Broadband policy to boost PC penetration

The government's Broadband Policy 2004, announced by the Minister of
Communications and IT, Dayanidhi Maran, will provide an impetus to broadband and
Internet penetration in the country. It enables growth in GDP and enhancement in
the quality of life through various applications.

Vinnie Mehta, Executive Director, MAIT congratulated this decision, noting
that it will usher in a whole new set of services including gaming,
entertainment, education and other interactive public utility services, which
will give further impetus to PC consumption. "This move will also lead to
emergence of newer devices for broadband access driving an entirely new
market," he said. Further, this would throw open a vast opportunity for the
IT and electronics manufacturers as deployment of various 'boxes' to create
infrastructure for delivery of broadband services would be needed.

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 brings in a competitive environment so as to reduce
regulatory interventions.

Broadband now has been defined as an always-on data connection supporting
interactive services including Internet access with a minimum download speed of
256 Kbps per subscriber. 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 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.

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 license. Further, in case of DTH
services, the service providers shall be permitted to provide
Receive-Only-Internet Service after obtaining ISP license from DoT.

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