World Dialogue on Regulation

According to a report from The Statesman, the Telecom Regulatory Authority of India (Trai) issued a consultation paper on “Growth of Telecom Services in Rural India”. The paper is intended to aid in the formulation of policies to increase improve rural telecommunications and make them more affordable.

Teledensities in India today are 1.7% for rural and 19.7% for urban. Roll-out obligations included in license conditions have not worked as planned in facilitating the extension of telecom infrastructure to rural areas. The rapid growth in India’s teledensity with the evolution of wireless technologies has not stemmed the increasing gap between urban and rural teledensity. Trai is suggesting that entry barriers and regulatory costs for small operators should be removed so that they can offer services in rural areas at affordable prices.

Trai has taken the position that wireless coverage in rural areas and small towns is the key for growth in the telecom sector. To achieve this, deployment of more cost effective technologies including broadband over Wi-Max, corDECT, and power line telephony should be encouraged.

In its draft unified licensing recommendations, Trai included provisions to enable small operators to offer service in remote and rural areas. These operators would not be required to pay any license fees and they would offer only fixed telephony.

The consultation paper discusses a range of other issues relating to telecom services in rural areas. Comments from stakeholders to achieve higher growth of telecom services are requested November 30.

Intelecon Research & Consultancy Ltd. 28/10/2004