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Message from the Chairman The ability of broadband to make effective intervention in ‘inclusive growth’ (especially in critical areas such as education, healthcare, financial inclusion and agriculture) has been proved by various pilots conducted by the Government and the private sector. There is enough evidence on the ground that an average Indian villager is ready to consume quality services delivered through ICT, and these services can be delivered more efficiently and economically. Harish Krishnan Chairman CII Sub-Group on Broadband The key to make the pilots take off to scale is in the creation of viable business models and ensuring a technology architecture that is future proofed. While laying down fiber to the village is a necessary condition for success, it is not a sufficient condition; more needs to be done. Some important ingredients that will determine scale include: • Infusion of money in the system which will make it affordable for the consumers, who are often Below the Poverty Level (BPL). This will create sufficient demand for these services and will make it commercially sustainable for the private sector to provide these services. • Adaption of the National Optical Fiber Network (NOFN) by various Government bodies, line ministries (such as Health, Education, Agriculture), Panchayati Raj, and State Governments as the principal channels for delivering services and channelizing their budgets • The private sector showing commitment and faith in the ‘inclusive growth’ agenda and making investments, which may not be attractive in the short term, but which, with time, would scale up and become profitable, while discharging important social responsibility. The objective of the report is to provide some initial framework for Public Private Partnership (PPP) but most importantly, lay the foundation for a cohesive view and action plan of all stake holders that will make broadband and ICT intervention impactful, inclusive, immersive and sustainable in India.
Message from KPMG Broadband has the power to re-shape an economy. Jaideep Ghosh Partner, Management Consulting KPMG in India Governments across the world have recognized the importance of broadband in nation building and have invested heavily on national broadband projects. The Government of India’s efforts of taking highspeed broadband up to the village level is highly encouraging. By investing on fiber network infrastructure, the Government will not only connect remote areas, but will also lay the foundation for new economic activities, that will, in turn, spur inclusive growth, skill-building, and employment generation. The experience from the various broadband projects piloted across the country indicates significant potential of providing broadband-enabled services across priority sectors such as education, healthcare, banking and agriculture. For demand to be generated automatically, these services will need to be relevant and affordable to the rural masses, and commercially viable for the service providers. This calls for robust Public- Private partnerships, with active involvement of the local governing bodies. This is a challenging situation that will require innovative thinking jointly from the Government and the industry. The task now is to deliberate on potential business models that create win-win value for all stakeholders, while factoring in all existing constraints. This report is an attempt to present a cohesive view of the current situation and trigger thought around some possible business models.