The Hindu : National : 'Broadband policy is technology-neutral'

Online edition of India's National Newspaper
Friday, Oct 15, 2004

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National

'Broadband policy is technology-neutral'

By Our Special Correspondent

The Union Minister for Communications and Information Technology, Dayanidhi Maran, releasing the `Broadband Policy 2004' document in New Delhi on Thursday. — Photo: V. Sudershan

NEW DELHI, OCT. 14. A main feature of the broadband policy announced today by the Communications and IT Minister, Dayanidhi Maran, is that it is technology neutral. In other words, operators will be free to employ any technology of their choice but the spread of fibre networks will be emphasised because in the long term it can provide huge amounts of bandwidth in the last mile as well as a true converged network.

All companies, including MTNL and BSNL, had been permitted to enrol franchisees to sell their broadband services. Service providers had also been permitted to enter into franchisee agreement with cable TV network operators.

However, Mr. Maran said broadband would spread more through wireless and a little by copper wire. The Government had not put a price cap because it expected competition to drive down prices and step up speed. "I hope that demand and competition would determine higher data rates, may be up to 8-10 mbps," he said.

A salient feature

Another salient feature was the de-licensing of certain frequency bands to promote outdoor and indoor usage of low power Wi-Fi systems (high speed Internet in designated `hot spots' through wireless). More frequency bands would be freed in due course. To simplify mandatory governmental clearances, VSAT operators would be allowed to start operations within a month of submitting all the relevant documents to the authorities. However, the height of the installations must be less than five metres above the rooftops of authorised buildings. The Government was framing a transparent scheme for other clearances.

The Government had given priority for the indigenous manufacture of broadband-related equipment and would work closely with the Ministries and manufacturers' associations concerned so that the equipment was made available at affordable prices.

The Government decided against "unbundling" the local loop of BSNL and MTNL as a similar approach had failed to promote broadband usage in several countries. Under unbundling, the last mile access from the exchange to the customer premises is thrown open to other players for providing bit stream access. Resistance to unbundling was voiced during the consultation stage by BSNL and MTNL who felt the initiative would cause chaos.

The Communications Ministry is also unable to push its case for an open sky policy under which it wants VSAT service operators to connect directly with any international satellite. Discussions on certain aspects with the Department of Space are still on.

On the lack of fiscal incentives that would have driven down prices further, Mr. Maran said that while he expected some announcements from the Union Finance Ministry, the fact remained that import duty would automatically come down to zero in 2005 due to the World Trade Organisation agreement. However, he admitted that the tax breaks sought by the Communications Ministry was another matter.

The Broad Band Policy 2004 is available on the website www.dot.gov.in, says a release from the Press Information Bureau.

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