Broadband Policy 2004

Government have finalized this policy to accelerate the growth of Broadband services recognizing its potential in growth of GDP and enhancement in quality of life through societal applications including tele-education, tele-medicine, e-governance, entertainment as well as employment generation by way of high speed access to information and web-based communication.

NOTE: The policy was announced in the backdrop of low level of Internet and Broadband access which was 0.02% and 0.4% respectively at the end of December, 2003.

Broadband connectivity:

The estimated growth for Broadband and Internet subscribers in the country, as projected in the Broadband Policy 2004, envisaged through various technologies was as follows:

Year Ending             Internet Subscribers             Broadband Subscribers

2005                            6 million                                  3 million

2007                            18 million                                9 million

2010                            40 million                                20 million

NOTE: According to figures released by TRAI, the number of broadband subscribers in January 2010 is 8.03 million, way below what was projected in the Broadband Policy 2004.

Technology Options for Broadband Services:

 (a) Optical Fibre Technologies: 

The fibre optics technology can provide nearly unlimited bandwidth potential. The fibre based models are future proof as they are able to provide huge amounts of bandwidth in the last mile as well as provide a true IP and converged network that can deliver high quality voice, data and video. The spread of the networks of private service providers have to play an important role in bringing the fibre to homes as well as the rural areas and they are expected to focus on it.

(b) Digital Subscriber Lines (DSL) on copper loop: 

DSL has proved to be an important technology for provisioning of Broadband services through the copper loop. The owners of copper loop will be given a high priority because their role is critical as key drivers in the Broadband service market using DSL.

(c) Cable TV Network: 

Cable TV connection as last mile infrastructure reaches more people than even the telephone copper infrastructure and could be leveraged in providing cable operators a new business model while giving a stimulus to Broadband penetration. Therefore Cable TV network can be used as franchisee network of the service provider for provisioning Broadband services.  However, all responsibilities for ensuring compliance of terms & conditions of the licence shall vest with the Licensee.

(d) Satellite Media: 

Very Small Aperture Terminals (VSAT) and Direct-to-Home (DTH) services would be encouraged for penetration of Broadband and Internet services with the added advantage to serve remote and inaccessible areas. The Government was to make available transponder capacity for VSAT services at competitive rates. Department of Telecommunications, in consultation with the concerned Ministries will propose measures in the direction of Open Sky Policy for VSAT operators.

NOTE: But despite VSAT’s ability to play a critical role in bridging the digital divide by addressing remote and rural areas, even after 6 years of the Broadband Policy announcement VSAT market remains poised for a high growth.

(e) Terrestrial Wireless:

The government, recognising that terrestrial wireless is another upcoming technology platform for Broadband, announced its intent, in principle to de-licence different spectrum bands for different set of Wi-Fi users. Alternative spectrum bands which could be deployed for Broadband services shall also to be explored and identified.

Quality of Service (QoS): 

As per TRAI Act, 1997, TRAI has to prescribe QoS parameters for provisioning of broadband service.

NOTE: According to the TRAI recommendations in 2009, an Internet Service Providers should ensure that for the broadband services only 50 subscribers are accommodated in a single unit of bandwidth. For corporate subscribers, it should be a maximum of 30 users.

Simplification of SACFA / WPC clearance: 

The government also announced measures to simplify installation process and to promote use of indigenously developed technologies. A transparent scheme is being announced to be outlined separately for time-bound frequency allocation, siting clearance and wireless licensing by removing the cumbersome procedures, computerization and by setting predetermined standards.

Other Issues: 

Bandwidth availability including international bandwidth is a major driver for broadband services. So, the government expected service providers to take appropriate steps for making required bandwidth available even as Government and TRAI would address this issue on priority.

Government also decided to reduce the licence fee for Infrastructure Provider category-II, who provides end to end bandwidth. The bank guarantee for such service provider has been reduced to Rs.5 crores from Rs.100 crores.

Role of other Agencies: 

PCs, content and applications are important constituents for overall growth of Internet and Broadband services. Broadband services will accelerate decentralised governance at Panchayat level. The government recognizes the role of other facilitators, namely electricity authorities, Departments of ITs of various State Governments, Departments of Local Self Governments, Panchayats, Department of Health and Family Welfare, Department of Education.

Fiscal Issues: 

The Department of Telecommunications shall endeavor to promote indigenous manufacture of Broadband related equipments. It will work with the concerned Ministries and Manufacturers' Associations so that the equipments are available at an affordable price. With affordability only Broadband services can reach the urban and rural consumers. DoT will work out a package in consultation with Ministry of Finance and related Departments as well as concerned service providers to achieve this.