The Telecom Regulatory Authority of India on Monday proposed a Rs 8,000 crore (Rs 80 billion) subsidy for creating necessary infrastructure in rural areas to take the tele-density there from the current below two per cent to 15 per cent by 2007.
It has also proposed sharing of infrastructure by at least three service providers in rural areas.
A subsidy support of Rs 8,000 crore would be adequate to create necessary infrastructure for exposure of 80-90 per cent of the rural population to wireless coverage. If implemented early, this has the possibility of taking the rural tele-density to 15 per cent by December 2007, Trai said in its recommendations for rural telephony.
With this kind of subsidy support, it will be possible to install 20,000 base stations in rural areas to cover about 80-90 per cent of the villages, it said.
If three operators share the passive infrastructure, the total cost of base stations would be Rs 10,500 crore (Rs 105 billion), Trai thinks, adding an one-time support from the Universal Service Obligation Fund would be crucial for the venture.
"It is seen that through a support from the USO fund of Rs 9,000 crore (Rs 90 billion) it will be possible to install 20,000 base stations in rural areas with connectivity to the main network to cover about 80 per cent of the villages. This implies that a subsidy support of Rs 8,000 crore would be adequate, it added.
© 2026