Financial Daily from THE HINDU group of publications Wednesday, Jun 02, 2004 |
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Info-Tech
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Telecommunications DoT wants all last-mile networks to be opened up Mamuni Das
New Delhi , June 1 THE Department of Telecom (DoT) is of the opinion that in order to ensure maximum possible broadband penetration, all last-mile networks - including wireline, wireless and fibre, irrespective of age - should be opened up for competition. The DoT suggestion would mean that the new private telecom players, whose networks are more recently laid out, would also have to offer them for sharing by competitors. TRAI had recently recommended unbundling of wireline infrastructure over five years old as one of the steps for increasing broadband penetration. Due to the age bar, most of the wireline infrastructure of private operators, which are relatively new, would not come under the purview of these recommendations. The department also said that even though the telecom access sector had been open for competition since 1994, not much of the wireline infrastructure was laid by service providers between 1994 and 2001. In its comments sent to the TRAI recently, the DoT has said that unbundling should be made technology-neutral. In this context, it has asked TRAI to define access network for fibre and wireless local loop unbundling, sources said. Since the aim the of unbundling is to increase broadband penetration by introducing competition in the last mile, DoT feels that quality of the last mile, irrespective of age, should be the sole criteria for unbundling. The Telecom Ministry has said that new networks, which are more suitable for high-speed broadband provision, should also be unbundled. Under local loop unbundling, telecom operators are asked to share their last mile infrastructure with competing service providers. For example, in case of fixed line operators, a private telecom provider could provide broadband services to customers on the MTNL's wireline and collect revenues from MTNL customers for such service. Additionally, the Telecom Ministry has said that the incumbents and other access providers should be allowed to provide broadband of their own for one year before opening their last mile for competition. The DoT has said that the unbundling arrangement between the access providers and access seekers should be a techno-commercial arrangement. As per the current TRAI recommendations, the extent of revenue share was to be reviewed by the telecom regulator. Moreover, the DoT has also asked TRAI to give a more specific definition of broadband. The Telecom Ministry has formed an internal committee to study the broadband recommendations.
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