The Western Railway has installed state-of-the-art fibre optic network costing about Rs 200 crore between Churchgate and Virar to modernise its signalling system but it has been able to make use of only half of its capacity. The fibre optic network will be extended upto New Delhi which would be an ideal backbone for both internet service providers and big cable TV operators.

The Western Railway network would be extremely crucial for both Zee and the Hindujas as they need not to set up their own fibre optic network which would cost a huge amount and will also require digging up roads. Both public sector players, Mahanagar Telephone Nigam Ltd and VideshSanchar Nigam Ltd have already set up fibre optic network in the city and are providing internet connsections to their subscribers.

It is not known whether MTNL and VSNL will bid for Western Railway network though both PSUs do not have fibre optic access beyond Borivali in North Mumbai.

This comes close on the heels of Konkan Railway signing a joint venture with BPL to provide internet connections on its entire 760 kilometer network. Since its inception, Konkan Railway had installed fibre optic cables which can used for sending voice as well as video date. As the company is able to make use of only 50 per cent capacity, it has asked BPL to join in as a partner. A third overseas partner may join hands later with Konkan Railway and BPL which would provide the necessary technology.

When operational, the Konkan Railway network will be able to connect all the small towns upto Mangalore to provide internet connections. The other project in the Indian Railways on offer for private sector bidding are fromHyderabad to Bangalore. Analysts say that private basic telephone operators can also bid for this corridors.