Free 2 Mbps broadband by 2009
Apr 26, 2007 

   NEW DELHI: The government proposes to offer free, high-speed broadband 
connectivity to all Indians by 2009, through state-owned telecom service 
providers
BSNL and MTNL.     

   While consumers will cheer it, the move holds the potential to kill the 
telecom business as we know it. You may have heard of free municipal 
broadband-many
cities in the US have drenched themselves in wireless broadband connectivity, 
freely accessible to residents. The idea is to boost economic activity in
general. The central government plans to achieve free broadband connectivity at 
a speed of 2 MB per second across the country, with a similar goal.   
 

   Senior government officials expect to be able to achieve this goal by 
spending only a portion of the burgeoning corpus of the Universal Service 
Obligation
Fund (USOF)-all telecom operators contribute 5% of their revenues every year to 
this fund. It is estimated that the unutilised sum from USOF touched Rs
9,194.12 crore by March 2007.     

   The current technological trend is for voice calls also to shift to the 
internet, using voice over internet protocol (VoIP). The quality of VoIP calls,
patchy to start off with, has been improving steadily over the years, and by 
2009, is likely to be as good as current analogue calls that establish a circuit
between the calling and called parties. When that happens, revenue streams from 
calls would dry up and telecom companies would need to develop value-added
applications to make money from the connectivity they provide for free or 
virtually free.     

   The Department of Telecom (DoT) will be taking a series of steps to make its 
plans for free broadband a reality. These include using the Universal Service
Obligation Fund to set up an extensive optic cable network across the country 
and opening up the long-distance sectors to further competition.        

http://economictimes.indiatimes.com/Free_2_Mbps_broadband_by_2009/RssArticleShow/articleshow/1957303.cms

Vikas Kapoor,
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