Trai suggests build-own-operate-transfer model for BharatNet

NEW DELHI: The telecom regulator has suggested buildown-operate-transfer ( BOOT) in addition to the three models proposed by a telecom department (DoT) panel for implementing BharatNet, which envisages broadband connectivity for 250,000 gram panchayats under the ‘Digital India’ initiative. In a consultation paper issued on Tuesday, the Telecom Regulatory Authority of India has sought comments from industry stakeholders for deciding on an implementation model for BharatNet, which can deliver the project within costs and timelines. “The objective of this consultation paper is to discuss strategies to find best model for implementation of Bharat-Net,” Trai said, while setting December 7 as the last date for submission of stakeholder comments.

The government had approved the National Optical Fibre Network ( NOFN) project of providing 100 Mbps to all gram panchayats back in 2012 but the project had moved slowly. The project, which was renamed as BharatNet under the Narendra Modi-led government, plans to create a network by 2017 for providing affordable broadband connectivity of 2 Mbps to 20 Mbps to all rural households and institutions.

The cost for setting up the massive broadband network is now estimated to be Rs 72,000-74,000 crore as against the initial estimate of Rs 20,000 crore. Earlier this year, a DoT committee had suggested that the network could be built, owned and operated by different entities under three models — led by Central or state public sector units or the private sector. It also proposed that once the infrastructure is created, Bharat Broadband Network Ltd or a special purpose vehicle (SPV) could auction dark fibres to telecom or internet service providers. The regulator, however, has proposed BOOT as an addition to the three models. Among other issues, it has also sought views on the funding of the project and in case it is viability gap funding, it has asked for stakeholder views on the method required to determine the maximum value of finding for each state or service area.

The authority has also asked for responses on the measures required that broadband services remain affordable to the public at large and has also asked for suggestions on imposing fiscal incentive on the agency for completing the project in time or disincentive in case of delay.