HFCL Rewrites Playbook for Future-Proof Network Connectivity

HFCL, a prominent telecom equipment manufacturer, is poised to play a crucial role in BharatNet Phase III, emerging as the lowest bidder for contracts totaling approximately INR 8,100 crore. Independently, the company has secured a substantial INR 1,244 crore project to deploy high-speed broadband infrastructure in Punjab, along with an additional INR 746 crore for operations and maintenance over the next decade. In a conversation with Wire & Cable India, Mr. Jitendra Singh Chaudhary, Executive President – Communications, HFCL, shared insights into the company’s new opportunities and initiatives. Beyond its involvement in BharatNet Phase III, HFCL has introduced a 2 Gbps Point-to-Multipoint UBR at the India Mobile Congress 2024, offering an economical mobile backhaul solution that complements both fiber and microwave technologies, setting a new benchmark in network solutions.

Wire & Cable India: Today HFCL is a leading telecom gear maker. What factors helped shape the success story of the company?

Jitendra Singh Chaudhary: Our journey to becoming a leading telecom equipment manufacturer has been driven by several key factors. Our strategic shift from primarily being a system-integrator for telecom and government sectors, to expanding into in-house, design-led telecom products and enterprise solutions has been at the core of this transformation journey. This diversification of our customer base, coupled with our focus on developing end-to-end solutions has also been crucial for our growth story.

A strong commitment to indigenous R&D and innovation has been a cornerstone of our success. We have developed a comprehensive portfolio of digital network products, including IP/MPLS routers, L2/L3 switches, Wi-Fi access points, AI-based Unified Cloud Network Management Solutions (UCNMS), Unlicensed Band Radios (UBR), 5G Fixed Wireless Access (FWA) Customer Premise Equipment (CPE), and HFCL optical fiber cables.

Our ability to address specific market needs with innovative solutions—such as our indigenously designed UBR for 4G/5G backhauling and advanced 5G FWA CPEs—has enabled us to capture significant market share across various sectors.

WCI: How much has HFCL’s communication product line grown over the years? What is the best performing among them?

JSC: Our communications product portfolio has witnessed remarkable growth, particularly during the past two years. One of our standout performers is the UBR, with more than 5,00,000 UBR deployed across all Tier-1 operators in India and several major international operators, commanding an impressive 35% market share in the domestic market.

We are also the only Indian company to have designed and developed 5G FWA CPE, which has been supplying significant volumes to a leading Tier-1 5G operator in India. These solutions are also currently undergoing testing with other operators in domestic and international markets.

Our Wi-Fi solutions have also achieved exceptional success, with our Wi-Fi 6 solutions gaining substantial market share and being widely deployed across diverse sectors such as banking, education, hospitality, airports, and sports stadiums.

WCI: How do AI-enabled cloud services transform enterprise operations, and what benefits do they offer in terms of performance optimization, enhanced security, and scalable solutions for businesses?

JSC: AI-enabled cloud services are fundamentally transforming how enterprises manage and optimize their network operations. Through solutions like IO Canvas, and Unified Cloud Network Management System, organizations can now leverage AI-enhanced predictive analytics to monitor their networks in real-time, allowing them to identify and address potential issues before they impact business operations. This proactive approach represents a significant shift from traditional reactive management methods.

The transformation is particularly evident across three key areas. Firstly, in performance optimization AI analytics provide actionable insights, allowing IT teams to streamline workflows and automate routine tasks. This ensures continuous, uninterrupted connectivity while minimizing the need for manual intervention. For instance, the system can automatically detect performance bottlenecks and suggest optimization measures, enhancing overall network efficiency.

Second, these cloud services integrate seamlessly with network access control systems and adopt best-in-class security protocols. Real-time enforcement of security policies and continuous monitoring capabilities ensure that organizations can protect their networks against emerging threats while maintaining compliance with global standards.

Finally, with flexible deployment options—whether cloud-based, on-premises, or hybrid—businesses can scale incrementally, starting with current needs and expanding as requirements grow. This flexibility, combined with HFCL’s unified management through a single dashboard, significantly reduces the total cost of ownership while ensuring that enterprises can adapt quickly to evolving business demands.

WCI: You are targeting significant revenue from exports in optical fiber and telecom equipment. What are the major markets, and how much of total production goes to exports?

JSC: We have strategically expanded our global footprint, focusing on key markets such as the UK, the US, Europe, and Africa. To support our international growth, we have established a network of distributor partners, local offices and warehousing facilities in these regions.

In addition to exporting optical fiber cables and passive components to global Tier-1 operators across 40 countries, our active telecom products are now being shipped to more than ten countries. The growing demand for our products in international markets is fuelled by our strong OFC business presence and long-standing relationships.

Our robust go-to-market strategy combines direct sales to telcos and key ISP customers with a strong network of distributors and system integrators.

In India, partnerships with industry leaders such as Savex, Ingram, Beetel, and Iris have bolstered our distribution capabilities. Internationally, strategic alliances with the Kenton Group in the UK, NoWire in Sweden, EPS Global in Dublin, and numerous system-integration partners across different regions have played a pivotal role in expanding our customer base and strengthening HFCL’s presence globally.

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WCI: What kind of annual investment goes into R&D and quality control resources? What are some of the major innovations that HFCL has produced as a result?

JSC: HFCL’s significant investments in R&D have driven several breakthrough innovations. Another key milestone is our recently launched 2 Gbps Point-to-Multipoint UBR. Unveiled at the India Mobile Congress 2024, the UBR offers the most cost-effective mobile backhaul solution to complement both fiber and microwave. Additionally, our best-in-class IP MPLS routers are poised to play a crucial role in the successful roll-out of BharatNet Phase-III.

One of our notable achievements is being the first Indian company to integrate OpenRoaming across our Wi-Fi portfolio. Furthermore, our AI-powered IO Canvas, a Unified Cloud Network Management System, marks a significant innovation, delivering unmatched visibility and simplified network management through a single-pane-of-glass interface.

WCI: Which industries are the primary focus for comprehensive Wi-Fi managed solutions, and how is the market responding to their adoption and impact within these sectors?

JSC: Managed Wi-Fi solutions are gaining momentum in key industries such as education, banking, healthcare, and hospitality, each benefiting from tailored capabilities.

In education, these solutions are revolutionizing campus connectivity with high-density coverage, seamless onboarding, and integration with learning management systems, fostering a robust digital learning environment.
For the banking sector, security and reliability are paramount. Managed Wi-Fi ensures secure, high-performance networks that support both customer-facing services and internal operations while ensuring compliance with stringent financial regulations.

In healthcare, these solutions support critical applications by offering separate, secure networks for medical devices, staff, and patients, making them essential for modern healthcare facilities.

The hospitality industry benefits from seamless, high-quality connectivity across hotels and resorts. Features such as advanced analytics and OpenRoamingTM enhance the guest experience while simplifying network management for staff.

Across these industries, managed Wi-Fi solutions are driving significant improvements in connectivity, security, and operational efficiency, making them an indispensable part of modern digital infrastructure.

WCI: You have been serving sectors such as telecom, defence and railway. Where do your products find major applications? In future, where do you see more growth and how diverse the product demand will become? Please discuss.

JSC: We address diverse connectivity requirements across sectors, including telecom, metro railways, enterprises, and defence networks. Our telecom portfolio including solutions such as managed Wi-Fi, 5G FWA CPEs, L2/L3 switches, IP/MPLS routers, UBR solutions and UcNMS —deliver seamless and scalable connectivity. Our 5G FWA CPEs, in particular, are designed to support one of the most impactful applications of 5G networks: Fixed Wireless Access (FWA), enabling reliable connectivity for diverse and demanding use cases.

In the defence sector, HFCL has established itself as a key player by developing cutting-edge technologies, including electronic fuses, thermal weapon sights, and ground surveillance radars. A significant milestone is our strategic partnership with General Atomics Aeronautical Systems Incorporated (GA-ASI), where we are developing critical radar sub-systems for their advanced Unmanned Aircraft Systems (UAS). This collaboration underscores our technical excellence and commitment to delivering sophisticated defence solutions.

Looking ahead, we foresee significant growth across sectors fuelled by increased adoption of 5G and the transition from 5G to 6G. By aligning with India’s ‘Make in India’ initiative and collaborating with global technology leaders, HFCL will continue to diversify its product portfolio and lead innovation, driving growth across industries.

WCI: How crucial a role does sustainability play in your entire operations? How would you rate your own standing in the industry? Please discuss some of the distinct practices.

JSC: Sustainability is integral to our operations, guiding our efforts to minimize environmental impact across all aspects of the business. We prioritize energy efficiency in our solutions, designing products that consume less power while maintaining high-quality performance. Our packaging incorporates recyclable and biodegradable materials and we minimize waste by optimizing packaging designs.

Additionally, our focus on product durability, upgradability, and repairability helps lower e-waste. A key milestone in our sustainability journey is our Hyderabad facility, certified as “Zero Waste to Landfill”. This achievement reflects our dedication to sustainable practices and operational excellence.

As for our industry standing, we are proud of our initiatives but remain committed to continuous improvement and innovation. By maintaining strong alignment with global sustainability standards, we aim to lead the industry in adopting environmentally conscious practices.

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WCI: How big a role is HFCL going to play in BharatNet Phase III? Please elaborate

JSC: HFCL is set to play a pivotal role in BharatNet Phase III, a significant initiative aimed at extending high-speed broadband access to rural and remote areas of India. Along with its consortium partners, HFCL has emerged as the lowest bidder (L1) for contracts worth approximately INR 8,100 crore, including INR 6,925 crore for establishing a middle-mile fiber network in Uttar Pradesh (East and West) under BSNL’s oversight. This project includes a 10-year operation and maintenance (O&M) commitment valued at INR 4,155 crore. Independently, HFCL has also secured a INR 1,244 crore contract to deploy high-speed broadband infrastructure in Punjab, with an associated O&M component of INR 746 crore over the next decade.

In addition to its role in project execution, HFCL’s diverse product portfolio positions it as a critical supplier for the BharatNet Phase III. The company’s offerings, including IP MPLS routers with SFP pluggable, optical fiber cables, fiber connectivity solutions, and power management solutions are integral to the project. Supported by the government’s Production-Linked Incentive (PLI) scheme, HFCL’s production capabilities ensure reliable delivery of the required physical and digital infrastructure.

By aligning with BharatNet’s objective of bridging the digital divide, HFCL aims to deliver high-speed broadband connectivity to more than 250,000 gram-panchayats covering 640,000 villages. By leveraging its extensive product range and expertise, HFCL is poised to make a significant impact to the success of BharatNet Phase III, aiming to bridge the digital divide in rural and underserved regions of India.

WCI: What are some of the major challenges that have been impacting your operations? How do you see the market in the next 5 years, in terms of growth and major innovations?

JSC: Looking ahead, we see tremendous opportunities in emerging technologies. As a member of the Bharat 6G alliance, we are actively involved in developing next-generation communication technologies. Simultaneously, we are also developing Wi-Fi 7 solutions to overcome the limitations of current Wi-Fi standards.

Our vision for the next five years is to become one of the top five global OEMs for UBR and Wi-Fi end-to-end solutions by 2026. We are focused on expanding our 5G FWA solutions, developing 5G Plus and 6G technologies, enhancing our IP MPLS router portfolio, and growing our presence in the data center space.

While the rapid pace of technological advancement and increasing global competition require continuous innovation, we are confident in our ability to bridge these gaps. Our approach of leveraging strategic partnerships with leading global technology firms, investing heavily in R&D, ability to innovate quickly around unique customer requirements, and staying committed to sustainability positions us to lead the way in both domestic and international markets.