BharatNet Requires Robust Project Management: KS Rao

BharatNet

STL, a connectivity solutions company has been working with the government of India on multiple projects which includes things such as Navy/Army network modernisation, BharatNet, and smart cities in Rajasthan and more. KS Rao, CEO, Network Services and Software, STL shared a lot of things related to the company’s plans in India and the BharatNet project. Here’s everything you should know.

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Q1. What Is Your Take on the Announcement by the Finance Minister?

FM announcement of Rs 19,000 crore as an additional outlay for the BharatNet project is definitely a positive step and will help extend broadband connectivity to rural areas in a fast manner. The year 2020 has proved the importance of bridging the rural divide. The govt spending on digital infrastructure will be the key to economic growth and reducing income inequality. Developed economies are spending around 1.5% of their GDP on building digital infra, while we spend around 0.5%. India should spend to the tune of ~1.2% of its GDP on digital infra.

The 19K crore investment will help to extend BharatNet Broadband connectivity to all remaining Gram Panchayats. The project will ensure the design, construction of the new network and upgradation of the existing network, with this govt. It will also ensure operation and maintenance (O&M) of the existing network and the new network, and all other related activities in PPP mode with viability gap funding (VGF).

To date, the government has been able to connect about 1.56 lakh of the 2.5 lakh gram panchayats with fibre broadband. Additionally, the government’s announcement to reduced bulk BharatNet bandwidth rates for commercial telecom operators by 76% will help telecom operators to offer affordable BharatNet-enabled wireless cellular 4G broadband deals to rural customers. We believe, the introduction of viability gap funding will bring more transparency and will ensure a speedy rollout.