The telecom department (DoT) is mulling introducing a new category of license that will enable cable TV players and DTH operators to offer broadband services in the country, to be called Cable TV Internet Service Providers licence, which will be part of the broadband policy.
Under the existing broad-band policy, operators with either the unified licence or an ISP licence are allowed to offer broadband services. While some of the cable TV players have taken ISP licence, the broadband policy of 2004 had permitted using the country's cable TV infrastructure as a franchisee network of internet service providers for providing broadband services. However, this has not found many takers.
Further, the new broadband policy is also expected to explore ways to attract large investments from potential developers of fibre-to-the-home (FTTH) networks, since driving broadband growth in the medium and long term, especially to transform cities and towns into an always connected society, will require huge investments.
Nevertheless, the new BJP-led government's renewed focus on broadband is influenced by a recent International Telecom Union report which suggests that every 10% rise in broadband penetration will trigger 0.31% GDP growth and a 0.28% jump in jobs creation.