BSNL, MTNL offer broadband services

While MTNL will launch the services in Delhi and Mumbai, BSNL will do it from
Kolkata, Bangalore, Chennai and Hyderabad

Both Bharat Sanchar Nigam Ltd (BSNL) and Mahanagar Telephone Nigam Ltd (MTNL)
will launch the broadband services throu-ghout the country from January 15,
2005. The department is targeting around 10 million broadband service users by
the year 2007. While MTNL will launch the services in Delhi

and Mumbai, BSNL will do it from Kolkata, Bangalore, Chennai and Hyderabad on
the same day.

Minister of Communications and IT Dayanidhi Maran ann-ounced this while
addressing the first meeting of the Members of the Consultative Committee
attached to his Ministry. He was speaking on the recently announced New
Broadband Policy, which was the agenda for the meeting.

According to the Minister, though the 256 kbps costs Rs 3,000 in the market
the telecom PSUs have agreed to provide the same services at Rs 500 month, which
is signifi-cantly low and that will make users more confident to use the
broadband services. "While VSAT should also be used as small hubs the
Government is also allowing DTH operators to operate broadband Internet and
uplink after fulfilling necessary licensing conditions," he added. Maran
further stated that the government has relaxed the conditions for outdoor use of
frequencies to promote Wi-MAX and Wi-Fi.

Maran assured the members that the Department will also closely monitor and
facilitate the spread of broadband and will take corrective measures as and when
required. Since the Government is committed to promote advanced technolo-gies
and is not captive of any particular technology the service providers are free
to opt for the technology of their choice which ultimately comes out from a
healthy competition. The Government has decided to encourage and make the small
operators of the Cable TV to depend on the big players, such as BSNL, MTNL or
any other private players and they can also make use of broadband for their
customers.

Speaking about the great digital divide the Minister said that while the tele-density
in urban areas is 25 percent it is only between 1.2 percent and 1.5 percent in
the rural areas. In view of this, he stressed the need to shift this trend from
urban to rural areas.

According to the members, the rural telephony should be accorded top
priority. Some members pointed out the long waiting lists of mobile phones and
non-availability of SIM cards in many cities. They wanted that necessary steps
be taken immediately to clear the backlog and make SIM cards available.

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