The company is planning to invest to increase its capacity for optical fiber cables from 18 million to 33 million fibre kilometres as many telecom service providers have enhanced investments in digital network infrastructure.
December 30, 2020
Sterlite Technologies Limited (STL) has announced its plan to spend Rs 300 crore to enhance its optic fibre cable production capacity. The company is looking to explore the demand surge for optical fiber networks which is further expected to rise to nearly 25 million fibre km by 2022, given its high-speed data connectivity and 5G networks.
Mr. Anand Agarwal, Chief Executive, Sterlite Technologies Limited (STL) Group, citing a London-based business intelligence firm study, explains that: “Optic-fibre cable holds a major share of telcos’ overall digital infrastructure investment. The demand is likely to grow to 20.08 million fibre kilometers by 2021 and 24.48 million fibre kilometres by 2022,”
Moreover, with regard to the capacity expansion, STL is looking to expand for optical fiber cables from 18 million to 33 million fibre kilometres as telecom service providers have augmented their investments in digital network infrastructure.
In fact, Telecom players such as Mukesh Ambani-owned Reliance Jio, Sunil Mittal-driven Bharti Airtel, and Kumar Mangalam Birla-headed Vodafone Idea are aggressively deploying their fibre-based networks following the massive surge in data consumption, fibre-to-the-home (FTTH) focus, and the imminent fifth-generation or 5G networks.
While almost a third or 33% of the current 6.25 lakh telecom tower base is fiberized, only 2.8 million fibre kilometres (fkm) has been deployed in the country as of December 2019, as per a Delhi-based Tower and Infrastructure Providers Association (TAIPA).
Agarwal added that “We have re-initiated the capacity expansion of our optical fibre cable facility, in stages, from 18 million to 33 million fibre kilometres, which is expected to finish by June 2021.”
In view of increased data usage, and remote work culture, the capital spend by telecom operators, according to analysts, would continue to be stronger in strengthening the networks for seamless delivery of services.
