BharatNet through Public-Private Partnership

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Cabinet approves revised implementation strategy of BharatNet through Public-Private Partnership Model in 16 States with optical fibre connectivity to all inhabited villages

About

• BharatNet will now extend up to all inhabited villages beyond Gram Panchayats (GPs), in the said States.  
• The revised strategy also includes creation, upgradation, operation, maintenance and utilization of BharatNet by the concessionaire who will be selected by a competitive international bidding process.  
• The estimated maximum viability gap funding approved for the above PPP model is Rs. 19,041 crores.

Significance

• Enhanced Efficiency: It will leverage Private Sector efficiency for operation, maintenance, utilization and revenue generation and is expected to result in a faster rollout of BharatNet. 
• Better access of e-services: Extension of reach of BharatNet to all inhabited villages with reliable, quality, high-speed broadband will enable better access to e-services offered by various Central and State Government agencies.  
• Augmenting Applications: It will also enable online education, telemedicine, skill development, e-commerce and other applications of broadband. 
• Increased Revenue: It is expected that revenue will be generated from different sources including the proliferation of broadband connections to individuals & institutions, sale of dark fibre, Fiberization of mobile towers, e-commerce etc.
• Benefits for Rural Areas: The proliferation of broadband in rural areas will bridge the rural-urban divide of digital access, accelerate the achievement of Digital India, increase direct and indirect employment and income generation. 
• Consumer-friendly advantages:
  • Use of innovative technology by the Private Sector Provider for the consumers;
  • High quality of service and Service Level to consumers;
  • Faster deployment of network and quick connectivity to consumers;
  • Competitive tariffs for services;
  • Variety of services on high-speed broadband  including Over-Top (OTT) services and multi-media services as part of packages offered to consumers
  • Access to all online services.
  • Better quality of service, 
  • Enhanced consumer experience and 
  • leverage private sector expertise, entrepreneurship and capacities for accelerating the achievement of digital India.  
  • Substantial savings of public money.

More Information about Approval

• The States covered under the Cabinet approval are:
  • Kerala, 
  • Karnataka, 
  • Rajasthan, 
  • Himachal Pradesh, 
  • Punjab, 
  • Haryana, 
  • Uttar Pradesh, 
  • Madhya Pradesh, 
  • West Bengal, 
  • Assam, 
  • Meghalaya, 
  • Manipur, 
  • Mizoram, 
  • Tripura, 
  • Nagaland and 
  • Arunachal Pradesh. 
• An estimated 3.61 lakh villages including GPs will be covered. 
• The Cabinet also accorded in-principle approval for extending BharatNet to cover all inhabited villages in the remaining States and UTs. 

Conclusion

• The PPP Model in this critical infrastructure of Telecom is a novel initiative.
• The States where PPP Model is envisaged will facilitate the free Right of Way. 
• The Private Sector Partner is also expected to bring an equity investment and raise resources towards capital expenditure and for operation and maintenance of the network.

Source: PIB