RailTel, the telecom infrastructure provider, has terminated an agreement with a Zee group subsidiary for content on demand in wifi-enabled trains and stations.

Margo Network, a subsidiary of Zee Entertainment Enterprises, has initiated legal action against the public sector entity for scrapping the 10-year agreement.

Shares of RailTel on Friday ended lower by 1 per cent at Rs 125.75 on the BSE.

In a regulatory filing to the bourses, the company said the content-on-demand contract awarded to Margo Networks on January 14, 2020, to provide the service in all mail, express and suburban trains and all Wi-Fi enabled railway stations on a build-own-operate basis for 10 years has been terminated with effect from November 11, 2021 due to non-performance by the contractor.

The company had said that the project will be implemented in two years and the content will be made available both in paid and unpaid formats.