GTL to invest Rs1,400 in green energy services

GTL to invest Rs1,400 in green energy services
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First Published: Thu, Feb 04 2010. 03 30 PM IST
Updated: Thu, Feb 04 2010. 03 30 PM IST
Mumbai: Network services provider GTL Ltd will invest Rs1,400 crore in green energy management services for the towers that its unit leases to telecom firms, boosting its revenue, a top official told Reuters on Thursday.
Energy costs account for about 70-90% of the operating expense of a telecom tower and service providers usually lease the towers and pay for energy themselves.
GTL will offer to manage the energy sourcing for the towers, which will help the service providers cut energy costs by up to 17% immediately and the saving could go up to 25% in three years as the tenancy increases, chairman and managing director Manoj Tirodkar said.
“Our endeavour is to help the telecom industry be efficient by reducing the number of telecom towers through sharing. We further aim to reduce the energy requirements and costs, and help the industry reduce its carbon footprint through our energy management solutions,” he said in an interview. GTL is raising Rs14 billion via debentures, which it will invest in this venture, he added. Its unit GTL Infra leases towers, and the network services firm will manage the energy requirements for them, he added.
The company will also provide similar services for the towers that GTL Infra acquired from Aircel, earning Rs5.7 billion annually, after the transfer is completed, Tirodkar said.
This will increase to Rs11 billion as Aircel has committed an additional 20,000 towers over a period of three years. This is in addition to the 17,500 towers GTL Infra acquired from Aircel, he added.
On 14 January, a GTL Infrastructure acquired tower assets of Aircel for $1.8 billion, making it a key player in the country’s mobile tower market.
The company is also in talks with other telecom operators for energy management services, and expects annual revenue of Rs11 billion starting 2010-11, he added.
Eventually, GTL may also expand its energy services to overseas markets such as Africa and other South Asian countries, he said.
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First Published: Thu, Feb 04 2010. 03 30 PM IST