Mumbai: The Telecom Regulatory Authority of India (TRAI) has issued a new draft that recommends subsidising the service in remote and hilly areas.

The subsidy would be given out of the Universal Service Obligation fund, to which telecom companies contribute a portion of their profits. Boadband service providers could access the subsidies once they are made eligible for support from USO, the draft suggestions said.

USO funds would be provided as subsidy for providing broadband services through satellite in remote and hilly areas where back haul charges were initially up to 40 per cent, it said.

TRAI has sought the industry''s response to the recommendations.

India had 2.47 million broadband connections as of July, against the department of telecom''s target of 20 million broadband subscribers by 2010.