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Follow UsNEW DELHI, INDIA: The Department of Telecom (DoT) today kicked off the process to finalize the format in which the Universal Services Obligation Fund (USOF) support would be provided to players deploying wireless broadband in rural areas.
In a meeting held today at Sanchar Bhawan here, DoT has decided to invite comments of various stakeholders to prepare the format of the USOF scheme for supporting wireless broadband deployment in rural areas where population is less and commercial roll out of infrastructure is not possible.
“Our union minister has given commitment to increase the broadband penetration in rural India and extend USO Fund support to all players interested in deploying wireless broadband service in rural area,” said an official under USO Fund Administrator office.
“Today, in the meeting, we decided to invite comments of all stakeholders for preparing the scheme, according to which USO Fund should be provided,” he added.
The official informed CIOL that the last date for sending inputs to USO Fund administrator office on this subject is July 15, 2010.
Ajay Bhattacharya, administrator, USO Fund, Department of Telecom, had indicated that the government is considering for providing USO Fund support to the winners of Broadband Wireless Access (BWA) spectrum auction to support business case and provide level playing field in rural area.
As per the estimate of Wimax Forum, an average cost of Wimax BTS - a wireless broadband technology - is $12000 and capex per subscriber is $10 for 1000 subscribers around a BTS.
In rural India, it will be a challenge to load a BTS with 1000 subscribers. Studies suggest that a Wimax operator will have to spend Rs 82,000 for a minimum of 10 subscribers per BTS whereby the operation cost at urban centre comes to Rs 3000 for 200 subscribers per BTS.
At present, USO Fund subsidy for wireless broadband had been given to BSNL for installing Wimax BTS in rural India. BSNL till date has rolled out 1000 Wimax BTS and is in process to deploy 7000 more BTS in rural area.