No unbundling of BSNL, MTNL's fixed line network: Maran

New Delhi, July 12 (UNI) The government today said that there would be no unbundling of fixed line service of public sector telecom companies, BSNL and MTNL while laying broadband lines by private operators.

The government's stand comes in the wake of persisitent demand from private operators to allow them to use BSNL and MTNL's fixed line networks to push up broadband penetration in the country.

Also TRAI and Prime Minister's Office have urged DoT to look at the possibility of opening up BSNL and MTNL's fixed line services to speed up broadband connections in the country.

The Investment Commission led by Ratan Tata has also asked DoT to give its views on the issue. There are 1.5 million broadband subscribers much below the government target of three million.

The argument for unbundling is that BSNL and MTNL with their wide reach in fixed lines have a near monopoly in broadband and if private players are allowed to ride on their infrastructure, it will lead to fall in tariffs and rise in subscribers "Wireless is the way to go and worldwide we have seen unbundling of the local loop has not been successful. So I have stated time and again that there is no need of unbundling," IT and Communications Minister Dayanidhi Maran said at a seminar here.

Mr Maran said out of the 47 million fixed lines, most of them are in urban areas where wireless is the medium for broadband.

"There are 48 million landlines of which 70 per cent are in urban areas. At present we have 1.5 million broadband connections.

Wireless is the major growing area and it is going to dominate the medium of broadband services' in fact, the landlines are not picking up as the cost of landlines are quite expensive." UNI/RT VJ VC1922