RailTel has tied up with a technology firm in a bid to monetise its Wi-Fi project at more than 6,100 railway stations across the country.
The rail PSU has signed a five-year contract with a consortium led by 3i Infotech Ltd, a global information technology company based at Mumbai, RailTel said in a statement.
The other members of the consortium are Forensics Intelligence Surveillance and Security Technologies Private Ltd (FISST) and Yellow Inc.
Commercial agreement
Under the contract, the revenue will be generated by monetizing Wi-Fi footfalls in one of the world’s largest integrated public Wi-Fi networks through targeted advertisements and extending multimedia infotainment services for rail passengers.
This is India’s first multi-year commercial agreement to monetize captive customers of public Wi-Fi network through collaborative efforts, the statement said.
As per the contract, 3i Infotech-led consortium will pay Rs 14 crore per year or 40% of revenue earned (whichever is higher) to RailTel.
The revenue will be largely led by advertising and supported by content/services-based revenue and the consolidated revenue potential from the project is expected to be upwards of Rs 250 crore over five-year period, as per 3i Infotech’s estimate. RailTel’s public Wi-Fi network is now available at 6,108 railway stations across India and records more than 1.1 million unique users per day. With this collaborative deal, station Wi-Fi is set to evolve digital experience to users, the statement said.
Discussion about this post