SAR Televenture Partners with Vodafone Idea for Major 4G Deployment

By siliconindia  |  Tuesday, 30 July 2024, 11:40 IST

SAR Televenture Partners with Vodafone Idea for Major 4G Deployment
SAR Televenture, a network infrastructure provider, has announced a significant partnership with Vodafone Idea (Vi) to deploy 5,000 new 4G small cell sites, with operations set to commence in the January-March quarter of 2025. This agreement highlights Vi's ongoing efforts to enhance its network capabilities and improve service quality.
The deal is a crucial component of Vi’s broader network expansion strategy, as the telecom company continues to strengthen its infrastructure to meet growing demand. Rahul Sahdev, Managing Director of SAR Televenture, that the company is looking to deepen its collaboration with Vi, particularly following the telecom giant’s recent successful fundraising round. "We are aiming for a deeper partnership with Vi, as there have been no operational issues since the company concluded its fundraising activities", Sahdev stated. However, he did not disclose the financial specifics of the agreement.
SAR Televenture, which has recently entered the telecom tower sector, plans to invest Rs 42.5 crore to build 1,000 new towers. The goal is to secure tenancies from Vi and Bharat Sanchar Nigam Ltd (BSNL), both of which are undertaking significant network expansions. This investment aligns with SAR’s strategy to capture market share in the expanding telecom infrastructure sector.
According to Vi’s regulatory filings, the company aims to establish 26,000 new 4G sites, enhance the capacity of 40,800 existing 4G sites, and set up 22,000 new 5G sites over the next two years. The cost to set up each 4G site is approximately Rs 14.5 lakh, with Rs 13 lakh allocated for equipment and the remainder for services.
Sahdev highlighted the potential of small cell sites, describing them as a 'greenfield opportunity' in India. Unlike large tower companies such as Indus Towers and Brookfield’s ATC, which focus on macro sites covering up to 10 kilometers, SAR’s small cells provide coverage of up to 9 meters. This model represents a lower investment approach and promises quicker returns, often within 24 months, even with a single tenancy.
In recent financial developments, SAR Televenture has completed a composite equity fundraising round totaling Rs 450 crore. This includes a Rs 300 crore rights issue and a Rs 150 crore public offer, with contributions from anchor investors such as BoFA Securities, Intuitive Alpha Investment Fund, and Negen Undiscovered Value Fund. The funds will be allocated as follows: Rs 273 crore for fibre-to-the-home (FTTH) network solutions, Rs 42.5 crore for telecom towers, and Rs 30 crore for additional working capital requirements in FY25.
For the fiscal year ending March 2024, SAR Televenture reported a net profit of Rs 15.66 crore on revenue of Rs 124.12 crore. The company holds an IP-1 (Infrastructure Provider Category-1) license and focuses on installing and commissioning telecom towers and FTTH networks in India. As of May 31, 2024, SAR has installed 413 towers with primary tenancies from Bharti Airtel. Established in 2019, the company also manages assets such as dark fibres, right of way, and duct space, which are available for lease, rent, or sale to telecom service providers.

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