Telecom Minister Kapil Sibal today met mobile operators to discuss the National Broadband Plan, which aims at providing high-speed Internet access and e-governance services to over 160 million people by 2014.

The meeting was attended by representatives of various operators as well as telecom industry lobby groups COAI and AUSPI.

"A presentation was made by the DoT on National Optical Fiber Network (NOFN). The COAI welcomed the initiative as it would provide convenient back haul connectivity," COAI said in a statement.

NFON is estimated to cost Rs 20,000 crore for providing wireless broadband connection to every village panchayat. It is to be rolled out in next three years by state-owned BSNL.

Operators extended their support to NFON and sought that "judicious" use of the Universal Service Obligation Fund (USOF) be made for the network roll out.

"The COAI also emphasised that this effort of government must not be limited only to the Optical Fiber Cable (OFC) rollout but should also integrate the wireless access from the OFC endpoint, which is essential to reach the end consumer," COAI said.

Last December, telecom regulator Trai came out with recommendations to set up a National Broadband Network, which is estimated to cost about Rs 60,000 crore.

The recommendations came amid the government failure to meet its target of 20 million broadband connections by 2010.

The recommendations in 'National Broadband Plan' are expected to facilitate inclusive growth in the country, by covering large rural population in governance and decision making processes. Besides, it aims at extending to the rural areas better education, health and banking facilities.

To be set up in two phases, this network will be an open access optical fibre network connecting all habitations with population of 500 and above and will be completed by 2013.

Trai suggested that the project be financed by the USO fund under the DoT, and the loans be provided by the government.

COAI said while fiber would extend the reach of broadband, the current allocation of spectrum for access will not be able to match the planned/projected broadband capacity.

"Therefore, COAI has requested for timely and adequate provision of spectrum to enable this," COAI said.