| According to Maran, "The choice is left to the
service provider.'' Maran also said that the demand for broadband
is primarily conditioned and driven by Internet and PC penetration.
It is recognised that the current level of Internet and broadband
access in the country is low as compared to many Asian countries.
In India, the penetration of broadband, Internet and personal computer
(PC) was 0.02 per cent, 0.4 per cent and 0.8 per cent, respectively
at the end of December, 2003.
The policy defines broadband as an always-on data connection, supporting
interactive services, including Internet access with minimum download
speed of 256 Kbps per subscriber. The service providers are encouraged
to select technologies and equipment offering higher data rate.
Further recognising that last mile copper loop is not a "bottleneck
facility" for broadband services, access providers shall be
free to enter into mutually agreed commercial arrangements for utilisation
of available copper loop for expansion of broadband services including
content. Use of brand name being treated as a part of the value
shall be permitted in such commercial arrangements.
The new policy also envisages making available transponder capacity
for very small aperture terminals (VSAT) services at competitive
rates after taking into consideration security requirements.
According to Maran, the Department of Telecom (DoT), in consultation
with the ministries, concerned would soon propose additional measures
with regard to an open-sky policy for VSAT operators, who would
be consulted while determining the transponder usage charges.
Interestingly, as reported by indiantelevision.com earlier, the
policy states that various service providers shall be permitted
to enter into franchisee agreements with cable TV network operators
for providing broadband services. However, the licensee shall be
responsible for compliance of the terms and conditions of the license.
In the case of DTH services, the service providers shall be permitted
to provide receive-only-Internet service after obtaining an ISP
license from Dot The DTH service providers will also be permitted
to provide bi-directional Internet services after obtaining VSAT
and ISP license from the Dot, but neither a DTH licensee's revenue
share (of 10 per cent), nor the license fee has been reduced as
recommended by Telecom Regulatory Authority of India.
Bandwidth's cost and availability, including international bandwidth,
is a major driver for broadband services. In a competitive environment,
service providers are expected to take appropriate steps for making
required bandwidth available in a time bound manner within their
license framework.
In view of this, the policy states that the license fee for Infrastructure
Provider category-II, end-to-end bandwidth providers, to six per
cent of adjusted gross revenue (AGR). Further, the amount of bank
guarantee for such service provider has also been reduced to Rs
50 million from Rs 1,000 million.
The other salient features of the New Broadband Policy are as follows:-
* Spread of fibre networks shall be emphasised keeping in view
the long-term perspective 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.
* It has been decided to delicence 2.40-2.48 GHz band for low power
outdoor use on non-protection, non-interference and non-exclusive
basis.
* The 5.15-5.35 GHz band shall be de-licensed for the indoor use
of low power Wi-Fi systems. For outdoor use, the band 5.25-5.35
GHz shall be de-licensed in consultation with Department of Space
while delicensing in the band 5.15-5.25 GHz would be considered
after the process of vacation.
* In order to simplify SACFA/WPC clearance, the VSAT operators
shall be allowed to start the installation process for VSAT terminals
after a period of one month of submitting all relevant documents
to WPC for SACFA/WPC clearance wherever the total height of such
installation is less than five meters above the rooftop of an authorised
building. In the case of Receive-Only VSAT terminals and DTH with
Receive-Only-Internet, no SACFA/WPC clearance will be required wherever
the total height of such installation is less than five metres above
the rooftop of an authorised building.
* A transparent scheme is being outlined separately for time-bound
frequency allocation, siting clearance and wireless licensing by
removing the cumbersome procedures, computerization and by setting
predetermined standards.
* To keep pace with technological advances, throughput and antenna
size for VSATs are proposed to be reviewed periodically.
* Commercial VSAT service providers having ISP license shall be
permitted use of same hub station and remote station to provide
Internet service directly to the subscribers. Further this remote
stations shall be permitted to be used as a distribution point to
provide Internet services to multiple independent subscribers.
* The role of other facilitators such as electricity authorities,
departments of IT of various state governments, departments of local
self governments, panchayats, departments of health and family welfare,
departments of education is very important to carry the advantage
of broadband services to the users particularly in rural areas.
* The government has assigned a very high priority to indigenous
manufacture of broadband related equipment and shall endeavour to
work closely with the concerned ministries and manufacturers associations
so that the equipment are made available at an affordable price.
* Simplification of various procedural matters regarding clearance
before some licenses is given.
The full text of the new broadband policy could be accessed at
http://www.dot.gov.in/broadbandpolicy2004.htm
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