Rs 3,00,000 crore investment needed in the telecom sector

The government is going to require about Rs 3,00,000 crore of investment for
upgrading its equipment in order to roll out broadband services and achieve a
target of 150 million new telephone lines over the next three years. Minister of
State for Communications and IT, Shakeel Ahmad informed this while speaking at
the inauguration of Convergence India 2005.

"As per the present growth trends, expectations are that we would add
approximately 150 million lines in the next three years. This would translate to
equipment requirement of about Rs 1,50,000 crore. In addition to this, there
would be requirement for equipment needed for broadband and other value added
services and here another Rs 1,50,000 crore would be needed. The total
investment will be divided equally for Broadband services and setting up new
telephone lines, here," he explained.

In the recently released Broadband Policy, the government has envisaged to
achieve a target of 40 million Internet and 20 million broadband subscribers by
2010. This proposed investment plan would cement that vision.

Companies should take cue from the overall growth of this region and start
considering manufacturing options here.

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