The Ministry of Information and Broadcasting and the Telecom Regulatory Authority of India (TRAI) have revived the proposal to provide broadband services via existing cable networks, the Times of India reports.
Ministry officials said that the move has the potential of providing internet connectivity instantly to 19 crore television households, of which 10 crore houses already have an existing cable TV subscription.
Recently, the TRAI chairman, RS Sharma, while deliberating with cable operators, said the move would see internet connectivity from fixed lines increase from 7 per cent against the global average of 46 per cent.
For customers, the shift to broadband alongside cable TV services happens via a simple change to a new set top box. The Telecom ministry's engineering arm, Broadcast Engineering Consultants India Limited (BECIL), will facilitate the integration of technology for both broadband and cable services.
According to government sources, both cable operators and the ministry want to see the proposal implemented. Further, cable operators have been assured by the government that no specific technology will be imposed on them for providing broadband services over cable networks.
The Internet and Broadcasting secretary, Amit Khare, said broadband and cable TV businesses need to be treated separately, and only the revenue generated through the supply of broadband services need to be taxed.
Before the proposal is implemented, the financial implications of a probable AGR waiver need to be whetted. However, with both service providers and the government on board, the project will most probably be implemented.