RailTel, a PSU under the Ministry of Railways, has tied up with a technology firm in a bid to monetise its Wi-Fi project at more than 6,100 railway stations across the country, the company said on Tuesday.
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 in a statement.
The other members of the consortium are Forensics Intelligence Surveillance and Security Technologies Private Limited (FISST) and Yellow Inc.
Under the contract, the revenue will be generated by monetizing Wi-Fi footfalls in one of the world's largest integrated public Wi-Fi networks through targeted advertisements and extending multimedia infotainment services for rail passengers.
This is India's first multi-year commercial agreement to monetize captive customers of public Wi-Fi network through collaborative efforts, the statement said.
As per the contract, 3i Infotech-led consortium will pay Rs 14 crore per year or 40% of revenue earned (whichever is higher) to RailTel.
The revenue will be largely led by advertising and supported by content/services-based revenue and the consolidated revenue potential from the project is expected to be upwards of Rs 250 crore over five-year period, as per 3i Infotech's estimate.
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.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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