ITI Diversifies into E-governance & Datacenter

by Manu Sharma    Jul 01, 2009

With the hope of reviving the sick public sector, Indian Telephones Limited has diversified into e-governance and datacenters.

The telecom company in association with Trimax has set up its first phase of the datacenter in its campus in Bangalore. The existing premises is of 75,000 sqft and by 2010 the company is planning to complete the datacenter that would be built over an area of 1,20,000 sqft

Siddhartha Behura, chairman, Telecom Commission and secretary, Telecom, Government of India said, To survive ITI is looking at alternate sources of revenues and this recession has forced even companies like Motorola to look for different areas.

So besides the regular telecom products business, ITI has also entered into the new businesses and hope to make it profitable in the years to come, said Behura.

On the e-governance front, ITI is working on State Wide Area Network (SWAN) services with two states namely Maharashtra and Orissa.

Besides with the Ministry of Human Resource coming out with the Unique ID project, three PSU has been shortlisted for implementing this project in India. We are going to go ahead with this project in the coastal areas of the south India. We shall take this project forward through our Palaghat unit, said S.K. Chatterjee, CMD of ITI Limited.

It has become essential for ITI to revive its strategy in this tough global market. As only 4-5 players into the data centre business, ITI will be the first in the government sector to start a data base of its own, said —

The company that has set up the datacenter in association with Trimax, a Mumbai-based networking player into system integration, and IT services. As per the understanding, Trimax will control 82% of the stake while ITI will get 18%.

In fact, the data centre was set up by Trimax, who have built 2-3 smaller datacenters in Mumbai. We have experience to built and maintain such datacenters but this will be our largest project, said Surya Prakash Madrecha, chairman of Trimax Datacenter Services.

The phase 1 of the datacenter has been completed at a cost of Rs 77 crore and already a number of government companies like RailTel, Karnataka Police Housing Ltd, Business Intelligent Technologies, Glodyne, Madhucon are all in the final discussion to host on the ITI datacenter.

We expect an revenue of Rs 50 crore in the first year of operations and expect to generate much higher revenue in the future. ITI has also plans to expand its datacenter facilities to Palaghat and Lucknow, said Chatterjee.

Recently, the government has given a bail out package of Rs 2828 crore to ITI and is now looking at ways to revive the company.

The company reported order book amounting to Rs 6800 crore and in the current fiscal orders worth Rs 3400 crore mostly from the government sector. ITI has five units across India.

Related Link:
Will Economy Effect Telecom?