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Government Announces Broadband Policy

New Delhi, October 15, 2004

The Government, keeping in pace with the upto date technological advancements, today announced the Broadband Policy 2004 formulated with a view to provide impetus to broadband and Internet penetration in the country. The new policy was announced by the Minister of Communications & Information Technology, Shri Dayanidhi Maran at a Press Conference held here today. The Policy envisages great potential of growth in GDP and enhancement in quality of life through various applications in all walks of life. 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 competitive environment so as to reduce regulatory interventions.

Broadband has been defined as an always-on data connection supporting interactive services including Internet access with minimum download speed of 256 Kbps per subscriber. The service providers are encouraged to select technologies and equipments offering higher data rate. The new broadband policy aims to target three million broadband subscribers and six million Internet subscribers with a timeframe of December 2005. By the end of year 2010, the policy aims to target 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 like optical fibre 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. The age and the condition of copper loop in the country mat at best provide 6 milion broadband connections. BSNL/MTNL along with other owners of copper loop are expected to provide about 2 million connections by the end of 2005. Further recognising that last mile copper loop is not a ‘bottleneck facility’ for broadband services, access providers shall be free to enter into mutually agreed commercial arrangements for utilisation of available copper loop for expansion of broadband services including content. Use of brand name being treated as a part of the value shall be permitted in such commercial arrangement.

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 licence. Further in the case of DTH services, the service providers shall be permitted to provide Receive-Only-Internet Service after obtaining ISP licence from DoT. The DTH Service providers will also be permitted to provide bi-directional Internet services after obtaining VSAT and ISP licence from the DoT.

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

Spread of fibre networks shall be emphasised 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 delicence 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 5.25-5.35 GHz shall be de-licensed in consultation with Department of Space while delicensing 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 5 meters above the rooftop of an authorised 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 5 metres above the rooftop of an authorised building.
A transparent scheme is being outlined separately for time-bound frequency allocation, siting 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 are proposed to be reviewed periodically.
Commercial VSAT service providers having ISP licence shall be permitted use of same hub station and remote station to provide internet service directly to the subscribers. Further this remote stations 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 endeavour to work closely with the concerned ministries and manufacturers associations so that the equipments are made available at an affordable price.

The full text of the Policy is available on the DoT website www.dot.gov.in

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