The 4G LTE Revolution in India has triggered the demand for strengthening backhaul networks with Optical Fiber Cables. Within OFC, Sterlite Technologies Ltd is one of the few fully integrated players globally and has been able to generate higher margins than peers. The demand for OFC is expected to rise, backed by Government?s BharatNet program and roll out of 4G by telecom operators.
To capitalize on this opportunity, STL is in advanced stages of doubling its OFC capacity from 8 mn fiber km (fkm) to 15 mn fkm and OF capacity from 20 mn fkm to 22 mn fkm.
STL is able to enjoy better pricing power in telecom products. STL recently ventured into the telecom services business and is executing a network for spectrum (NFS) order for defence. It also acquired Elitecore Technologies to increase its presence in telecom services further.
