Unbundle the last mile: Pitroda panel

04-03-2010

British Telecom unbundling model suggested


The committee headed by Sam Pitroda, advisor to the Prime Minister, which was appointed by the PMO to review the financial performance of PSU Bharat Sanchar Nigam Ltd, has come out with some critical recommendations (See our writeup "Disinvest 30% of BSNL: Pitroda panel")

Among its recommendations, the panel has suggested that BSNL unbundle its last mile copper network to private operators. BSNL has always opposed such a move saying that the copper network is to be counted as one of its differentiator when compared to competitors.

However UK's largest broadband service provider, British Telecom (BT) has unbundled its last mile network acknowledging that it will ultimately lead to increasing the broadband penetration. In India, private operators have a very small last mile network, and this segment is dominated by public firms BSNL and MTNL




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