Ericsson Targets 30 Lakh Subscribers

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The GPON system has already been deployed at a 3,000 unit complex in Noida

Telecom Equipment Provider Ericsson is targeting 30 lakh subscribers in the next three years in bundling with telecom operators from their latest solution, Ericsson Fiber Access Solution, which powers households with fiber to the home (FTTH) services. The solution, which is based on the Gigabit-capable Passive Optical Network (GPON) system, has already been deployed at a 3,000 unit complex in Noida developed by real estate firm ATS Infrastructure.

With the growing demand for high-speed broadband connectivity in the country, Ericsson had in May 2009 developed the country’s first commercial GPON-FTTH solution to provide the end-users with high-end data, television and communication services. GPON is a network architecture that brings fiber cabling and signals to the home using a point-to-multipoint scheme that enables a single optical fiber to serve multiple premises to provide high bandwidth. The consumers can choose a telecom operator of their choice.

“In developed markets such as the US, the traffic demand for FTTH (fiber to the home) services have been going up tremendously. Seeing the same kinds of trends in India, we joined hands with telecom operators and I know they are looking at a few million solutions to be deployed in the next few years,” P Balaji, vice president of Ericsson India told Financial Chronicle. Ericsson operates on a revenue sharing business model with telecom operators for providing this solution.

Radius Synergies, which provides technology services to real estate developers, has sold equipment (including fibres) to Ericsson for developing this solution for a one-time payment. The basic cost of providing this solution to a single household is around $1,000, while the revenues earnt per month per household would be around $50 (from television, broadband internet and television), said AK Singh, chairman and managing director, Radius Synergies. It would take three years to achieve break-even point per household in this manner, he added. The consumer has to pay a refundable amount of around Rs 5,000 for the equipment that provides the solution. Radius is in talks with other real estate players in the country for providing Ericsson’s solution in their residential properties.