State declines to unbundle local loop

18 Oct 2004

Dayanidhi Maran, India’s Telecommunications and Information Technology Minister, has outlined his broadband internet policy, which he claims will encourage 20 million Indians to take up broadband subscriptions by 2010. The minister surprised analysts however, by dismissing local loop unbundling, which he claims has led to confusion in markets where it has been tried. Instead the government hopes to encourage broadband operators to enter into mutually agreed commercial arrangements with state owned telcos BSNL and MTNL. Critics, however, claim the move is unlikely to result in wider broadband coverage unless the pair are compelled to share their phone lines with private rivals.