Trai sets Rs 6,500 cr as rural telephony subsidy

If three operators share the passive infrastructure, the total cost of base stations would be Rs 10,500 crore, Trai thinks, adding that one time support from the Universal Service Obligation (USO) Fund would be crucial for the venture. “It is seen that through a support from the USO fund of little over Rs 5,000 crore it will be possible to install 15,000 base stations in rural areas with connectivity to the main network to cover about 80 per cent of the villages,” Trai said. Also taking into account the difficult terrain the total support required in form of subsidy would be Rs 6,500 crore, it added.

The regulator also favoured a business case in which while making a reasonable profit, the operators will be able to offer telecom services of the type required by rural population at price levels where cost-benefit ratio will clearly suit large masses.

It would result in shifting of emphasis from accessibility to affordability of telecom services in rural areas, trai said.

The approach of improving the business case would lead to tariffs which would be attractive and affordable for a large number of rural population, thereby substantially boosting the rural tele-density.

DoT asks cos to set up user redressal system

NEW DELHI: Rejecting a Trai proposal for appointing an ombudsman for the telecom sector, Department of Telecom (DoT) has asked all the access providers to set up consumer grievance redressal mechanism in their companies. “In exercise of powers under the provisions of license for unified access services and cellular mobile telephone services, the access providers are directed to set up a consumer grievance redressal mechanism at the levels of call centre and also appointing a superior authority within the company to take care of consumer complaints”, DoT said. PTI