In a positive development for the telcos and the other internet and connectivity service providers, the access charges for deploying optical fiber cable (OFC) have been reduced to Rs 1,000 per kilometre from Rs 1 lakh per kilometre. This will be a major relief for the companies involved in deploying OFC for providing connectivity services. It is also going to benefit the consumers in Mumbai as the ISPs (internet service providers) as well as the telcos will be able to expand their business faster at a lower cost.
COAI Applauds BMC Mumbai for the Move
The Cellular Operators Association of India (COAI) has applauded the move from the Brihanmumbai Municipal Corporation (MBC), Mumbai, to reduce the access charges for deploying OFC. The industry body also thanked the Department of Telecommunications (DoT), the Chief Secretary of Maharashtra, officials of BMC, officials of the IT Department, Mumbai, and industry representatives for this move.
This development will help with a quick broadband rollout in Mumbai, and it will positively affect the margins of the companies trying to provide connectivity services in the city.
Earlier, the BMC was charging companies Rs 1,00,000 or Rs 1 lakh per kilometre for laying OFC. But this was not in line with what was suggested in the central RoW (Right of Way) rules, and thus the companies had to bear this huge cost while looking to deploy OFC in Mumbai.
The roadblock of huge costs for deploying OFC in Mumbai is finally gone, and the telcos and other ISPs can now go ahead and lay fiber for 1% of the cost they had to pay earlier.
Lt. Gen. Dr SP Kochhar, Director General, COAI, said that while the cost is still not zero as per recommended by the RoW 2016 Rules, it is still a significant reduction in costs and something that will benefit the members.
