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The telecom department (DoT) plans to create a new category of internet service provider (ISP) licences to drive broadband penetration by using India's significant cable TV network, according to an internal government note seen by ET.
The government is keen to revisit a proposal of India's broadband policy of 2004, which had suggested using the country's cable TV infrastructure as a "franchisee network" of internet service providers for providing broadband services.
"There is a need to relook at existing ISP licence conditions and a separate ISP permit only for cable TV broadband may be created so that existing cable TV infrastructure can be leveraged to provide broadband," the note shows.
The government further adds that "cable TV connections reach more households than wireline telephone connections, given that total cable TV and DTH subscriber base as on March 2014 stood at 100 million and 56 million respectively". Small wonder, DoT is also likely to unveil new laws to spur direct-tohome (DTH) service providers to step up both "urban and rural broadband coverage".
These, in fact, will be among the highlights of the new BJP-led government's upcoming broadband policy that likens broadband connectivity to a fundamental right like education and health. The new broadband policy will also explore ways to attract large investments from potential developers of fibre-to-the-home (FTTH) networks.
"Developing FTTH infrastructure needs huge investments to drive broadband growth in the medium and long term, especially to transform cities and towns into an always connected society," adds the departmental note.
The government's renewed focus on broadband is partly influenced by a recent International Telecom Union report that concluded that "every 10 per cent rise in broadband penetration will trigger 0.31 per cent GDP growth and a 0.28 per cent jump in jobs creation".
The focus also stems from India's modest broadband subscriber base of 60.86 milllion as on March 2014, comprising 14.86 million wireline broadband customers and 46.01 million mobile broadband users.
While the new policy will not tinker with NTP 2012 broadband penetration target of 175 million customers by 2015, it has advanced the 2020 target date for 600 million broadband customers by a year to 2019, the DoT note shows.
But industry experts believe the targets may prove a pipedream as the national broadband venture for taking high-speed internet to the hinterlands, the national optic fibre network, is running way behind schedule.
The Universal Services Obligation Fund (USOF), which is funding the national optic fibre network, or 'NOFN' project, has recently told telecom minister Ravi Shankar Prasad that the broadband coverage target for 2014-15 will be halved to 50,000 gram panchayats as bulk of cable laying, trenching and ducting work is incomplete.
Department of Telecom mulls new ISP permit for cable TV broadband services - The Economic Times
The government is keen to revisit a proposal of India's broadband policy of 2004, which had suggested using the country's cable TV infrastructure as a "franchisee network" of internet service providers for providing broadband services.
"There is a need to relook at existing ISP licence conditions and a separate ISP permit only for cable TV broadband may be created so that existing cable TV infrastructure can be leveraged to provide broadband," the note shows.
The government further adds that "cable TV connections reach more households than wireline telephone connections, given that total cable TV and DTH subscriber base as on March 2014 stood at 100 million and 56 million respectively". Small wonder, DoT is also likely to unveil new laws to spur direct-tohome (DTH) service providers to step up both "urban and rural broadband coverage".
These, in fact, will be among the highlights of the new BJP-led government's upcoming broadband policy that likens broadband connectivity to a fundamental right like education and health. The new broadband policy will also explore ways to attract large investments from potential developers of fibre-to-the-home (FTTH) networks.
"Developing FTTH infrastructure needs huge investments to drive broadband growth in the medium and long term, especially to transform cities and towns into an always connected society," adds the departmental note.
The government's renewed focus on broadband is partly influenced by a recent International Telecom Union report that concluded that "every 10 per cent rise in broadband penetration will trigger 0.31 per cent GDP growth and a 0.28 per cent jump in jobs creation".
The focus also stems from India's modest broadband subscriber base of 60.86 milllion as on March 2014, comprising 14.86 million wireline broadband customers and 46.01 million mobile broadband users.
While the new policy will not tinker with NTP 2012 broadband penetration target of 175 million customers by 2015, it has advanced the 2020 target date for 600 million broadband customers by a year to 2019, the DoT note shows.
But industry experts believe the targets may prove a pipedream as the national broadband venture for taking high-speed internet to the hinterlands, the national optic fibre network, is running way behind schedule.
The Universal Services Obligation Fund (USOF), which is funding the national optic fibre network, or 'NOFN' project, has recently told telecom minister Ravi Shankar Prasad that the broadband coverage target for 2014-15 will be halved to 50,000 gram panchayats as bulk of cable laying, trenching and ducting work is incomplete.
Department of Telecom mulls new ISP permit for cable TV broadband services - The Economic Times
