Rollout Obligation

The Prime Minister Narendra Modi is hoping that the Department of Telecommunications (DoT) would complete the nationwide rollout of National Optical Fiber Network (NOFN), under which about 6 lakh km fiber is to be laid across the country, by December 2016. But, he will be shocked to know that the very same department has taken nearly five years just to draw up a test schedule for 3G and Broadband Wireless Access (BWA) services. And, this process is still continuing for the BWA.

The auction of spectrum for 3G and BWA services was held way back in April / May of 2010. As per the Notice Inviting Applications (NIA), the rollout must be completed in 5 years. In the case of 3G, there is a provision of extension by one year, subject to payment of about Rs 1,657 crore (pan-India). Even by the extended date if the rollout obligation is not completed, the assigned spectrum is withdrawn by the government. In the case of BWA, there is no provision for any extension and the five year deadline is firm and beyond that the spectrum would be withdrawn.