- 19 Sep 2022
- ICICIdirect Research
Trai suggests measures to boost broadband penetration
Telecom Regulatory Authority of India (Trai) has released a slew of recommendations to enhance broadband connectivity in the country such as a) fixing the minimum download speed for broadband connectivity at 2 Mbps i.e. four times more than existing minimum broadband speed of 512 Kbps that the regulator had introduced back in 2014, b) incentivising investment in the last-mile linkage for fixed-line broadband and an interest subvention scheme for capable operators providing wired Internet connections and c) the government should consider reimbursing 50% of the monthly fixed-line broadband subscription charges of not more than Rs 200 per month.
While how much of the suggestion get the approval from the ministry is unknown, incentives as mentioned above could boost the overall fixed broadband penetration, which is merely 9.1% currently. It will be beneficial for all key players including Airtel, Jio, GTPL Hathway, etc, if implemented.