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Need for increased penetration of Broadband and Internet Services : Dayanidhi Maran
New Delhi: June 1, 2004

The Union Minister for Communications and Information Technology, Shri Dayanidhi Maran has underlined the need for providing increased broadband and internet connectivity so as to provide various interactive services to the consumers at much faster speed and at affordable price levels. Presiding over the review meeting with the senior officials of the Department of Telecommunications (DoT) alongwith the Minister of State for Communications and Information Technology, Dr. Shakeel Ahmad here yesterday, Shri Maran said that availability of broadband services at affordable price levels will have significant impact on Gross Domestic Product (GDP), attract new investment, create job opportunities, access to new and improved services and increase productivity through infrastructure creation.

During the meeting, both the Ministers were briefed on the recent recommendations of the Telecom Regulatory Authority of India (TRAI) on broadband. In its recommendations, the TRAI has expected that India can achieve 20 million broadband and 40 million internet subscribers by 2010 which would translate into penetration level of 1.7 percent and 3.4 percent respectively. Other recommendations of the TRAI include: Unbundling Local Loop through shared or bit stream access, encouraging broadband through cable, DTH and V-SAT platform, simplifying the Right of Way, reduction in duties for imported items used in broadband, service tax exemption for ISPs, web hosting services and creation of appropriate content and applications.

TRAI while making recommendations had observed that while internet growth in India have been flat, and at times declining over the past three years, other countries like Korea, China and Malaysia have been doubling and tripling the size of their internet and broadband subscriber base. India currently has 0.4 internet connections and 0.02 broadband connections per 100 persons, while Korea has 25 and China has 1.4 broadband connections per 100 persons, with its current level 50% higher than what it was just six months ago. Korea has achieved its success story in a span of less than five years, going from less than 1 broadband subscriber per 100 persons in 1999 to the levels it has reached today. By 2002, nearly 30% of their GDP was transacted on broadband. The lessons that India learns from these examples can be applied to our current situation to realise the same explosive success.

The Minister directed the officials to thoroughly examine the recommendations of the TRAI and come out with a viable policy on broadband and internet connectivity.

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