NEW DELHI: Industry leaders hailed the government's announcement of the PLI scheme for 5G equipment, laying optical fiber cables through PPP model and affordable broadband in the Budget 2022-23. They said the move will help the country to fulfill its dream of 'digital India'.
"The proposal for taking progressive decisions in encouraging affordable broadband and mobile services through facilitating PLI scheme for 5G equipment, laying optical fiber cables through PPP model under BharatNet project are welcome steps," said COAI (Cellular Operators Association of India) DG SP Kochhar.
The finance minister, in her Budget speech, announced a scheme for design-led manufacturing to build a strong ecosystem for 5G as part of the Production Linked Incentive (PLI) Scheme. She also mentioned that the required 5G spectrum auctions will be conducted in 2022.
This year, the government has allocated Rs 84,586 crore to the entire telecommunication department. It spared almost half of the allocation, Rs 44,720 crore for the state-run Bharat Sanchar Nigam Limited (BSNL) as a capital infusion. For the 5G connectivity test bed, the government has spared Rs 10 crore. For PLI Scheme to promote telecom and networking products manufacturing in India, Rs 527.68 crore has been earmarked.
"The finance minister's announcement around the 5G spectrum auction, 100 per cent fiberisation with PPP model will provide the required impetus to build upon ubiquitous and reliable internet connectivity," said Nitin Bansal, MD, India & Head-Networks - Southeast Asia, Oceania, and India at Ericsson.