All villages can get Net access by 2020: CII

Government and industry are finding ways to partner in providing high speed internet connections across the country, including all the villages. The Departments of Communications and Information Technology are considering recommendations of a report by the Confederation of Indian Industry (CII) which says all villages could have broadband internet access by 2020, provided a range of incentives and tax breaks are offered them.

CII’s National Broadband Economy Committee has suggested following kiosk model which has proved the most successful. “We studied models like e-Chaupal, Akshaya and Logue and similar projects in Canada and Malaysia. Kiosk has proved most efficient in rural areas,” said Arvind Mahajan, a partner with IBM Business Consulting in Delhi.

These high speed connections in 6,20,000 villages, however, will come at a price. The CII report, anchored by IBM with a range of private organisations, says it could cost USD 1.4 bn by 2006 and USD 2.8 by 2010, even if existing copper-wire is not replaced. Upgrading to Optical Fibre Cable (OFC) could double the cost, it says.

To make investments into the carrier-network sustainable, CII wants the government to progressively relieve the emerging broadband industry of taxation. “To ensure mass-market penetration and a viable industry, broadband industry would require full waiver of all applicable duties and taxes for a period of at least 7 to 8 years,” the report, named India’s Broadband Economy: Vision 2020 says.