November 3, 2014

The center has decided to bring in the private sector to accelerate the Rs. 20.1K crore broadband project-National Optical Fibre Network (NOFN). The move follows the clamorous criticism of the Department of Telecom’s (DoT) decision of involving only state-run companies, thereby causing the delay in the project. Barely 1 percent of the NOFN roll-out target had been achieved till October and the pace requires to be accelerated 50 times over the next 18 months, according to a DoT note.

According to an official, the DoT will shortly move a Cabinet note to mandate Bharat Broadband Networks (BBNL) to appoint an independent project management consultant that will invite bids from private players including telecom operators to handle cable laying, trenching and ducting operations across 1.5 lakh village blocks in the second and third stages of the National Optical Fibre Network (NOFN) roll-out.

The Telecom Commission has recommended that “best-in-class private sector companies” be brought in through the international competitive bidding route. Many global companies such as Facebook and Microsoft have shown interest in partnering with the government in various capacities for the NOFN project, especially for the last mile connectivity.

The NOFN project, which is being executed in three stages, aims to deliver countrywide high-speed internet connectivity across 2.5 lakh village blocks. At present, BSNL, PowerGrid and RailTel are solely mandated to handle cable laying, trenching and ducting operations across all 2.5 lakh village blocks in the 70:15:15 ratio. This is the most expensive component of the NOFN project.

DoT will also seek Cabinet approval for a near 40 percent escalation in NOFN project cost from Rs. 20,100 crore to nearly Rs. 28,000 crore, triggered by an upward revision in the last mile optic fibre cable connectivity requirement.

Fast-tracking NOFN is also required because it is seen as core internet engine for delivering high-speed internet and government services to the common man under the Centre’s Rs. 1,13,000 crore Digital India initiative.