The Union Finance Minister Arun Jaiytely said during the budget segment that, Andhra Pradesh will be the first state to opt for executing the National Fibre Optical Network (NOFN) on its own and DoT will be reimbursing the cost for the same.
At the time of presenting the budget, Jaitely said, “Fibre network of 7.5 lakh kilometres in 2.5 lakh villages is being further speeded up by allowing willing states to undertake its execution on reimbursement of cost determined by the Department of Telecommunications. Andhra Pradesh is the first state to have opted for this manner of implementation.”
The state has offered to deliver broadband connection with 10-15 mbps download speed to each 12 million households for Rs 150 per month. It will execute the project at a cost of Rs 4, 913 crore in five years, while Center has allotted Rs 1,940 crore for the NOFN project in the state.
In order to start the project, the state will generate its own corporation to be named Andhra Pradesh Fibre Corporation which would be owned by the state 100 percent. The corporation will be responsible for managing the network and its own assets. Along with this, the state will also create another entity named as ‘Digital Andhra Corporation’ using the various public-private partnership models, which work towards the creation of ecosystem for broadband adoption.