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New policy planned to promote Internet usage

By Our Special Correspondent

NEW DELHI DEC. 1. Concerned over the slowing down of the growth rate for Internet services, the Telecom Regulatory Authority of India (TRAI) has started preparing a new policy for increasing the penetration of Internet and broadband.

As is the case with all TRAI initiatives, the move towards an integrated policy has been initiated with the release of a consultation paper setting out the issues involved and seeking suggestions from all interested parties, including the industry and users, by December 21. TRAI will then organise open house sessions in different parts of the country which will be followed by submission of the recommendations to the Government.

TRAI recently recommended a policy for a Unified Licence (subsequently cleared by the Government) to allow flexibility to the operators to provide a variety of services using appropriate technologies. "The Unified Licence framework is appropriate as the distinction between voice and data blurs and as the flexibility of various technologies to provide diverse services become more encompassing.''

TRAI admitted that much needed to be done because the situation was far from satisfactory in terms of capacity, subscriber base and growth rate of Internet and broadband usage. Current Internet subscriber base is only 0.4 per cent of the population and the growth rate of Internet subscribers has become low, even negative in recent months.

The use of broadband services is on an even smaller scale — a mere 0.02 per cent.

This is in sharp contrast to the penetration in adjoining Asian countries and "if we want leadership in knowledge-based services the situation must change.'' The number of Internet connection per 100 persons is 58, 11 and two for Korea, Malaysia and China, as compared to India's 0.4 per cent.

The number of brand connections in these three countries is 57, 0.21 and 10, respectively compared to 0.02 per cent for India.

Describing the paper as "a very important endeavour because with greater convergence of technologies and unification of licenses, Internet and broadband can be a catalyst in rapidly achieving wide reaching social and economic objectives,'' TRAI said the basic purpose was to ensure the availability of broadband services at affordable price-levels.

This will have a positive impact on the economy and gross domestic product (GDP), and the resulting business developments are likely to attract new investment, create jobs, and increase productivity through infrastructure build-up and access to new and improved services.

The proposed policy intends focussing on quality infrastructure, affordable access devices and local content and the consultation paper has raised nine issues aimed at promoting Internet and broadband within a unified licensing regime.

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