NEW DELHI: Telecom regulator Trai is learnt to be releasing a comprehensive consultation paper on broadband this month to address the issue of improving broadband penetration. With 3G auctions entering the last phase followed by BWA auctions, the government believes there is now a real chance of getting its act together in the broadband arena.
This follows six months of serious discussions in the offices of the PM, cabinet secretary and DoT secretary over the need for a policy rehaul to increase broadband penetration. Contrasting 600 million mobile phone users in India with a mere 70 million internet users and less than 10 million broadband users illustrates the enormity of the problem. The existing policy regime has failed to draw investments for the lack of an innovative business model, forcing the Trai’s hand in seeking extensive consultation on the subject.
Experts say infrastructure, access devices, content and affordability all need to come together to create value for the end user of broadband. “In developed countries 6% of income is spent on communication services while in India, 10% to 20% is spent on mobile usage as it is seen as a good return on investment. The government needs to create a similar draw for broadband,†says Kunal Bajaj, director of telecom consulting firm Analysys Mason India.
The Trai intends to elicit the views of various stakeholders ranging from current and future service providers, equipment manufacturers, technology and content providers.
The government has already drawn up an ambitious Rs 18,000 crore outlay over three years to lay a five lakh km optic fibre cable (OFC) network to reach 2.5 lakh gram panchayats, which was first reported by TOI on March 4.
The challenge with the broadband sector starts with the very definition of broadband. Countries across the world have moved up to much higher limits while India is still struggling at a very basic level of connectivity and bandwidth. Given that nearly half the year has already passed, it is highly likely that the rest of 2010 will be devoted to a policy dialogue between government and stakeholders with a firm action plan towards the end of the year and implementation beginning 2011.
By then, various new options such as wireless broadband through 3G and BWA would have become a reality.
The wireless infrastructure, combined with government efforts to build a fibre optic network to reach villages, could resolve the access problem in a significant manner. It will, however, leave other areas for discussion, including impact of such infrastructure on areas like e-governance, e-health and e-education.
