The Department of Telecommunications (DoT) is planning to rope in multiple system operators (MSOs) and cable operators to provide broadband connectivity in smaller cities. The move is part of the government?s National Optical Fibre Network (NOFN) project to provide broadband connectivity to cities and small towns.
According to DoT, these providers have the last mile connectivity in Tier II and III cities and therefore, this can provide a new business model to them.
Further, in order ensure coverage in remote areas, the government is planning to utilise Universal Service Obligation (USO) Fund to provide incentives through viability gap funding to these operators.
Under the NOFN project, the government has targeted to connect 250,000 gram panchayats with broadband by December 2016, incurring an estimated cost of Rs 300 billion.
