(2 July 2009 7:35 pm)

MUMBAI: Broadband subscribers increased from 0.18 million in March 2005 to about 5.69 million by February this year.

According to the Economic Survey tabled in Parliament today, this is the result of several steps taken to promote broadband in the country, recognizing the importance of increase broadband connectivity for growth of knowledge based society.

A proposal is being considered to provide broadband connectivity in rural and remote areas in a phased manner, under which 5,000 blocks would be connected by wireless broadband, and villages coming within a radius of 10 km. of the taluk/block headquarters would be covered. Guidelines have been issued for broadband wireless access (BWA) services. BWA services will increase broadband penetration.

Between January 2000 and December 2008, the total Foreign Direct Investment has been Rs 274.83 billion of which the inflow during 2008 was Rs 115.95 billion. FDI, an important source to meet the resources for rapid network expansion, is presently permitted in various telecom services from 74 per cent to 100 per cent.

With about 414 million connections till February this year, India’s telecommunication network is the third largest and the second largest wireless network in the world and the target of 500 million connections by 2010 is well within reach, the report said.

The tele-density also increased from 12.7 per cent in March 2006 to 35.65 per cent in February this year.

While the wireless subscriber base grew at a compound annual growth rate (CAGR) of 75.9 per cent per annum since 2003, the wire-line segment has been declining gradually.

The share of wireless broadband connectivity will cover government, institutional users, gram panchayats, higher secondary schools, public health centres and individual users. Subsidy would also be provided for setting up one kiosk from each rural exchange for providing public access to broadband services.

The government has taken several steps directed at reduction in entry barriers, creation of a level playing field between incumbents and new entrants and forward looking regulation.

An agreement has been signed with BSNL in January 2009 to provide wire-line broadband connectivity to rural and remote areas by leveraging the existing 27,789 rural exchanges and copper wireline network and by facilitating the service providers in creating broadband infrastructure.

Under this, BSNL would provide 8,61,459 wire-line broadband connections from rural telephone exchanges with subsidy from USO Fund. The speed of each of the broadband connections shall be at least 512 kbps always on, with the capability to deliver data, voice and video services in the fixed mode.

The Government has already set up Telecom Equipment and Services Export Promotion Council to promote and develop exports of telecom equipments and services.

The last four years saw many renowned telecom companies setting up their manufacturing base in India. With the government initiatives, leading world majors in telecom equipments like Nokia, Motorola, Sony Ericsson, Samsung, Flextronics and LG Electronics have set up their mobile phone manufacturing units meeting more than 50 per cent of the domestic demand, besides exports.

Nokia-Siemens Network, Ericsson and Tejas Networks have set up their manufacturing units for wireless equipments including BTS and complete transmission equipment within the country.

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