Question : RURAL TELEPHONE SERVICES



(a) whether the telecom companies were required to provide rural telephone services by the end of 2002;

(b) if so, the facts thereof;

(c) whether the telephone service providers have achieved the said target;

(d) if so, the details thereof, State-wise;

(e) if not, the reasons therefor;

(f) whether the Government have now set any new deadline for the telephone service providers to fulfil their rural telephony obligations;

(g) if so, the details thereof; and

(h) the action taken/proposed to be taken against them for not fulfilling the rural telephony obligations?

Answer given by the minister

THE MINISTER OF COMMUNICATIONS & INFORMATION TECHNOLOGY AND DISINVESTMENT (ARUN SHOURIE)

(a) to (h) A statement is laid on the table of the House.

STATEMENT TO BE LAID ON THE TABLE OF THE LOK SABHA IN RESPECT OF PARTS (a) TO (h) OF LOK SABHA STARRED QUESTION NO. 48 FOR 23RD JULY, 2003 REGARDING RURAL TELEPHONE SERVICES.

Various telecom companies providing Basic services were to cover all revenue villages with Village Public Telephones (VPTs) by the end of 2002. These companies included 6 Private Basic Service Operators who were granted licences in 1997-98 as well as Bharat Sanchar Nigam Limited (BSNL). No obligation to cover rural areas was imposed on companies that were granted licences to operate Cellular Telephone Service.

The licences granted from July, 2001 to October, 2001 to various companies for providing Basic Telephone Service do not have roll out obligations in terms of coverage of VPTs. Instead they are required to establish ‘Points of Presence’ in equal proportion in each category of Urban, Semi-urban and rural Short Distance Charging Area (SDCA), typically a tehsil. In the first phase of roll out i.e. by the end of two years from the date of grant of licence, they are expected to achieve 15% of such coverage.

According to available information, State-wise status of the achievement of VPT targets, as on 31.12.2002, is given in the Annexure.

The reasons for shortfall from the targets include the following:-


(i) Poor performance by Private Basic Telephone Service Operators due to non-remunerative nature of VPTs.

(ii) Villages being in Naxalite infested and other insurgency affected areas.

(iii) De-population of villages.

(iv) Many villages having population less than 100.

(v) Clearance not being accorded for VPTs based on Wireless Local Loop systems in the States of North East and in J&K.

(vi) VPTs can be provided only by utilizing satellite as a media; this entails prohibitive cost.


Government is considering a proposal to support BSNL for providing VPTs based on satellite media. Necessary steps have been taken by BSNL to provide VPTs in the States of North East and J&K on WLL. These will be installed after receiving clearances from the concerned agencies. It is expected that such VPTs will be provided by the end of 2003.

The Government has been persuading the private Basic Service Operators to fulfil their committed roll out obligations. Liquidated Damage Charges to the tune of Rs. 53.75 crores have been recovered from six Private Basic Telephone Service Operators for delay in commencement of service as well as delay in providing VPTs and Direct Exchange Lines. A notice was issued in May, 2003 to Private Basic Operators to provide VPTs as well as submit plans to provide balance VPTs by the end of 2003 after excluding the categories of villages identified as de-populated villages, villages with population less than 100, Naxalite or insurgency affected villages and villages to be covered by satellite media in the first phase. They were informed that failing these, steps to encash the Performance Bank Guarantees will be initiated. Five Basic Operators have responded to the notice and submitted plans to cover 5749 villages in four service areas by December, 2003 to March, 2004. This excludes 2709 villages which have phones but not public phones. One service area, i.e. Punjab had already been fully covered with VPTs. One Basic Operator has approached the court and obtained a stay against the notice that was issued. The notices have resulted in an increase, as per available information, in the number of VPTs installed by private operators from 10, 648 at the end of May, 2003 to 11,632 at the end of June, 2003, i.e. by approximately 10%. The fulfilment of the commitments now given by the private operators will be closely monitored and Performance Bank Guarantees would be liable to be encashed in case of failure.

ANNEXURE

STATUS OF VPTs STATE-WISE AS ON 31.12.2002
S.No Service Area	Total VPTs	VPTs Total	No. of provided	provided	Revenue by BSNL	by	Villages	Private	Basic	Telephone	Operators
1. Andaman & Nicobar 201 197 - 197

2. Andhra Pradesh 29460 23419 1314 24733

3. Assam 24685 17691 - 17691

4. Bihar 72780 64640 - 64640

5. Gujarat 18125 11214 2894 14108 6. Haryana 6850 6811 - 6811

7 Himachal Pradesh 16925 16585 - 16585

8. J & K 6764 4094 - 4094

9. Karnataka 27066 27060 - 27060 10. Kerala 1468 1468 - 1468 11. Madhya Pradesh 71526 52230 348 52578 12. Maharashtra 42467 31541 1140 32681 13. North East 14145 5249 - 5249 14. Orissa 46989 40314 - 40314 15. Punjab 12687 12687 734 13421 16. Rajasthan 39483 23858 693 24551 17. Tamil Nadu 17899 17899 - 17899 18. U.P. (East) 79792 75855 - 75855 19. U.P. (West) 39214 32864 - 32864 20. West Bengal 38774 37743 - 37743 21. Delhi 191 191 - 191
Total 607491 503610 7123 510733


Bihar service area includes Bihar and Jharkhand States, Madhya Pradesh Service area includes Madhya Pradesh and Chhattisgarh States, North East service area includes States of Meghalaya, Nagaland, Arunachal Pradesh, Manipur, Tripura and Mizoram, Punjab Service area includes State of Punjab and U.T. of Chandigarh, and Uttar Pradesh (West) service area includes western parts of Uttar Pradesh and Uttaranchal State.