SME Telecommunications Provider Expands Reach Through Revenue-Sharing Agreement with BSNL

SAR Televentures Ltd, a public listed company on the NSE Emerge platform, has signed a revenue-sharing agreement with Bharat Sanchar Nigam Limited (BSNL) to expand its service offerings. The agreement allows SAR Televentures to provide BSNL’s fixed, wireless, and broadband telecom services to end users in Mohali (Rural). This collaboration is a significant development for SAR Televentures, a relatively young company established in 2019.

Building Telecom Infrastructure in Rural Areas

The crux of the agreement lies in the development of infrastructure for BSNL’s telecom services. SAR Televentures will be responsible for constructing, expanding, and maintaining Optical Fiber Cable (OFC) networks within residential and commercial complexes in Mohali (Rural). This includes establishing interconnections between buildings and installing overhead OFC backhaul from the nearest BSNL pickup point to the Optical Line Terminal (OLT) location. Additionally, SAR Televentures will play a role in establishing connectivity at the network operation center and providing maintenance support for existing telecom infrastructure and equipment on a case-by-case basis.

The revenue-sharing model outlined in the agreement splits the profits generated from the provided services equally between BSNL and SAR Televentures. This mutually beneficial arrangement incentivizes both parties to ensure the success of the project. The agreement holds a validity of 10 years with the possibility of renewal on mutually agreed terms.

Financial Growth Trajectory

This agreement comes at a time of impressive financial growth for SAR Televentures. The company’s revenue from operations for the financial year 2024 (FY24) stands at Rs. 124.11 Crore, reflecting a substantial year-on-year increase of 282% compared to FY23. Similarly, the net profit for FY24 witnessed a significant jump of 303.6%, reaching Rs. 15.66 Crore. This upward trend indicates a healthy financial performance for the company.

Established Player in Telecom Infrastructure

Despite its relatively young age, SAR Televentures has established itself as a key player in the Indian telecom infrastructure sector. As of May 31, 2024, the company boasts an impressive portfolio of 413 towers installed and leased across various states in India.

This revenue-sharing agreement with BSNL marks a significant step forward for SAR Televentures. By leveraging its expertise in telecom infrastructure development and BSNL’s established reputation as a telecom service provider, the collaboration has the potential to bring reliable and high-speed connectivity to residents of Mohali (Rural).

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.