The Hindu Business Line : TRAI moots policies for rural coverage

The Telecom Regulatory Authority of India Chairman, Mr Pradip Baijal, addressing a seminar on `Telecom boom in India' in the Capital on Saturday. — Kamal Narang

New Delhi , Aug. 13

THE Telecom Regulatory Authority of India (TRAI) on Saturday said that policies must be formulated to push tele-density in the rural areas. The telecom regulator also said that it was not in favour of imposing an entry fee for allocating spectrum for offering third generation services.

Mr Pradip Baijal, Chairman, TRAI, said, "There is a huge gap between urban and rural when it comes to telecom penetration. While in urban areas the tele-density is 30 per cent, the penetration in rural areas is only just over one per cent. This has happened because private players have not entered the rural areas and secondly the mobile growth has not reached the villages."

Speaking at a seminar organised by the Forum for Economic Writers, Mr Baijal said the concept of Universal Services Obligation should be changed to Universal Services Opportunity by offering incentives to competition.

TRAI is working on a recommendation to promote rural telephony, which will be released over the next few weeks.

Mr Baijal added that the Access Deficit Charge would ultimately be merged with the USO fund. The telecom regulator said India was well poised to achieve the targets set by the Minister of Communication of 250 million phones by 2007.

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