RailTel Partners With 3i Infotech To Monetise Their Wi-Fi Project
RailTel has partnered with tech companies to monetize its Wi-Fi project at more than 6,100 railway stations. It targets ₹250 crore revenue in 5 years.
The money will be earned under the deal by monetizing Wi-Fi footfalls in one of the world’s largest integrated public Wi-Fi networks via targeted adverts and by expanding multimedia infotainment services for passengers traveling.
In an effort to monetize its Wi-Fi initiative at more than 6,100 train stations nationwide, RailTel, a PSU under the Ministry of Railways, has partnered with a technology business, the company announced on Tuesday.
According to a statement from RailTel, a consortium led by the international information technology company 3i Infotech Ltd. with headquarters in Mumbai has inked a five-year deal with the rail PSU.
Yellow Inc. and Forensics Intelligence Surveillance and Security Technologies Private Limited (FISST) are the other members of the collaboration.
According to the agreement, revenue will be earned by extending multimedia infotainment services to rail passengers and monetizing Wi-Fi footfalls in one of the largest integrated public Wi-Fi networks in the world through targeted adverts.
As per the announcement, this is India’s first multi-year commercial deal to monetise captive users of public Wi-Fi networks through joint efforts.
In accordance with the agreement, the consortium led by 3i Infotech would pay RailTel either 14 crore rupees annually or 40% of income, whichever is higher.
According to 3i Infotech’s estimation, the combined revenue potential from the project is anticipated to be upwards of 250 crore over a five-year period. The revenue will be primarily driven by advertising and backed by content/services-based revenue.
In India, there are currently 6,108 train stations with public Wi-Fi, and each day, more than 11 lakhs different people log on to use it.
According to the announcement, station Wi-Fi will advance consumers’ digital experiences as a result of this joint agreement.