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NOFN to be executed via a special purpose vehicle: DoT

February 24, 2012

The process of establishing the National Optical Fibre Network (NOFN) has been put on the fast track. The project, aimed at connecting 0.25 million gram panchayats across the country, will be implemented via a special purpose vehicle, (SPV) say news reports.

The SPV is expected to carry out mapping of the present cable infrastructure and fix the cost of the project.

Dubbed Bharat Broadband Network Limited, the SPV will initially be funded by the Government and then private players may be permitted to acquire a stake.

The decision to form an SPV is a shift from the earlier strategy outlined by the Department of Telecommunications (DoT). Prior to this, DoT planned on appointing Bharat Sanchar Nigam Limited as the project’s executing agency, since the incumbent has a wide-reaching optical fibre network.

However, the Telecom Regulatory Authority of India (TRAI) expressed its reservations on this, on grounds that such a move may affect the telecom sector’s competitive landscape.

 
 

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