears and associated equipment is becoming a large industry. This presents a significant opportunity for skilled professionals to contribute to India?s digital transformation and build fulfilling careers in various telecom-related fields.
b) InnovationThrough5Gand6G:India?sembrace of next-generation wireless technologies like 5G and its focus on developing 6G opens doors for groundbreaking advancements. This fosters innovation in areas like high-speed data transmission, low latency communication, and the potential for entirely new applications. It presents opportunities for companies and researchers to develop cutting-edge solutions that leverage these technologies. This will provide a high speed quality infrastructure for other sectors to innovate.
c) Semiconductor Technology Integration: The semiconductor technology will play a crucial role in the telecom sector?s evolution and will create significant opportunities for companies in this field to develop efficient chips that can handle the ever-increasing demands of future networks. This includes advancements in areas like radio frequency (RF) and millimetre-wave technology, enabling faster data processing and improved network performance.
d) Growing Cybersecurity Importance: As India?s reliance on digital technologies increases, the need for robust cybersecurity measures becomes paramount. This creates opportunities for companies specializing in cybersecurity to develop and implement advanced solutions to safeguard critical infrastructure, networks, and customer data. This includes areas like network security, threat detection, and data encryption to ensure a secure digital environment.
e) Over-The-Top (OTT) Services: The growing popularity of OTT platforms like Netflix and
Disney+ Hotstar creates opportunities for telecom companies to offer bundled services that combine internet access with OTT subscriptions.in the country. ThisThe can attract new customers and generate additional revenue streams.
f) Enterprise Services: Telecom companies can cater to the growing demand for enterprise solutions like cloud computing, Software-
Defined Networking (SDN), and Managed Services. This offers them a chance to expand their business beyond individual consumers and tap into the lucrative corporate market.
g) FinTech Integration: The convergence of telecom and financial technologies (FinTech) presents exciting possibilities. Telecom companies can partner with FinTech players to offer mobile payment solutions, digital wallets, and other financial services, expanding their reach and attracting a tech-savvy customer base.
h) Data Analytics and Big Data: As data usage increases, telecom companies can leverage their vast data troves to offer data analytics services to businesses. This can provide valuable insights into customer behaviour and market trends, helping businesses make informed decisions.
i) Internet of Things (IoT) Solutions: The growth of IoT devices creates opportunities for telecom companies to offer specialized connectivity plans and data management solutions for these devices. This can cater to various sectors like smart homes, agriculture, and industrial automation.
2.3.2 Threats
The Indian telecom sector is on an exciting trajectory with the rollout of 5G services and increasing internet penetration. However, this growth comes alongside a set of challenges that threaten its stability and sustainability. Here are some of the key threats:
(Source: www.cxotoday.com, www.investindia. gov.in, www.quantzig.com)
3. IT/ICT Industry
ICT refers to a range of technological applications used to transmit and process information. Information, Communication, and Technology are combined to produce the term ICT. The market is segmented based on the type (hardware, software, IT services, and telecommunication services), the size of enterprises (MSMEs and large enterprises), the industry vertical (BFSI, IT and telecom, government, retail and E-commerce, manufacturing, energy and utilities, and other industry verticals) across India. The Information and Communication Technology (ICT) sector contributes over 13 percent to the country?s Gross Domestic Product (GDP) and India?s digital economy generates about USD 200 billion of economic value annually from business process management (IT-BPM), e-commerce, domestic electronics manufacturing, digital payments, digital communication services (including telecom), etc. By 2025, India is expected to have an overall digital economy of about USD 800 billion. According to KPMG, the market size of India?s ICT industry is currently estimated at USD 180 billion and projected to grow to USD 350 billion by 2025. The market breakdown by category is: IT services (52 percent), ITeS BPM (19 percent), Engineering and R&D Software (20 percent) and Hardware (9 percent). India?s information and communication technology sector is indeed booming. The success is hard-earned via deploying multiple government initiatives and overcoming numerous challenges, including the development of adequate digital infrastructure, bolstering policy, legal and regulatory framework, enhancing rural connectivity with ‘broadband for all,? digital literacy, ensuring data security, sustainable innovation, and fostering public-private partnerships.
• India is considered one of Asia?s largest and fastest-growing markets for digital consumers, yet adoption among businesses is mixed. As digital capabilities increase and connectivity becomes ubiquitous, digital technology is poised to rapidly drive every sector of the Indian economy. Building a digital infrastructure is a fundamental approach for countries to advance their digital value chains.
• India?s e-commerce market is one of the fastest growing in the world, and it is expected to reach USD 1 trillion by 2030 from USD 175 billion in 2022. The e-commerce market includes business-to-consumer, business-to-business, software as a service, online travel, online media, online food delivery, edtech, health-tech, online ride hailing, and others. India has emerged as a preferred destination for e-commerce due to its large consumer base, diverse demographics, low-cost digital infrastructure and services, and supply chain ecosystem.
• FinTech and Digital Finance in India is one of the world?s fastest-growing financial technologies markets. Digital payments are the primary driver of growth in this sector, followed by digital lending and other tech-enabled financial services. According to Invest India, the Indian FinTech market is expected to grow to USD 150 billion by 2025 from USD 50 billion in 2021. According to India?s central bank and regulator of payment systems, the Reserve Bank of India, total digital payments were recorded as 11.9 billion in volume and USD 2.4 trillion in value in June 2023. The regulator has taken several measures contributing to the evolution of the FinTech ecosystem in India, recognizing its importance to the growth of the Indian economy.
India ranked tenth in the International Telecommunication Union?s Global Cybersecurity Index 2020. According to Gartner, India?s security and risk management spending is expected to reach USD 2.65 billion in 2023 from USD 2.44 billion in 2022, an increase of 8 percent. Security and risk management products and services include application security, cloud security, consumer security software, data privacy, data security, identity access management, infrastructure protection, integrated risk management, network security equipment, and security services. Leading industry sectors driving cybersecurity growth are banking, healthcare, insurance, capital markets, and critical information infrastructure such as energy, oil and gas, defence, transportation, and telecommunications.
4. Government Initiatives for Telecom Industry
The government in the Interim Budget of FY 2024-25 has allocated 1,11,876.6 crores for the Department of Telecommunications, which is 14.64% increase over the budget allocated in FY 2023-24 and
13.74% over the revised estimate for 2023-24. The allocation is 2.3% of the total budget of the central government. The Government has fast-tracked reforms in the telecom sector and continues to be proactive in providing room for growth for telecom companies. Some of the key initiatives taken by the Government are as follows:
• To bridge the digital divide, an initiative has been launched to equip rural tribal populations under the Particularly Vulnerable Tribal Groups (PVTGs) Development mission which provides facilities including telecom connectivity, aiming to improve socio-economic conditions in rural areas.
New tariff lines are also proposed to be created, which will help in better identification of products, including telecom products potentially leading to more informed consumer choices.
• To increase manufacturing of telephones, relief in customs duty will decrease the cost of phones, increasing demand and boosting the telecom industry.
• In a bid to enhance ease of doing business in the telecom sector, the Department of Telecommunications (DoT) in March 2024, announced a regulatory sandbox policy to give easy permission for spectrum needed in any kind of trials of equipment and research and Development (R&D).
• The Government of India intends to establish one hundred labs for creating applications using 5G services in engineering universities as part of the Union Budget 2023, in order to realize a new range of possibilities, business models, and job potential.
As of March 2023, the PLI scheme for Large-Scale Electronics Manufacturing (LSEM) attracted investment of Rs5,998 crore (US$ 726.77 million) and led to a total production of Rs2,76,903 crore (US$ 33.55 billion), including exports of Rs1,28,886 crore (US$ 15.61 billion).
• To drive the development of 6G technology, the Department of Telecommunications (DoT) has developed a sixth generation (6G) innovation group.
(Source: www.ibef.org & www.financialexpress. com)
5. Govt Regulation and Reforms
The liberal and reformist policies of the Government of India have been instrumental along with strong consumer demand in the rapid growth of the Indian telecom sector. The Government has enabled easy market access to telecom equipment and a fair and proactive regulatory framework, which has ensured the availability of telecom and ICT services to consumers at affordableprices. The deregulation of
Foreign Direct Investment (FDI) norms has made the sector one of the fastest growing and the top five employment opportunity generator in the country. Few of the reforms in FY 2023-24 are as indicated below:
The Digital Personal Data Protection (DPDP) Act 2023 became law in August 2023, aims to protect the privacy of Indian citizens and safeguard personal data in the context of a globally interconnected digital economy. It sets obligations for entities that process data with an emphasis on individuals providing consent for data use and provides safeguards for children?s data. The Act allows for cross-border data transfers and adopts a more permissive approach than previous iterations, granting the government power to note specific countries where data transfers will not be permitted.
• The DPDP Act, applies to the processing of digital personal data within the territory of
India collected online or collected offline and later digitized. It is also applicable to processing digital personal data outside the territory of India, if it involves providing goods or services to the data principals within the territory of India.
DPDP Act underlines the role of significant data fiduciary (SDF), which the government will identify using the volume and sensitivity of personal data processed and risk associated.
The specific obligations under this include appointing a data protection officer (DPO) based in India; appointing an independent data auditor; and conducting a data protection impact assessment (DPIA).
• The Act will empower the citizens of the country as the data principal rights specifically allows, Right to Information, Right to correction and erasure, Right to nominate and Right to grievance redressal.
The Telecommunications Act, 2023, modernises legal framework by replacing outdated laws of 1977 to better address current telecom challenges, including digital services and cybersecurity and implements stringent security protocols to protect telecom networks from cyber threats and unauthorized access
• Authorisation will be required from the central government to: (i) establish and operate telecommunications networks, (ii) provide telecommunications services, or (iii) possess radio equipment.
• Spectrum will be allocated through auction, except for specified entities and purposes for which it will be assigned administratively.
• Telecommunication may be intercepted on specified grounds including security of the state, public order, or prevention of offences
Telecom services may be suspended on similar grounds.
• The Act provides a mechanism to exercise the right of way for laying telecom infrastructure in public as well as private property.
• The central government may provide measures to protect users such as requiring prior consent to receive specified messages, and creation of do not disturb register.
6. RailTel – An Overview
RailTel Corporation of India Ltd is a "Mini Ratna
(Category-I)" CPSE formed in the year 2000 as a ‘Schedule A? CPSE, under the Ministry of Railways, in line with National Telecom Policy-?99. RailTel has seamless Right of Way (RoW) along 67,956 KM of Railway Track passing through 7325 stations across the country. We are one of the largest neutral telecom infrastructure providers in the country owning a Pan-India optic fiber network.
RailTel?s high speed OFC Backbone Network shall ultimately cover the entire railway network across the country. In high bandwidth backbone segment on a secured and distinct right of way, RailTel occupies a proud place with its unparalleled network. The network has the ability to provide the mission critical customized connectivity platform for enhanced corporate creating Point of Presence at every Railway station enroute which are spaced at 8-10 Kms. The network is spread along the length and breadth of the country covering all the important and major cities including small towns. With the spread and reach, RailTel is in a position to serve 70% of the country?s population. With its collaborative RailWire retail broadband platform, RailTel is able to extend its offering of reliable broadband services to number of retail and enterprise customers across the country. RailTel is having an Optical Fiber Cable network of 62,000+ RKM spread across the country. The access network of RailTel in cities and towns spans to another 21000+ kms and helps deliver high speed reliable connectivity to close to 758 institutes of higher learning like IITs, IIMs, IISC, SAC,
Snapshot of RailTel?s 5 year performance
Agricultural and research institutes and universities across the country.
We take pride in sharing that RailTel remains the ONLY consistently profitable, consistently dividend paying company in Telecom space under the Govt. of India.
7. Network Architecture:
RailTel?s OFC based network is designed in a defined hierarchical form with Core, distribution and edge layer. RailTel?s OFC based communication system comprises of various technologies and is capable of delivering telecom services to its customer with high SLA (Service Level Agreement) With the presence of high speed, resilient and state growth.of the art telecom network, backed with differentiated
Right of way (RoW), RailTel is capable of delivering high SLA services to its esteemed customers. RailTel is a continuously growing company, technically and financially, to meet all the present and future Telecom and IT requirements of government and private sectors including those of Indian Railways. RailTel has Pan India Telecom Network with capability of Service delivery from 2Mbps to 800 Gbps links. RailTel Network comprises various technologies viz. Synchronous Digital Hierarchy (SDH), Packet Transport Network (PTN), Dense Wavelength Division Multiplexing (DWDM), Internet Protocol- Multi Protocol Label Switching (IP-MPLS) which are maintained by round the clock Network Operation Centres and trained field manpower. Total 11000+ Backbone & Access PoPs are available. All the equipment provided on the network are of State-of-the-Art Technology and are as per International Telecom Standards. The glimpse of various networks is as follows:
• SDH (Synchronous Digital Hierarchy) Network: Presence across the nation (Pan India) with more than 4500 nodes. The network is capable of providing various services from 2 Mbps to 10 Gbps. The Network covers all major cities of India and provides high availability of synchronous services.
• PTN (Packet Transport Network) Network:
Pan India presence with more than 400 nodes. The network is capable of providing various services like 1G and 10G. The Network covers all major cities of India and provides high availability of packet services.
• DWDM Network: Pan India presence with more than 500+ OADM (Optical Add/Drop Multiplexer) nodes. The network is capable of providing various services like 10G, 100G, 200G and 400G. The Network covers all major cities of India and provides high availability of services.
• IP-MPLS Network: Pan India presence with Four Tier Architecture and High availability (1+1) of tier-1 nodes. The network is capable of providing services with granularity from 1 Mbps to 100 Gbps. The Network covers all major cities of India and provides high availability of services.
8. Data Centre Services.
Strength,control,andpeaceofmindarefundamental to hosting, and these are precisely what RailTel?s customers experience when they entrust our seasoned and certified DC Operations team with their hosting requirements and challenges. RailTel operates its own data centers strategically located in Secunderabad and Gurugram. Our holistic data center solutions encompass transformation and systems management, hosting and colocation services, and the establishment of secure and energy-efficient infrastructure environments. Both of our data centers hold Tier-III certification from the Uptime Institute USA. Notably, the Secunderabad data center is RailTel?s and Indian Railways? inaugural data center, and the eighth in the country to receive Tier-3 certification for design and facilities from the Uptime Institute USA. Furthermore, our proprietary cloud service, RailCloud, is empanelled as CSP (Cloud Service Provider) with the Ministry of Electronics and Information Technology (MeitY), Government of India, solidifying our commitment to providing reliable and cutting-edge cloud solutions (IaaS and PaaS).
Leveraging state-of-the-art SOC components, we ensure compliance and robust protection for organizations.
f) Hosted e-Tendering Services: RailTel provides online tendering services named e-Nivida, enabling efficient and transparent procurement processes for organizations.
RailTel Data Centers serve as trusted hubs for numerous government agencies and Public Sector Undertakings (PSUs), offering a secure and reliable environment for hosting their IT applications. In addition to hosting services, our data center customers also benefit from leased line and internet services to support their users. As organizations accelerate their digitization efforts, the demand for data center environments is growing exponentially. Recognizing this trend, RailTel is at the forefront of meeting this demand. The advent of hybrid cloud has become the standard for IT-savvy organizations, where workloads are distributed across two or more data center environments to enhance application resiliency and ensure business continuity. RailTel is well-equipped to support this evolving landscape, providing robust solutions tailored to the specific needs of each organization, while upholding the highest standards of security and reliability.
9. New Initiatives:
RailTel has embarked on several new initiatives to expand its services and contribute to India?s digital infrastructure. These initiatives reflect RailTel?s commitment to leveraging its extensive telecommunications network for broader socioeconomic benefits. Here are some of the key new initiatives:
9.1 Hospital Management Information System
RailTel has implemented the work of Hospital Management Information System over 710 health units including 129 hospitals and 581 polyclinics of Indian Railways (IR). This is an integrated clinical information system for improved hospital administration and patient health care for providing an accurate, electronically stored medical records. Thefeaturesofthesoftwareextendfromcustomizing clinical data according to the departments and laboratories, multi hospital features that provide cross consultation, seamless interface with medical and other equipment and the patients will have the benefit of accessing all their medical records on their mobile device. There are about 34 modules of HMIS which include Clinical, Administrative, Patient Services & Ancillary Modules viz OPD, IPD, Labs, Pharmacy, Referrals, Medical Examinations, Sick-Fit Certifications, Reimbursement of Medical Claims etc.
The open source HMIS software has been deployed over the cloud. This platform is linked to the unique medical ID of employees for which about 50 lacs UMID cards have been issued to the regular employees, pensioners and family members. IR HMIS (Hospital Management Information System) has achieved a remarkable milestone of successfully reaching 1 crore prescriptions, collaborating with 710 health units in 18 months This incredible achievement is a testament to the dedication and commitment of the entire HMIS team, as well as the trust and support of healthcare professionals and patients alike. With an average of 50,000 prescriptions per day,
HMIS is making a significant impact on patient care, streamlining processes, and ensuring efficient healthcare delivery. Our innovative system is empowering hospitals to provide top-notch medical services, while also enabling seamless collaboration among healthcare providers. Upon success of above, RailTel has s received the work order from Municipal Corporation of Greater Mumbai for Supply, Installation, Testing, Commissioning, Operations & Maintenance of HMIS for Health units of Birhanmumbai Municipal Corporation (BMC).
9.2 Security Operation Centre
With the world going digital, it is becoming increasingly important to safeguard your data from cyber security threats. To provide a centralized and consolidated cyber security solution to organizations, RailTel has set up a Security Operation Centre (SoC) at Gurugram.
We provide onsite and offsite cyber security incident prevention and security event monitoring services RailTel?s Security Operations Centre as a Service (SOCaaS) proactively addresses the increasing threat to Data Security with detection and response capabilities. The security information and event management solutions.
The services provided through SoC are Endpoint detection and response, which provides host level telemetry for both near real-time as well as forensic investigation, Network traffic analysis used to investigate alerts and obtain additional context about suspicious activity in the network, Packet capture for forensics, Sandbox for malware analytics, Vulnerability assessment tools, Web application and network firewalls and Auto ticketing tool.
9.3 Railway Station Wi-Fi Services
RailTel is transforming Railway stations into Digital hubs by providing public Wi-Fi at all Railway Stations. 6112 stations are live with RailTel?s RailWire Wi-Fi. This is one of the largest and fastest public Wi-Fi networks of the world being accessed by close to average 50 lakh unique logins per month. Passengers use this facility for streaming High
Definition (HD) Videos, download of movies, songs, games, and do their office work online.
The Station Wi-Fi was so popular with Railway users and the community around Railway stations that it generated global and domestic media attention.
9.4 Wi-Fi Monetization:
RailTel has entered into consortium with private players to build, integrate, and manage complete monetization of RailTel Wi-Fi and will be responsible for getting Digital Advertisements, run them and share minimum guarantee amount with RailTel. Awareness campaign (including Video & Audio) by partner at stations is in progress to access free Wi-Fi at stations. This scheme involves minimum guarantee income to Railways and convenient services to millions of users daily.
9.5 Video Surveillance System (VSS)
RailTel is also executing provision of IP camera-based Video Surveillance System at 5102 railway stations. This will go a long way in enhancing the safety and security of the passengers travelling over the IR network. RailTel is also integrating the various standalone video surveillance systems installed at various stations by respective zonal railways so that the video recordings can be seen and monitored at the Divisional and Zonal head quarter level centrally.
Under the project, all cameras to be provided in station premises will be networked on optical fiber cable and brought to a centralized place (CCTV control room) from where they shall be viewed on multiple LCD monitors by Railways security personnel. The system shall provide high capacity storage devices at stations to store recording of
CCTV footage for a defined period. Work has been completed at 444 stations.
9.6 NICs e-office application
RailTel has completed the work of implementing
NICs e-office system for Indian Railways. NICs e-office project is a Mission Mode Project (MMP) under the National e-Governance Programme of the Government of India. The project aims to usher in more efficient, effective and transparent inter government and intra-government transactions and processes. NICs e-office has been implemented all 250+ Units of Indian Railways. As of now, more than 1.50+ lakh users of Indian Railways are using e-Office application, 30+ Lakh e-files have been created and 3.45 Cr receipts have been generated.
E-office has proven to be boon in a crisis time and part of Railway workforce was able to WORK FROM HOME, which would have been impossible in case of manual filing system. With the success of implementing NICs e-office in Railways, RailTel has rolled out NICs e-office in 85 organizations comprising of attached/Sub-ordinate/autonomous bodies under Central Ministries /Departments, State Governments, Public Sector Undertakings (Centre/ State), in partnership with NIC/NICSI including hosting on RailTel?s cloud.
9.7 Modernization of Railway Control and Command Signalling System
RailTel Corporation of India Limited has been awarded the work of replacement of old mechanical signalling equipment with state-of the-art electronic interlocking system at 26 stations of Northern Railway. The existing mechanical signalling systems are using lever frames to both lower the signal and change the tracks. The new Electronic Interlocking signalling system will now enable lowering the signal and changing of tracks by click of a mouse and will enhance safety and improve train operation. Work on Electronic Interlocking at 11 stations has been commissioned. RailTel has also received work order from South Central Railway for - comprehensive signalling and telecommunication works for provision of automatic block signalling system in Yermaras-Nalwar section of Guntakal division in South Central Railway.
RailTel is also working closely with Railways to modernise signalling and train control systems through adoption of intelligent and modern control and command signalling systems.
9.8 Tunnel Communication
RailTel has been actively involved in implementing tunnel communication systems to enhance safety and connectivity in challenging railway tunnels. RailTelhasundertakenseveraltunnelcommunication projects, including: Castle Rock-Kulem Section of Hubli division in South Western Railway, Panvel-
Karjat, Karjat-Lonawala and Kasara-Igatpuri section of Mumbai Division in Central Railway, Bairabi-
Sairang section of Lumding Division of Northeast
Frontier Railway, Dharam-Banihal Section-installing an Integrated Tunnel Communication System in this section of the Jammu and Kashmir Rail Link project.
Katra-Dharam Section-same system in this section from Konkan Railway Corporation and Katra-
Banihal Section- where, RailTel is implementing tunnel communication for the entire section.
9.9 G20 Summit, New Delhi
During G20 Summit held at Pragati Maidan, New Delhi in September 2023, RailTel played a crucial role by delivering integrated telecom solutions. RailTel and its partners established state-of-the-art mobile network infrastructure and a neutral in-building telecom infrastructure, significantly improving mobile coverage across the 122-acre ITPO campus. Wi-Fi infrastructure was strategically placed in outdoor corridors and various halls designated for G20 events, seamlessly integrated with the indoor Wi-Fi infrastructure.
RailTel also addressed cybersecurity concerns by deploying necessary security solutions to safeguard the network. Additionally, the company provided end-to-end bandwidth to integrate camera feeds from Bharat Mandapam, Rajghat, New Delhi Parliament Street, and other locations to the Delhi Police HQ at Jai Singh Marg.
9.10 AI/IOT based services:
RailTel is working on AI enabled OFC acoustic sensing based intrusion detection system on Indian Railways like movement of elephants in forest areas crossing Railway lines, which may be upgraded to pre-warn railway controllers for any impending landslide or river bank erosion which may cause disruption to railway traffic. RailTel is also working on provision of AI/ML powered digital twin for safer, efficient and future ready train traffic.
9.11 Edge Data Centres
Today, more applications are moving to the cloud, and multiple clouds are being deployed. With the explosion of end-points, mobility, and nomadic computing, the volumes of data used for analytics, machine learning and automation can result in high costs to transport to central locations for processing. Therefore, traditional service provider architectures can no longer meet modern needs. At the same time, connecting the network has become critical in delivering high-quality experiences, application performance, and security across data, services, and applications. To solve these issues, a new services edge architecture is emerging that is based on distributing computing capacity to the edge of the network. This architecture results in lower latency with respect to subscribers.
The edge computing services architecture benefits span the entire ecosystem of applications and service providers, network operators, enterprises, and consumer customers. In the ecosystem, one might have a business-to-business (B2B) model where the service provider develops products/ services that are consumable by other businesses.
Edge computing not only benefit a specific sector(s), but impacts any area of life which interacts with IoT devices.
Edge Data Centre is envisaged to become a unique medium of connectivity between Data Centres which will not only provide necessary Data Connectivity and IT management services to the users but will also reduce latency. RailTel has been in the forefront of building innovative platforms and solutions and vision to build range of Information and Communication Technology (ICT) Solutions so as the fruits of data revolution and technology lead economy are also shared with residents in semi-rural and rural areas of India and thus contributing in pushing up the digital literacy and digital skill numbers in those areas. To pace up the phenomenon, it is pertinent to bring the data near to these area for better experience and adoption of digital aspect by residents. Among many solutions, this requires creation of "Edge Data Centres" across India near semi rural and rural areas.
RailTel is setting up 102 Edge Data Centres across pan India. The rising demand for Edge data centers services is driven by IoT, big data, AI, cloud, OTT streaming, and 5G technologies as they provide reduced latency, real-time analysis, enhanced performance and business agility.
10.0 R&D and Innovative Initiatives
RailTel is continuously improving its services and developing new projects and thus involved in various R&D and innovative initiatives to improve services. During financial year 2023-24 RailTel has spent Rs7.25 Cr towards following initiatives:
WhatsApp Chatbots: One of the key innovations done by the RailTel team is the development of WhatsApp chatbots for enterprise customers and Fiber cut incidents. These chatbots enable the users to interact with RailTel?s systems and get updates on their tickets and issues through the popular messaging platform WhatsApp.
PoP Inspections Portal and Mobile App: This is another innovative initiative by the RailTel?s team, which is the digitization of the PoP inspections process. The PoP inspections are the physical inspections of the points of presence (PoPs) where RailTel?s network equipment and devices are installed. The PoP inspections are essential for ensuring the security, safety, and performance of the network. This not only saves time and energy but also save travelling in-person travelling in turn reducing carbon footprints.
Wi-Fi Service Level Tester: The CNOC IT team has also developed an automated Wi-Fi service level tester that simulates user behaviour and captures the entire authentication flow, from entering a mobile number to receiving and entering the OTP, and subsequently checking internet connectivity. This system helps in service level monitoring of WiFi network and ensures better uptime and quality of service. The system also generates reports and alerts on the Wi-Fi service level status and performance.
Disaggregated Open Routers (DORs): RailTel has implemented Disaggregated Open Routers
(DORs) with IPoDWDM in RailTel MPLS Network. Disaggregated Open Routers (DORs) is configured as MPLS LSR Router and same is connected with Juniper ACX -7024 for service delivery of MPLS services. DORs create enormous potential for innovation while driving down prices.
Development of "Secure Workplace Platform": considering the cybersecurity risks and their mitigation, a new challenge has emerged: identifying the required solutions from the plethora of tools available in different domains. These tools sometimes leave us confused about what to protect and how to pinpoint the attack vectors of concern. Additionally, cybersecurity tools are becoming very expensive for SMEs/MSMEs and various government departments.
Targeting the security scope as most vulnerable involvesfocusingonthemostexposedareas.Thetwo most exposed domains are endpoint systems and web applications. Protecting endpoints, which are highly diversified and dynamic due to vulnerabilities from OS, applications, phishing, malware, and more, is crucial. Basics like hardening systems, maintaining system hygiene, and implementing secure practices are difficult due to BYOD systems and the lack of consistency in following secure practices.
To address these concerns, the "Secure Workplace Platform" has been designed and developed with transparency in security implementation. This secure environment enforces end-users to perform office work on a safe and globally recognized checklist of hardened OS. The use case of this collaborative platform is to create an air-gapped environment for secure network resources, remote browser isolation, and secure internet access to critical resources while monitoring and recording the complete session without additional resource overhead. This is particularly beneficial for organizations where cost is a primary concern.
11. Existing Services
While the new areas of business open additional avenues for RailTel, RailTel continues its focus on the present services being offered.
11.1 NLD Services
RailTel?s NLD services are marked by a commitment to expanding and enhancing India?s telecom infrastructure. With a focus on high-capacity, reliable, and scalable connectivity solutions, RailTel continues to support the digital needs of enterprises, government bodies, and other organizations across the country. Their strategic initiatives and robust network infrastructure make them a critical player in India?s telecommunications sector. RailTel has generated 590 crore. revenue from this segment during FY 2023-24.
11.2 IP-1 Services
RailTel?s Infrastructure Provider (IP-1) services are pivotal in supporting India?s telecom infrastructure.
These services include leasing optical fiber cables, tower infrastructure, data center co-location, and providing services at Points of Presence (PoPs). The sector needs renewed focus as it is the highest bottom-line business with added advantage of extensive last mile access as a reciprocal arrangement. RailTel is also refocusing on managed services. This shall help in further consolidating its market with existing customer arrangements with all mobile operators across India to lease these sites for collocation purposes. Till Mar?24, RailTel has generated 238 crore revenue from this segment during FY 2023-24.
11.3 ISP Services
RailTel is also providing Nationwide Internet & Broadband services to all major customer segments like ISPs, Educational Institutions and various Government departments. During the year RailTel has bagged several orders from various Government departments, PSUs and educational institutes. RailWire broadband services have registered net growth of 56692 new subscribers in FY 23-24 with 5,72000+ active subscriber base on Mar? 24.
Around 9772 Local Cable Operators have partnered to provide last mile connectivity to end consumers.
Total revenue of 433 crores was achieved during
FY 2023-24.
11.4 Service to Railways
RailTel was established with the vision to modernize Railways train control, operations and safety system networks. Over the years, RailTel has implemented various telecom & IT infrastructure projects as well as various Value-Added Services for Indian Railways. This facilitated in spreading various Railways applications to remote and rural stations thus increasing customer satisfaction.
• RailNet : RailTel has provided RailNet, the intranet of Indian Railways, over MPLS VPN. RailNet connects Railway Board with all Zonal,
Divisional, Sub-divisional Hq?s Production units, CTI?s, RDSO & all other units. This secured and dedicated network is used for video conference, voice and data transfer by IR.
• Short haul connectivity (station to station): RailTel has created STM-4/STM-1 based network at every station to support data connectivity requirements from Indian Railways such as supporting the transfer of PRS/UTS/ FOIS/mission critical information along with carriage of voice traffic such as emergency communication during disaster management.
• Long haul connectivity: RailTel provides MPLS based Wide Area Network (RailNet) to support administrative data communication needs of various field organizations of Indian Railways.
The network interconnects Ministry of Railways with 18 Zonal HQs, 67 Divisions offices,
Production units, for sharing of information from all depts. RailTel is now in the process to connect all Tier-1 PRS centre on MPLS VPN connectivity with the disaster recovery site of CRIS which shall increase the reliability of these links.
11.5 Data Centre
RailTel proudly operates two UPTIME (USA) certified
Tier-III data centers with PUE between 1.5 to 2.0, strategically located in Secunderabad (2.0MW) and Gurugram (1.5 MW). These cutting-edge facilities are also empaneled by MeitY, making them the preferred choice for numerous government agencies and Public Sector Undertakings (PSUs).
Our comprehensive suite of Data Centre services includes Colocation Services, Managed Services,
Cloud Computing, Managed e-Office, Aadhaar
Authentication Services, Dedicated Solutions, and more, all offered from these state-of-the-art Data
Centers boasting a combined total gross capacity of over 6000 Sq.ft Server Farm area.
RailTel sets the industry benchmark with SLAs of 99.95% for cloud services and 99.983% for colocation services, ensuring unmatched reliability and uptime for our valued customers. Our Data Centers boast multi-layered physical security, including round-the-clock surveillance through IP CCTV systems, access control systems, very early smoke detection systems, water leak detection systems, rodent repellent systems, and building management systems.
Furthermore, our on-site power system, supported by redundant diesel generators and a N+N redundant UPS grid, guarantees the highest levels of power reliability, crucial for uninterrupted operations.
In addition to Indian Railways, numerous government customers place their trust in RailTel for their Data Centre needs. The average revenue generated from data centers is Rs70 Cr.
11.6 Telepresence as a Service (TPaaS)
RailTel?s TPaaS, an end-to-end, high-definition video conferencing service that gives users a virtual, face-to-face meeting experience was launched in January-2015. Before adoption of TPaaS Indian Railways were spending huge amount of money and man hours for meetings and events. Post adoption of TPaaS the number of travels for meetings and events has dropped drastically saving manhour, travel and lodging expenses. Extensively used for inauguration of Railway facilities across India. Being swifter, faster in decision making and crisis handling, lesser travel for meetings and events has also helped in saving significant amounts of carbon footprints. RailTel saved around 16865 carbon footprints over the year 2023-24. The service now serves 686 elite users across including 380 railway customers. The success is a result of the significant ease of use & 24x7 customer responsiveness of the RailTel team vis-a-vis the challenges faced with other service providers. The RailTel Telepresence Services have often served events for the Hon?ble Prime Minister of India, Minister of Railways, Minister of Industry & Commerce & Minister of Civil Aviation reaching out to places where making available even OB
Vans would have been difficult at short notice. The services are offered on a monthly subscription basis requiring no investment into CAPEX by the customer while obviating the recurring need for investment due to technology obsolescence.
11.7 SI Project Business
RailTel has made impressive strides in the Service Integrator (SI) business over the past year. The company successfully secured high-volume orders from a range of government agencies, such as
Coal PSUs, PCSCL, Prasar Bhari, BEPC, Navodaya
Vidyalaya Samiti, Puducherry Government, CDAC, Banks, and various strategic organizations. These accomplishments highlight RailTel?s growing influence and capability in the SI sector. Looking ahead, RailTel is poised to seize new opportunities and continue its growth trajectory in the Service Integrator business, leveraging its expertise to support more government projects and strategic initiatives.
12. Facilitating Government of India Initiatives
12.1 National Knowledge Network
RailTel plays a pivotal role in the National
Knowledge Network (NKN), a flagship initiative of the Government of India aimed at creating a high-speed digital communication network to connect educational institutions, research organizations, libraries, laboratories, healthcare, and agricultural institutions across the country. As a key implementing agency, RailTel provides the robust optical fiberbackbone required for NKN, facilitating seamless data exchange and collaboration among these institutions. RailTel has so far connected 765 higher education and research institutes such as IITs, IIMs, medical colleges, research institutions and District
Collectorate offices. RailTel is also providing Campus
Wi-Fi facilities at 26 Central university campuses.
12.2 Prime Minister Wi-Fi Access Network Interface (PM-WANI)
RailTel plays an instrumental role in the Prime Minister Wi-Fi Access Network Interface (PM-WANI) initiative, which aims to democratize internet access across India. As part of this initiative, RailTel provides the underlying infrastructure to establish public Wi-Fi hotspots, making affordable and reliable internet services accessible to the masses. By leveraging its extensive network of optical fiber telecommunications infrastructure, RailTel facilitates the deployment of Wi-Fi hotspots in urban, semi-urban, and rural areas, thereby bridging the digital divide. RailTel?s participation in PM-WANI not only supports the government?s vision of a digitally inclusive society but also accelerates the adoption of digital services, enhancing education, healthcare, and overall connectivity for millions of Indians.
13. Blueprint for the Future
In 2024, the Indian telecom sector is at the forefront of a major transformation, driven by rapid technological advancements and significant shifts in market dynamics. This year is marked by the increasing importance of semiconductor technology, which is integral to the evolution and enhancement of telecommunications. As we explore the landscape of the telecom sector, it?s essential to focus on the key trends that are shaping its future. These trends highlight the sector?s adaptation to new technological realities and consumer demands, showcasing a blend of innovation, strategic planning, and forward-thinking approaches in the industry. Considering the dynamic nature of the Telecom & IT industry, it is always pertinent to closely look into the future & work out the strategy for the company. With this aim, RailTel keeps revisiting its policies, new areas of business and new customers areas. It is pertinent to have more services under RailTel?s portfolio to cover the entire gamut of Enterprise services which shall provide further growth trajectory for RailTel. RailTel now needs to focus on value addition capabilities in the area of Data Centre centric services such as managed services & cloud, LTE (Long Term Evolution), IOT
(Internet of Things) Platform and Analytics, SOC,
KAVACH (Traffic Collision Avoidance System), etc. In some areas, these can be developed effectively using partnership models ensuring risk mitigation while delivering such services. In order to realize the vision of being the preferred telecom solutions and service provider for knowledge economy, RailTel would be following a three-pronged strategy of concentrating on optimizing the products & services bouquet, expanding the network and upgrading to a high capacity network.
Products & Services: RailTel is continuously focusing on providing value added services through partnership models supported by RailTel?s existing network and cloud for enterprise segment. RailTel is building new assets in Data Centre space and has planned a new data centre of higher capacity at Noida and 102 Edge data centres Pan India in coming years. RailTel has a dedicated new product development process that enables RailTel to roll out quality products and services in the fast-paced technology industry. RailTel is also exploring the opportunities in international business.
Network enhancement: RailTel believes that its extensive network is its key differentiator the market and hence a key value proposition in delivering services to its customers. RailTel thus plans to invest in upgradation of backbone network, upgradation of CNoC, Access network, 100G to 800G network at prominent locations through procurement of routers, power plants, chargers and state of the art latest equipment.
Cyber Security:
RailTel, leveraging its extensive telecommunications infrastructure, places a strong emphasis on cybersecurity to safeguard its operations and the vast array of services it provides. Recognizing the growing threat landscape, RailTel has developed a comprehensivesuiteofcybersecuritysolutionsaimed at protecting critical information infrastructure, ensuring data integrity, and maintaining the confidentiality of sensitive information. RailTel?s cybersecurity framework includes advanced threat detection systems, robust firewalls, intrusion prevention systems, and regular security audits.
Additionally, RailTel offers specialized cybersecurity services to various government departments and organizations, helping them secure their digital assets and comply with regulatory requirements. By prioritizing cybersecurity, RailTel not only protects its own network but also contributes to the broader national effort to build a secure and resilient digital infrastructure.
Other Services/Products: RailTel has been an implementation partner in various IT, Smart city, E-Gov projects of Central/State Govts. RailTel is also providing Consultancy for ICT services, and Aadhar based authentication services etc. Focus will also be on various Railway projects like signalling,
LTE-R, Kavach, Station modernization, Drone based services, AI/ML powered applications for safer and better tomorrow, modern control and command signalling including consultancy.
International Business:
RailTel aims to expand its international presence by exploring new markets and enhancing its service offerings. The focus areas include increasing collaboration with global partners, participating in international tenders for telecom and ICT projects, and leveraging its expertise in railway telecom to secure projects in other countries.
RaiTel is in discussion with governments like Jamaica, Bhutan, South Africa and Ethiopia for expanding its international business in the field of Telecom and
ICT services.
Organization Design: RailTel?s organisational design is continuously evolving to suit changing business needs such as the Company?s entry into enterprise IT services and execution of ICT projects & initiatives launched by the Central Government and various State Governments. Internal Processes: RailTel believes that strengthening of internal business processes is essential for efficient customer service delivery & cost for higher investments in the future. RailTel is continuously improving key business processes such as service assurance, key account management, management information systems (MIS) to improve competitiveness.
14 ESG and Sustainability
Environmental, Social, and Governance (ESG) and Sustainability are pivotal concepts in RailTel?s business and are crucial in driving responsible and ethical operations within the telecommunications, IT/ICT and railway sectors. RailTel?s commitment to ESG involves implementing energy-efficient technologies, minimizing environmental impact through sustainable resource management, and enhancing digital infrastructure to support green initiatives. Socially, RailTel prioritizes fair labor practices, community engagement, and digital inclusion, ensuring that technological advancements benefit all segments of society. In governance,
RailTel maintains transparent, accountable practices and diverse leadership to foster innovation and trust. RailTel not only mitigates risks and enhances its reputation but also aligns with goals, ensuring long-term value creation and contributing positively to economic, social, and environmental progress. On the sustainability part, RailTel emphasizes meeting its current needs without compromising the future, integrating environmental protection, social equity, and economic viability. A detailed Business Responsibility and Sustainability Report (BRSR) report is separately available in the Annual Report as an annexure.
15. Financial Performance
During the financial year 2023-24, total revenue from operations earned by RailTel is 2568 crore, Profit after Tax earned has been 256 crore and Profit before tax has been 328 crore. From NLD
(Bandwidth & VPN) services, RailTel earned 590 crore during the year. While earning from IP-1 services has been 238 crores which includes revenues from tower & rack colocation and Dark fiber leasing. While under ISP license (Internet & Broadband) RailTel has achieved revenues of 380 crores. The revenue from RailWire, broadband service of RailTel, for the year is 344 Crores.
16. Awards
During the year 23-24, RailTel received following awards for its excellent performance from various organizations:
• RailTel won the SCOPE Eminence Award in 2023-24, in the Institutional Excellence (Miniratna I & II) Category for overall outstanding performance during the year 19-20. Hon?ble Vice President of India Sh. Jagdeep Dhankhar presented the award in a ceremony at New Delhi.
• RailTel won the Dun & Bradstreet Award 2023 in the Telecommunication & Information Technology (Central PSUs) category.
• RailTel received the prestigious Governance Now PSU IT Awards 2023 in the "Cyber Security Champion? and "Cyber security and Data Protection & Data Centre Excellence" categories.
• RailTel won the Express Computer Data Centre Champion Award 2023 for Cloud Services. Through its MeitY empaneled RailCloud solution at its Tier-III Data Centres in Gurgaon and Secunderabad, RailTel is dedicated to delivering top-notch Secure Data Centre Services.
• RailTel received the CMO ASIA Awards 2023, under PSU Excellence Category, for its CSR initiative. The award was given at a gala event at Singapore which was attended by delegates from across Asia.
17. CSR Initiatives
RailTel is actively involved in meeting its social obligations through the Corporate Social Responsibility programme and is actively supporting programmes for Digital Literacy, Promoting
Education, Health & Nutrition as per DPE guidelines from time to time. RailTel contributed an amount of Rs484.49 Lakh in FY 2023-24. Following major CSR initiatives were undertaken during the year: a) Better Health of women through community SEHAT Centre at Purulia, West Bengal by raising awareness, providing accessible sanitary facilities for menstrual hygiene, distributing free sanitary napkins to women and adolescent girls, and promoting good health practices through educational sessions. Also, disseminate information on health-seeking behaviour through awareness campaigns, organize eye check-up camps. b) Mobile Dispensary to serve the Poor in SPSR
Nellore, Andhra Pradesh offering healthcare access, medical consultation, diagnosis, health education and awareness, medical dispensation, referral and follow-up to nearby healthcare facilities, health data collection. This mobile unit will diagnose individuals in need and provide free essential medications.
c) Distribution of Nutritious Food to women in Weaver?s Village in Odisha, tackling food and nutrition insecurity through a project focused on empowering women, through promoting and providing diversified nutritious foods within families, who play a crucial role in rural community development. It also aims to promote the consumption of nutritious and balanced food and to conduct awareness campaigns and counselling sessions. d) Installation of Submersible pumps in Dakshin Dinajpur, West Bengal aims at providing safe and adequate drinking water for drought-prone Tribal Schools and is dedicated to establishing community-based safe drinking water systems in schools. The project not only addresses immediate water needs but also aims to improve overall health and well-being by promoting safe hygiene practices among school children and the community. e) RailTel, is continuing its RailTel- Akansha Super 30 centre where 30 underprivileged but talented students from different corners of Uttarakhand are provided free residential lodging, coaching and mentoring for 11 months for admission in reputed engineering colleges like IIT, NIT and state engineering colleges.
18. Human Resources
RailTel has made a conscious effort to keep evolving its practices in Human Resources and providing best experience and convenience to its employees. To improve on its employee score, RailTel has implemented e-office and ERP which enables employee to perform all work-related activities online, bringing has benefitted most to the employees deputed in fields who can now work without a visit to territorial/ regional offices.
Keeping pace with the requirements of future requirements and new service diversifications,
RailTel is continuously recruiting experienced and qualified manpower from different fields.
At the end of Mar?24 total manpower strength was 858 including regular, deputationist, contractual, re-employed, consultants and Advisor.
19. Rajbhasha Initiatives
RailTel has an Official Language Implementation Committee at the Corporate Office level for the implementation of official language which regularly organizes quarterly meetings to review the use of official language at Corporate Office and as well as territory offices. All officers/employees are encouraged to do their work in Hindi using easy vocabulary. Bilingual Unicode facility has been provided in all computers/laptops available in the office.
RailTel?s official language magazine "RailTel
Pragati" had been awarded the prize under the
Best Magazine Award category by the Town Official Language Implementation Committee, Upkram-1
Delhi. It is a matter of pride for "RailTelworking.This initiative Pragati" and a tremendous achievement as Town Official Language Implementation Committee has 44 PSUs as its members.
20. Health and Safety of Employees
RailTel emphasizes its commitment in promoting holistic health and aims to empower employees to make informed choices for their well-being. Various steps and initiatives for health and safety improvement of its Human Resource were taken during the year :
• Comprehensive healthcare ecosystem, augmenting its ability to provide quality medical services to its workforce on CGHS/Special rates. 12 new hospitals were empanelled during the year to expand medical facilities available to
RailTel employees and beneficiaries.
• RailTel has continued its tradition of organizing various health-focused initiatives across different regions. From Blood Donation Camps
(26.09.2023) to Free Health Camps (23.11.2023) encompassing dental and general medical check-ups & eye check-ups.
• The company also provides consultation services of Homeopathy Doctor in Corporate
Office Premises to cater to the medical needs of the employees and their families.
• RailTel actively promotes employee well-being through a series of health talks and seminars aimed at fostering healthy lifestyles. Health Talk delivered by Founder Smt. Ruby Ahluwalia,
Sanjeevani- Life beyond Cancer on 08.07.2024.
• A session was delivered by rewound Medical Cosmetologist &, Nutrition & Cosmetics
Composition Analyst Expert on Role of Lifestyle in the Modern Era related to skin concerns on 11.07.2023.
Basic Life support training to RailTel Employees in association with Medanta Hospital on 11.01.2024.
• TB awareness on the occasion of World TB Day on 16.03.2024 & 17.03.2024.
• RailTel revised its Post-Retirement Medical
Scheme, enhancing medical benefits for retired employees. Additionally, amendments were made to RailTel?s Medical Attendance Rules, further improving the benefits for its employees.
21. Cautionary statement
Statements in the Directors Report and Management
Discussion & Analysis, describing the Company?s objectives, projections and estimates, expectations, predictions etc may be "forward looking statements", within the meaning of the applicable laws and regulations. Forward looking statements contained herein are subject to certain risks and uncertainties that could cause actual results to differmaterially from those reflected in the forward-looking statements. Actual results, performances or achievement may vary materially from those expressed or implied, economic conditions, Government policies and other incidental factors such as litigation and industrial relation. Readers are cautioned not to place undue conviction on the forward-looking statements.
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