Dot Bets Big On Broadband

[coolrajiv 1]

Source - http://www.telegraphindia.com/1070918/asp/...ory_8328632.asp

New Delhi, Sept. 17: The telecom regulator feels state-owned BSNL and MTNL should set up franchisees to sell broadband services.

“Adopting a franchisee model will encourage better utilisation of copper loop available with BSNL and MTNL, while solving the problem of shortage of broadband equipment,” said senior Trai officials.

Copper loops are used to provide last mile connectivity for broadband services through the digital subscriber lines technology.

“DSL is the most preferred technology for broadband access. By the end of March 2007, 1.9 million (83 per cent) of 2.34 million broadband subscribers were using this technology,” said officials.

Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL) together have over 40 million copper loops. However, the network is a combination of old and new cables and this makes providing broadband on all the available copper loops technically difficult, said officials.

Only around 8 million loops can be leveraged for broadband service by BSNL and MTNL, taking into account the condition of copper cable and its demand.

“However, shortage of telecom ports (broadband connection equipment) or non availability of broadband services in certain areas managed by BSNL and MTNL has led to under-utilisation of the available copper loop network,” said officials.

Earlier, Trai had suggested opening up BSNL and MTNL’s last mile copper connections to private players to reach more customers. The department of telecom (DoT) had rejected the proposal saying the PSUs would suffer losses.

“Under the franchisee model, equipment manufacturers can provide the ports, while the state-owned PSUs can issue bills and manage subscribers,” said officials.

To encourage broadband, the DoT has issued a scheme whereby operators willing to share optic fibre network will get assistance from the universal service obligation fund.

[copperco2 24]

http://economictimes.indiatimes.com/New_bu...how/2378484.cms

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