Telecom Regulatory Authority of India to use PPP model

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Telecom Regulatory Authority of India to use PPP model

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The Telecom Regulatory Authority of India (TRAI) has announced plans to use the public private partnership (PPP) model carry out the Bharat Net project.

Bharat Net seeks to connect all of India’s households, particularly in rural areas, through broadband by 2017, forming the backbone of the government’s ambitious Digital India programme.

TRAI's proposal comprises:

  • A PPP model that aligns private incentives with long-term service delivery through the Build-Own-OperateTransfer/Build-Operate-Transfer models of implementation be the preferred means of implementation.
  • The concessionaire would execute the task of deployment and implementation of the optical fibre cable and other network infrastructure as well as operating the network during the period of contract. Concessionaires shall be entitled to proceeds of revenue from dark fibre and/or bandwidth.
  • The regulator has also suggested that contract period should be of 25 years, which can be further extended in block of 10, 20 or 30 years.
  • The broadband network should be given to a concessionaire selected through reverse bidding. 

BBNL is a Telecom infrastructure provider, set up by the government of India for the establishment, management and operation of National Optical Fibre Network. BBNL was incorporated as a SPV under Companies Act of 1956. It was incorporated on 25 February 2012.

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