|
NewsGlobe: Currents
India’s TRAI calls for broadband subsidies
Regulator wants USO fund to boost flagging market
by Ken Wieland
TRAI, India’s telecom regulator, has issued a series of draft
proposals in an attempt to boost broadband investment.
Chief among these is that the USO (universal service
obligation) fund, to which Indian operators contribute 5
percent of their annual revenue, be used to subsidize satellite
backhaul charges by up to 40 percent when providing
broadband links to rural areas.
According to local press reports, there is more than US$2 billion in
India’s USO fund, making it one of the largest funds of its
kind in developing economies.
In an attempt to boost broadband investment in urban areas,
the TRAI recommends that state-owned operators BSNL and
MTNL should be “encouraged” to appoint franchisees for
providing DSL-based services to supplement their broadband
efforts. TRAI says that BSNL and MTNL should have “total
flexibility” in developing commercial models with their
partners.
In addition, TRAI urges the government to encourage Indian
manufacturers to produce more DSL-based CPEs, based on
standards developed by India’s TEC (Telecommunications
Engineering Center). TEC’s work on DSL CPE standardization,
says TRAI, should start “immediately.” Moreover, says TRAI,
the government should mandate MDUs (multiple dwelling
units) to be “broadband ready” through the installation of the
necessary internal wiring.
As for wireless broadband, TRAI wants the government to
speed up its efforts in developing the licensing procedure and
pricing for 3G and WiMAX spectrum.
TRAI’s recommendations, which are the result of a lengthy
review process, are in response to India’s abject failure to
meet the broadband targets set by the DoT (Department of
Telecommunications) in April 2004 after previous consultation
with TRAI. These targets included 3 million broadband
subscribers by the end of 2005; 9 million by the end of 2007;
and 20 million by the end of 2010.
Instead, India could only muster 0.9 million broadband
subscribers by the end of 2005 and a measly 2.34 million by
the end for March 2007 (the latest figures provided by TRAI).
The failure of broadband in India is in stark contrast to the
country’s booming mobile market. According to the CCS
wireless consultancy, mobile penetration in India is still under
20 percent, but net additions currently exceed 7 million per
month.
|
