GTL Infrastructure, part of the Global Group, is setting up a Pan India network of over 25,000 towers that can be shared among the Telecom Operators. The Towers located in rural India will help bringing in connectivity at affordable prices to the poorest of poor and create a positive impact on the Indian economy.
Infrastructure sharing can be used in both the start-up phase to build coverage quickly or, longer term, to build more cost effective coverage in rural areas. Passive Elements Sharing typically involves sharing the site and mast for antenna placement. In addition to this, the power equipment, transmission equipment and antennas can be shared among operators. Passive Elements Sharing provides cost savings for site acquisition, civil works, annual site rent, transmission and operational costs for running the site. Site acquisition and site preparation represent a large part of the network rollout costs, about 20% of expenses.
In the case of active network sharing, two or more operators deploy a completely shared radio network and in some case, a partly shared Core Network. The shared radio network consists of Radio Base Stations, Radio Network Controllers, transmission, site etc.
GTL Infrastructure Ltd. Successfully completes FCCB issue of US$ 300 Million
GTL Infrastructure Limited (GTL Infra), pioneer of Shared Passive Telecom Infrastructure in India, has raised US$ 300 million, through a successful Foreign Currency Convertible Bonds (FCCBs) Issue on October 29th, 2007.
The issue lead managed by Citibank and Standard Chartered Bank, received an overwhelming response. A total of 93 Global Investors participated with confirmed orders in excess of US $ 1.102 billion, resulting in subscription of 4.41 times.
The funds raised will be used for the company’s expansion plans, and shows the confidence of the Foreign Institutional Investors in an Indian company executing a green field infrastructure project. GTL Infra is plans to roll out approximately 25000 towers across India, with a capital expenditure of US$ 1.7 Billion (Rs. 6800 Crores).
According to data collated by global accounting firm Grant Thornton, six PE deals of more than $500 million were struck in India out of which four were in the infrastructure sector including telecom infrastructure and real estate. (see private equity in infrastructure)
