National Optical Fibre Network and Spectrum Management
Science & Technology › IT, Telecommunications and Computers · Topic 14.2
The National Optical Fibre Network, NOFN, was a project approved in October 2011 to connect about 2.5 lakh gram panchayats with optical fibre so that broadband could reach villages, and it was renamed BharatNet in 2015. It is implemented by Bharat Broadband Network Limited, a special purpose company set up in 2012, and funded by the Universal Service Obligation Fund. Spectrum is the range of radio frequencies used for mobile phones, broadcasting, satellites and Wi-Fi, which is a limited natural resource owned by the State. In India it is managed by the Department of Telecommunications, whose Wireless Planning and Coordination wing assigns frequencies, and mobile spectrum is mainly assigned through auctions after the Supreme Court's 2012 verdict in the 2G case.
5 min read · UPSC Prelims · Science & Technology · IT, Telecommunications and Computers
At a Glance
- NOFN approved October 2011
- Renamed BharatNet, 2015
- Implementer BBNL
- Funding source USOF
- Spectrum manager DoT, WPC wing
- Exam link UPSC Prelims, Science & Technology: IT, Telecommunications and Computers
Where Does It Fit?
This topic follows the account of regulatory bodies. After the institutions, the macro looks at two basic resources of the sector, the fibre backbone to villages and the radio spectrum for wireless services. Previous topic: Regulatory Bodies for ICT in India (Ministry of Communications and IT). Next topic: Cyber Law in India.
What Are NOFN and BharatNet?
| Item | Details |
|---|---|
| Aim | To give high-speed broadband connectivity of at least 100 Mbps to all gram panchayats and then to villages, so that e-services can reach them |
| Approval | Cabinet approved the NOFN in October 2011 for about 2.5 lakh gram panchayats |
| Implementer | Bharat Broadband Network Limited, a special purpose vehicle incorporated in 2012 under the Department of Telecommunications |
| Funding | Universal Service Obligation Fund, which collects a levy on telecom operators’ revenue, now the Digital Bharat Nidhi |
| Phase I | Connected about one lakh gram panchayats with optical fibre by December 2017 |
| Phase II | Aimed to connect the remaining panchayats by 2019, with states playing a larger role and using different technologies, including fibre, radio and satellite |
| Amended BharatNet | In 2023 the Government approved a larger programme of about Rs 1.39 lakh crore to bring broadband to all villages, with operation by private partners. Check the progress |
How Is Spectrum Managed?
- What spectrum is: radio waves of different frequencies. Lower frequencies travel farther and enter buildings, while higher frequencies carry more data over short distances
- Common bands: 700, 800, 900, 1800, 2100, 2300, 2500 and 3300 megahertz, and the 26 gigahertz millimetre wave band used for 5G
- WPC wing: the Wireless Planning and Coordination wing of DoT gives frequency assignments and licences for wireless equipment
- National Frequency Allocation Plan: the plan that divides spectrum among uses such as defence, broadcasting, satellite and mobile
- Auction: since the 2012 Supreme Court verdict, spectrum for mobile services is allotted by competitive auction, with prices set by bids
- 2G case: in February 2012 the Supreme Court cancelled 122 2G licences granted in 2008 and ordered auctions
- 5G auction: held in August 2022, with bids of about Rs 1.5 lakh crore, the largest in India
- Administrative assignment: the Telecommunications Act, 2023 lists uses such as satellite services, public broadcasting and railways where spectrum is assigned without auction
What Else Should You Remember?
- Spectrum as a public resource: the Supreme Court has held that spectrum is a natural resource and must be allotted in a fair and transparent way for public good
- Spectrum charges: operators pay auction price, a spectrum usage charge and licence fee as a share of adjusted gross revenue
- Adjusted gross revenue dispute: the Supreme Court in 2019 upheld the Government’s definition of AGR, which led to large dues for operators
- Sharing, trading and pooling: rules allow operators to share spectrum to use it more efficiently
- Spectrum cap: limits on how much spectrum one operator can hold to prevent concentration
- Unlicensed bands: bands such as 2.4 GHz and 5 GHz are delicensed for Wi-Fi, and a part of the 6 GHz band has been delicensed
- Satellite spectrum: used by satellite broadband and VSAT, as in VSAT, SIM, IMEI and WiMax Technologies
- Digital dividend: spectrum freed by the switch from analogue to digital TV, as in Digital Terrestrial Television Transmission System
- Right of Way: rules of 2022 make it easier to lay fibre and set up towers on public land
- Gaps in BharatNet: delays, uptime and use of the network have been concerns raised by auditors and committees
- Digital India link: BharatNet supports services under Digital India Initiative and E-Governance Programmes
- Links with mobile: see Evolution of Telecommunication and Mobile Generations (3G, 4G, VoLTE, 5G)
Why Does It Matter for the Exam?
- Dates and bodies: 2011, 2012 BBNL, 2015 renaming
- Funding: USOF
- Spectrum facts: WPC, 2012 verdict, 2022 auction
- Current affairs link: Amended BharatNet and satcom spectrum
- Common errors: saying that TRAI auctions spectrum or that BBNL is a private firm
As an analytical point, fibre in villages and efficient spectrum use are the two pillars of digital inclusion. Delays in BharatNet and high spectrum costs both slow the spread of affordable broadband.
Why Is This Topic Important?
- NOFN Aims and funding
- Spectrum WPC and auctions
- Verdict 2012 case
What Came Next?
The next topic covers cyber law in India. Next topic: Cyber Law in India.
Key People and Terms
- NOFN National Optical Fibre Network
- BBNL Bharat Broadband Network Limited
- USOF Universal Service Obligation Fund
- Spectrum Radio frequencies
- AGR Adjusted gross revenue
- WPC Wireless Planning and Coordination
Exam Corner
Points to Remember
- NOFN approved: October 2011.
- Renamed BharatNet: 2015.
- BBNL set up: 2012.
- 2G licences cancelled: February 2012.
- 5G auction: August 2022.
Do Not Confuse With
- NOFN and BharatNet Original name versus renamed programme
- TRAI and WPC Regulator versus spectrum assigning wing of DoT
- Auction and administrative assignment Competitive bids versus allotment
Memory Hook
Eleven approved the fibre, fifteen renamed it Bharat; twelve the verdict, twenty-two the 5G auction.
Mains Angle
Questions ask for years, bodies and verdicts. These points help.
- Fibre Rural connectivity
- Spectrum Auction policy
- Gaps Delay and use
A Question You May Face
An original practice question, not a past paper question.
“Discuss the objectives and challenges of BharatNet and the principles of spectrum management in India.”
How to Answer
- BharatNet Aims and phases.
- Spectrum WPC and auctions.
- Challenges Delay, cost.
- Way Use and fair pricing.
GS Relevance
Frequently Asked Questions
What is the National Optical Fibre Network?
The National Optical Fibre Network was a project approved in October 2011 to connect about 2.5 lakh gram panchayats with optical fibre for broadband services. Renamed BharatNet in 2015, it is implemented by Bharat Broadband Network Limited and funded by the Universal Service Obligation Fund, and aims to bring e-governance, education and health services to villages.
What is Bharat Broadband Network Limited?
Bharat Broadband Network Limited is a special purpose company set up in 2012 under the Department of Telecommunications to build and manage the BharatNet fibre network. It lays optical fibre to gram panchayats and gives access to service providers on a non-discriminatory basis, so that they can offer broadband to homes and institutions.
How is spectrum assigned in India?
Spectrum for mobile services is assigned mainly through competitive auctions run by the Department of Telecommunications, following the Supreme Court's 2012 verdict. The Wireless Planning and Coordination wing assigns frequencies and licences. Under the Telecommunications Act, 2023, certain uses such as satellite services and public broadcasting can be assigned administratively.
What did the Supreme Court decide in the 2G case?
In February 2012 the Supreme Court cancelled 122 licences for 2G telecom services granted in 2008, saying that the first-come-first-served method was arbitrary. It held that spectrum is a scarce natural resource and that auctions are the proper method for allotting it for commercial use, which became the basis of the later auctions.
How much did the 2022 5G spectrum auction raise?
The 5G spectrum auction held in August 2022 raised bids of about Rs 1.5 lakh crore, the largest spectrum auction in India. Reliance Jio, Bharti Airtel, Vodafone Idea and Adani Data Networks took part, and spectrum was sold in several bands including 700 MHz, 3300 MHz and the 26 GHz millimetre wave band.
PYQ Practice — Statement Analysis
1 BharatNet was earlier called the National Optical Fibre Network.
Renamed in 2015.
2 TRAI auctions spectrum to telecom operators.
DoT conducts the auctions.
3 The Supreme Court cancelled 122 2G licences in 2012.
And ordered auctions.
4 The Universal Service Obligation Fund finances BharatNet.
Now the Digital Bharat Nidhi.
Past Mains Questions on This Topic
This topic comes under IT, Telecommunications and Computers. UPSC Mains questions asked on the matching syllabus topic, year-wise with marks:
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