1 Status of Broadband New Delhi 15 December 2006 Presentation by S.C. Khanna, Secretary General Association of Unified Telecom Service Providers of India

2 Source: Govt Policy

3 Source: TRAI

4 Present Status  Broadband penetration is low in India.  However, recent trend shows it is growing steadily.  As on November 2006, we are having only 2 million broadband connections in the country.  Government policy envisages a target of 9 million broadband connections by  There is a wide gap between target & achievement.

5  To facilitate broadband penetration and growth of this sector, Government should ensure:  Supportive policies  Affordable access  Broadband Wireless  Unbundling of Local Loop to UASLs

6 Supportive policies  Govt. should promote use of various technologies for Broadband  Right of Way acquisition process to be simplified and speeded up.  Compulsory access to customer premises – Legislation required.  Tax deductible status for expense on broadband.  Subsidy to service providers for infrastructure.  Investment in key developmental content and services.

7  Government to drive subscriber usage and revenues for the service provider.  Government to encourage usage of Broadband service for: Land records. Filing of IT/ Tax returns. Vehicle registration. Processing of driving licenses. Processing of passport applications, ration card, etc. Payment of electricity, water bills, etc. Education and agricultural consultations. Tele-medicine.

8  Support for local access and content delivery beyond 150 commercially viable towns.  Provision of minimum one computer with Internet connectivity in each school.  Provision of fund and loans at low interest to the users through bank.  Appropriate local and regional content for creating demand for broadband usage.

9 Affordable access  To make available components used for broadband connection at affordable price.  To ensure lower price for access devices such as PCs, STB etc.  Government to allow 100% depreciation for CPEs like PCs, STB etc.  Allow operators to set off ED paid by them for procuring indigenous equipment.

10  No customs duty /CVD for imported equipment and parts used for broadband connection.  No entertainment tax to broadband service.  No service tax for this sector.  Support industry to set up experience centres through tax breaks.  Financial support for villages with less than 2000 population for access facilities.  Income tax breaks be extended to broadband sector as well.

11 Broadband Wireless  Availability of adequate spectrum for wireless network architecture at reasonable costs.  Appropriate spectrum for broadband wireless system like WiMAX etc.  Align ourselves with prevalent world standards / practices for allocation and assignment of spectrum to access providers.  Allocation of spectrum in one lot - no piecemeal allocation.  Participation of private sector in spectrum management to bring in transparency and speed.  Government’s National Spectrum Policy to be brought out.

12 Local Loop Unbundling  Local Loop Unbundling is the process where the incumbent operators make its local network [the copper cables that run from customers premises to the telephone exchange] available to other companies. [Source: Ofcom]  LLU to be reviewed during the 11 th Five Year Plan.

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