DoT to call up Isro for cheaper bandwidth

Move aimed at boosting telephony in rural and remote areas.

The department of telecommunications (DoT) is exploring the possibility of negotiating for satellite bandwidth at discounted rates from the Indian Space Research Organisation (Isro) for connectivity in the far-flung areas of the country

Also being considered is the option of supporting satellite bandwidth costs by the universal service obligation fund (USOF) for VSAT operators with terminals installed in rural and remote areas.

Besides, the government may introduce a reduced single rate for spectrum for VSAT operators against the present ceiling of 4 per cent.

According to sources, the government is looking at replicating the EDUSAT model (the first Indian satellite designed and developed exclusively for the education sector) and making satellite transponders available at reduced rates for telephony.

This is because between 35 per cent and 60 per cent of the total input cost for VSAT operations are contributed by transponder charges.

The EDUSAT links public and private educational institutions across the country at nominal rates. At present, the DoT is in talks with cellular service providers for infrastructure sharing and USOF support for establishing mobile services in rural areas.

The move to seek assistance from the department of space came because mobile services could not be a viable option in all areas, especially those in hilly and desert terrains, DoT officials said.

For instance, according DoT data, in 14,183 villages out of the 66,822 which currently do not have access to telephone connectivity, village public telephones (VPTs) can only be provided through digital satellite phone terminals.

Additionally, the draft of the upcoming telephone policy has proposed that VSAT operators be allowed to directly negotiate and hire satellite bandwidth from foreign and domestic players, including the ISRO.

With over 15 international satellites with free capacity overlooking India, the move, if implemented, can free transponder space from Indian satellites, which in turn can be used for rural telephony, sources added.

The draft of the upcoming policy has also proposed that service tax for VSAT connections in rural areas be waived off for a period of 10 years.

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To support bandwidth costs from USOF for VSAT operators having terminals in rural areas

To reduce single rate for spectrum charges for VSAT operators

To replicate EDUSAT model for serving education sector

To make satellite transponders available at reduced rates for telephony