Chapter: Gist of Press Information Bureau Articles

Topic: Telecom Sector – Growing From Strength To Strength

Q. What are the data about telecom sector in India?

• Today, Indian telecom network is the second largest in the world after China.

• The total number of telephones has increased from 206.83 million on 31st March, 2007 to 917.35 million on 30th November 2011 resulting in an increase in teledensity from 18.31% to 76.18% during this period.

• This has been possible due to phenomenal growth of wireless connections, which has reached 884.38 million connections at the end of November 2011 constituting 96.41% of the total telephones up from 80.29% at the end of March, 2007.

• The liberalization efforts of the government are evident in the growing share of private sector in total telephone connections which has increased to 86% in November 2011 as against a meager 5% in 1999.

• There has been relatively less penetrations in rural areas with 310.92 million telephones by the end of November, 2011 and teledensity of 37.02 % against 166.45% Urban teledensity.

• There are 12.98 million broadband subscribers as on 31st October, 2011 and 19.69 million Internet subscribers at the end of March, 2011.

Q. What are the main features and objectives of National Optical Fiber Network?

• Government has approved a project for National Optical Fiber Network in October, 2011 for providing Broadband connectivity to all 2.5 lakh Gram Panchayats at a cost of Rs. 20,000 crore. The plan is to extend the existing optical fiber network up to Panchayats.

• The Network will provide a highway for transmission of voice, data and video in rural areas. It will enable the broadband connectivity upto 2 Mbps, capable of providing various services like e-education, e-health, e-entertainment, e-commerce e- governance etc. to people and businesses. The people in rural areas, students, entrepreneurs, various Government Departments providing services under e-governance projects will be benefitted.

• It will also provide connectivity to various public institutions like Gram Panchayats, Primary Health Centres (PHCs), schools etc. in rural areas. The project will be funded by Universal Service Obligation Fund (USOF).

Q. What is USOF?

The Universal Service Obligation Fund (USOF) was established with the fundamental objective of providing access to ‘Basic’ telegraph services to people in the rural and remote areas at affordable and reasonable prices. Subsequently the scope was widened to provide subsidy support for enabling access to all types of telegraph services including mobile services, broadband connectivity and creation of infrastructure like OFC in rural and remote areas. Various schemes for taking communication facilities to the rural and remote areas with the support of USO fund under implementation

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