RailTel shares rise 2% on reports of talks with Elon Musk’s Starlink over a broadband partnership

RailTel shares rise 2% on reports of talks with Elon Musk’s Starlink over a broadband partnership

Shares of RailTel Corporation of India rose as much as 2% to an intraday high of Rs 338.55 on the BSE on Wednesday, December 17, amid reports that the state-owned telecom and ICT services provider is in talks with Elon Musk-owned Starlink for a possible partnership in India.The development comes as Starlink gears up for launch in India, with a strong focus on last-mile and rural connectivity.

According to a report by Mint, RailTel is among the Indian companies Starlink is in talks with as it explores local partnerships ahead of its commercial rollout in the country. The report states that RailTel is considering offering retail broadband services to users using Starlink’s satellite-based internet services.RailTel operates one of the largest public WiFi networks in the world, providing free WiFi services at over 6,000 railway stations across India, along with IP surveillance infrastructure at over 5,000 stations.

The company currently has close to 6 lakh subscribers, with almost 58% of the user base located in rural areas. It also has a network of more than 11,000 partners engaged in on-ground installation and maintenance.


While Starlink relies on satellites for internet access, it still needs ground gateways or teleport sites across India to ensure stable connectivity. RailTel’s existing fiber network, managed capacity and network operations position it as a potential provider of back-end connectivity, monitoring and security services for such gateway locations.

As discussions progress, RailTel could potentially expand connectivity beyond rail corridors to off-corridor villages, hilly and forested areas, islands and border areas, without waiting for traditional fiber rollout. RailTel’s strong nationwide reach aligns with Starlink’s focus on last-mile connectivity in India. Separately, RailTel has also announced two order wins, as disclosed in filings with the stock exchanges.

The company received a work order from the Office of the Registrar General & Census Commissioner, India, for the procurement of comprehensive AMC services for servers, storage, networking and network security equipment, including license renewals. The size of this order is Rs 148.39 crore, with scheduled execution till December 21, 2030.

In another filing, RailTel said it has been awarded a contract by the VO Chidambaranar Port Authority for implementation of advanced IT infrastructure at the VOC port. The estimated size of this order is Rs 26.88 crore and execution is expected to be completed by August 15, 2026.

Also read: Vijay Kedia buys 9 lakh shares of SME stock Mahamaya Lifesciences in a Rs 12.5 crore block deal

(Disclaimer: Recommendations, suggestions, views and opinions expressed by the experts are their own. These do not represent the views of The Economic Times)

#RailTel #shares #rise #reports #talks #Elon #Musks #Starlink #broadband #partnership

Similar Posts

Leave a Reply

Your email address will not be published. Required fields are marked *