The telecom commission has proposed a scheme for creation of National Optical Fiber Network (NOFN) for providing Broadband connectivity to all the villages. For this the commission has recommended Rs. 20,000 crore for its implementation in the first phase. 

Talking to reporters on Friday the Minister of Communication and Information Technology kapil sibal said that the objective of the scheme is to extend initially the existing optical fiber network which extends upto districts  HQ’s/Block HQ’s level upto the Gram Panchayat level by utilizing Universal Service Obligation Fund (USOF) .

“The cost of the initial phase of the NOFN scheme is likely to be in the region of RS 20,000 crore. Similar amount of investment is likely to be made by  private sector complementing the NOFN infrastructure while providing services to individual users. Following the recommendation of the TC, the proposal will be placed before the Union Cabinet for approval”, he said

A High Level Committee (HLC) to steer and coordinate all activities related to the creation and implementation of NOFN was earlier constituted by DOT on 26^th April 2011 under the Co-Chairmanship of Shri Sam Pitroda, Adviser to PM on Public Information, Infrastructure and Innovation and Shri Nandan Nilekani, Chairman, UIDAI. The HLC has already held 3 meetings and has initiated steps to put the implementation on a fast track. A Special Purpose Vehicle (SPV) will assume the responsibility for execution  of the project after approval of the scheme by the cabinet. The SPV will be finally owned by the Government/USOF. TheBSNL has been entrusted with the task of undertaking the preparatory activity for project execution and establishment of the SPV.

He said an advisory body to advise on implementation issues and upstream & downstream integration as well as on issues relating to non discriminatory access of NOFN to service providers had also been setup earlier under the Chairmanship of Minister of Communications and IT on 26^th April 2011 by DOT. The advisory body includes the representatives from TSP’s and the private sector.

“In economic terms, the benefits from the scheme are expected through additional employment, e-education, e-health, e-agriculture etc. and reduction in migration of rural population to urban areas. As per a study conducted by World Bank, with every 10% increase in broadband penetration, there is an increase in GDP growth by 1.4%. It will also facilitate the Government to implement its various e-governance initiatives such as e-health, e-banking, e-education etc. thereby facilitating inclusive growth.”