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This is an archive article published on February 17, 2005

Let’s think digital: Commission

The Planning Commission has listed a series of policy prescriptions to ensure that rural telephony, broadband and PC penetration take off in...

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The Planning Commission has listed a series of policy prescriptions to ensure that rural telephony, broadband and PC penetration take off in a couple of years.

In its deliberations over the Tenth Five-Year Plan, the Commission has listed ‘‘policy interventions’’ that could permit Internet telephony over public-switched networks and allow the government to directly negotiate favourable prices from international software companies.

Also in the works are fiscal measures to bring PC prices down to the ‘‘psychological benchmark’’ of Rs 10,000, and generous support from the Universal Service Fund for rural broadband efforts.

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These, and a host of other measures ‘‘would have to be taken to bring Internet accessibility and services to international standards,’’ the Commission says. It lists ‘‘primary principles’’ to guide future ICT policy — all rural broadband services should be voice-video-data enabled, capital and bandwidth costs should be shared in rural areas for five years, and operators should be offered promotional entry and service conditions.

The target to telephonically connect all villages with more than 2,000 population in three years — 5,000 villages in the first year, 30,000 in the second and 45,000 in the third year. For Internet penetration, the Commission says 25-30 per cent of rural networks will cost $250 million to connect. The long-term target for 2020 is 35 million subscribers for $5.4 billion.

One of the most significant changes is suggested for Internet telephony, which has failed to take off though allowed in April 2002. Describing the technology as a ‘‘killer application’’, the Commission now says a suitable time-bound policy must be framed to make it feasible over existing telecom wires.

This, it says, will help resolve the ‘‘disconnect’’ between India’s resolve to be an IT superpower and the availability of Internet access to realise this vision. ‘‘The present policy of fixed-line voice telephony-based rural connectivity has proved unviable… The annual financial burden works out to about Rs 12,300 crore.’’

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Going further, the Commission notes that telecoms must completely unbundle the local loop — implying assured access for smaller players to last-mile links of bigger telecoms. The document highlights that the huge funds sunk into rural telecom and fibre-optic networks are lying vacant because of last mile difficulties. To take Internet to a planned 80,000 villages by 2020, it says policymakers must make interconnection mandatory for all broadband services ‘‘on any media technology platform with a national backbone’’. It adds, government must enable viable business models to promote investments and entrepreneurship and ‘‘minimise the need for direct investments by government’’.

The PC Gameplan

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