Rationale for Creating National Optic Fibre Agency (NOFA) :-1. Creation of an optical fibre network in the country requires a dedicated agency for planning, operation and provision of required bandwidths to its users. In the remarks against paragraph 7.05 and 7.06, the DOT have stated that during the deliberations in the Department, it was felt that the creation of NOFA merits serious consideration. Yet, the scheme that is formulated does not make any provision for this. Instead, the institutional mechanism for the National Optic Fibre Network (NOFN) envisages the setting up of a high-level committee as well as an advisory body with BSNL being the executing agency. It is only at stage two, the timing of
which is to be decided subsequently, that an SPV is proposed to be formed. The Authority is of the view that the present proposal runs the risk of being dependent on the release of USO fund by the Government and therefore being subject to the normal budgetary processes. There is a possibility that it will be functioning more like a 100% centrally sponsored scheme. On the other hand, constitution of a National Optic Fibre Agency (NOFA) has the merit that the Agency can manage the availability of funds as per need without having to depend on the government. Besides, it can also cover the urban areas as mentioned in Annexure B. 2. The matter has been considered in detail and the Authority is of the view that the Department of telecommunications should reconsider its proposal regarding the institutional mechanism. The NOFA should be headed by a person of eminence. The role of the HLC as well as the advisory body, could be reviewed as appropriate.
3. Paragraph 2.0 of the scheme formulated by the Department of Telecommunications recognises that in implementation and usage of the NOFN, a large number of agencies and organisations of Central and State Governments as well as private sector would be involved. It recognises the multiplicity of agencies and complexity
4. While NOFA can leverage USO fund to raise the loan for implementing National Optical Fibre Network, the proposed scheme of DoT runs the risk that BSNL cost may be offloaded on NOFN, BSNL being Executing Agency. This will result in high cost of broadband provisioning to the customers.
5. NOFA will be lean agency and minimize the cost of operation.
6. NOFA can receive fund from leasing the network for further growth of the optical fibre network whereas all revenue collected by USOF will go to Government and may not be reinvested in the network.
7. For the above reasons, the Authority strongly reiterates its recommendation for the creation of the National Optic Fibre Agency.
which is to be decided subsequently, that an SPV is proposed to be formed. The Authority is of the view that the present proposal runs the risk of being dependent on the release of USO fund by the Government and therefore being subject to the normal budgetary processes. There is a possibility that it will be functioning more like a 100% centrally sponsored scheme. On the other hand, constitution of a National Optic Fibre Agency (NOFA) has the merit that the Agency can manage the availability of funds as per need without having to depend on the government. Besides, it can also cover the urban areas as mentioned in Annexure B. 2. The matter has been considered in detail and the Authority is of the view that the Department of telecommunications should reconsider its proposal regarding the institutional mechanism. The NOFA should be headed by a person of eminence. The role of the HLC as well as the advisory body, could be reviewed as appropriate.
3. Paragraph 2.0 of the scheme formulated by the Department of Telecommunications recognises that in implementation and usage of the NOFN, a large number of agencies and organisations of Central and State Governments as well as private sector would be involved. It recognises the multiplicity of agencies and complexity
of the work involved coupled with the need for overall aggregation and integration at the national level. This is admittedly a complex task requiring a day-to-day oversight and can only be done by a dedicated agency.
4. While NOFA can leverage USO fund to raise the loan for implementing National Optical Fibre Network, the proposed scheme of DoT runs the risk that BSNL cost may be offloaded on NOFN, BSNL being Executing Agency. This will result in high cost of broadband provisioning to the customers.
5. NOFA will be lean agency and minimize the cost of operation.
6. NOFA can receive fund from leasing the network for further growth of the optical fibre network whereas all revenue collected by USOF will go to Government and may not be reinvested in the network.
7. For the above reasons, the Authority strongly reiterates its recommendation for the creation of the National Optic Fibre Agency.
