After OneIndia, Maran plans free broadband

Not satisfied with implementing the OneIndia plan, under which local and domestic long-distance phone call tariffs would be merged at Re 1...

Not satisfied with implementing the OneIndia plan, under which local and domestic long-distance phone call tariffs would be merged at Re 1, communications and information technology minister Dayanidhi Maran is now studying the idea of making broadband free. What’s more, to arrest the declining rate of landline sales for BSNL and MTNL, the minister has also suggested that free landline phones may be offered to users with multiple mobile connections.

Maran said that the move towards free broadband may come about once state-owned telecom firms Bharat Sanchar Nigam Ltd (BSNL) and Mahanagar Telephone Nigam Ltd (MTNL) get into web hosting. “Efforts are being made by BSNL and MTNL to start web hosting. At the moment, all traffic generated in India terminates outside and we should try to terminate these within the country,” he explained.

Once traffic starts terminating within the country, the concept of free broadband, allowing for unlimited downloads without paying a charge, could be possible, the minister added. Asked about the time frame to translate this into reality, he replied, “I still have two years’ time.”

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At present, BSNL, which has the largest number of broadband users at around 8-9 lakh, charges Rs 250 a month for a minimum speed of 2 mbps and 1 GB download. MTNL charges Rs 199 a month for a similar connections. BSNL’s unlimited download plan costs about Rs 900 a month while on an average, private sector players charge about Rs 600 for unlimited download plans.

Commenting on the issue of declining fixed-line phones, the minister said, “Phones are being surrendered because individuals in a family have separate mobile connections and do not want to pay for a landline they hardly use,” he said.

Speaking on the issue of third generation (3G) services, he said “I want foreign telecom operators to come in 3G services to make it interesting for subscribers and introduce competition in the service. Additional spectrum will be available by July and the Department of Telecom (DoT) will soon come out with a 3G Spectrum Allocation plan.”

Asked whether fresh licenses would be issued to the prospective players to offer 3G services, he declined to comment, saying, “wait for the plan to be announced… We are confident that our project with the Air Force will be completed by July and we will be able to release 42.5 MHz of spectrum available for 2G (currently available) and 3G services. We will be coming out with a 3G spectrum allocation plan soon.”

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The minister also expressed dissatisfaction with MTNL’s repeated failure to win telecom licenses abroad “I am disappointed, I think they were not very aggressive,” he said. “It is not that MTNL is just going abroad, they are representing India there. They should go aggressively to bag these licenses … when MNC players are coming to India to operate, why cannot MTNL — which is a navratna — succeed in operating in other countries?” he asked.

“This is a company, which has a mandate to operate overseas. Why can’t it succeed in operating elsewhere? They can take an aggressive position. If not, they should not go to participate (in bidding),” Maran added.