- 19 Sep 2022
- ICICIdirect Research
TRAI SUGGESTS MEASURES TO BOOST BROADBAND PENETRATION
News:
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.
View:
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.
Impact:
Positive.