The Hindu Business Line : TRAI unveils package to boost rural teledensity

IN order to boost rural tele-density, the Telecom Regulatory Authority of India (TRAI) has suggested a slew of measures including sharing of infrastructure, discount in license fee and spectrum charges to mobile operators, development of local content and automatic clearance for deployment of towers in rural areas.

The thrust of the recommendation is to set up mobile and broadband infrastructure and offer cheaper telecom services to rural subscribers.

In its recommendation to the government on `Growth of telecom services in rural India', TRAI has suggested to support the creation of mobile infrastructure in rural areas through the Universal Services Obligation Fund, which will reduce the subsidy to Rs 8,000 crore compared to a projected subsidy of Rs 25,000 crore by 2010 under the existing regime.

Under the present scheme, USO Fund is being used only to support rural fixed line telephones. "Due to technological and market developments, the USO policy, which presently provides rural telecommunication in a limited manner, may need some revision. Mobile telephony has been the key driver in boosting urban tele-density, one also notes the low penetration of cellular mobile services in rural areas due to the inadequate BTS infrastructure," TRAI said.

While urban tele-density today is 31 per cent, in rural India it is just about 2 per cent.

TRAI has suggested to make it mandatory for Bharat Sanchar Nigam Ltd and other bandwidth owners to lease out capacity on their optic fibre cable network to cellular operators rather than ask the operators to lay their own cables. The bandwidth will have to be leased out at 30 per cent lower rates than the TRAI specified ceiling and the cable owner would be compensated from the USO Fund.

The regulator has said that incentives must be given to the bandwidth owners to unbundle the last mile.

"Unless there is substantial motivation and a win-win situation for all, mandating the provisioning of leased lines even in rural areas, could create disputes. At the same time utilising this infrastructure rather than waiting for new one to be laid, has to be a national priority, " TRAI said.

The telecom regulator has suggested an incentive of an additional 10 per cent of the tariff from the USO Fund.

The subsidy from the USO Fund will also include a one-time support of Rs 12 lakh per mobile base station set up in a rural location. TRAI is considering the support from USO Fund only for 3 operators and if additional operator comes in any area then he will not get a support from USO Fund but the operators in that area may negotiate the inter operator settlement. However, only those access service providers who contribute towards USO will get support at this stage.

Therefore service providers such as ISPs or franchisee shall not be eligible to get support.

TRAI has suggested a reduction in USO levy from the existing level of 5 per cent of the operator's revenue since the total subsidy is set to come down.

It has suggested that the discounts in licence fee and spectrum charges for rural coverage could be linked to the rolling out of infrastructure in rural areas. For instance if 5,000 BTSs are installed, then 10 per cent discount may be given.

TRAI is of the view that spectrum charges on VSAT should be lowered to 1 per cent compared to 4 per cent at the moment. To promote the use of other wireless technologies, it is recommended that no spectrum fee shall be levied on the usage of CorDECT and similar other technologies.

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