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Public-Private Partnership may not Rush BharatNet Rollout

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Telecom Regulatory of India, suggested the involvement of private telecom service providers for the rollout of optic fibre network in 250,000 gram panchayats. But market failure it talked about was the unwillingness of private telecom service operators to put up an optical fibre network in the rural areas because the costs outweigh the benefits. “A PPP model that aligns private incentives with long-term service delivery in the vein of the Build-Own-Operate-Transfer/ Build-Operate-Transfer models of implementation should be the preferred means of implementation,” Trai said.

To resolve this, Telecom Minister Ravi Shankar Prasad has been actively seeking the participation of the state governments in BharatNet. About 18 state governments have already agreed to the Centre’s proposal to set up SPVs in conjunction with states for laying down the optical fibre network, which may put the project on the fast lane. Read more

Sweekar S

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