PSU RailTel, a division of the Ministry of Railways, has partnered with a technology company to monetise its Wi-Fi project at more than 6,100 railway stations across the country, the company said on Tuesday.
Rail PSU has signed a five-year contract with a consortium led by Mumbai-based global information technology company 3i Infotech Ltd, RailTel said in a statement.
Alliance members include Forensics Intelligence Surveillance and Security Technologies Private Limited (FISST) and Yellow Inc.
Under the contract, revenue will monetise Wi-Fi traffic on one of the world’s largest integrated public Wi-Fi networks by providing rail passengers with targeted advertising and expanded multimedia infotainment services.
The statement said that this is India’s first multi-year commercial agreement to monetise public Wi-Fi network captive customers through a collaborative effort.
Under the contract, the 3i Infotech-led consortium will pay RailTel Rs 14 crore or 40% of annual revenue, whichever is higher.
According to 3i Infotech’s estimates, the revenue will be mainly led by advertising and supported by content/service-based revenue. The combined revenue potential of the project is expected to exceed Rs 250 crore within five years.
RailTel’s public Wi-Fi network is now available at 6,108 railway stations across India, reaching over 1.1 million unique users daily. The statement said that through the partnership agreement, on-site Wi-Fi would enhance users’ digital experience.