AP proposes ₹6,000-cr optical fibre project

Broadband connections may become more affordable and broad-based in Andhra Pradesh, if IT-savvy Chief Minister N Chandrababu Naidu manages to push through a ₹6,000-crore optical fibre project with the Centre.

The State government had sent the proposal to the Ministry of Communication and Technology last month, which would facilitate private enterprises and households get better access through cable networks and mobile 4G and 3G platforms.

The proposal aims at making available at least 10-15 Mbps broadband connections each to 12 million homes in the State at a price of about ₹150 per month and on-demand availability of 100 Mbps to one Gbps connection to every business enterprise.

The proposal has got off the mark, with the Department of Telecommunication, under the Ministry of Communication and Information Technology, recommending that an “in-principle approval” may be given to a proposal.

The department, after examining the proposal, had referred it to the Telecom Commission last month, recommending that an in-principle approval could be considered, as the proposal is based on the principles of National Optical Fibre Network (NOFN) project. After further examination, the proposal will be presented to the Cabinet for approval through the Telecom Commission.

The proposal falls under the combined scope of the NOFN, Government User Network and the Centre’s ‘Digital India’ vision. The capital expenditure for laying the required infrastructure proposed in the project is ₹3,843 crore, while the operating cost is pegged at ₹2,140 crore over ten years.

The main component is the cost of laying the fibre over 65,000 km at a cost of ₹2,500 crore, including cost of the optical fibre. The Department of Telecom has noted that the national NOFN network, created with Universal Service Obligation fund, is envisaged as a common infrastructure that will be offered on a non-discriminatory basis to all telcos and service providers at reasonable costs, so as to facilitate provision of broadband to the rural people.

“The Andhra Pradesh government has affirmed that its fibre grid will be established in conformity with this principal, with the grid being fully owned by the government and offered to telcos and service providers on a non-discriminatory basis,” the department said in a note to the Telecom Commission.

It also noted that the proposal is significantly larger in scope than NOFN in terms of coverage and scalability, as it envisages an end-to-end network right from the State to the gram panchayats.