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India proposes creation of national optical fibre network

India's Department of Telecommunications has proposed setting up of a national optical fiber network at a cost of about INR200 billion, Telecom Minister Kapil Sibal said.

The USO fund was created by the telecom department to give grants for connecting rural areas and also for commercially inviable telecom networks.

State-owned Bharat Sanchar Nigam Ltd. has been asked to work on forming a special purpose vehicle for building the optical fiber network to be owned jointly by the federal government and the USO fund, Sibal said.

Creation of the network and sharing it with other telecom operators will help lower the connectivity costs of companies. This network will help the government to achieve its target of broadband penetration. India's telecom regulator had in December set a target of 75 million broadband connections over two years and 160 million by 2014.

Sibal also said the telecom department is mulling an exit policy for companies which have licenses but haven't rolled out their services. The government is working to implement the policy this year, he said.

Indian telecom companies, specially the new players, have been hurt due to falling tariffs fueled by intense competition, and analysts expect that consolidation is inevitable. India has as many as 14 operators in some of the country's 22 service areas.

Источник: Total Telecom

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