Trai broadband plan targets 75 million users by 2012

The Telecom Regulatory Authority of India (Trai) has recommended a national broadband plan, targeting 75 million connections by the year 2012 and 160 million by 2014.

Of the projected figure of 75 million broadband base, 28 million would be wireless connections.
And, out of the 160 million projection for 2014, 60 million would come from wireless, according to Trai. It is, doubtless, a formidable task but a task that can be achieved , Trai chairman J S Sarma has said.

An effective national broadband network would “facilitate inclusive growth of the country by including the large rural population in governance and decision making process and extend to the rural areas better education, health and banking facilities”, Trai has said.

The earlier National Broadband Plan of 2004 had envisaged a broadband customer base of 20 million by 2010. However, as of September 2010, India has only 10.3 million connectivity.

Keeping in mind the successful auction of 3G (third generation) and BWA (broadband wireless access) spectrum recently, Trai has projected ambitious numbers for broadband connectivity.

Trai has pointed out that broadband would contribute substantially to growth of GDP and towards poverty alleviation by improving access with equity.

Around 10% increase in broadband penetration accounts for 1.38 percentage increase in the per capita GDP growth in developing economies, studies have shown.

While India’s teledensity is 60.99, broadband penetration in the country is just 0.8%, which explains the need for Trai to come out with a National Plan once again.

Accoding to the Trai plan, a National Broadband Network will be established. This network will be an open access optical fibre network connecting all habitation with population of 500 and above.

Citing broadband success in the US, Japan, Australia, Canada, Portugal, South Korea, Germany, Singapore and Finland, Trai said these countries have identified broadband as a potential infrastructure.

An analysis for the European Commission estimates that broadband can create more than two million jobs in Europe by 2015, and an increase in GDP of at least 636 billion euros.
Trai added that a study in Brazil reported that broadband added up to 1.4% to the employment growth rate.

In China, every 10% increase in broadband penetration is seen as contributing an additional 2.5% to GDP growth.