Kerala Fiber optic Network (KFON), a flagship initiative of the Kerala government, is spearheading a state-wide digital revolution by establishing a robust core optical fibre network.
This groundbreaking project aims to connect over 30,000 government institutions and provide crucial internet access to economically disadvantaged families, while also offering affordable internet options to the wider population.
Dr. Santhosh Babu, Principal Secretary & Managing Director of KFON and KSITIL, and CMD of IKM, Government of Kerala, in an exclusive conversation with Anoop Verma, Editor-News, ETGovernment, sheds light on the initial aspirations behind KFON and provides a candid assessment of the project’s achievements to date, including the impressive laying of thousands of kilometres of fibre optic cable and the establishment of vital Points of Presence (POPP) across the state.
He also addresses the strategic evolution of KFON from a pure infrastructure provider to an Internet Service Provider (ISP), outlining the rationale and the significant milestones achieved in this transition. Dr. Babu also discusses the profound social impact of KFON, particularly in vital sectors such as education, healthcare, economic empowerment, and disaster management, illustrating how this digital backbone is reshaping the lives of Keralites and driving efficiency across government services.
Edited excerpts:
KFON, an ambitious project of the Kerala government, has been dubbed a “Government-run Digital Revolution.” Could you elaborate on the original vision behind KFON and how close you believe you are to achieving it today?
The initial vision for KFON, dating back to 2017, was twofold: firstly, to connect all government offices, educational institutions, and affiliated entities across Kerala with a robust core optical fibre network. Secondly, it aimed to provide free internet access to economically backward families and subsidised the internet for the rest of the population. These two objectives, initially conceived separately, were later integrated.
When I joined in 2021, approximately 3,000 kilometres of optical fibre network were already laid, and some points of presence (PoPs) were in place. The original target was around 32,000 kilometres of network, encompassing installation and operation. We also needed to establish PoPs within Kerala State Electricity Board (KSEB) substations.
Today, I’m pleased to say we have surpassed the 32,000-kilometre mark. This includes two types of fibre: 2800 Kms of OPGW (Optical Ground Wire), which runs along the top of KSEB’s 110kV lines, and about 29,000 Kms ADSS cables along distribution lines of KSEBL, totalling around 32,000 kilometres. The dropping of fibre to end-points has been strategically done in areas with national highways and high-voltage national grids where we have existing infrastructure.
While we’ve established all 375 planned PoPs, 264 are currently functional in a technical sense, but due to road widening under NHAI, we aren’t yet fully satisfied with the connectivity to government offices. We aimed to connect 30,438 government offices, and while we have physically connected all of them, we are currently able to provide confirmed internet connectivity to around 22,500. Road widening and expansion works have hindered the connection of some functional PoPs.
Regarding the economically backward families, the initial target was to provide 14,000 free connections per constituency, totalling 140 constituencies in Kerala. We’ve managed to provide around 5,900 connections so far. The data provided by the local self-government department initially had inaccuracies, such as missing mobile or Aadhaar numbers, which posed significant challenges. We’ve now partnered with the Civil Supplies Department and integrated our Business Support System (BSS) software with their database. We’ve achieved 4,000 connections this month and have another 8,000 in progress.
Physical achievement stands at 97.9 %, while Financial closure is around 70%. We anticipate completing the balance as NHAI road expansions progress.
KFON was initially conceived as an infrastructure provider. You mentioned obtaining various licenses. Could you elaborate on this shift and the rationale behind becoming an internet service provider?
Initially, KFON was primarily intended to be an infrastructure provider, maintaining the network. However, to sustain this massive network – for context, in Kerala, Airtel has around 8,000 kilometres of fibre, Jio 15,000 Kms and BSNL around 20,000 Kms, making our 32,000-plus kilometres quite significant – we realised we needed a revenue stream beyond just providing infrastructure. The initial model didn’t fully account for the costs associated with maintaining such a vast network and the services offered by other ISPs.
We transitioned to become an ISP. We secured an IP certification, ISP license and an NLD license from the Department of Telecommunications (DoT). We are also in the process of applying for VNO (Virtual Network Operator) licenses for offering telephone lines and we are exploring opportunities in IPTV and OTT platforms. We even have a platform tender underway.
This strategic shift has allowed us to generate revenue. We currently have around 60,000 commercial connections, bringing our total connections to approximately 90,000, with a target of one lakh by the end of this month. This revenue generation is crucial for the long-term sustainability and expansion of KFON.
Kerala has the distinction of being the only state in India to have declared internet access a basic right. How has this policy mandate shaped the design priorities and implementation of KFON?
Declaring internet access as almost a fundamental right underscores the government’s commitment to bridging the digital divide. The COVID-19 pandemic further highlighted the essential nature of internet connectivity.
This policy mandate has driven our design priorities towards ensuring universal and equitable access. We aim to create a cyber-inclusive environment where KFON coexists with other internet service providers. As a government-owned company, we are committed to providing affordable and reliable services.
Our revenue model is multifaceted. We lease dark fibre to other operators, broadband services to homes, offices and corporates, provide Internet Leased Lines (ILL), L2VPN, L3VPN, provide NOC and POP access for co-location, and offer our network infrastructure for various applications. Our financial targets for the current fiscal year were ambitious, and we have achieved in excess of our target. We have even more ambitious growth targets for the next fiscal year, aiming for a five-fold increase in revenue.
The focus on BPL (Below Poverty Line) connections remains a priority. The government aims for 60,000 to 70,000 BPL connections in the 2025-26 fiscal year, for which we are financially prepared and awaiting fund allocation. We have also partnered with around 3,500 cable operators to extend our reach, providing them with our links to deliver last-mile connectivity. While we’re currently adding around 300 connections per day, we aim to increase this to at least 500.
Challenges remain, particularly regarding Right of Way (ROW) clearances from railways and national highways, especially for bridge crossings. The geographical diversity of Kerala, with its coastal, hilly, and forest regions, also presents logistical complexities.
Our commitment to “connecting the unconnected” is unwavering. As an experiment, we ventured into a remote tribal hamlet in Kottooor in Trivandrum and connected 93 hamlets using CSR funds. Based on this success, we have connected 403 tribal families in Attapadi in Palakkad district and a habitation Pandaladikunnu in Wayanad district.
The transformative impact was evident, providing access to essential services and opportunities. We are now working to replicate this model in other tribal areas, with around 4600 tribal identified hamlets. We are collaborating with Tribal Welfare Departments of the Governments of Kerala and India, and exploring funding options, including the state government’s BPL project and CSR initiatives. This initiative has garnered significant interest from various state and central government agencies.
Implementing a project of this scale must come with its own set of challenges. What have been the key hurdles you’ve faced in deploying the KFON network?
One of the most significant challenges has been human resources. Initially, the core team was very small, just six to seven individuals. I myself was handling multiple roles – CEO, CSO, CFO etc and everything in between. While we’ve grown, attracting and retaining skilled professionals in a rapidly evolving field like telecommunications within a government framework remains a challenge.
Compensation is a key factor. We need experienced professionals from the market, but government salary structures can sometimes be a constraint. We are working with the government to address this, requesting more flexibility in recruitment and compensation to attract the necessary talent in areas like AI, machine learning, and advanced telecommunications. We have been fortunate to secure an outstanding CTO, CSO and CFO, but filling mid-level and technical roles, particularly in sales and technical support, is an ongoing effort. We are hoping for a common order on KFON recruitment to streamline this process.
Funding has also been a factor. The project is financed through a mix of government equity of ₹343 crores and a loan from KIIFB (Kerala Infrastructure Investment Fund Board) at a rate of 10% per annum (₹1061 crore loan). This underscores the importance of our revenue generation targets to manage these financial obligations.
Dealing with various stakeholders, including KSEB for infrastructure sharing and Bharat Electronics Limited (BEL) for system integration and O & M also presents its own set of complexities. For instance, coordinating shutdowns with KSEBL for cable laying requires meticulous planning and can be affected by unforeseen circumstances. Ensuring the quality of work from contractors, many of whom come from outside Kerala, and managing their logistics and safety is also crucial.
Cash flow management is another challenge. Payments from the government involve a multi-layered auditing process, which can sometimes lead to delays.
Finally, convincing our potential customers, both government and commercial, of the reliability and quality of KFON’s services is an ongoing process. We are committed to providing services that are as good as, if not better than, existing players in the market. We are leveraging technology, including our own EnteKFON app and KFON.in website, to streamline processes and enhance customer experience.
The way you describe the operation, it sounds more akin to a dynamic private enterprise or even a startup, despite being a government entity. How have you fostered this kind of work culture within KFON?
From day one, we instilled the principle that we need to be better than the best. This necessitates efficiency and a customer-centric approach. We’ve embraced technology extensively, utilizing a GIS platform for network planning and management. This allows us to pinpoint exact locations for fibre laying, fibre cuts etc and service delivery, minimizing delays and optimising resource allocation.
We operate with a strong sense of purpose, viewing our work as an opportunity to serve the state and bring about tangible positive change in people’s lives. This shared belief fosters a dedicated and motivated team, even with limited resources.
We also believe in continuous improvement. We conduct daily audits of our call centre operations to ensure customer satisfaction. Our partnerships with entities like KSEBL and BEL are treated as collaborations where mutual support is essential.
While we operate within a government framework, we constantly strive for agility and innovation. We recognise that the telecommunications landscape is constantly evolving, and we need to adapt and adopt best practices to remain competitive and achieve our objectives.
You mentioned the possibility of an IPO in the future. What is your vision for KFON’s growth and expansion beyond Kerala, and how could an IPO facilitate that?
KFON has the potential to be a significant player in the national digital landscape. Our extensive infrastructure is a valuable asset. An IPO could unlock the necessary funds for expansion within the state and into other states. The core infrastructure cost is in place; scaling becomes more financially viable.
We have the expertise and the experience, as demonstrated by successful public-private partnership models globally. While the timing and approach to an IPO would depend on the government’s policy decisions and the completion of certain milestones, including financial sustainability and valuation, it is certainly a strategic avenue we are considering for future growth.
The infrastructure we’ve built is attractive to other telecom companies. An IPO could potentially allow them to invest in KFON, providing us with further capital for expansion while giving them access to our extensive network.
Shifting our focus to the social impact, how do you see KFON contributing to areas like education, healthcare, economic empowerment, and disaster management in Kerala?
The social impact of KFON is already being felt across various sectors. In education, we’ve connected thousands of schools through the KITE project, providing high-speed internet access. This has empowered students, particularly those in less privileged backgrounds, by giving them access to global knowledge and resources. We have seen remarkable talent emerge from these schools, even in advanced fields like programming. Many schools are now equipped with smart classrooms, a trend that KFON is now further enabling with reliable bandwidth.
In healthcare, reliable connectivity is crucial for telemedicine, remote diagnostics, and efficient management of health records. KFON’s infrastructure supports these applications, particularly in remote areas where access to specialised medical care might be limited.
Economic empowerment is another key area. By providing affordable and accessible internet, KFON is enabling entrepreneurship, online businesses, and access to digital marketplaces, particularly in rural areas. This can create new income opportunities and contribute to the state’s overall economic growth.
Disaster management is a critical application. During emergencies like floods or landslides, reliable communication networks are essential for coordination, rescue efforts, and dissemination of information. KFON’s resilient fibre optic network provides a crucial backbone for these communication systems, ensuring connectivity even when other networks might be disrupted. The fact that fibre is less susceptible to landslides compared to overhead lines is a significant advantage in a state like Kerala.
We are actively working to bridge the digital divide in marginalised communities, including tribal populations. Our pilot project in Trivandrum and Wayanad demonstrated the transformative power of connectivity in these areas, providing access to education, healthcare, and economic opportunities. We are committed to expanding this reach to other underserved communities.
Beyond providing crucial connectivity, how has the Kerala Fibre Optic Network (KFON) enabled tangible improvements in citizen services through the K-SMART platform?
While KFON’s infrastructure is the backbone for communication, a comprehensive suite of digital citizen services under the umbrella of “Kerala Solutions for Managing Administrative Reformation and Transformation K-SMART was also launched. This software platform was developed by the Information Kerala Mission (IKM which I head as its CMD. This in-house development has brought about remarkable improvements in efficiency and accessibility.
Under K-SMART, we have created 14 modules, digitising all services provided by local self-government bodies, such that nobody needs to visit a local body. Every service can be provided by the K-SMART app. For instance, birth and death certificates, which used to take days or even weeks and multiple visits to government offices, can now be obtained online within minutes. Video KYC for Marriage registration, against a first in the country, allows marriage registration in minutes , even when the husband, wife and registrar are in different geographical locations in the country or the world.
One of the most impactful applications is in building permits. The traditional process, involving manual scrutiny of numerous documents and approvals from various authorities, could take anywhere from 30 to 300 days and multiple visits. We have introduced an AI-powered Electronic Development Control Rules (EDCR) Rule Engine along with a GIS Tule Engine in our K-SMART Building Permit Module.
Now, architects and individuals can upload their building plans through our KSmart app, and the system, within seconds, using artificial intelligence and spatial data, determines compliance with regulations and issues approvals, and once the “Submit” button is clicked, the self certified Building permit can be printed out in less than 10 seconds for 70% of the buildings, which are within 3300 Sq Ft. This has reduced the processing time from months to mere seconds.
We have also developed a “Know Your Land App. Citizens can use this app to know what can be done with their piece of land. Once the citizen goes around the perimeter of his land with the App, the App will instantly provide information on permissible constructions, land usage zones (based on shape files from various authorities, including airport, railways, high tension lines, Master Plan Zones, CRZ zone and Eco sensitive zones. This eliminates the need for visits to different government offices and provides transparency and clarity to landowners.
Other key digital initiatives include a unified citizen app (KSmart Citizen App), an employee app (KSmart Employee App), a grievance redressal module , and a public dashboard for transparency. We have also integrated various communication channels like WhatsApp, Aadhaar, Payment gateways, eDCR and GIS Rule Engines, SMS, and we have facilitated online payment of property tax, which now takes just seconds. We are also digitising legacy data, such as birth records dating back decades.
These digital transformations are not just about convenience; they are about reducing corruption, increasing transparency, and empowering citizens by providing them with easy access to essential services from the comfort of their homes. The significant reduction in footfall at government offices, from hundreds to just a few, is a testament to the effectiveness of these digital initiatives powered by KFON.
K-SMART was launched in all 93 Urban Local Bodies in January 2024. In April 2025, the Chief Minister launched K-SMART in all 941 Grama Panchayats, all 152 Block Panchayats and all 14 District Panchayats of Kerala. I believe that KFON and K-SMART have the potential to take Kerala to another level of governance and citizen service delivery.
