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Spice opts for optic fibre backbone in Karnataka

The cellular company has tied up with Siemens Public Communications Network Limited for the execution of the project on a turnkey basis.

As per the agreement, the 840-km-long backbone would extend from Bangalore to Belgaum and from Bangalore to Mangalore.

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The entire project is estimated to cost Rs 250 million and will be completed within a year.

According to Spice Telecom CEO Fergus Wilmer, though the capital cost of an optical fibre backbone is more as compared to microwave-based backbone, it would be cheaper in the long run.

Spice has preferred the optic fibre cable in view of the good movement of traffic on the Bangalore-Mangalore and Bangalore-Belgaum region, he said.

However, for the Punjab circle, where Spice holds a licence for cellular services, the company has not gone in for the OFC.

The optic fibre cable conforming to 'synchronous digital hierarchy' has error correcting and healing features.

As per the agreement, Siemens will also provide SDH transport products and optical terminal equipment, which will be installed at various sites as per Spice Telecom's requirements.

Being the first company to go in for OFC, Spice Telecom is also looking at leasing out its backbone services to other users.

"We are looking at leasing out to Internet providers and cable operators a few years down the line,'' said Wilmer. Spice is also open to the idea of leasing the line to its competitor JT Mobile.

Meanwhile, Siemens Public Communication Network Limited has also bid for five circles in the country.

Company Vice-President Ajay Madan said Siemens is bidding to lay OFC in basic services in Tamil Nadu, Gujarat, Punjab, Haryana and Rajasthan. The project is expected to cost $600 million over three years, said Madan.

- Compiled from the Indian media

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