Saturday 3 September 2011

Finance Ministry favours SPV and not BSNL for rural broadband network

The Finance Ministry has rejected the Department of Telecom's proposal to appoint Bharat Sanchar Nigam Ltd as the agency for executing the national optical fibre broadband project.
The DoT was of the view that BSNL should execute the project as it already owns 6.25 lakh route km of optical fibre cable out of total 11 lakh route km OFC laid in the country by all operators.

The Finance Ministry following the recommendations of TRAI, has said a Special Purpose Vehicle comprising both private and state-owned operators should be entrusted with the responsibility of executing the Rs 20,000-crore project. The telecom regulator had expressed concern over giving the mandate to BSNL in a competitive market.
The Finance Ministry has suggested that assistance of BSNL may be taken for carrying out a detailed project report before rolling out the network aimed at connecting 2.5 lakh village panchayats.
A committee headed by Mr Sam Pitroda, Advisor to the Prime Minister, had also suggested to include BSNL, RailTel and Power Grid Corporation as part of the SPV.

Source: http://cablequest.org/news/broadband-and-iptv-news/item/255-finance-ministry-favours-spv-and-not-bsnl-for-rural-broadband-network.html
Source: http://cablequest.org/news/broadband-and-iptv-news/item/255-finance-ministry-favours-spv-and-not-bsnl-for-rural-broadband-network.html

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