Indian Railways Will Earn Rs 250 Crore By Monetizing WiFi Services Across 6000 Railway Stations! How Will It Work?


Shreya Bose

Shreya Bose

Jan 06, 2023


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.

Indian Railways Will Earn Rs 250 Crore By Monetizing WiFi Services Across 6000 Railway Stations! How Will It Work?

About the company 

RailTel is one of the biggest independent telecom infrastructure providers in India, a Mini Ratna Public Sector Undertaking (PSU) under the Ministry of Railways.

While it has provided free public Wi-Fi networks, it aims to reach more than 6108 railway stations throughout every state, city, town, and district in India.

Another goal is for station Wi-Fi plans to improve the online experience for WiFi users.

The project 

RailTel and a group managed by 3i Infotech have agreed to a 5-year contract for this project.

The potential for combined revenue is estimated to be in excess of Rs 250 crore.

The Wi-Fi Monetization Project’s potential revenue is estimated to reach upwards of Rs 1000 crore.

Goals

And it is getting closer, since over 1.1 million different users log onto its public Wi-Fi network each day.

The idea is for 3i Infotech to create and launch a super app for RailTel that will give digital advertisers and marketers the ideal platform to mass-market, local, and hyper-local content or adverts.

The Super app offers users free high-speed internet access as well as simple access to Indian Railways services and information, as well as value-added services like infotainment, e-commerce, education, and premium content offerings.

It aims to rank among the top in India in terms of users, usage, and time spent. 

Monetization 

It intends to monetise its public Wi-Fi network at 6,108 railway stations across India and records more than 1.1 million unique users per day.

This Monetization Project’s ambition is to connect “Bharat” in its totality and bring about a significant shift in the Indian railways.

Ultimately it aims to develop a media platform with a measurable and physical footprint across India.

With this collaborative deal, station Wi-Fi is set to evolve digital experience to users. 

The other members of the consortium are Forensics Intelligence Surveillance and Security Technologies Private Limited (FISST) and Yellow Inc.

Objectives

This is India’s first multi-year commercial agreement to monetize captive customers of public Wi-Fi network through collaborative efforts.

Per the contract, the revenue will be generated by monetizing Wi-Fi footfalls in one of the world’s largest integrated public Wi-Fi networks.

This will happen via targeted advertisements and extending multimedia infotainment services for rail passengers.

This project is India’s first multi-year commercial agreement to monetize captive customers of public Wi-Fi networks through collaborative efforts.

Revenue

According to the contract, 3i Infotech-led consortium will pay ₹14 crore per year or 40% or 40% of revenue earned (whichever is higher) to RailTel.

This revenue will be mostly led by advertising and supported by content/services-based revenue. 

This revenue potential from the project is expected to be upwards of Rs 250 crore over a five-year period, as per 3i Infotech’s estimate.

The consolidated revenue potential from the project is expected to be upwards of ₹250 crore over a five-year period, as per 3i Infotech’s estimate.

Public Wi-Fi

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.


Shreya Bose
Shreya Bose
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