Broadband Policy Announced

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The government has announced the Broadband Policy 2004.

The new policy was announced by Dayanidhi Maran, minister of communications and IT. The prime consideration guiding the policy includes affordability and reliability of broadband services, incentives for creation of additional infrastructure, employment opportunities, induction of latest technologies, national security, and bring in a competitive environment so as to reduce regulatory interventions.

The policy defines broadband as an always-on connection, supporting interactive services including Internet access, with minimum download speed of 256 kbps per subscriber.

The policy targets three million broadband subscribers and six million Internet subscribers by December 2005.

By the end of year 2010, the policy targets 20 million broadband subscribers and 40 million Internet subscribers.

The new policy encourages creation and growth of infrastructure through various access technologies, which can mutually co-exist; such as, optical fiber technologies, digital subscriber lines on copper loop, cable TV network, satellite, and terrestrial wireless technologies. The choice is left to the service provider.

Copper loop using DSL can provide Broadband services.

To prevent last-mile copper loop from becoming a bottleneck for broadband services, access providers shall be free to enter into mutually agreed commercial arrangements. Use of brand name being treated as a part of the value shall be permitted in such commercial arrangements.

By this new policy, the government intends to make available transponder capacity for VSAT services at competitive rates after taking into consideration the security requirements. The Department of Telecom, in consultation with the concerned ministries, will soon propose additional measures with regard to open-sky policy for VSAT operators. VSAT operators would be closely associated while determining the transponder usage charges.

The service providers shall be permitted to enter into franchisee agreement with cable TV network operators. However, the licensee shall be responsible for compliance of the terms and conditions of the license. Further, in the case of DTH services, the service providers shall be permitted to provide receive-only Internet service after obtaining ISP license from DoT. The DTH service providers will also be permitted to provide bi-directional Internet services after obtaining VSAT and ISP license from the DoT.

The other salient features of the New Broadband Policy are as follows.

- Spread of fiber networks shall be emphasized keeping in view the long-term perspective, as they are able to provide huge amounts of bandwidth in the last mile as well as provide a true IP and converged network that can deliver high-quality voice, data, and video.

- It has been decided to de-license 2.40-2.48 GHz band for low-power, outdoor use on non-protection, non-interference, and non-exclusive basis.

- The 5.15-5.35 GHz band shall be de-licensed for the indoor use of low power Wi-Fi systems. For outdoor use, the band of 5.25-5.35 GHz shall be de-licensed in consultation with department of space, while de-licensing in the band 5.15-5.25 GHz would be considered after the process of vacation.

- In order to simplify SACFA/WPC clearance, the VSAT operators shall be allowed to start the installation process for VSAT terminals after a period of one month of submitting all relevant documents to WPC for SACFA/WPC clearance wherever the total height of such installation is less than five meters above the rooftop of an authorized building. In the case of receive-only VSAT terminals and DTH with receive-only Internet, no SACFA/WPC clearance will be required wherever the total height of such installation is less than five meters above the rooftop.

- A transparent scheme is being outlined separately for time-bound frequency allocation, setting clearance and wireless licensing by removing the cumbersome procedures, computerization, and by setting predetermined standards.

- To keep pace with technological advances, throughput and antenna size for VSATs is proposed to be reviewed periodically.

- Commercial VSAT service providers having ISP license shall be permitted use of same hub station and remote station to provide Internet service directly to the subscribers. Further, this remote station shall be permitted to be used as a distribution point to provide Internet services to multiple independent subscribers.

- The role of other facilitators such as electricity authorities, departments of ITs of various state governments, departments of local self governments, panchayats, departments of health and family welfare, departments of education is very important to carry the advantage of broadband services to the users particularly in rural areas.

- The government has assigned a very high priority to indigenous manufacture of broadband-related equipments and shall endeavor to work closely with the concerned ministries and manufacturers' associations so that the equipments are made available at an affordable price.

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