The Department of Telecommunications (DoT) plans to approach the government with a request to award an internet service provider or a unified licence to Bharat Broadband Network Limited (BBNL). The move would allow BBNL to extend broadband and Wi-Fi services to rural areas.
A telecom infrastructure provider, BBNL is a special utility vehicle responsible for establishment and rollout of the National Optical Fibre Network (NOFN) being funded by the Universal Service Obligation Fund. Currently, BBNL provides bandwidth to other service providers. However, DoT plans to broaden BBNL?s role by turning it into a telecom services company.
Going forward, BBNL plans to provide broadband connectivity to 2,50,000 gram panchayats in three phases by December 2015. The NOFN network will be utilised by the government to deliver e-governance services to citizens. According to the Ministry of Communications and IT, the NOFN project will cost the government Rs 37.5 billion. In addition, the government will have to incur an annual operating expenditure of Rs 18.6 billion on the project.
While capital expenditure will be provided by the Ministry of Finance through the USO Fund, the operating expenditure will be funded by the Ministry of Rural Development. In addition, the Ministry of Rural Development will be responsible for developing tariff plans for providing e-governance services through the NOFN network. Currently, the ministry is considering a prepaid model, which includes providing users coupons with denomination of Rs 10 for each download.
