Data usage in telecom networks is increasing by every quarter and if the current usage pattern is anything to go by, urban areas will need strengthening of the telecom infrastructure, according to Bharti Infratel, the telecom tower company.
Addressing a conference ahead of the initial public offer, Rakesh Bharti Mittal, Chairman of Bharti Infratel, said the data usage is going up by 20 to 25 per cent per quarter and the adoption of 3G is set to accelerate.
In fact, the roll out of 4G services in some select circles shows that within two years 4G networks will proliferate. However, this will require upgradation at the operator level, infrastructure and handsets that meet 4G norms.
"Our research shows that 4G services are very effective within a radius of about 350 meters. That means, we will have to significantly upgrade existing networks," he explained.
Mittal said, "Operators have stopped taking up tower infrastructure and prefer third party service providers, a global practice. This is where there is immense scope for a company like ours which is serving most operators in the country."
The company, which is raising up to Rs 4,500 crore on upper band through IPO, expects to deploy a capex of Rs 1,100 crore in the setting up of over 4,800 new towers, upgradation of network and related issues over next 30 months.
Mittal hoped that Bharti Infratel IPO will trigger interest in other companies to hit the market. The company’s public offer is set to hit the market on December 11.