Telecom equipment makers soar after Cabinet approves Rs 1.39 lakh crore for last mile connectivity

Shares of telecom equipment manufacturers surged on August 7 after several reports claimed that the Union Cabinet has approved Rs 1.39 lakh crore for modernising the BharatNet project.

This initiative entails a shift in its implementation approach, focusing on providing fibre connections to the final mile through the engagement of village-level entrepreneurs.

Following the reports, shares of HFCL Limited zoomed 14 percent in the morning trade on August 7 to Rs 74.5 a piece.

Sterlite Technologies Limited also soared 8 percent. The company has expertise ranging from connectivity and access solutions, hyper-scale network design and deployment.

Shares of ITI Ltd gained 8.3 percent to hit Rs 120. It is a public sector undertaking under the Department of Telecommunication, Ministry of Communications, Government of India.

Follow our market blog for all the live action

According to reports, the project aims to extend its coverage to 6.4 lakh villages throughout India. Notably, the broadband connectivity initiative has already successfully linked 1.94 lakh villages. It is anticipated that the remaining villages will be connected within the next two and a half years.

The improved execution model will make use of village-level entrepreneurs, employing them as partners bestowing them with responsibility to take the connection to homes in their villages, as well as for maintenance.

The local entrepreneurs will be provided with the necessary equipment, including routers and additional fibre optic cables by Bharat Broadband Network Limited (BBNL). Furthermore, the entrepreneurs will be trained on how to set up connections in villages.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.