The Department of Telecommunications (DoT) plans to invite bids from mobile operators, fixed-line operators and internet service providers in June 2011 to initiate its countrywide wireless broadband push aimed at bridging the digital divide.
However, DoT has decided to put up only one slot for bidding in each of the 22 circles. This implies that only one private telecom player will be allowed to roll out a wireless broadband network in each telecom zone. The second slot has been reserved for Bharat Sanchar Nigam Limited (BSNL). The project will be subsidised by the Universal Service Obligation Fund (USOF) .
It is believed that DoT will ask BSNL to match the L1 price quoted by the successful private sector bidder in each circle after it concludes the tendering exercise that is likely to start in June 2011. The objective is to expand pan-India wireless broadband coverage by leveraging the existing passive infrastructure created for mobile telephony in rural and remote locations. Also, if no private operator bids in a particular circle, BSNL will be asked to operate there alone.
While potential bidders will be free to choose any appropriate technology platform, DoT is likely to give preference to companies that bagged 3G and BWA airwaves.
Since the rural wireless broadband rollout will be largely funded with subsidy from the USOF, DoT is about to finalise the specific subsidy component for all 22 circles based on the revenue potential and business viability of rolling out wireless broadband networks in each service area.
