National Optical Fiber Network

Government had approved a project for National Optical Fiber Network in October, 2011 for providing Broadband connectivity to all 2.5 lakh Gram Panchayats at a cost of Rs. 20,000 crore. This was the starting point of a Rs 20,000 crore project of Bharat Broadband.

Objective

The plan is to extend the existing optical fiber network up to Panchayats. The Network will also be available to telecom service providers for providing various services to the citizens in non-discriminatory manner.

The Network will provide a highway for transmission of voice, data and video in rural areas. It will enable the broadband connectivity upto 2 Mbps, capable of providing various services like e-education, e-health, e-entertainment, e-commerce e- governance etc. to people and businesses.

The people in rural areas, students, entrepreneurs, various Government Departments providing services under e-governance projects will be benefited.

It will also provide connectivity to various public institutions like Gram Panchayats, Primary Health Centres (PHCs), schools etc. in rural areas. It will also result in investment from the private sector both for providing different services and for manufacturing of broadband related telecom equipment.

Funding:

The project will be funded by Universal Service Obligation Fund (USOF). The Universal Service Obligation Fund(USOF) was established with the fundamental objective of providing access to 'Basic' telegraph services to people in the rural and remote areas at affordable and reasonable prices.

Subsequently the scope was widened to provide subsidy support for enabling access to all types of telegraph services including mobile services, broadband connectivity and creation of infrastructure like OFC in rural and remote areas.

Implementation

The project is being executed by a Special Purpose Vehicle (SPV), a company incorporated under Indian Companies Act 1956, named 'Bharat Broadband Network Limited' (BBNL), owned by the Department of Telecom (DoT).

It is being fully owned by Central Government, with equity participation from Government and interested Central Public Sector Units (CPSUs) (BSNL, Railtel, Powergrid, GAILTEL, etc.) and action is being taken to establish and operationalize a Special Purpose Vehicle (SPV).

To grant right of way, a draft tripartite MoU (among GoI, the SPV and the State Government) has been sent to the State Governments and Union Territories for their concurrence. Pilots are also being tried in Ajmer, Vishakhapatnam and Goa to test the broadband infrastructure and adoption after being approved by MCIT. Universal Service Obligation Fund (DOT), BBNL, BSNL, Rail Tel, Power Grid and Telecom Players, USPs and content providers, along with State Governments, will work on the Pilot Trials.

Benefits to other service providers

Mobile, Internet and cable operators can then load their services on this fibre, paying Bharat Broadband a nominal sum.

N Ravi Shanker, the man spearheading this National Optic Fibre Network project, throws one big number to explain what the project can mean to the nation : for every 10% increase in broadband penetration, India's economic output increases by 1.38%.

Challenges

Right of way (approval from states to put down fibre) is the biggest challenge. So far, only 10 states have given their nod, including Rajasthan, Chhattisgarh, Jharkhand, Karnataka, Uttarakhand and Uttar Pradesh.