CloudExtel to boost network capacity by 5 times to aid telcos in 4G/5G expansion: CEO Kunal Bajaj

Macquarie Capital-owned CloudExtel, a network-as-a-service (NaaS) solution and services, is planning to significantly expand its fiber and wireless infrastructure over the next five years. In an interaction with TechCircle, Kunal Bajaj Chief executive and Co-Founder at CloudExtel, said that the company aims to increase its network capacity by more than five times its current size to support telecom operators in rapidly expanding their 4G and 5G mobile networks in areas that are currently uncovered.

Additionally, CloudExtel plans to fiberise towers and data centers to further enhance network capabilities, said Bajaj.

CloudExtel started operations in 2014 as a dark fiber leasing company in South Mumbai and grew significantly to offer NaaS solutions and services to major telecom operators such as Bharti Airtel, Vodafone Idea, Sify, RailTel, among others.

“The demand that's coming from end users is so high that the macro towers are no longer able to serve it effectively. And that's where small cell sites are gaining prominence as they seamlessly connect to users because they are physically closer to them,” said Bajaj.

Small cell sites are a type of wireless network base station that uses radio frequencies to connect devices to a wireless network and are used to enhance cellular network coverage and capacity in areas with high user density or limited space. They are commonly deployed in dense urban areas to handle the high demand for wireless connectivity. such as in shopping malls, airports and railway stations, stadiums, office buildings, and convention centers.

The company, headquartered in Mumbai, currently operates a network of 6,000 small cell sites across 475 cities and has deployed over 7,000 kilometers of fiber in more than 50 cities in the country. Bajaj explains that these small cells are essential for next-generation networks, such as 5G, which will enable smart cities and the Internet of Things, and the number of small cells deployed is expected to increase rapidly over the next few years.“Combining small cell sites and microsites today India has over 45,000 sites across the country and it is expecting to build 250,000 sites over the next 5-6 years,” he said.

CloudExtel also anticipates major growth in FTTH (Fiber to the Home), a broadband internet connection technology that uses fiber-optic cables to transmit data. He expects the number of connections to increase to 3.5 million homes over the next five years from the current 450,000.

Needless to mention, Australian global financial services group, Macquarie Capital, which acquired a majority stake in CloudExtel for $100 million last year, enables the company to expand its infrastructure and take advantage of opportunities in the virtualized networks space. In addition to Macquarie Capital's investment, Advencap, an investor specializing in digital infrastructure ventures and fiber expertise, has also acquired a stake in CloudExtel in October 2023.

The company is also seeing a significant amount of capital being invested in the data center sector, with major hyperscale companies establishing large-scale operations in India. Bajaj says that CloudExtel's expansion plans align with the ongoing transition from 4G to 5G networks and the increasing investments in data centers by content providers and hyperscalers.

CloudExtel has an employee strength of 450, which the company expects to double to support its growth and expansion plans. “We aim to be at the forefront of this transition, providing solutions and investing in the necessary infrastructure to serve its customers effectively,” he sums up.