SAR Televenture, a network infrastructure provider, has entered into an agreement with Vodafone Idea (Vi) to install additional 4G small cell sites. Deployment is slated to commence in the first quarter of 2025, underscoring Vi's proactive efforts to enhance its service offerings.
According to SAR Managing Director, Rahul Sahdev, this agreement is integral to Vi's broader network expansion strategy as the telecom company begins securing vendors. He emphasized their goal which encompasses fostering a deeper partnership with Vi and highlighted the smooth operations exhibited following the company's recent fundraising efforts. Sahdev refrained from disclosing the financial details of the agreement with Vi.
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SAR, a newcomer in the telecom tower sector, intends to invest INR 42.5 crore to construct 1,000 new towers. Their strategy includes securing additional tenancies from Vi and state-owned BSNL, aligning with both providers' extensive network expansion initiatives.
According to Vi’s regulatory filing, the company plans to deploy 26,000 new 4G sites, enhance the capacity of its current 40,800 4G sites, and establish 22,000 new 5G sites within the next two years. Setting up a 4G site costs INR 14.5 lakh, with INR 13 lakh designated for equipment and the remainder for services.
Sahdev emphasized that micro sites present a novel and promising opportunity in India, offering a stark contrast to the traditional approaches of major tower companies like Indus Towers and Brookfield's ATC. These large companies primarily focus on deploying macro sites, which are designed to cover extensive areas of up to 10 kilometers. In contrast, small cells cater to more localized coverage, typically within a radius of 9 meters.
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Sahdev explained that small cells represent a low-investment business model, making them an attractive option for telecommunications providers. Unlike the significant capital required for macro sites, small cells can be deployed with a relatively modest investment. This cost-effectiveness is particularly appealing in the Indian market, where rapid urbanization and increasing data consumption demand efficient and scalable solutions.
Moreover, Sahdev highlighted the financial viability of small cells, noting that even with a single tenancy, these installations can begin to yield returns on investment within just 24 months. This quick turnaround time for profitability further underscores the potential of small cells to revolutionize telecommunications infrastructure in India. By enabling targeted coverage in densely populated urban areas, small cells can enhance network performance and user experience, paving the way for more robust and reliable connectivity across the country.
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