Broadband gets Rs 18k-cr push

Govt Plans To Lay 5 Lakh Km Optic Fibre Network To Reach Every Gram Panchayat

Shalini Singh | TNN

New Delhi: Access to broadband services in India has been a failure in the otherwise highperforming telecom sector. To address this challenge, the government is planning to spend Rs 18,000 crore over three years to lay a five lakh km optic fibre cable (OFC) network to reach every gram panchayat.

The formation of a Group of Ministers (GoM) to monitor and review the implementation of this broadband initiative is also being considered. Whether the GoM will invite the private sector to participate in the planning of this initiative and focus on wireless as a means of delivery remains to be seen.

An infrastructure company will be carved out of BSNL to implement the project and work with other PSUs like Power Grid Corporation of India (PGCIL) and RailTel. The venture will be supported financially by the Universal Services Obligations Fund (USOF), which holds a large amount of unused resources.

Upon the direction of cabinet secretary K M Chandrasekhar, a committee on broadband connectivity had been formed recently with officials from six ministries — telecom, HRD, rural development, economic affairs, ministry of panchayati raj and information technology — in addition to the Planning Commission. Chandrasekhar also held discussions with senior officials like Trai chairman J S Sarma and DoT secretary P J Thomas.

The committee is tasked with creating a roadmap for extending affordable broadband connectivity to all villages by leveraging existing infrastructure and augmentation of optical fibre wherever necessary. It is also mandated to pull financial resources from various ministries, including finding ways to subsidise consumer premise equipment using the USOF.

While the plan seems ambitious, the two parts that seem seriously missing are private sector participation and using wireless broadband for such connectivity. The work of the committee has been focused on government or government resources despite the fact that the telecom revolution is almost entirely led by the private sector, at least where mobile telephony is concerned.

And, despite its limitations, wireless broadband connectivity is a faster and cheaper way to reach unconnected areas. With 3G auctions being scheduled this year, the Committee might consider it important to include wireless as an equally important, if not superior, mode for connecting rural India.

Growth, The Virtual Way

An infrastructure company will be carved out of BSNL to implement the project and work with other PSUs

The Centre is considering formation of a Group of Ministers (GoM) to monitor the project

It’s not clear if the GoM will invite the private sector to participate in the project or focus on wireless broadband