TRAI proposes massive broadband boost

NEW DELHI, INDIA: India's telecoms regulator called for massive expansion of broadband in the country and wanted the government to set up a nationwide broadband network that would cost about 600 billion rupees ($13 billion) to take high-speed Internet to rural hinterlands.

In its proposals released on Wednesday, the Telecom Regulatory Authority of India (TRAI) recommended the government should fix a target of 75 million broadband connections by 2012 and 160 million by 2014, from 10.3 million broadband connections at end-September.

Also read: Only half of India tele users are active

India is the world's fastest-growing and the second-largest mobile telephone market with about 700 million users, but has lagged in high-speed Internet penetration.

Majority of India's current broadband connections are through wirelines and cables, but wireless broadband is expected to get a boost after companies won third-generation (3G) and wireless broadband spectrum in auctions this year and are in the process of rolling out networks.

Also read: Tata Indicom intros remittance service through CellPay

"With the launch of 3G services, the stage is set for rapid spread of broadband," the Telecom Regulatory Authority of India said in its proposals posted on its website.

"At the same time, there is an urgent need for a nation-wide broadband network to reach education, healthcare, banking and other services to all the villages," it said.

The regulator proposed a state-run agency to be set up to establish the broadband network that would aim to connect every village with more than 500 people by 2013.

The regulator said the national broadband network would be financed by government funds and loans given or granted by the federal government.