Telecom Panel Hinders Net Dhabha Takeoff

Communications minister Ram Vilas Paswan's plan to start Internet dhabas in all block headquarters before August 15 is facing roadblocks from the Telecom Commission.

It is expected that the expenditure on equipment and the annual maintenance contract would be of the order of Rs 53 crore and the scheme would require a subsidy of about Rs 30 crore.

The Commission at its meeting last week decided to set up Internet dhabas in only those block headquarters where no additional investment is required and decided that the scheme will now be implemented through franchisees.

Officials said indiscriminate spread of Internet dhabas will only result in wastage of resources as the benefits won't accrue in the absence of "appropriate Internet climate or culture".

Certain sections in the ministry of communication have raised objections to the proposal on the grounds that the scheme envisages a subsidy which, officials said, would be much more than Rs 30 crore as the assumptions are suspect.

Officials maintain that the assumption of Rs 1,800 revenue per dhaba at an average usage of three hours a day is unrealistic. They reason that Internet usage has not picked up at the district level and for block level the usage assumption seems to be on the upper side. As a result, officials say, the subsidy burden will be higher.

Sources said the programme is not very attractive for the operators either as the net return would be less that Rs 10 a day. To the department, the annual revenue would be about Rs 12 crore of which about 25 per cent would be the outgo to franchisees.

Officials also pointed out the possible misuse of the dhabas by the franchisees. An example being use of the equipment for running a computer training centre or its use for purposes like typing.

Paswan had said the scheme would cover about 6,000 block headquarters. But officials pointed out that the number could be more as some states like Andhra Pradesh alone has over 1,000 blocks, referred to as mandals, while Karnataka has about 700 hoblis (the equivalent of a block).

Also, the security deposit from franchisees, that is proposed to be Rs 1,000, will encourage some people to declare that the PC was stolen or something to that effect which would result in replacement of the equipment by Department of Telecom services. Officials said that the deposit should me more to discourage miscreants.

To implement the scheme it has been decided that access charges will be waived with PSTN charges fixed at Rs 1.20 for a three minute pulse rate. In case no one comes up with an offer to open a dhaba then the MP's development fund could be used for purchase of PC, printer etc. This, however will be done only after the MP's consent. In case this does not materialise then the PC, modem etc will be procured by the SSA or circle head. It is also proposed to allot a separate telephone lines with Internet connection to those PCOs that come forward for the scheme.