The Hindu Business Line : TRAI pushes for fiscal sops for broadband growth

In a bid to give a boost to broadband growth in the country, the Telecom Regulatory Authority of India (TRAI) has urged the Communications Ministry to implement the fiscal measures as envisaged in the Broadband Policy announced in 2004.

Pointing out that the broadband growth has been way below the target, it has also asked the Government to delicense the radio frequencies that can be used for deploying wireless technologies such as Wi-Max.

Interestingly, TRAI has indicated that last mile local loop unbundling of the copper network owned by Bharat Sanchar Nigam Ltd may not be necessary and the Government should instead promote wireless technologies.

"The length of copper loops in rural and remote areas is also very large thus making them unsuitable for provision of broadband service supporting digital subscribers link. The deployment of wireless technologies for the provision of broadband services would be an appropriate step ," said the TRAI letter.

Pushing broadband growth

The recommendations assume significance in the light of the initiative taken by the Prime Minister's Office to set up a sub-committee to work out the modalities to push broadband growth. The PMO has even suggested unbundling of BSNL's copper, which will allow private operators to ride on its network to offer high speed Internet services. The Communications Ministry is not in favour of such a move.

Tax incentives

Some of the tax incentives suggested by the telecom regulator include exempting Internet Service Providers from paying service tax, waiving of entertainment tax levied on broadband subscriptions and entertainment services and allowing corporations, whether public or private, to give Rs 6,000 per annum allowance to employees for broadband services access at home.

More Stories on : Regulatory Bodies & Rulings | Broadband

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TRAI pushes for fiscal sops for broadband growth