Trai road map

The Telecom Regulatory Authority of India (Trai) has spelt out a road map for the government to double the current telecom growth rate in order to meet the target of 250 million telephone connections by 2007.

The paper lists various measures, including policy changes that need to be made by the government. It calls for creating demand for telecom services in rural areas by lowering spectrum and the licence fee, and the introduction of IP-based network services, Trai Chairman Pradip Baijal told Business Standard today.

"Rural telephony continues to be driven by the universal service obligation (USO) fund. The government has invested heavily in rural telephony and it subsidises the cost of the telephone instrument, but these have not produced results. We have recommended a shift from the current policy to subsidising input costs for setting up services in rural areas," he said.

"We have also suggested models to force the rural market to proliferate," he added.

The road map envisages voice and data convergence. It will also include Trai recommendations to the government on allowing cable operators in rural areas to offer basic telephony and Internet services.

"The paper will recommend the use of cable operators as agents to connect rural households through telephones. It is also expected to suggest amendments to licensing norms so that cable operators in villages can carry voice and data on their networks," sources said.

Another option is a move from the current switch-based system to IP-based networks, Baijal said.

"British Telecom has moved over to an IP-based network, and its savings are estimated to be over $1 billion per year. We can do away with buildings and personnel with the change in technology," he said.

According to him, Trai, on its part, was committed towards helping the government to meet the target of 250 million phones.