The Hindu Business Line : TRAI mulls cut in broadband tariff

THE Telecom Regulatory Authority of India is considering a reduction in broadband tariff from $4 per 100 KBPS a month to $1, Mr Pradip Baijal, Chairman, TRAI, said here on Tuesday.

He said domestic lease line tariff would also be reduced but did not specify the quantum. The order is ready.

The issue of conditional access system (CAS) is now with the Government. "The Government of India is consulting State Governments on this. State Governments have to take a view," he said.

According to him, CAS is a complex issue because consumers are not willing to spend on set-top boxes.

"CAS is working in Chennai because the local Tamil channels are free to air, but its implementation was difficult in Delhi and Mumbai because consumers want pay channels," he said.

The thrust of his presentation at FICCI-Frames 2005 on `Enabling Regulatory Framework for Digital Age' was on promoting entrepreneurial spirit in the media and entertainment industry. He cited the example of India's tele-density, which was at 0.02 per cent in 1948.

In the 50 years to 1998, it touched 1.92 per cent. "But in 2004 alone, tele-density touched 2.11 because of private players in the field," he said.

India, he said, had 55 million cable television homes. It is the only country that has more cable TV homes than fixed line telephones (42 million).

"If cable TV has grown to this number, it is entirely because of the strength of Indian enterpreneurship," Mr Baijal told delegates at the three-day conference.

The growth of cable TV also points to the fact that Indians prefer entertainment. "Indians want plurality," he said.

Enterprising entities have been able to provide wireless connections to India's rural areas. "If you are able to connect six villages in this manner, you can have movies released to these villages which are entertainment starved," he said.

Delivery of television through broadband, according to him, would be ideal for India if the licensing regime allows it.

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