The Hindu Business Line : PMO initiates move to unbundle BSNL's network for broadband

Notwithstanding the views of the Communication Ministry, the Prime Minister's Office (PMO) has constituted a high-powered sub-group to resolve all issues in the way of unbundling of BSNL's last-mile local loop for broadband services.

Unbundling will enable private operators to ride on BSNL's copper lines across the country to offer broadband services.

While the industry has been pushing for this, the Communications Ministry and BSNL are not in favour of unbundling the last-mile copper.

However, the PMO has suggested compensating BSNL for opening up its network.

The first meeting of the sub-group will be held tomorrow under the Chairmanship of Mr J.S. Sarma, Secretary, Department of Telecom (DoT).

The PMO has directed the group to submit its report by May 30, 2006.

The terms of reference include identifying constraints in local loop unbundling and ways to overcome it.

The sub-group will also discuss the quantum of the compensation to be given to BSNL and the timetable for unbundling.

The PMO has also asked the sub-committee to suggest ways to increase the penetration of broadband services.

Broadband subscription growth has been sluggish with just 1.5 million users, which is much lower than the Government target.

While the Communication Ministry has expressed satisfaction over the progress made over the year, sources said that the PMO was looking at more aggressive growth numbers. The move to unbundle the copper will help small operators to offer broadband services with minimum investment.

The TRAI had earlier suggested unbundling the last-mile to promote growth of broadband in the country.

This was not accepted by the DoT on the grounds that private operators could look at wireless technologies like Wi-Max to deploy high- speed Internet services.

The sub-group consists of senior officials of the DoT, including Member (Finance), Telecom Commission, Joint Secretary of PMO, and Directors from BSNL and MTNL.

The industry is being reperesented by Mr Kiran Karnik, President of Nasscom, Mr Amit Mitra, Secretary-General of FICCI, Mr T.V. Ramachandran, Director-General of COAI, and Mr S.C. Khanna, Secretary of Association of Unified Telecom Service Providers Association of India.

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