Move fast on broadband, 3G, Trai tells Centre

In order to accelerate the rollout of broadband Internet, the Telecom Regulatory Authority of India (Trai) has urged the government to expedite the decision on the pricing of spectrum for 3G and broadband wireless access (BWA) services.

Trai's draft recommendations to the government say the spectrum for 3G and WiMAX services should be made available at the earliest to boost the deployment of broadband (which offers Internet speeds of over 256 kbps).

The regulator says the universal service obligation (USO) fund should be used to provide subsidy to the companies that provide broadband services via satellite in rural and hilly areas.

"Utilise USO fund to subsidise backhaul charges, initially up to 40 per cent, to support the broadband rollout efforts," says its paper.

Trai says there is an urgent need for faster rollout of broadband Internet as the number of broadband subscribers is only 5 per cent (2.34 million) of the total Internet subscribers. These numbers, Trai says, are far below the Department of Telecommunications (DoT) target of 20 million broadband subscribers by 2010.

The regulator has also urged the government to encourage state-owned companies like BSNL and MTNL to appoint franchisees for broadband services to supplement their efforts. "Any procedural restriction or limitation should be addressed immediately by the government," it says.

It has also urged the government to ensure the availability of more Ku-band transponders (used by DTH companies) for the rollout of Internet in rural and remote areas.

"In order to increase the competition in providing broadband in rural areas, at least two service providers seeking minimum subsidy should be identified," it says. The regulator has also suggested encouraging municipal committees to ensure the new buildings are broadband-enabled.

The draft recommendations will be finalised after the feedback from stakeholders and then sent to the government.