Microsoft has proposed to make use of the “white space” or the unused spectrum between two TV channels, to make Internet connectivity to a vast population an economically-viable solution, Hindustan Times said in a report.

The 'White Space' spectrum currently belongs to the government-owned Doordarshan TV channel and is not used at all.

According to Microsoft India’s chief, Bhaskar Pramanik, the initiative will help bring Internet accessible to a vast population a cost-effective manner. It will create an eco-system that will benefit other technology service providers, including manufacturers of routers, and not just Microsoft .

"The challenge is the lack of digital infrastructure across India," Bhaskar Pramanik, chairman of Microsoft India, told the Hindustan Times.

"This initiative addresses the challenge in a cost-effective manner and creates an eco-system that will benefit everyone, including manufacturers of routers and other technology devices, other technology companies, besides Microsoft," he said.

The project will initially run as a pilot in two districts and if successful it will reportedly be possible to "quickly" roll out the technology across the whole country.

Microsoft Chief Executive Officer (CEO) Satya Nadella visited India in September to address the employees at the company's India Development Centre (IDC).

Nadella shared his vision during the address at IDC, the biggest campus of the software giant outside its headquarters at Redmond in the US.

Nadella later held a closed-door meeting with the top officials of the company at IDC, set up in 1998.

Microsoft had said it will offer commercial cloud services from local data centres in India by 2015 as the tech giant gears for competition for the estimated $2-trillion domestic market opportunity from rival firms such as Google and IBM.

The US-headquartered firm said it will set up three data centres in three cities in India by the end of 2015.

“Last year, our cloud business in India grew over 100 per cent. Buoyed by that success we have now decided to offer cloud services from local data centres. This will help us make global infrastructure and make that available to local data centres,” Microsoft CEO Satya Nadella said.

The company’s third CEO, after Bill Gates and Steve Ballmer, added that cloud computing services in India is a $2-trillion market opportunity.

When asked about the investment, Nadella said: “I can’t give you a specific amount but as we get started you will see the scale. The initial footprint itself will be quite high.”

He said world-class (cloud) infrastructure will help revitalise productivity.

Microsoft said it will establish three data centres in three cities in India to be established by the end of 2015.

Microsoft India Chairman Bhaskar Pramanik said: “By offering cloud services through local data centres, we can help make Digital India a reality. This opens new possibilities in e-governance, financial inclusion, healthcare and education.”

Greyhound Research CEO Sanchit Vir Gogia said Microsoft’s business is an interesting mix between reach and depth — reach via WindowsOS and depth via Enterprise relationships.

While Microsoft has surely missed the mobility curve, it still remains to be a formidable player in Cloud and Platform arena, he added.