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Time of India
3 days ago
- Business
- Time of India
'Unjustifiably low' satcom spectrum price, says COAI
India's top telcos have slammed the satcom recommendations from the telecom regulator, terming the spectrum price as 'unjustifiably low' and said that the proposals are based on "incorrect assumptions" and are "non-transparent".In their first reaction to the recommendations given by Telecom Regulatory Authority of India (Trai) last month, all three bitter rival operators have closed ranks and said that if implemented in the current form, the regulator's satcom suggestions would create a non-level playing field and impact the sustainability of terrestrial services. In a strongly worded joint letter through the Cellular Operators Association of India ( COAI ) to various government authorities, seen by ET, the carriers highlighted data and said the planned capacity of Elon Musk-owned Starlink and Jeff Bezos led-Amazon Kuiper are set to surpass the current capacity of Reliance Jio, Bharti Airtel and Vodafone Idea. "These recommendations are non-transparent based on non-justifiable assumption rather than factual data," the telcos said in the letter, marked to Trai, Department of Telecommunications (DoT), Finance Ministry, Commerce ministry, Ministry of Electronics and IT (Meity) and Niti Aayog etc. The operators have said the proposed spectrum charges are even lower than the administrative fees currently levied on GSO-based VSAT services-which do not compete with terrestrial networks. "It appears that Trai has underestimated the potential capacities of satellite network while possibly overstating those of terrestrial networks that have resulted in a flawed foundation for the entire exercise," the letter said, adding this fundamental flaw in the capacity assumptions exercise undermines the DoT's clear mandate to ensure competitive parity between satellite and terrestrial services. Trai had recommended the administrative allocation of satcom spectrum for a fee pegged at 4% of adjusted gross revenue (AGR) to be assigned for five years. There won't be any upfront fee for getting spectrum. Trai chairman AK Lahoti had categorically rejected the level-playing field argument by telcos, stating that the two technologies were different and that satellites could only be complementary. "It's not factually correct that satcom services are competing with terrestrial services because there is a huge difference between the capacity of the terrestrial network and the satellite network," he had said while releasing the recommendations. The telcos, however, feel the entire exercise was flawed as it was based on incorrect assumptions. "Despite a clear mandate from DoT, Trai's consultation process and final recommendations do not appear to address the core issue of competitive parity which shows a misalignment between the intent of DoT references and Trai's approach during the consultation process," the telcos said. The additional proposal by Trai to subsidise user terminals or satellite operators through the Digital Bharat Nidhi (DBN) fund further tilts the level playing field against the terrestrial operator, especially given that a majority of the DBN levy is contributed by telcos.
Time of India
28-05-2025
- Business
- Time of India
DoT seeks ISPs to use BharatNet infrastructure to bridge digital divide
NEW DELHI: The Department of Telecommunications (DoT) has urged the country's internet service provider (ISP) industry to increase the utilisation of the BharatNet infrastructure to bridge the digital divide in India. 'We at DBN (Digital Bharat Nidhi) are implementing the amended BharatNet project with an outlay of nearly ₹1.5 lakh crore, which aims to connect nearly 2.6 lakh gram panchayats. I feel that it is a great opportunity for various stakeholders, including ISPs, to be part of this huge exercise taken by the government of India to bridge the digital divide,' Niraj Verma, administrator, DBN, said Tuesday at an industry conference. BharatNet, a rural telecom connectivity project, is aimed at providing non-discriminatory access to broadband connectivity to all telecom operators, including ISPs, with the objective to connect a total of 6.5 lakh villages. However, the ambitious digital connectivity has been facing several execution-related challenges despite multiple extensions. "We have tried twice, Bharat Net Phase 1 and Phase 2, and we did not succeed to that extent due to various reasons. In Phase 1, we tried to connect 1.2 lakh villages, and then in Phase 2, tenders were awarded for eight states. The results had been mixed."Verma added. Under the BharatNet Phase 3, he said tenders have been awarded in 12 packages, including in major states such as Uttar Pradesh, Madhya Pradesh, Punjab, Bihar, and West Bengal. State-controlled Bharat Sanchar Nigam Limited (BSNL) has previously awarded contracts to Polycab , ITI Limited , Sterlite Technologies (STL), Telecommunications Consultants of India Limited (TCIL), and Pratap Technocrats, among others, under multiple packages of the BharatNet Phase 3 programme. Initially envisioned in 2011 under the UPA-II regime as the National Optical Fibre Network (NOFN), it was rebranded as BharatNet in 2015. Read More | Controversies surface over BSNL's ₹1.39 lakh crore BharatNet 3 programme In July 2022, the Cabinet approved the merger of Bharat Broadband Network Limited (BBNL) with BSNL to accelerate project rollout. In August 2023, the Centre approved the Amended BharatNet Programme (ABP) to expand fibre connectivity to the remaining 3.8 lakh non-Gram Panchayat villages on a demand basis. The top official said that nearly 2.12 lakh villages are service-ready today, cautioning that only 50,000 gram panchayats have an uptime of over 98% under BharatNet. 'We have now changed our focus from implementing the project to utilisation of the network and in amended BharatNet, it is a little different in the sense that we are giving the states as packages to EPC contractors, and we have a referee which is in the form of independent engineers,' Verma said. 'The idea is to get the services from this EPC contractor and a network with 98% uptime.' He added that a stable network offers 'exciting opportunities' to wireline ISPs, who can lease bandwidth or dark fiber to provide backhaul for mobile towers, or deliver broadband services and generate a new revenue model. 'We are engaging BharatNet Udyamis (entrepreneurs) for providing the connections, and anyone, including ISPs, can participate as BNUs under BSNL. ISPs can also have a look at the network that will come up and how they would like to provide services. We are ready to look at any alternate model where our utilisation goes up,' the official said. Under BharatNet, as of December 2024, 6,92,428 km of Optical Fibre Cable (OFC) has been laid and 2,09,281 gram panchayats (GPs) are service-ready on OFC. In addition, 5,032 GPs have been connected over satellite media, thus, a total of 2,14,313 GPs are service-ready, the Ministry of Communications said last year.
Zawya
01-05-2025
- Business
- Zawya
Nigeria: DBN partners NSIA to set up $2.5mln youth entrepreneurship investment bank
Institutional shareholder of Development Bank of Nigeria (DBN) has given approval to the bank's Board of Directors to invest $2.5 million in equity into the Youth Entrepreneurship Investment Bank billed to start next year. Managing Director/Chief Executive Officer Mr. Tony Okpanachi disclosed this on Wednesday to journalists at the bank's 8th Annual General Meeting (AGM) and presentation of the 2024 financial report to shareholders in Abuja. Youth Entrepreneurship Investment Bank is a DBN initiative, in collaboration with African Development Bank (AfDB) and Nigerian Sovereign Investment Authority (NSIA). Fielding questions from newsmen, Okpanachi said, 'The youth entrepreneurship investment bank is an initiative we're working with the African Development Bank and with NSIA to set up that youth entrepreneurship Investment Bank, which is going to provide assets to equity investment in the youth-owned businesses. And working with the African Development Bank, who is going to provide additional funding to that, we're going to provide that platform to invest in youth owned businesses and encourage entrepreneurship in Nigeria. 'NSIA is taking equity lead. For now, it's going to be DBN and NSIA; we are going to commence operations. The plan is to also bring other strategic partners, and this includes other international organizations who would want to join. So, we're going to catalyze more capital from other institutions globally. I can assure you that we're just going to kick start it. But a lot of interest across different global organizations wants to invest in it to ensure that they provide that platform to provide investment in youth owned businesses. 'Let me put on record that this is not the typical bank you hear about. It's not a bank, it's an investment vehicle. So it is just going to be an investment vehicle that is focused on youth.' Highlights of DBN's financial statement show that in 2024, it disbursed a total sum of N1.06 trillion to Participating Financial Institutions (PFIs), showing a 35 percent increase from the cumulative disbursement recorded in 2023. Also, DBN's loan disbursement stood at N273.13 billion in 2024, marking an impressive 75 percent growth compared to N155.7 billion disbursed in 2023. The DBN provided funding to 711,819 end-borrowers, reflecting a 44 percent increase from 494,819 end-borrowers in 2023. Other major highlights include a N49 billion disbursed to more than 69,182 MSMEs in economically disadvantaged regions such as Borno, Adamawa, Katsina, Yobe, Zamfara, etc In addition, the Bank disbursed 20-25 percentage of private sector loans to MSMEs over the last 5 years with 25% of beneficiaries women while training 9,500 MSMEs trained across the country. In the year under review, through its various interventions, 1.2m jobs were created nationwide. Okpanachi said the loan disbursement has helped to support 711,819 MSMEs across various sectors and regions in the country. 'This milestone represents a 35% increase in total disbursement value and a 44% growth in the number of MSMEs impacted compared to the previous year underscoring DBN's unwavering commitment to driving financial inclusion and sustainable economic growth. 'In alignment with the Federal Government of Nigeria's priority sectors, DBN provided over 15 billion in loans to the manufacturing sector, benefiting more than 3,000 individuals. Similarly, in the agricultural sector, we disbursed over 18 billion to agribusinesses, reaching over 1,500 individuals. Additionally, DBN remains at the forefront of supporting green initiatives, with over 26 billion in loans dedicated to MSMEs engaged in climate-friendly and Co emission reduction businesses. 'At Development Bank of Nigeria (DBN), we remained steadfast in our commitment to empowering MSMEs, a critical pillar of Nigeria's economy. A landmark achievement in 2024 was DBN's successful accreditation by the Green Climate Fund (GCF), making it the first Development Finance Institution (DFI) in Nigeria to attain this status. This accreditation is not just a recognition; it is a testament to DBN's unwavering commitment to sustainable financing and climate resilience,' the Managing Director explained. Copyright © 2022 Nigerian Tribune Provided by SyndiGate Media Inc. (
