RailTel looks to monetize Wi-Fi provided at railway stations

State-run RailTel Corp. of India Ltd is exploring the option of charging passengers for using public Wi-Fi services at railway stations, ahead of its ₹700-crore initial public offering (IPO) slated for early next year, a person aware of the matter said.

While customers can use low-speed internet for free, those seeking higher download speeds will have to pay according to the plan they choose, the person said, requesting anonymity.

While customers can use low-speed internet for free, those seeking higher download speeds will have to pay according to the plan they choose, the person said, requesting anonymity.

RailTel has so far set up public Wi-Fi hotspots at 5,848 railway stations. After a pause following the pandemic, the company resumed work to install networks and infrastructure at more stations. “With businesses and activities coming to normalcy, we have restarted the implementation work, and endeavour to catch up on the time lost and complete the work in remaining locations. We are exploring avenues to monetize the networks,” the person said.

RailTel saw an “uptrend” in user interest for Wi-Fi services at railway stations. The project, which was stalled for a few months due to curbs on the movement of equipment and manpower during the lockdown, seems to have done fairly well, considering that similar public Wi-Fi initiatives by private technology giants Facebook Inc. and Google LLC have failed to take off.

Earlier this year, the search giant discontinued its Google Station initiative launched in 2015 to provide free Wi-Fi at over 400 railway stations in India, saying cheaper mobile data had made the business untenable. While Facebook’s Express Wi-Fi is operational, the response to the project has been tepid.

RailTel is also in talks with the department of telecommunications (DoT) to provide internet connectivity to villages under the Prime Minister Wi-Fi Access Network Interface (PM Wani) project through its infrastructure and railway network that connect the remotest parts of the country.

“A proposal will be sent to the government wherein RailTel will describe the plan, cost, architecture, technological and commercial aspects, and viability of setting up public Wi-Fi hotspots using the company’s infrastructure,” the person said.

Under the PM Wani project, an entity with physical space, such as a grocery store, restaurant, tea stall, and hotel, can offer a public Wi-Fi hotspot to consumers. The project aims to boost broadband connectivity amid increasing load on wireless services, which has ballooned since March with millions of people logging in from their homes for work, education, and other services amid the pandemic.

RailTel also plans to provide content on demand (CoD), including infotainment and entertainment offerings, to passengers with pre-loaded multi-lingual content on servers inside trains, the person said, adding that the service will be available in 8,731 premium mail, express and suburban trains, and at Wi-Fi-enabled railway stations.

“The CoD service aims to improve overall passenger experience and increase the non-fare revenue through multiple monetization models,” the person added.
When contacted, a RailTel spokesperson declined to comment on the company’s plans. Live Mint