Telecom Regulatory Authority of India (TRAI) Chairman Pradip Baijal has made a strong case for providing incentives, including cheaper spectrum, to operators for entering rural areas to sustain growth in the booming sector.
A teledensity (fixed as well as cellular phones) target of 15 per cent by 2010 has been set by the Government. The figure stood at 9.86 as at July-end. Urban teledensity is currently 30 while rural teledensity is 1.75, far behind the urban figure.
Stating that the Universal Service Obligation (USO) fund, introduced in India for rapid expansion of telecommunication in rural and inaccessible areas, should be viewed as ''universal service opportunity'' fund, there is a huge opportunity in rural areas and we must create a competitive market'' said Mr. Baijal.
We cannot go forward and achieve targets unless we change our policies. This division is not sustainable.'' For phones, Communications Minister Dayanidhi Maran has announced a target of 250 million lines by 2007, of which 180 million are likely to be mobile phones. ''Towers must be set up in rural areas, in the absence of which it will be difficult to take the growth curve up. For this, incentives should be given,'' Mr Baijal added.
The Indian telecom market, the fastest growing in the world, added 2.72 million subscribers in July 2005, taking the gross subscriber base (fixed as well as mobile) to nearly 107 million.
The review of Access Deficit Charge (ADC) will be submitted to the Government in the next 15 days. A gradually move towards revenue-based model and merge ADC with the Universal Service Obligation (USO) fund by 2008will be made.
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