To push broadband and internet penetration in the country, the Indian government on Thursday announced its broadband policy, but rejected TRAI’s proposal of unbundling the copper loop owned by BSNL and MTNL. "Unbundling of local (copper) loop in developed countries like the US and the UK has led to chaos, especially in the maintenance of lines," Communication and IT Minister Dayanidhi Maran said while announcing the broadband policy. Instead of unbundling the copper loop, the policy has allowed the access providers to enter into mutually agreed commercial arrangements for utilisation of available copper loop for expansion of broadband services. "Use of brand name being treated as a part of the value shall be permitted in such commercial arrangements," Maran said, adding this means the franchisee, using copper loop of BSNL/MTNL for offering broadband services, could use its own brand name.

He said he would request BSNL and MTNL to explore the possibility of offering internet tariff ranging between Rs 500 to Rs 800 a month. Broadband has been defined as an always-on data connection supporting interactive services including internet access with download speed of 256 kbps per subscribers.

With regard to the proposed fiscal incentives for the broadband service providers, the Department of Telecom has started consultation with the Ministry of Finance and soon a package would be announced, Maran said. "By the end of year 2010, the policy aims to target 20 million broadband subscribers and 40 million internet subscribers," he said.