INDUSTRY NEWS

Bharti Airtel, Vodafone Idea plan to create optical fiber joint venture

Published Date | 2019 March 4

Airtel invited Vodafone Idea Ltd. (VIL) to be a partner in his fiber company Telesonic, on the same lines as Indus Towers to take on Reliance Jio, which will push the fiber optics market.
Global:  Bharti Airtel is in talks with Vodafone Idea to create a fiber joint. The telecom duos already co-own a telecom tower company 'Indus Tower'. Incorporated in November 2007, Indus Towers is promoted under a joint venture between Bharti's arm Bharti Infratel and Vodafone Idea to render passive infrastructure services to telecom service providers. Bharti Airtel is setting up Telesonic Networks Ltd to house all of its 246,000 kilometers of fiber assets. According to a source Bharti Airtel Chairman Sunil Mittal has invited Vodafone Idea to be a partner in his fiber company Telesonic, and the two can pool assets together.  “It will be a two-party Joint Venture. Airtel starting with our own fiber company and if Vodafone Idea brings its fiber assets, then they will get appropriate shares.”  According to BlueWeave Consulting, Fiber Optics Market presents promising growth prospects and expected to gain traction in the coming years. Fiber optics acts as the spine of the Internet, an optical fiber cable is used as the medium for transmitting information from one point to another. Fiber optics cables are at the forefront of providing speed using the speed of light. The demand has increased as both commercial and personal use of technology has grown highly used to the instant nature of connectivity. Since the launch of Reliance Jio in India, many older telecom companies have shut down due to huge loses, and the ones remaining like Airtel and Vodafone Idea have taken a major hit in their profits. An Airtel-Vodafone-Idea combine will be the first major rival block to Jio’s high-pitched challenge in the telecom space. The increasing consumption of social networking sites, videos, and other consumer apps signify the considerable demand for data. The market is majorly driven by the high bandwidth communication for long distance via optical fiber. Fiber optic technology has effectively replaced copper wire in long-distance telephone lines and used to link PCs within local area networks.  Owing to the demand for bandwidth-intensive, high-speed, high-data-rate applications has shifted the global fiber optics market, dramatically, across the globe. According to the upcoming report by BlueWeave Consulting on “Fiber Optics Market by Cable Type (Single Mode, and Multi-Mode), Optical Fiber Type (Glass and Plastics), by Application (Telecom, Oil & Gas, Military & Aerospace, BFSI, Medical, Railway, and Others), by Region (North America, Europe, Asia Pacific, Middle East & Africa and Latin America); Size and Forecast, 2015-2025,” The global fiber optics market is projected to witness significant growth over the forecast period. With the growth in the telecom industry and favorable government initiatives aimed at developing network infrastructure across regions, the demand for fiber optics cable is expected to rise, over the forecast period. The increasing demand for optical communication and sensing applications for diverse purposes provides avenues for industry growth. The growing importance of cloud computing, data transfer & storage, and IoT is driving the use of the Internet. Moreover, the increasing demand for cost-effective, power-efficient, and high-level integration of IT infrastructure is expected to drive demand for optic fiber in the coming years. Fiber optics aids high-speed data transfer services in both slight and long-range communications. Furthermore, the increasing cloud-based applications, audio-video services, and Video-on-Demand (VoD) service further stimulate the demand for fiber optic installations. The demand has increased as both commercial and personal use of technology has grown highly used to the instant nature of connectivity. The growing adoption of technology in communication and data transmission services will fuel the market.