Two years ago, the communications ministry had said it would try and make available free-broadband facility for a sizeable section of Indian people by 2009. That was not to be. Shortly after the grand plan was formulated, the then communications and IT minister, Dayanidhi Maran, was forced to relinquish office as he lost the patronage of his party chief, M Karunanidhi. The free-broadband plan has not been high on the agenda of Mr Maran’s successor, A Raja. And so, even as 2009 is nigh, that plan looks like a pipe dream.
Mr Maran’s plan could have been funded out of the Universal Service Obligation Fund (USOF), which anyway is looking for a telecom-specific use, despite that the stated purpose of the fast-growing fund is to promote rural telephony. Increasingly, it seems the government is looking at USOF as a high-potential non-tax revenue source, rather than utilise it for the stated purpose. From 2002, all telecom operators have been paying 5% of their annual revenues towards the USOF. As of 2007-08, its size was Rs 20,500 crore and it is now estimated to have crossed Rs 25,000 crore. But, as of September 09, just 27% of the amount has been utilised, according to Trai.
Studies have revealed that it won’t cost more than Rs 12,000 crore to set up infrastructure for mobile services in all rural areas of the country. Since every consumer, who makes a phone call (mobile and landline), contributes towards the USOF, it is the citizen’s right to demand faster utilisation of this fund. Or else, scrap the levy!
Little wonder that the regulator, which has repeatedly been suggesting new ways to utilise this resource, has now called for more autonomy for the USOF administrator and also proposed that the fund be separated from that of DoT.
Free broadband would require augmentation of the optic fibre cable (OFC) network. It has been two years since the DoT prepared a road map to bolster the country’s fibre network. The first step, as per the road map, is to use the USOF to augment the network between the block HQs and the district HQs for creation of general infrastructure. Trai has said that while the DoT has entrusted state-owned TCIL with the work of compiling the details of existing network set up by operators and also to identify where the OFC network is to be set up in rural areas, there has been little action.
The government had earlier said the USOF would be used to provide wire line broadband to 25,000 Common Service Centres by December 2008 and wireless broadband to an equal number of CSCs by March 2009. It also said that 2 lakh villages in 5,000 blocks would be given broadband by 2009 and all the remaining villages, by 2012, in a phased manner. “No physical progress has been reported (on this),” the Trai report added.
It is in national interest that the communications ministry headed by Mr Raja revive the free broadband proposal. The ministry should be open to Trai’s suggestion that the USOF work “separately and identify few agencies for laying fibre between the rural towers and the block headquarters” and this “fibre be given free of cost for next 5 years to any operator who desires to provide the services in the villages”. While Trai’s proposal was for providing mobile services, the scope can be extended to use this for providing heavily subsidised broadband. Besides, state-owned BSNL and private telcos can also be permitted to utilise the USOF to expand their fibre networks on the condition that they open their infrastructure to other players for a minimal fee.
The Internet would become meaningful to local population only if the content is relevant to their lives. Trai has recognised this and advised the government that content application providers be given support from the USOF. Internet, broadband in particular, can produce huge economy-wide benefits as an income booster. The huge USOF corpus can be used to provide free or heavily subsidised broadband.
Access to information and communication technologies will also bring about social cohesion and enhance opportunities for weaker sections.
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