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Telephone subscribers to touch 650 m by 2012
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Broadband link on demand soon
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Rural telephony
The Government has set a target of providing 200 million rural telephony connections, which will increase rural tele-density to 25 per cent from the current level of 1.7 per cent
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New Delhi
Feb. 27
Pointing out that the telecom sector has been the biggest success stories of market-oriented reforms, the Economic Survey has projected that telephone subscribers base will more than treble to 650 million users by 2012.
The Survey has, however, said that much needs to be done for improving connectivity in rural areas for which the use of Universal Services Obligation fund has to be optimised.
"Supportive Government policies coupled with private sector participation have fuelled the unprecedented expansion of this sector," the Survey said.
Rural telephony
The Government has set a target of providing 200 million rural telephony connections, which will increase rural tele-density to 25 per cent from the current level of 1.7 per cent, it said.
"Broadband connectivity would be made available on demand, without limiting the speed. Each village would have at least one broadband enabled kiosk. Broadband would also be provided to schools, health centres and panchayat offices," the Survey said.
It envisaged that Internet and broadband subscribers will increase to 40 million and 20 million respectively by 2010.
The production of telecom equipment has increased to Rs 17,833 crore in 2005-06 from Rs 16,090 crore in 2004-05 and a proposal for setting up Telecom Equipment and Services Export Promotion Council is in the pipeline, the Survey said.
On the postal sector, the Department of Post was expected to incur a higher deficit of Rs 1,379 crore in 2006-07, up from Rs 1,375 crore in 2003-04, it said. "Redefining the rationale of the subsidy constitutes an important policy question," the Survey added.
The subsidy element in postal services is quite high with user charges roughly covering only 78 per cent of the cash costs.
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