Short note on the National Broadband Policy 2010

The national broadband policy, aimed at setting up networks estimated to cost Rs 60,000 crore to facilitate high-speed data and e- governance, to get government acceptance soon.

In December 2010, telecom regulator TRAI had came out with recommendations to set up a national broadband network which is estimated to cost about Rs 60,000 crore. Telecom regulator TRAI, which came up with recommendations on the ‘National Broadband Plan’, had said the project would be financed by universal service obligation (USO) fund (under the DoT) and the loans provided by the government.

The recommendations from Telecom Regulatory Authority of India (TRAI) came amid the government’s failure to meet its target of 20 million broadband connections by 2010.

The policy will enable the creation of broadband networks costing up to INR600 billion (USD13.2 billion) which will facilitate high speed data services and e-governance across the country. As part of the proposals, the Telecoms Regulatory Authority of India (TRAI) has recommended the creation of a national broadband network with a view to achieving 160 million broadband connections in India by 2014.

The TRAI claimed that its proposed ‘National Broadband Plan’ should be financed through the universal service obligation fund (USOF) and loans given by the government.

The regulator’s recommendations followed the government’s failure to achieve its self-imposed target of 20 million broadband subscribers by 2010, with there being just over half that number, around 10.3 million, at that date.

Further, under the plans the proposed fibre- optic network will be classified as a national resource, and as such is expected to be available with equal terms offered to all operators wishing to provide broadband services.

In establishing the infrastructure the National Optical Fibre Agency (NOFA) will be created to oversee the network, with the new body to be 100% owned by the Central Government. NOFA, it is understood, will also establish networks in all 63 cities covered under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM, a massive city modernisation scheme launched by the Indian government in 2005), while state agencies will roll out networks and backhaul in all other urban regions, in addition to rural areas.

A State Optical Fibre Agency (SOFA) meanwhile is expected to be formed in every state, with NOFA acting as the holding company with 51 per cent equity, and the remaining 49 per cent held by the respective state government.

Besides, the recommendations on ‘National Broadband Plan’ is expected to facilitate inclusive growth of the country by including large rural population in governance and decision making process and extend to the rural areas better education, health and banking facilities.

i. Established in two phases, this network would be an open access optical fibre network connecting all habitation with population of 500 and above and would be completed by 2013.

ii. The network will provide easy access to high speed data and information to citizens, promoting thereby the efforts in the field of education, health and others, the recommendations added.

iii. To roll-out the nation-wide networks, TRAI has also recommended formation of a government-owned holding company- National Optical Fibre Agency (NOFA).

iv. Besides, the centralised holding company, TRAI also recommended formation of r-State Optical Fiber Agency (SOFA) in every state with 51 per cent equity held by NOFA and the rest by the respective state governments.

v. Both the government holding companies are expected to ring in annual revenue of Rs 26,000 crore.

Affordability and Reliability of Broadband Services

Recognizing the potential of ubiquitous Broadband service in growth of GDP and enhancement in quality of life through societal applications including tele-education, tele­medicine, e-governance, entertainment as well as employment generation by way of high-speed access to information and web based communication; Government has announced Broadband Policy in October 2004.

The main emphasis is on the creation of infrastructure through various technologies that can contribute to the growth of broadband services. These technologies include optical fibre, Asymmetric Digital Subscriber Lines (ADSI.), cable TV network; DTH etc. Broadband connectivity has been defined as with the minimum speed of 256 kbps.

It is estimated that the number of broadband subscribers would be 20 million by 2010. With a view to encourage Broadband Connectivity, both outdoor and indoor usage of low power Wi-Fi and WinMax systems in 2.4 GHz-2.4835 GHz band has beendelicerised. The use of low power indoor systems in 5.15-5.35 GHz and 5.725-5.875 GHz bands has also been delicensed in January 05. The setting up of National Internet Exchange of India (NIXI) would enable bringing down the international bandwidth cost substantially, thus making the broadband connectivity more affordable.

The prime consideration guiding the Policy includes affordability and reliability of Broadband services, incentives for creation of additional infrastructure, employment opportunities, induction of latest technologies, national security and brings in competitive, environment so as to reduce regulatory interventions.

By this new policy, the Government intends to make available transponder capacity for VSAT services, at competitive rates after taking into consideration the security requirements. The service providers permitted to enter into franchisee agreement with cable TV network operators.

However, the Licensee shall be responsible for compliance of the terms and conditions of the licence. Further in the case of DTH services, the service providers permitted to provide Receive- Only-Internet Service. The role of other facilitators such as electricity authorities, Departments of ITs of various State Governments, Departments of Local Self Governments, Panchayats, Departments of Health and Family Welfare, Departments of Education is very important to carry the advantage of broadband services to the users particularly in rural areas.

Target has been set for 20 million broadband connections by 2010 and providing Broadband connectivity to all secondary and higher secondary schools, public health institutions and panchayats by 2010.

In rural areas, connectivity of 512 KBPS with ADSL 2 plus technology (on wire) will be provided from about 20,000 existing exchanges in rural areas having optical fibre connectivity. Community Service Centers, secondary schools, banks, and health centers, Panchayats, police stations etc. can be provided with this connectivity in the vicinity of above-mentioned 20,000 exchanges in rural areas. DOT will be subsidizing the infrastructure cost of Broadband network through support from USO Fund to ensure that Broadband services are available to users at affordable tariffs.