In its first phase of Rs 5,000 crore optical fibre project, Andhra Pradesh Government, headed by tech-savvy Chief Minister Chandrababu Naidu, has planned to offer broadband connections with peak speed of 15 Mbps to 12 million households on minimum cost of Rs 150/month. To execute the plan as soon as possible, the state government has asked the Centre to provide its share of funds from ongoing National Optical Fibre Project (NOFP) that aims to connect 2.5 lakh gram panchayats across the nation by December 2016.
The Union Cabinet will take a final decision about provisioning the fund to Andhra from the NOFP fund.
At the speed of 15 Mbps, a user can download a video file equivalent to an average bollywood movie in about 6 minutes. At the same time, private telecom operators are providing the same broadband connectivity and speed at the rate of Rs 1,100 per month in the state. Andhra Pradesh has proposed to execute the project at cost of Rs 4,913 crore in 5 years while Centre will provide Rs 1,940 crore for the NOFN project in the state.
To begin this project, the state will form its own corporation named as Andhra Pradesh Fibre Corporation with 100 per cent stake of state government. The corporation will manage the network and own its assets. Another body in name of ‘Digital Andhra Corporation’ using Public-Private-Partnership model will be responsible for creation of environment for broadband adoption.