NEW DELHI: The debate over Broadband Wireless Access (BWA) spectrum auctions and internet telephony comes at a time when international organizations and analysts are painting a starkly contrasting picture of the Indian telecom and IT sectors.
Recent International Telecommunication Union (ITU) data reveals that the success of India's telecom revolution is restricted to mobile voice with very little to showcase in fixed line and internet access, or high-speed broadband.
For a country that is the global IT and ITeS capital or the world's back office, its own internet penetration remains one of the lowest in the world. Forecasts are equally uninspiring, projecting high-speed internet access to remain abysmal till 2012.
Internet broadband penetration will limp along to eventually reach a measly 3.9 connections for every 100 citizens by 2012. Even though internet users may be multiple times higher, actual broadband penetration will not exceed 18.1 million at the beginning of the next decade.
In contrast, mobile telephony will add as many as 350 million subscribers during this five-year period to end at roughly 615 million by mid 2012.
These forecasts fall short of the government's conservative target of 20 million high-speed internet subscribers by 2010-end. India's broadband penetration is roughly 4.5 million subscribers. Even with a 300% growth rate over the next five years, the sector will fall short of the 50 million mark by 2012.
"The weak numbers can be attributed to a slew of policy failures including inadequacy of fixed line infrastructure, a barely profitable ISP (internet service provider) business, and low domestic PC penetration", says Rajesh Chharia, president, ISP Association of India. It is learnt that ISPs are actively considering a strong representation to the government on these issues.
Weak broadband penetration could severely slow down overall telecom growth, crippling India's ISPs in the process. It will also hurt ambitious government programmes, such as e-governance, e-commerce, telemedicine and e-education all of which are dependent on high-speed broadband internet access.
This gloomy environment has prompted telecom regulator TRAI to recommend internet telephony for ISPs as it believes this has the potential of becoming the killer application that will kickstart growth.
However, the uncertainty of DoT accepting TRAI's recommendations or succumbing to the interests of existing mobile operators to slap an additional entry fee for ISPs is a shadow over the sector.
DoT officials have been confusing, vacillating between welcoming TRAI's recommendations and airing level playing field concerns. "A policy overhaul to include concepts like shared PCs, enhanced scope of services and expanding e-governance applications is critical for the growth of the sector," says Naresh Ajwani, president, Sify Ltd.
Source : EconomicTimes
Showing posts with label DoT. Show all posts
Showing posts with label DoT. Show all posts
Thursday, September 4, 2008
Tuesday, September 2, 2008
Government to connect 5,000 blocks with broadband
NEW DELHI: The government on Tuesday said it would connect 5,000 blocks through wireless broadband soon after the allocation of the third generation spectrum.
In a statement, the Department of Telecom (DoT) said this will be done with support from DoT's Universal Service Obligation Fund (USOF) after allocation of spectrum through an auction later this year.
Private players contribute five percent of their earnings to the USOF, which is aimed at promoting rural telephony.
The villages that come in the radius of 10 kilometres of the block headquarters will be connected, DoT said.
With this step, schools, public health centres, village panchayats and the community service centres (CSCs) meant to provide e-governance and data services to rural areas would be benefited.
Currently, the state-run telecom operator Bharat Sanchar Nigam Ltd (BSNL) provides broadband to 1,000 blocks out of around 6,000 in the country.
Similarly, about 50,000 out of a proposed 100,000 CSCs are covered by BSNL broadband. DoT's new initiative is likely to cover the remaining blocks and all CSCs.
Besides, DoT also proposes to support wireline broadband by USOF wherever feasible, the statement added.
The government has held discussions with technology providers, telecom operators and Internet service providers for meeting its wireless broadband plan and to formalise the tender procedures, specifications and deliverable formulation, and benchmarks.
Source : EconomicTimes
In a statement, the Department of Telecom (DoT) said this will be done with support from DoT's Universal Service Obligation Fund (USOF) after allocation of spectrum through an auction later this year.
Private players contribute five percent of their earnings to the USOF, which is aimed at promoting rural telephony.
The villages that come in the radius of 10 kilometres of the block headquarters will be connected, DoT said.
With this step, schools, public health centres, village panchayats and the community service centres (CSCs) meant to provide e-governance and data services to rural areas would be benefited.
Currently, the state-run telecom operator Bharat Sanchar Nigam Ltd (BSNL) provides broadband to 1,000 blocks out of around 6,000 in the country.
Similarly, about 50,000 out of a proposed 100,000 CSCs are covered by BSNL broadband. DoT's new initiative is likely to cover the remaining blocks and all CSCs.
Besides, DoT also proposes to support wireline broadband by USOF wherever feasible, the statement added.
The government has held discussions with technology providers, telecom operators and Internet service providers for meeting its wireless broadband plan and to formalise the tender procedures, specifications and deliverable formulation, and benchmarks.
Source : EconomicTimes
Sunday, August 17, 2008
ISPs too want DoT to review WiMAX policy
NEW DELHI: After telecom regulator TRAI and the finance ministry, the department of telecom (DoT) is set to face further opposition to its WiMAX auction policy. The Internet Service Providers Association of India, the body representing all standalone ISPs, has decided to ask the DoT to review the WiMAX policy, failing which it plans to haul the communications ministry to the telecom tribunal. “We will approach the DoT over this issue next week,” ISPAI president Rajesh Charia told ET.
First, standalone ISPs do not want the base price for the WiMAX auction to be linked to that of 3G. At present, the policy stipulates that the base price for WiMAX spectrum auction will be 25% of that for 3G radio frequencies — this implies, the reserve price of a pan-India WiMAX licence comes to about Rs 505 crore.
“WiMAX is predominantly for wireless high speed internet or broadband services where the platform of usage is computers. On the other hand, 3G is for mobile services,” explained Mr Charia. According to him, if the auctions are carried out as per the base price proscribed in the policy, no ISP would be able to bid. “A minimum of one slot must be reserved for standalone ISPs. Here only ISPs should be permitted to bid against each other,” he added. ISPAI wants an alternate formula where its members be charged only 25% of the highest bid that a telco makes for WiMAX spectrum in that particular circle during the auction.
Meanwhile, as reported by ET first, ISPs such as Sify and Spectranet are also planning to haul the communications ministry to the courts over the government’s decision to take back the 2.5 GHz WiMAX spectrum allotted to them. Any move by ISPs to go to the courts over these issues could delay the WiMAX spectrum auctions which are scheduled to take place by the year-end. Besides, the DoT can only go ahead with the auction if ISPs vacate the radio frequencies they hold in the 2.5 GHz band.
First, standalone ISPs do not want the base price for the WiMAX auction to be linked to that of 3G. At present, the policy stipulates that the base price for WiMAX spectrum auction will be 25% of that for 3G radio frequencies — this implies, the reserve price of a pan-India WiMAX licence comes to about Rs 505 crore.
“WiMAX is predominantly for wireless high speed internet or broadband services where the platform of usage is computers. On the other hand, 3G is for mobile services,” explained Mr Charia. According to him, if the auctions are carried out as per the base price proscribed in the policy, no ISP would be able to bid. “A minimum of one slot must be reserved for standalone ISPs. Here only ISPs should be permitted to bid against each other,” he added. ISPAI wants an alternate formula where its members be charged only 25% of the highest bid that a telco makes for WiMAX spectrum in that particular circle during the auction.
Meanwhile, as reported by ET first, ISPs such as Sify and Spectranet are also planning to haul the communications ministry to the courts over the government’s decision to take back the 2.5 GHz WiMAX spectrum allotted to them. Any move by ISPs to go to the courts over these issues could delay the WiMAX spectrum auctions which are scheduled to take place by the year-end. Besides, the DoT can only go ahead with the auction if ISPs vacate the radio frequencies they hold in the 2.5 GHz band.
Sunday, August 3, 2008
ISPs cry foul over WiMAX spectrum
NEW DELHI: Internet Service Providers (ISPs) like Sify and Spectranet are up in arms following the government's decision to take back the 2.5 GHz WiMAX spectrum allotted to them. ISPs claim they had already firmed up investment plans and ordered equipment when the Department of Telecom (DoT) shot a letter asking them to return the spectrum. The ISP Association is going to court over the government's decision.
"We had already started our commercial pilots and will incur a commercial loss due to the government's decision. Now, auctioning of the spectrum could lead to inflation in internet service charges, which is not a good thing for India as we are still poorly developed in terms of broadband penetration," says Sify's president for consumer infrastructure Naresh Ajwani.
The government had allotted 2.5 GHz spectrum (for mobile wireless broadband) in 2003 to seven players including Bharti, R-Com, HCL Infinet, Sify and Spectranet. But the government has asked them to return the spectrum. It plans to auction the 2.5 GHz spectrum for a base price of about Rs 550 crore. It will be about one-fourth the bidding price which is fixed at about Rs 2,200 crore for a pan-India licence, according to guidelines.
"The government should talk to industry players to resolve this tangle. Some players who have already started offering wireless broadband to corporate customers based on the spectrum allotted and ordered equipment will suffer a loss," says advisor to Spectranet Amitabh Singhal.
There's no way any ISP will be able to shell out Rs 550 crore for a WiMAX spectrum," says advisor to Spectranet Amitabh Singhal. "It's like changing the rules of the game just when a match is going to start. It will only lead to increase in valuations of universal access licence holders (UASL) or the telecom operators, who will hoard the WiMAX spectrum. We will be going to court against the DoT decision," said Internet Service Providers Association of India president Rajesh Charria.
Based on the IEEE 802.16 standard, WiMAX works on three licensed spectrum profiles: 2.3 GHz, 2.5 GHz and 3.5 GHz. Currently, Pakistan has one of the largest functional WiMAX networks in the world, deployed by Wateen Telecom on Motorola hardware.
In India, the government had got 40MHz vacated from Indian Space Research Organisation (ISRO) in 2003 which was allotted to seven ISP licence holders in 2003. Recently, the government got an additional 30 MHz vacated from ISRO. The government plans to put forth the entire 70 MHz for auction, which the ISPs are opposing.
WiMAX or Worldwide Interoperability for Microwave Access, is a wireless communication technology which can offer high speed connnectivity over a larger, about 50 km radius. It's important also for remote areas and tough terrain where setting up optical fibre cables is difficult.
"We had already started our commercial pilots and will incur a commercial loss due to the government's decision. Now, auctioning of the spectrum could lead to inflation in internet service charges, which is not a good thing for India as we are still poorly developed in terms of broadband penetration," says Sify's president for consumer infrastructure Naresh Ajwani.
The government had allotted 2.5 GHz spectrum (for mobile wireless broadband) in 2003 to seven players including Bharti, R-Com, HCL Infinet, Sify and Spectranet. But the government has asked them to return the spectrum. It plans to auction the 2.5 GHz spectrum for a base price of about Rs 550 crore. It will be about one-fourth the bidding price which is fixed at about Rs 2,200 crore for a pan-India licence, according to guidelines.
"The government should talk to industry players to resolve this tangle. Some players who have already started offering wireless broadband to corporate customers based on the spectrum allotted and ordered equipment will suffer a loss," says advisor to Spectranet Amitabh Singhal.
There's no way any ISP will be able to shell out Rs 550 crore for a WiMAX spectrum," says advisor to Spectranet Amitabh Singhal. "It's like changing the rules of the game just when a match is going to start. It will only lead to increase in valuations of universal access licence holders (UASL) or the telecom operators, who will hoard the WiMAX spectrum. We will be going to court against the DoT decision," said Internet Service Providers Association of India president Rajesh Charria.
Based on the IEEE 802.16 standard, WiMAX works on three licensed spectrum profiles: 2.3 GHz, 2.5 GHz and 3.5 GHz. Currently, Pakistan has one of the largest functional WiMAX networks in the world, deployed by Wateen Telecom on Motorola hardware.
In India, the government had got 40MHz vacated from Indian Space Research Organisation (ISRO) in 2003 which was allotted to seven ISP licence holders in 2003. Recently, the government got an additional 30 MHz vacated from ISRO. The government plans to put forth the entire 70 MHz for auction, which the ISPs are opposing.
WiMAX or Worldwide Interoperability for Microwave Access, is a wireless communication technology which can offer high speed connnectivity over a larger, about 50 km radius. It's important also for remote areas and tough terrain where setting up optical fibre cables is difficult.
Wednesday, July 30, 2008
Raja may announce 3G, WiMax, MNP policy on Friday
NEW DELHI: After settling differences with telecom regulator TRAI on reserve price of spectrum, the Government is likely to announce the much-delayed 3G and Wi Max policy on Friday, sources said.
The announcement may come amid indications that at least 10 players would be issued 3G licenses as against five proposed earlier.
According to highly-placed sources, the government has about 60 MHz of spectrum (radio frequency) for the next generation (3G) mobile services and this can accommodate at least 10 players.
The differences between DoT and TRAI also delayed the 3G policy announcement. The political uncertainty following the Left parties withdrawing their support to the UPA government also played a part in the delay.
The other key proposal which is likely to see the light of day is Mobile Number Portability which will allow subscribers to retain the mobile number even after changing the service provider.
On 3G proposals, TRAI has already agreed to the proposals of DoT for hiking pan-India licence fee for third generation mobile services to Rs 2,200 crore and pan-India broadband wireless access (BWA) spectrum, popularly known as WiMAX, to about 840 crore -- Rs 60 crore for five metros and category A circles, Rs 30 crore for category B and Rs 10 crore for category C circles).
DoT has also fixed the base price at Rs 160 crore for metros and category A circles, Rs 80 crore for category B, and Rs 30 crore for C circles, respectively for 3G spectrum auctions.
Source : EconomicTimes
The announcement may come amid indications that at least 10 players would be issued 3G licenses as against five proposed earlier.
According to highly-placed sources, the government has about 60 MHz of spectrum (radio frequency) for the next generation (3G) mobile services and this can accommodate at least 10 players.
The differences between DoT and TRAI also delayed the 3G policy announcement. The political uncertainty following the Left parties withdrawing their support to the UPA government also played a part in the delay.
The other key proposal which is likely to see the light of day is Mobile Number Portability which will allow subscribers to retain the mobile number even after changing the service provider.
On 3G proposals, TRAI has already agreed to the proposals of DoT for hiking pan-India licence fee for third generation mobile services to Rs 2,200 crore and pan-India broadband wireless access (BWA) spectrum, popularly known as WiMAX, to about 840 crore -- Rs 60 crore for five metros and category A circles, Rs 30 crore for category B and Rs 10 crore for category C circles).
DoT has also fixed the base price at Rs 160 crore for metros and category A circles, Rs 80 crore for category B, and Rs 30 crore for C circles, respectively for 3G spectrum auctions.
Source : EconomicTimes
Monday, July 14, 2008
Trai hits out at DoT, now over WiMax
NEW DELHI: Telecom regulator Trai has slammed the communications ministry for being secretive about the amount of wireless broadband (WiMAX) spectrum that is currently available in the country.
Trai has also accused the Department of Telecom (DoT) of keeping it in the dark, both on the availability of WiMAX spectrum as well as on the government’s efforts to get other users such as the department of space to vacate these radio frequencies.The regulator has also demanded that the government put in place a transparent and efficient spectrum management regime.
“The results of the efforts made by the Wireless Planning & Coordination (WPC wing of the DoT) to get the required spectrum bands vacated/re-farmed from the incumbents are not available in the public domain. The Authority has time and again emphasized that in the times to come, the spectrum will become the most valuable and scarce resource as with the advent of new data centric applications, its demand will increase and there will be competitive users for the same band of spectrum. Therefore, there is a need to have a transparent, predictable and efficient spectrum management system for allocation and pricing of the spectrum,” Trai said in its communication to the DoT.
Trai has also point blank told the DoT that even as other countries had rolled out WiMAX services, the process in India had been delayed ‘due to uncertainty in the spectrum allocation policies’.
“Unless immediate action is taken for vacation of spectrum and its further allotment is done in a time bound manner with the clear-cut roadmap, little progress will be made in term of penetration of wireless broadband in the country,” the regulator warned.
Trai has also directed the DoT to work with the Department of Space (DoS) to get 100 MHz for broadband wireless spectrum vacated urgently in the 3.4 - 3.6 GHz band for wireless broadband services.
At the same time, the authority also took a dig at the DoT and said: “The Authority does not have any information regarding the efforts made by the DoT/WPC to coordinate with the DoS for spectrum in this band, and also results of the study done to find solution to the interference problem in this band between the satellite and terrestrial wireless services.”
Importantly, Trai has also decided not to make any recommendation for 3.4-3.6 GHz frequency bands unless the DoT assess the compatibility of satellite based services with WiMAX services in a transparent manner.
Again, in the case of 2.5 to 2.69 GHz frequency bands, Trai has asked the DoT to coordinate with the DoS and ascertain the feasibility of vacation of additional spectrum in this band within the next 45 days.
Trai has also accused the Department of Telecom (DoT) of keeping it in the dark, both on the availability of WiMAX spectrum as well as on the government’s efforts to get other users such as the department of space to vacate these radio frequencies.The regulator has also demanded that the government put in place a transparent and efficient spectrum management regime.
“The results of the efforts made by the Wireless Planning & Coordination (WPC wing of the DoT) to get the required spectrum bands vacated/re-farmed from the incumbents are not available in the public domain. The Authority has time and again emphasized that in the times to come, the spectrum will become the most valuable and scarce resource as with the advent of new data centric applications, its demand will increase and there will be competitive users for the same band of spectrum. Therefore, there is a need to have a transparent, predictable and efficient spectrum management system for allocation and pricing of the spectrum,” Trai said in its communication to the DoT.
Trai has also point blank told the DoT that even as other countries had rolled out WiMAX services, the process in India had been delayed ‘due to uncertainty in the spectrum allocation policies’.
“Unless immediate action is taken for vacation of spectrum and its further allotment is done in a time bound manner with the clear-cut roadmap, little progress will be made in term of penetration of wireless broadband in the country,” the regulator warned.
Trai has also directed the DoT to work with the Department of Space (DoS) to get 100 MHz for broadband wireless spectrum vacated urgently in the 3.4 - 3.6 GHz band for wireless broadband services.
At the same time, the authority also took a dig at the DoT and said: “The Authority does not have any information regarding the efforts made by the DoT/WPC to coordinate with the DoS for spectrum in this band, and also results of the study done to find solution to the interference problem in this band between the satellite and terrestrial wireless services.”
Importantly, Trai has also decided not to make any recommendation for 3.4-3.6 GHz frequency bands unless the DoT assess the compatibility of satellite based services with WiMAX services in a transparent manner.
Again, in the case of 2.5 to 2.69 GHz frequency bands, Trai has asked the DoT to coordinate with the DoS and ascertain the feasibility of vacation of additional spectrum in this band within the next 45 days.
Wednesday, July 9, 2008
Ministry may reject TRAI draft on WiMAX too
After turning down TRAI’s recommendations on 3G and deciding to allow foreign players, the communication ministry now plans to throw out the regulator’s recommendations on Broadband Wirelss (also called WiMAX) spectrum auctions, too, and impose its own rules.
While TRAI had said that ISPs, who are successful in the broadband wireless (BWA) auctions, be given licences for five years, the Department of Telecom (DoT) wants to raise this time frame to 15 years. Again, TRAI had said BWA or WiMAX spectrum should be auctioned through a one-stage sealed bid for every circle, but the DoT plans to have a simultaneous ascending e-auction model instead.
Importantly, the DoT’s decision to double the reserve price for the 3G spectrum will have a direct impact on the WiMAX auctions. This is because; the reserve price for the WiMax (Worldwide Interoperability for Microwave Access) spectrum auction is likely to be set at fourth 3G spectrum price.
This implies, when the policy is announced, the reserve price for BWA auctions is set to be double of that prescribed by TRAI, which is yet another deviation from the regulator’s recommendations.
ET has also learnt that the DoT is set to make further changes to TRAI’s recommendations for BWA spectrum issues. For instance, while TRAI has said that each player must get WiMAX spectrum in contiguous blocks of 15 MHz each in the 3.3 - 3.4 GHz and 3.4 - 3.6 GHz bands, the DoT has a completely different plan in mind: “As per present estimate of availability of spectrum four blocks each of 10 MHz in the 2.5 GHz and 2.3 GHz to be allocated,’ the DoT note on the issue said.
On the auction procedure, the note said: “In place of the above (TRAI’s suggestion of a one-stage sealed bid), it is proposed to have a controlled simultaneously e-auction as similar to that in the case of 3G spectrum. Further, here also when the number of bidders left is equal to the number of blocks of spectrum being auctioned, in any service area, the auction will end.
All the bidders will have to match the bid of the highest bidder. In case they do not match, then that block would be offered to the next highest bidder at the highest bid price. If any block is left vacant, then the block would be re-auctioned”.
Source : EconomicTimes
While TRAI had said that ISPs, who are successful in the broadband wireless (BWA) auctions, be given licences for five years, the Department of Telecom (DoT) wants to raise this time frame to 15 years. Again, TRAI had said BWA or WiMAX spectrum should be auctioned through a one-stage sealed bid for every circle, but the DoT plans to have a simultaneous ascending e-auction model instead.
Importantly, the DoT’s decision to double the reserve price for the 3G spectrum will have a direct impact on the WiMAX auctions. This is because; the reserve price for the WiMax (Worldwide Interoperability for Microwave Access) spectrum auction is likely to be set at fourth 3G spectrum price.
This implies, when the policy is announced, the reserve price for BWA auctions is set to be double of that prescribed by TRAI, which is yet another deviation from the regulator’s recommendations.
ET has also learnt that the DoT is set to make further changes to TRAI’s recommendations for BWA spectrum issues. For instance, while TRAI has said that each player must get WiMAX spectrum in contiguous blocks of 15 MHz each in the 3.3 - 3.4 GHz and 3.4 - 3.6 GHz bands, the DoT has a completely different plan in mind: “As per present estimate of availability of spectrum four blocks each of 10 MHz in the 2.5 GHz and 2.3 GHz to be allocated,’ the DoT note on the issue said.
On the auction procedure, the note said: “In place of the above (TRAI’s suggestion of a one-stage sealed bid), it is proposed to have a controlled simultaneously e-auction as similar to that in the case of 3G spectrum. Further, here also when the number of bidders left is equal to the number of blocks of spectrum being auctioned, in any service area, the auction will end.
All the bidders will have to match the bid of the highest bidder. In case they do not match, then that block would be offered to the next highest bidder at the highest bid price. If any block is left vacant, then the block would be re-auctioned”.
Source : EconomicTimes
Friday, July 4, 2008
Govt to announce 3G, Wimax guidelines soon
The government said on Friday guidelines on 3G and Wimax will be out in a week and it is separately looking at third party solution to address security concerns attached to accessing Blackberry network.
"Broad guidelines for 3G have been devised and they need some inputs from the Finance Ministry and after that the guidelines will be sent to the Telecom Commission and I expect the norms to be announced within a week," Telecom Minister A Raja said on the sidelines of a function today.
He said the consultation with the Finance Ministry is necessary as the ministry has a say in the Telecom Commission, the policy making wing of the Department of Telecom.
After the consultation is over, the guidelines would be sent to the Telecom Commission for notification.
On the Blackberry issue, Raja said, "We cannot throw (out) Blackberry services but the question is how to keep this service, while taking care of security measures at the same time. We do feel security measures can be taken care of with wider consultations."
Asked where the discussion on security measures with Blackberry licensor RIM was headed, Raja said: "They are offering some solution. Notwithstanding their solutions we are finding other solutions from other companies."
Source: EconomicTimes
"Broad guidelines for 3G have been devised and they need some inputs from the Finance Ministry and after that the guidelines will be sent to the Telecom Commission and I expect the norms to be announced within a week," Telecom Minister A Raja said on the sidelines of a function today.
He said the consultation with the Finance Ministry is necessary as the ministry has a say in the Telecom Commission, the policy making wing of the Department of Telecom.
After the consultation is over, the guidelines would be sent to the Telecom Commission for notification.
On the Blackberry issue, Raja said, "We cannot throw (out) Blackberry services but the question is how to keep this service, while taking care of security measures at the same time. We do feel security measures can be taken care of with wider consultations."
Asked where the discussion on security measures with Blackberry licensor RIM was headed, Raja said: "They are offering some solution. Notwithstanding their solutions we are finding other solutions from other companies."
Source: EconomicTimes
Wednesday, June 25, 2008
Govt may bring ISPs under USL net
Internet service providers (ISPs) such as Sify, Tulip and World Phone may soon have to subsidise the broadband connection in rural areas. The government is considering a proposal to bring the value-added service providers under the universal service obligation (USO) norms. Presently, telecom service providers are required to pay 5% of their adjusted gross revenue (AGR) as universal service levy (USL) to meet the USO norms. ISPs and other value-added service providers are, however, exempted from this levy.
“The government is contemplating several measures to increase broadband penetration in the rural parts of the country and levying USL on ISPs can be one of the tools for taking the programme ahead,” a source in the department of telecommunication (DoT) said.
Money raised through the initiative would be utilised to subsidise Bharat Sanchar Nigam Ltd’s (BSNL) rural broadband connections. DoT already provides subsidy to BSNL for spreading telecom network in the rural areas.
Progress on the front of broadband penetration has been quite low. Total connections as on April 30, 2008, stood at 4.01 million as against the government’s target of nine-million connections by 2007 and 20 million connections by 2010.
Worried over missing the target—both on the front of broadband and internet—the DoT is in the process of devising new strategy for tackling the situation. The subsidy scheme is a part of that strategy. The scheme would be implemented in phased manner across the country and would also cover remote areas including the north-eastern states. This would cover common service centres (CSCs) being set up by the department of information technology (DIT) schools, primary health centres and gram panchayats in a phased manner.
The government is also planning to subsidise its broadband initiative by using existing USO funds. The DoT has about Rs 15,000 crore of unutilised money under the USOF scheme and is finding ways to spend this in a holistic way.
“The government is contemplating several measures to increase broadband penetration in the rural parts of the country and levying USL on ISPs can be one of the tools for taking the programme ahead,” a source in the department of telecommunication (DoT) said.
Money raised through the initiative would be utilised to subsidise Bharat Sanchar Nigam Ltd’s (BSNL) rural broadband connections. DoT already provides subsidy to BSNL for spreading telecom network in the rural areas.
Progress on the front of broadband penetration has been quite low. Total connections as on April 30, 2008, stood at 4.01 million as against the government’s target of nine-million connections by 2007 and 20 million connections by 2010.
Worried over missing the target—both on the front of broadband and internet—the DoT is in the process of devising new strategy for tackling the situation. The subsidy scheme is a part of that strategy. The scheme would be implemented in phased manner across the country and would also cover remote areas including the north-eastern states. This would cover common service centres (CSCs) being set up by the department of information technology (DIT) schools, primary health centres and gram panchayats in a phased manner.
The government is also planning to subsidise its broadband initiative by using existing USO funds. The DoT has about Rs 15,000 crore of unutilised money under the USOF scheme and is finding ways to spend this in a holistic way.
Monday, April 21, 2008
DoT Terminates 35 ISP Licences; Are They To Blame For Lack On Internet Penetration?
The Department of Telecommunications (DoT) has terminated the licenses of 35 companies which never launched ISP services. Some of these include Discovery Infoways, Q-Net Infosystems, Netconnect (India), Infinity.com, KTV Net. As per the Hindu, over 100 other license holders are yet to offer services after five years of being given the license.
As far as my reading of this news goes - it does absolutely nothing to improve the situation in the market: these ISPs weren’t preventing others from launching services. They also weren’t hoarding licenses, since as as many as 770 licenses. Perhaps the mistake was made on the policy front - a gross underestimation of the scale of operations required for a profitable ISP business - only 275 ISPs launched services, and 397 license holders quit.
What compounds the issue is the new policy of having an entry fee, and an annual license fee. Yeah, right - that’s exactly what we need to support a sector that isn’t really taking off. This ends up reducing the possibility of competition in a market that is dominated by government companies - BSNL and MTNL because of their legacy ownership of the last mile. There was a school of thought that the India might well take the wireless route to broadband due to the expense involved with fixed-line deployment. However, there have been quality issues with wireless broadband (wired as well, but that’s another story). If the government was serious about broadband in this country, they’d open up the last mile. Scrapping non-performing ISP licenses is just an eyewash.
Source: contentSutra
As far as my reading of this news goes - it does absolutely nothing to improve the situation in the market: these ISPs weren’t preventing others from launching services. They also weren’t hoarding licenses, since as as many as 770 licenses. Perhaps the mistake was made on the policy front - a gross underestimation of the scale of operations required for a profitable ISP business - only 275 ISPs launched services, and 397 license holders quit.
What compounds the issue is the new policy of having an entry fee, and an annual license fee. Yeah, right - that’s exactly what we need to support a sector that isn’t really taking off. This ends up reducing the possibility of competition in a market that is dominated by government companies - BSNL and MTNL because of their legacy ownership of the last mile. There was a school of thought that the India might well take the wireless route to broadband due to the expense involved with fixed-line deployment. However, there have been quality issues with wireless broadband (wired as well, but that’s another story). If the government was serious about broadband in this country, they’d open up the last mile. Scrapping non-performing ISP licenses is just an eyewash.
Source: contentSutra
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