Sterlite Technologies Ltd rallied as much as 4.95 per cent in trade on Monday after media reports suggested that the Vedanta Group company is finalizing the 'proof of concept' of a close variant of the 'Google Fibre' project to transform the urban home broadband experience in India's top 20 cities and, in turn, boost high-speed internet penetration.
At 09:40 a.m.; Sterlite Technologies was trading 4.95 per cent higher at Rs 68.95. It hit a low of Rs 67.10 and a high of Rs 68.95 in trade today.
"Large mobile telcos are gearing up to launch these services by 2016 as demand for high end applications rises," Kim Eng India said in a report.
"This is a long term positive for SOTL. We maintain BUY on the stock with a target price of Rs 84 based on sum-of-the-parts," added the report.
"We will shortly showcase our FTTH broadband technology blueprint to Bharti Airtel and Tata Teleservices to line up the first wave of partnerships," Sterlite Technologies CEO Anand Agarwal told ET.
The company is initially looking to hook up a million homes by 2016 across Mumbai, Delhi, Pune, Ahmedabad, Bangalore and Chennai.
Elaborating on Sterlite's fibre broadband model, Agarwal said the company would deliver last mile broadband connectivity to an urban home by plugging its FTTH network to the nearest point of interconnect (PoI) of a partner mobile operator, which could be an exchange or base station.
