Union Communications and IT Minister Kapil Sibal on Wednesday met mobile operators to discuss the National Broadband Plan that aimed at providing high-speed Internet access and e-governance services even as the Department of Telecommunications (DoT) is busy preparing the National Broadband Policy that would be sent for the Cabinet approval soon.
In the meeting, where representatives of various telecom companies as well as members of telecom industry bodies — the Cellular Operators Association of India (COAI) and the association of Unified Telecom Service Providers of India (AUSPI) — were present, Mr. Sibal discussed various issues related to setting up of the National Optical Fibre Network (NOFN).
The Centre aims to provide high-speed Internet access and e-governance services across India by 2014 through this robust network.
The DoT also made a presentation on NOFN that would provide convenient back haul connectivity. To be rolled out by BSNL in the next three years, NFON is estimated to cost Rs.20,000 crore for providing wireless broadband connection to every village panchayat.
In a statement, COAI said operators had sought judicious use of the Universal Service Obligation Fund (USOF) for the network roll out. COAI also emphasised that this effort of the government must not be limited only to the optical fibre cable (OFC) roll out but should also integrate the wireless access from the OFC endpoint, which was essential to reach the end consumer.
In December 2010, the Telecom Regulatory Authority of India (TRAI) had came out with recommendations on setting up a National Broadband Network at an estimated cost of Rs.60,000 crore. To be set up in two phases, this network will be an open access optical fibre network connecting all habitations with population of 500 and above and will be completed by 2013. TRAI had suggested that the project be financed by the USO fund under the DoT, and loans be provided by the government.
To roll-out the nation-wide networks, TRAI has also recommended formation of a government-owned holding company — National Optical Fibre Agency (NOFA). Besides, the centralised holding company, TRAI recommended formation of State Optical Fibre Agency (SOFA) in every State with 51 per cent equity held by NOFA and the balance by the respective State governments. Both the government and holding companies are expected to ring in an annual revenue of Rs.26,000 crore.
