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REPORTOFTHEWORKINGGROUP ONTHETELECOMSECTORFORTHE TWELFTHFIVEYEARPLAN (20122017)

GOVERNMENTOFINDIA DEPARTMENTOFTELECOMMUNICATIONS MINISTRYOFCOMMUNICATIONS&INFORMATIONTECHNOLOGY (August,2011)
Report of the Working Report on the Telecom Sector for the 12 Plan (2012-2017)
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INDEX ChapterNo. Title 1 2 3 4 5 6 7 8 9 10 11 12 Introduction CurrentStatusoftheTelecomSector EleventhFiveYearPlan(20072012) Areview Approachtothe12th FiveYearPlanPeriod(20072012) LicensingandSpectrum BroadbandandRuralTelephony Manufacturing,R&D,ProductStandardsandIPR TelecomNetworkSecurity HRD&SkillDevelopment SchemesandFinancingofTelecomSector SummaryofRecommendations AnnexureI PlanningCommissionOfficeMemorandumdated21062011 AnnexureII TermsofReferenceandCompositionofSubgroups Page No. 3 6 7 15 16 19 20 24 25 30 3140 41 62 6369 7077 78 91 92 106 107109
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CHAPTER1 1.0 Introduction PlanningCommissionconstitutedaWorkingGroupontheTelecomSectortomake recommendationsonthevariouspolicymattersforthepreparationoftheTwelfthFiveYear Plan for Telecommunications Sector vide their O.M. No. 13040/27/2011CIT&IWG (DOT) dated21062011(AnnexureI).Thecompositionofthecommitteeandtermsofreference oftheworkinggroupareasgivenbelow: 1.1 Composition 1. ShriR.Chandrashekhar,Secretary,Telecom Chairman 2. Secretary,DepartmentofITorrepresentative 3. Secretary,MinistryofFinanceorrepresentative 4. Secretary,MinistryofDefenceorrepresentative 5. Secretary,DepartmentofSpaceorrepresentative 6. Secretary,DepartmentofCommerceorrepresentative 7. Secretary,Healthorrepresentative 8. SecretaryHomeorrepresentative 9. Secretary,DepartmentofIndustrialPolicyPromotionor representative 10. Secretary,RuralDevelopmentorrepresentative 11. Secretary,Deptt.ofHigherEducationorrepresentative 12. Secretary,SchoolEducationandLiteracyorrepresentative 13. ShriChandraPrakash,Member,TelecomCommission 14. ShriS.C.Misra,Member(Services),TelecomCommission 15. ShriAjayBhatacharya, Administrator(USOF) 16. Ms.SadhanaDikshit,Member/Adviser(Finance),Telecom Member Member Member Member Member Member Member Member
Member Member Member Member Member Member Member
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17. DirectorGeneral,NIC 18. CMD,BSNL 19. CMD,MTNL 20. Dr.C.MuralikrishnaKumar,Sr.Adviser(CIT&I),Planning Commission 21. ExecutiveDirector,CDoT 22. Sr.DDG,TEC 23. ShriMalayShrivatava,JS,Telecom NonOfficialMember 24. Prof.Balakrishnan,IISc,Bangalore 25. ShriB.K.Zutsi,FormerViceChairperson,TRAI 26. Prof.A.Jhunjhunwala,IITChennai 27. Prof.BhaskarRamamurthi,IITChennai 28. Prof.Karandikar,IITMumbai 29. DirectorGeneral,COAI 30. SecretaryGeneral,AUSPI 31. Representative,FICCI 32. Representative,CII 33. Representative,ASSOCHAM 34. President,TEMA 35. SecretaryGeneral,ISPAI 1.3 i)
Member Member Member Member
Member Member Member Convenor
Member Member Member Member Member Member Member Member Member Member Member Member
TermsofReferenceoftheWorkingGrouponTelecomSector Toevolveastrategyfortelecomsectorforthe12thPlanwiththebasicobjectiveof development of world class infrastructure for supporting accelerated growth of all sectorsoftheeconomy.
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ii) iii)
Toreviewtheexistingpolicies/schemesofthesectorandrecommendtheschemes toberetained/includedintheTwelfthPlan. To make specific recommendations for roll out of rural broadband connectivity through strengthening augmentation, refarming of spectrum and harnessing technology. Tomakerecommendationsofoptimumutilisationofscarcespectrumresourceand examine the possibility of creation of a Spectrum Relocation Fund. Indicate likely sourceandquantumofresourcessogeneratedandguidelinesfortheoperationof thefund. ToevolveaPricingPolicyforservicedeliverylookingatboththespectralefficiency andsectoralbusinessviability.Also,suggestguidelinestoencourageandincentivize introductionofspectrumefficienttechnologies. To make recommendations on further restructuring/reforms required in the post convergence scenario including availability of spectrum, expansion of broad band andpromotionofR&D. To suggest measures for further promotion of private sector investment and encourageentrepreneurshipinthesector. To review the performance of telecom equipment manufacturing sector with identificationofconstraintsandmakerecommendationsforevolvinganappropriate policytopromoteindigenousmanufacturing. Toevolvestrategyformakingtheconformancetonationalstandardsasmandatory for all telecom products, setting up of labs carrying out testing, certification and development of framework of Conformity Assessment Bodies (CAB) for testing, as wellasfurtheringtheactivitiesunderMutualRecognitionAgreement(MRA). SkillDevelopment:Toevolvestrategyforcapacitybuildingintelecomfieldthrough thenewlyconstitutedNationalTelecomInstituteforPolicyResearch,Innovationand Training. SecurityrelatedissuesinTelecom:Implementationoftheschemeforsettingupof CentreforCommunicationsSecurityResearchandMonitoringandestablishmentof Centralised Monitoring System (CMS) and Centre for Telecom Testing and Security Certification. ImplementationofWirelessPhoneandSecurityNetwork. The CDOT projects related to development of GPoN, Technologies for rural areas, BroadbandTechnologies,SharedGSMRadioAccessNetwork(SGRAN)etc. Powerisamajorconstraintinthecountry.Wind,solarandhybridtechnologiescould beleveragedthrougheffectiveincentivepackagesforreducingcarbonfootprint.
iv)
v)
vi)
vii) viii)
ix)
x)
xi)
xii) xiii) xiv)
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xv) xvi)
Disaster Management: Building effective communication networks for providing effectivecommunicationduringvariousNatural/ManmadeDisasters. Issues related to PSUs: Reformulate strategy for enabling DOT organisations to effectively flourish in a competitive world through improving Q&S, Planning and discoveryofsynergyamongstvariousunitsofDOT. RestorationofBudgetaryallocationtowardsofUSOFunderNonplanBudget. Anyotherissueofimportancetopolicyformulationforthetelecomsectorincluding creationofaconsolidateddatabase.
xvii) xviii)
1.4 In the first meeting of the Working Group held on 18.07.2011 under the ChairmanshipofSecretary,Telecom,itwasdecidedtoconstitutefollowingSubGroups: i) LicensingandSpectrumIssues ii) BroadbandandRuralTelephony iii) Manufacturing,R&D,ProductStandardsandIPR iv) NetworkSecurityIssues v) HRD&SkillDevelopment vi) SchemesandFinancingofTelecomSector TheTermsofreferenceofSubGroupswithcompositionisgiveninAnnexureII. 1.5 Inthe2ndmeetingoftheWorkingGroupheldon8thAugust,2011,thesixSubgroups presented their reports followed by discussions. Based on the deliberations held in the meetingoftheChairpersonsofSubgroupson30thAugust2011,theReportoftheworking grouphasbeenprepared. 1.6 The Report contains 11 chapters. Chapter 11 summarizes the observations and recommendationsoftheWorkingGroup.
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CHAPTER2 CurrentStatusoftheTelecomSector 2.1 Introduction
Telecom sector has emerged as a major sector of growth in India during the last decade. This sector has significantly contributed to socioeconomic development of the country. IndiantelecomsectorhasachievedexponentialgrowthparticularlyduringtheEleventhPlan periodresultingingrowthofteledensityfrom18.22to73.97(ason30.06.11).However,this is marked by disparities with rural areas exhibiting teledensity of about 35.64 as against urbanteledensityof162.74duringthesameperiod.With852millionmobileconnections, mobilephonesarenomoreadeviceinthehandsofrichoruppermiddleclassalonebutare significantlyemergingasacommonman'sdevicenotonlyforvoicetelephonybutalsofor accessing variety of services such as market information, health and education, financial services,entertainmentandmuchmore. With just 12.32 million broadband subscriber base as of June 2011, Internet penetration (19.69million)inIndiaisabysmallylowbycontrast.Internetis,however,slowlyemergingas an integral component of service delivery in number of sectors. Government services are beginningtobedeliveredthroughelectronicchannelsmakingtheseservicesmoreandmore transparent and efficient. ICT infrastructure and services are becoming all pervasive. This scenario offers a unique opportunity to leverage upon this strength of the country in all facetsofICTinnextfiveyears.AfocusedandcoordinatedpushintheICTsectorduring12th PlanperiodwillhelpIndiaachieveinclusiveandacceleratedgrowthnotonlyinknowledge andservicesectors,butequallyinindustrial,economicandsocialsectors. 2.2 Expansionofthenetwork The telecom sector has shown robust growth during the past few years. It has also witnessed a significant shift from wireline to wireless phones as well as share of public sectorvisavisprivatesectorinprovisioningoftelecomservices.Thefollowingtableshows thegrowthoftelecomsectorsinceMarch2007: Subscribers Wireline Wireless TotalPhones Internet Broadband March'07 40.77 165.09 205.87 9.21 2.29 Subscriberbase(inmillion) March'08 March'09 March'10 March'11 39.41 37.96 36.96 34.73 261.08 391.76 584.29 811.60 300.49 429.73 621.25 846.33 11.05 13.65 16.10 19.69 3.81 6.22 8.77 11.79 June'11 34.29 851.70 886.00 19.69 12.32
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Thus, the number of telephones has increased from 205.87 million as on 31.03.2007to846.33millionason31.03.2011andfurtherto886.00millionason30.06.11, exhibiting a CAGR of 40.97% since March07. Wireless subscribers increased from 165.09 million as on 31.03.2007 to 851.70 million as on 31.06.2011, exhibiting a CAGR of 47.12% sinceMarch07. During 201011, the wireless connections grew by 38.90%, whereas landlines registered a negative growth. The number of Internet subscribers grew by 22.30 %, while thebroadbandsubscribersgrewby34.43%. 2.3PresentStatusofTelecomNetwork Indias 886 million (June11) robust telecom network is the 2nd largest (after China) with a wide range of services like basic, wireless, internet etc. The status of the networkisasshownbelow: TelecomNetworkStatus Items NumberofTelephoneSubscribers(Inmillion) NumberofTelephoneExchanges* SwitchingCapacity*(Inmillion) VillagePublicTelephones(VPTs)* NumberofWirelessSubscribers(Inmillion) BroadbandSubscribers(Inmillion) OpticalFibreCableRkms* MicrowaveSystemsRkms(Digital)* *OnlyofPSUs' Further,NationalInternetExchangeofIndia(NIXI)hasbeensetupbyDITtoensure that Internet traffic, originating and destined for India is routed within India. This has substantiallybroughtdownthecostofInternetusage. 2.4NumberofLicensees Thenumberoflicenseesinvariouscategoriesason31.03.2011. NumberofLicenses(Ason31032011) (Registrations/Licensesissued) Purpose/Area No.ofLicenses 31.03.2006 31.03.2011 UnifiedAccess/CellularMobile 134 279 NationalLongDistance 4 30 InfrastructureProviderI 105 351 InternationalLongDistance 5 25 InternetService 399 376 March'2011 June'2011 846.33 886.00 38526 38473 137.68 138.07 575663 575996 811.60 851.70 11.79 12.32 698557 700852 50430 50430
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PublicMobileRadioTrunkService VSATService
37 11
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With the enabling policy and regulatory framework in the telecom sector, the share of private sector operators has been steadily increasing, as can be seen in the followingtable: NumberofTelephones(inmillion) PSUs'Network PrivateNetwork Year Wireline Wireless 37.46 35.23 32.92 31.33 28.69 28.17 Total Wireline Wireless 3.31 4.19 5.04 5.63 6.04 6.12 Theshareofprivatesectorinthenumberoftelephoneshasincreasedfrom65.32% (134.48 million telephones) in March 2007 to 85.62% (758.60 million telephones) in June 2011. 131.16 216.76 335.13 509.75 714.29 752.48 Total 134.48 220.94 340.18 515.38 720.33 758.60 Total %age Share of PSUs' 34.68 26.47 20.84 17.04 14.89 14.38
2007 2008 2009 2010 2011 June'11
33.93 71.39 44.32 79.55 56.63 89.55 74.54 105.87 97.31 126.00 99.23 127.40
205.87 300.49 429.73 621.25 846.33 886.00
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2.5
WirelessvisavisWireline
The preference for use of wireless phones has been predominant in the sector. This is confirmedfrom the risingshareofwirelessphones, whichincreasedfrom80.19%(165.09 million)inMarch2007to96.13%(851.71million)inJune2011.
Distribution of Telephones in March 2007
PSUs' Wireline 18.20% PSUs' Wireless 16.48% Private Wireless 64%

Private Wireline 1.61%
Distribution of Telephones PSUs' Wireline in June'2011 3.18%
PSUs' Wireless Private 11.20% Wireline 0.69%
Private Wireless 84.93%
2.6
Trendinteledensity
Teledensityinthecountryissteadilyincreasingfrom18.22ason31.3.07to70.89as on31.03.11andcurrentlystandsat73.97ason30.06.11. However,thereisawidegapbetweenurbanteledensity(162.74)andruralteledensity (35.64). The rural telephony has not kept pace with the impressive growth in urban connectivity.
T eledensity -T elephone 100 Persons T otal Rural Urban 156.94% 162.74%
119.45% T eled sity en
88.84% 70.89% 66.39% 48.10% 36.98% 18.22% 5.89% 2007 26.22% 9.46% 2008 15.11% 2009 2010 2011 June'11 24.31% 33.83% 52.74% 73.97% 35.64%
Year
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2.7 RuralTelephony Over and above 298.10 million connections provided in the rural areas, 5,79,421 1 VPTs have been provided till 30.06.11. Thus, 97.61% of the villages in India have been coveredbytheVPTs. 2.8 TariffChanges
The Indian Telecommunication sector has witnessed major changes in the tariff structure. The telecommunication tariff order (TTO) 1999, issued by the Regulator (TRAI), hadbeguntheprocessoftariffrebalancingwithaviewtobringingthemclosertothecosts. SubsequentamendmentstoTTO1999coupledwithenhancedcompetitionhasresultedin gradualandsubstantialreductioninthetariffs.Someofthepackagesofferedbyoperators providelocalcallsaslowaspaisapersecondandSTDas1paisaperminute.International callchargeshavealsoreducedsignificantly. 2.9 StatusofTelecomEquipmentManufacturing,R&D,ProductDevelopmentandIPR inTelecomsector Duringthe11thPlanperiod,itwasprojectedthat75%oftelecomequipmentdemandwould be met from indigenous sources; however the actual production was much lower. During this period, mobile handset manufacturing began but the production as well as value additionhasbeenlimitedinnumbers.Also,someoftheindigenousbrandsofmobilephone have also made their mark though their design and manufacturing are still being done outsideIndia.Anumberofworldrenownedmanufacturershavesetuptheirmanufacturing base in the country. The Government is concerned about low value addition, lack of R&D and IPR and availability of integrated circuits, components / pieceparts in the country. ThereisanurgentneedtopromotetelecomR&D,IPRcreation,designanddevelopmentof productsinIndia,sothatwemayachievenotonlyhighervalueadditionbutalsobecome selfreliantincriticaltelecomproductcategories,especiallythosewithsecurityimplications. Fortunately, some indigenous R&D and manufacturing companies have emerged in the countryanddemonstratedthatworldclassproductscanindeedbedevelopedinIndia.At thesametime,somekeyIPRshavebeencreatedinfuturisticwirelesstechnologiesbyR&D centerssuchasCentreforExcellenceinWirelessTechnology(CeWiT)andpremieracademic institutions such as IITs, IISc, IIITs, thereby demonstrating its capability in the field of telecomR&D.
Village Public Telephones
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2.10 TelecomDevelopmentInternationalComparison Viewedinthecontextofglobalgrowthpatternandindicators,Indiantelecomsector needtomakesubstantialprogressintermsofbroadbandpenetration.Thereisapositive corelation between the teledensity as well as broadband penetration and the GDP2 of a country.Thegrowthinthetelecommunicationservicesactsasaforcemultiplierandhasa significantimpactinthegrowthofothersectorsoftheeconomy.Itistherefore,imperative thatthissectorcontinuestogrowatarapidratesothattheaccessisavailableinallpartsof thecountryspeciallyinruralandremoteareas. Despite a fair progress made in respect of teledensity during past few years, a lot is still required to be done. The status of teledensity along with other indicators like broadband subscribersataninternationallevelaregiveninthetablebelow: StatusofTelephonesIndicatorsinSomeCountries2010 Sl. No. Countries Telephones (Million) Teledensity 139.93 125.74 86.00 64.39 107.57 127.33 164.60 98.10 61.18 100.34 183.95 138.55 Broadband Subscribers('000) 5165.00 14086.70 126337.00 10990.00 1900.30 34055.30 17649.50 11325.00 531.80 213.80 19468.00 81744.00
1 Australia 31160 2 Brazil 245085 3 China 1153386 4 India* 787280 5 Indonesia 257960 6 Japan 161127 7 Korea(Rep.) 79310 8 Mexico 111254 9 Pakistan 106197 10 SriLanka 20938 11 U.K. 114119 12 U.S.A. 430071 *June2011Telephones886MillionandTeledensity73.97, March'11InternetSubscribers19694.813('000), June'11BroadbandSubscribers12.32Million Source:ITU,2010 2.11Achievementsduring11thPlanPeriod
For a dynamic sector, reforms are necessitated by dynamics of changes including technological innovations. The telecom sector in India has been witnessing a continuous processofreformssince1991.Duringtherecentyears,variouspolicyinitiativeshavebeen carriedouttogiveboosttothesector.Someofthemareasunder:
2
Gross Domestic Product
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a. Auctionof3GandBWASpectrum:Theauctionof3GandBWASpectrumhavebeen successfullyconducted.InJune2010,theGovernmenthasallocated3blocksof2x5MHz3G spectrum each in eighteen service areas, and 4 blocks each in four service areas through auction. In July 2010, the Government hasallocated 2 blocks each of 20MHz Broad Band WirelessAccess(BWA)spectruminallthetwenty twoservice areasbasedontheauction results.TheGovernmentrealizedasumofRs.106204.73croresfromtheseauctions.The operatorshavestartedrollingoutthewirelessbroadbandnetworksinthecountryandvery soontheserviceswillbeavailableintheentirecountry. b. Foreign direct investment: (FDI) is one of the important sources to meet the requirementofhugefundsforrapidnetworkexpansion.TheFDIpolicyprovidesaninvestor friendly environment for the growth of the telecom sector. Today, telecom is the third majorsectorattractingFDIinflowsafterservicesandcomputersoftwaresector.Atpresent 74% to 100% FDI is permitted for various telecom services. This investment has helped telecomsectortogrow. c. Declining Tariff: The telephone tariffs have declined dramatically over the last two years making the mobile telephone affordable to the common man. The prepaid tariffs havegoneaslowaspaisapersecond. d. Recent initiatives undertaken by USOF: The strategy for network expansion in rural areas mainly involves provision of phones in the viable areas through market mechanism andthroughUniversalServiceObligationFund(USOF)inthenonviableareas.WhileVillage Public Telephones (VPTs) will enable public access, a scheme of Infrastructure sharing schemeInfrastructureProvider(IP)andUniversalServiceProvider(USPs)hasbeenlaunched underUSOFtocreateinfrastructureinruralandremoteareas.Theachievementsofvarious schemesunderUSOF,ason30.06.2011,areasunder: 5,79,421villagesi.e.97.61%oftheCensus2001inhabitedrevenuevillageshavebeen coveredwithVillagePublicTelephones(VPTs). 7289towersi.e.about99.13%havebeensetupundersharedmobileinfrastructure scheme.Theinfrastructuresocreatedisbeingsharedbythreeserviceprovidersfor provision of mobile services. 15209 BTSs (Base Transceiver Stations) have been commissionedbyServiceProvidersandmobileservicesarebeingprovided. Atotalof2,88,454broadbandconnectionshavebeenprovidedand4903kioskshave beensetupinruralandremoteareasunderRuralBroadbandSchemeforexpanding provisionofWirelineBroadbandConnectivityuptovillagelevel. A scheme has been launched in Assam to provide sufficient backhaul capacity to integrate the voice and data traffic from the access network in the rural areas to their core network by strengthening the OFC network. This scheme considers OFC Network augmentation between the blocks' HQ and Districts' HQ to begin with. USOF, through this Scheme, shall provide subsidy support for augmentation, creationandmanagementofintradistrictSDHQDHQOFCNetworkonthecondition
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that it will be shared with other Telecom Operators at the rates prescribed in the Agreement.AgreementsforotherstatesofNorthEastareinpipeline. Support is also being extended for Pilot projects to establish new technological developmentsinthetelecomsector, whichcanbedeployedintherural& remote area.SomeofpilotprojectsundertakenbyUSOFaregivenasfollows: (i) Support is being provided for mobile charging stations in 5000 villages through TERI project of Lighting a Billion Lives (LaBL). The solar mobile charging stationsinthese5000villagesaretobeprovidedinaphasedmanneroveraperiod of two years from the date of signing of the Agreement. Till 30.04.2011, mobile chargingstationshavebeenestablishedin322villages. (ii) A Memorandum of Understanding (MoU) has been signed with BSNL for financial support from USO Fund for provision of Broadband enabled Rural Public ServiceTerminals(RPSTs)toeligibleWomanSHGs(SelfHelpGroups)onpilotbasisin thestatesofHPandRajasthan.BSNLshallprovideanRPSTtooneeligibleSHGfrom each of its eligible rural wireline exchanges under the MoU an agreed terms & conditions with subsidy support from USO Fund. At present, 150 RPSTs (100 in Rajasthanand50inHP)havebeenprovidedunderthisscheme. (iii) RecognizingthevitalrolethatInformationCommunicationTechnology(ICT) canplayintheempowermentofruralwomen,aschemehasbeenlaunchedforpilot projectsaimedatfacilitatingSelfHelpGroups(SHGs)accesstoICTenabledservices. Financial support from USO Fund is to be provided towards VAS subscriptions for SHGs in accordance with the provisions of underlying subsidy Agreements. At presentMoUshavebeensignedforProofofConcept(PoC)for8mobileVASprojects inthestateofTamilnadu,Kerala,Maharashtra,UttarPradesh,Uttarakhand,Andhra Pradesh,RajasthanandtheUnionTerritoryofPuducherry. (iv) Support is also being considered for renewable energy resources (Solar, Wind, Hybrid solutions) for some existing USOF supported Shared Infrastructure sitesonpilotbasis.
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CHAPTER3 11thFiveYearPlan(200712)Areview 3.1Introduction The Indian Telecom revolution is recognized as an international success story. With anoverallsubscriberbaseof886millionandateledensityof73.95,thesectorcontinuesto grow from strength to strength. With the urban teledensity reaching more than 150, the markethasbeenshowingsignsofmaturity.RuralIndiaisthekeytargetmarketlikelytodrive the next round of growth, particularly for voice based services. Roll out of 3G and BWA networks is expected to reinvigorate the saturating urban markets and help in bridging digitaldivide.Theimpressivegrowthobservedbymobileservicesneedstobereplicatedin case of broadband service, where the subscriber base currently stands just at about 12 millionagainsttargetof20million. The11thplanhadenvisagedtargettoreach600millionconnectionsbyMarch2012. However,during200711itself,thetotaltelephoneconnectionsincreasedby640.46million exhibitingtheachievementof311.09%.Thewirelessconnectionshavegrownfrom165.09 million as on 31.3.2007 to 851.70 million as on 30.6.2011. Overall teledensity reached to 73.97 as on 30.06.2011 where as rural teledensity has surpassed the target of 25 of Eleventhplanandnowstandat35.64. Thus,themajorobjectivesenvisagedintheEleventhplanhavebeenachievedwellin advance. Affordable and effective communication services could be offered as tariff declined substantially due to intense competition among the operators. Government has takenseveralstepstoencouragetheparticipationofprivateplayerstocreatecompetitive environmentintelecomsector. 3.2 GrowthofTelephoneConnections Thenumberofwirelineconnectionsdecreasedfrom40.77million(atthebeginning th of11 Plan)to34.29millionin201112(ason30.06.2011).However,thetotaltelephone subscribersduringthesameperiodincreasedfrom205.87million(ason30.06.2011)to886 million.Theteledensityincreasedfrom18.22(ason31.3.2007)to73.97(ason30.06.2011). GrowthofWireline,Wireless,TeledensityandInternet during11thPlan(200712) Subscriberbase(inmillion) Item 200607 200708 200809 200910 201011 June'11 WirelineSubscribers 40.77 39.41 37.96 36.96 34.73 34.29 WirelessSubscribers 165.09 261.08 391.76 584.29 811.60 851.70
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Totaltelephone 205.87 300.49 429.73 621.25 846.33 886.00 Subscribers Additionsduringthe 0.55 1.36 1.45 1.01 2.23 0.44 yearWireline Additionsduringthe 63.23 95.99 130.68 192.53 227.31 40.11 yearWireless Additionsduringthe 63.78 94.63 129.23 191.52 225.08 39.67 yearTotal Teledensityper 18.22 26.22 36.98 52.74 70.89 73.97 100persons InternetSubscribers 9.21 11.05 13.65 16.10 19.69 19.69 3.3 RuralTelephony The wireless led growth in the country contributed to expansion of subscribers in ruralareasduring11thPlan(200712).Thenumberoftelephonesintheruralareaincreased from 47.10 million in March, 2007 to 298.10 million by June, 2011. The rural teledensity increasedfrom5.89in2007to35.64inJune,2011against11thPlantargetof25only. StatusofRuraltelephonesandTeledensityduring11thPlan(200712) Item RuralTelephones RuralTeledensity per100persons %ShareofRural PhonesinTotal Subscriberbase(inmillion) 200607 200708 200809 200910 201011 47.10 76.50 123.51 202.48 282.29 5.89 9.46 15.11 24.51 33.83 June'11 298.10 35.64
22.88
25.46
28.74
32.59
33.35
33.65
3.4 Investmentsduring11 Plan The total estimated investments by the public sector and private sector operators duringtheEleventhPlan(20072012)intelecomsectorisRs.398700crore.Thedetailsare asunder.
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(InRs.Crore) Year Investment@ 11th FiveYearPlan# Total 200708 200809 200910 201011 201112 Total @Source:TRAI, #Source:PlanningCommission 37900 59200 77700 103900* 120000* 398700 31900 52295 64206 84339 103900 345134 Centre 7894 11048 13186 13988 15387 61503 Private 24007 41248 51019 70351 97007 283631
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Annex:YearwiseStatusofTelecomSectorasonJune2011
Item Total Wireline Phones (InLakh) Wireless Public Private Rural Urban Overall Tele density Public Private Rural Urban Public %shareof Private Rural Urban PositionattheEndof March'07 2058.68 407.74 1650.94 713.91 1344.77 471.00 1587.68 18.22 6.32 11.90 5.89 48.10 34.68 65.32 22.88 77.12 888.17 March'08 3004.92 394.13 2610.79 795.49 2209.44 765.00 2239.93 26.22 6.94 19.28 9.46 66.39 26.47 73.53 25.46 74.54 959.76 March'09 4297.25 379.65 3917.61 895.46 3401.79 1235.13 3062.12 36.98 7.71 29.27 15.11 90.76 20.84 79.16 28.74 71.26 1103.68 March'10 6212.80 369.57 5843.23 1058.71 5154.09 2007.73 4205.07 52.74 8.99 43.75 24.31 119.45 17.04 82.96 32.32 67.68 1242.49 March'11 8463.28 347.30 8115.98 1260.02 7203.26 2822.89 5640.39 70.89 10.55 60.34 33.83 156.94 14.89 85.11 33.35 66.65 1376.75 June'11 8859.97 342.93 8517.04 1274.02 7585.95 2980.99 5878.98 73.97 10.64 63.34 35.64 162.74 14.38 85.62 33.65 66.35 1380.72
Switching Capacity(In Public Lakh) VillagePublic Telephones Public [VPTs] PCOs(In Public Lakh) OFCRoute Public kms ForeignDirectInvestment (FDI)(inmillionUS$)
564610
532281
549294
565960
575663
575996
23.65 519155 478
22.91 564166 1261
20.89 609223 2558
18.58 658548 2554
15.71 698557 1665
15.03 700852 1212
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CHAPTER4 th Approachtothe12 FiveYearPlanPeriod(20122017) 4.1Introduction:TheDraftApproachPapercirculatedbyPlanningCommissionforthe12th PlanhasnotsufficientlyemphasizedimportanceofICTswhichhavethepotentialofbringing aboutradicaltransformationinsocialandeconomicsectorsofthecountryasalsoinprocess ofgovernance.Thefundamentalandcrosscuttingimportanceofthissectorasawholetoall othersectoranditscentralitytotheentireeconomicanddevelopmentalagendaof12thFive Year Plan needs to beclearly spelt out. The achievement in terms ofpenetration of voice telephonyinthetelecomsectoraswellasunprecedentedgrowthoftheITsector,potential andtheexpectedexponentialgrowthoftheBroadbandaswellasprimacyofthewholeICT Sectorneedstobedulyhighlightedinapproachpaper. Transparency in the Government is the prime expectation of the citizen today for ensuringefficiency,accountabilityandeffectivenessofthedeliverysystematcuttingedge whichisnotpossiblewithoutthesupportofthissector.Importanceofthisaspectacrossthe boardneedstobementionedinthedocument.Itisnecessarytobringouttheseaspects clearlyforconveyingtheintention,focusandstrategyoftheGovernmentofthisimportant crucialsectorwhichisbackboneforallthesectorsandkeygrowthenablerfortheeconomy ofthecountry. Telecom has emerged as a key driver of economic and social development in an increasinglyknowledgeintensiveglobalscenario,inwhichIndiawillplayaleadershiprole. Imagining a credibly optimistic future and designing ICT policy to realize this vision could thereforebeaselffulfillingprophesy.RightICTpolicywillensurethatIndiaplaysthisrole effectively and also transform the socio economic scenario through accelerating inclusive economic growth by laying special emphasis on providing quality and affordable telecommunicationservicesinruralandremoteareas. Itprovidesthecosteffectiveandfasterservicedeliverymechanismforthebusiness tosustaininhighlycompetitiveglobalmarket.Thenecessity,importanceandusefulnessof theICTsectorcutsacrossallthesectorsincludingindustry,agriculture,servicesandsocial sector. Use of ICT results in providing connectivity which results in digitalized, ecosystem leadingtomoreefficientandcompetitivedeliverysystem. 4.2Objectivesofthe12thPlan Tofacilitateinclusivegrowthoftelecommunicationsbyformulatingcoherentpoliciesinthe followingareas,for,: 4.2.1 Optimumutilizationofscarcespectrumresource.
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4.2.2 4.2.3 4.2.4 4.2.5 4.2.6 4.2.7 4.2.8 4.2.9
Ensure security in telecom networks and adopt effective measures to deal with cyberthreats. Grantoftelecomlicencesinanobjectiveandtransparentmanner. PromotionofrobustcompetitiveMarketfortelecomservices Convergenceoftechnologies,servicesandharmonizationofregulatoryframework ConvergenceofIT,Broadcasting&Telecom Refarmingofradiofrequencyspectrumincludingincreasedavailabilityfortelecom services Rapid expansion of Telecom infrastructure for Voice, Data & Video with special emphasisonruralandremoteareas. Tohavearesponsiveconsumergrievancesredressalmechanism.
4.2.10 PromotingR&Dandindigenousmanufacturingoftelecomrelatedequipment. 4.2.11 FacilitateMigrationofnetworksfromIPV4toIPV6. 4.2.12 Encourage deployment of green/renewable energy sources for telecom equipment. 4.2.13 Tointroducetestingandcertificationofalltelecomproducts. 4.2.14 Promotion of R&D and indigenous manufacture of telecom equipment for domesticandinternationalmarket. 4.3OutlineofthePlan ThejourneyofIndiantelecomfromlowdensity/hightarifftohighdensity/lowtariff offers valuable learnings. Even with sharp rise in mobile services, further deepening the penetrationoftelecomservicesremainsanimportantchallenge.Thefuturethrustofpolicy in telecom sector has to be on raising the competitiveness of Indias telecom sector, to makeitaworldleader.Inviewofthesituationanalysisandtheidentifiedneedsofthekey stakeholders,thefollowingapproachissuggestedfor12thPlanperiod. 4.3.1 SpectrumAvailability,ManagementandPolicy 4.3.1.1 ReviewoftheSpectrummanagement 4.3.1.2 Developmentofaframeworkforusingwhitespaces 4.3.1.3 VacationofSpectrum 4.3.1.4 Disclosureofspectrumavailability 4.3.1.5 Incentivemechanismforeffectiveusageofspectrum.
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4.3.2 LicensingReforms Thisisanarearequiringattentionforfacilitatingorderlygrowthofthetelecomsector. 4.3.2.1 Delinkinglicenseandspectrum 4.3.2.2 Licenserenewalterms 4.3.2.3 Technologyneutrality 4.3.2.4 Rationalizationoflicensingregime 4.3.2.5 Enablingconvergence 4.3.3 BroadbandExpansion Therearejust12.32millionbroadbandconnectionsinthecountryattheendofJune 2011 as against the target of 20 million broadband subscribers set for year 2010. This indicatesneedforextrathrustonbroadbandexpansioninthecountry. Followingkeythrustareasarerelevantinthisregard: 4.3.3.1 Broadband penetration: Broadband for all be made a reality by increasing availabilityofhighspeedbroadbandinallGramPanchayats. 4.3.3.2 Allocationofresourcesforbroadband:Ensuresufficientallocationofresourceslike spectrum,rightofwaymanagementandinfrastructuresharingforbroadband. 4.3.3.3 Provideincentivestoencouragetheuptakeofbroadbandinsectorslikeeducation, healthcare, public safety, government operations, etc. by subsidizing customer premiseequipment. 4.3.3.4 Expansionofbroadbandinruralareas:Providefundingandsupporttoencourage the rollout of mobile broadband on 3G/BWA spectrum speedily in rural and remoteareas. 4.3.4 USOFactivities 4.3.4.1 Incentivesforpilotprojects 4.3.4.2 Incentivesforfixedwireline/wirelessphones 4.3.4.3 Incentivesforbackhaul 4.3.4.4 IncentivesforuseofrenewalenergysourcesinUSOFsupportedschemes 4.3.4.5 Incentivesfortelecominfrastructure 4.3.4.6 PolicyonrevisionofNationalChargingPlanforimprovementofQoS 4.3.5 StrengtheningofPSU/Autonomousorganization 4.3.6 StrengtheningofR&DandPromotionofTelecomEquipmentManufacturing 4.3.6.1 CreationofR&D,IPRandproductdevelopmentFund 4.3.6.2 IPRGeneration 4.3.6.3 R&Dandproductdevelopment
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4.3.6.4 DevelopmentofTestingLabs 4.3.6.5 TelecomCentresofExcellence(TCoE) 4.3.6.6 Incentivesforindigenousmanufacturing 4.4.6.7 MarketpullforIndianProducts 4.3.7 DevelopmentofHumanResources 4.4Targetsforthe12thPlan Inconsonancewiththeaboveapproach,thethrustareasidentifiedbyDepartment ofTelecomare: 4.4.1.Networkexpansion Provisionof1200millionconnectionsby2017. 4.4.2. RuralTelephony Mobileaccesstoallvillagesandruralteledensityofatleast60%by2017. 4.4.3. Broadband Broadbandconnectionof175millionby2017. 4.4.4. ManufacturingandR&D Making India a hub for telecom manufacturing by incentivizing domestic manufacturerswiththrustonIPR,productdevelopmentandcommercialization. Preferentialmarketaccessforindigenouslymanufacturedproducts. Increasinglocalcontentinmanufacturing ThrustforR&D,IPRandProductcommercialization.
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CHAPTER5 LicensingandSpectrum 5.1Introduction: Since the opening of telecom sector in 199192 for private sector participation in delivery of telecommunications services, there have been many policy changes with the objectiveofsupportinggrowthintelecommunication,toenhancecompetitionandtomake availabletelecomservicesataffordableprice. The duopoly regime of telecom service providers in respect of licences issued in 1994, 1996 & 1997 was changed to multipoly regime in 1999 which brought in more operators and thus enhanced competition. Keeping pace with technology, unified access licensingregimewasintroducedin2003wherebytheserviceproviderscouldofferfixedline andmobileservicesunderthesamelicence.Thispromoteduseofcoreinfrastructurefor bothtypesofservicesandhelpedincuttingdowncosts. Duetophenomenalgrowthinsubscriberbaseandtechnologicaladvancementswhich are on the horizon, new challenges have been posed which have to be addressed. A huge demand has been created for spectrum in different bands. Further advancement of technology and the current stage of the development of telecom networks in India have madeitpossibletodeliverconvergedservicesincludingaudio/videobroadcastservicesina seamlessmanner. Therefore,oureffortsnowshouldbedirectedtomeetthedemandsoftelecommunication sector and convergence of services. Hence focus has to be on refarming of spectrum, efficient use of spectrum, appropriate pricing of spectrum, creation of licensing and regulatory framework for delivery of converged services and other enabling provisions whichremovethebottlenecksinsettingupthenetworksetc. 5.2 RecommendationsonRefarmingofSpectrumandHarnessingTechnology The future technological developments in mobile/ broadband are all focused on higher data speeds, as the need of the future would be higher and higher data speeds. Therefore, with the introduction of new technologies, high bandwidth applications and increasinguserbase,therewillberequirementofsignificantamountofadditionallicensed spectrum which is estimated at 500 MHz by 2020 out of which 320 MHz will be required during the 12th Plan itself. During this period, the estimated requirement of additional spectrumshallbearound20MHzin450MHzband,80MHzin700MHzband,20MHzin 1800MHzband,15MHzin1900MHzband,,30MHzin2.1GHzband,20MHzin2.3GHz band,100MHzin3.5GHzband,20MHzin1700MHzbandand15MHzin2.01GHzband.
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Alsoaneedisbeingfelttomakespectrumavailablein60GHzandabovebandsforbackhaul purposes. Theexistingpolicyprovidesthereviewofthespectrumutilisationfromtimetotime, keepinginviewtheemergingscenarioofspectrumavailability,optimaluseofspectrumand market requirement. Keeping in view the requirement of additional spectrum, there is a need for refarming of spectrum to make the required amount of spectrum available for suchservicesespeciallyinthebands450,700,800,900,1800,1900MHzand2.1,2.3,2.5 and3.5GHz.WhileearmarkingthespectruminIMTbandpriorityforallocationofspectrum for defence will be kept in view and defence band will continue to be identified and allocatedbasedoninterministerialconsultation.Similarly,therequirementsofotherusers /serviceswillbegivendueconsideration. There is a need to identify certain bands within the commercial / noncommercial bandstopromoteindigenousmanufacturing. Toworkouttheexactrequirementforspectruminnearfuture,thereisurgentneed for carrying out audit of spectrum usage. For conducting the audit of spectrum usage an appropriate mechanism will have to be put in place at the earliest. The audit should be conductedtostudyandrecommendthespecificbandsofspectrumforrefarming.Auditof theusageofresourcesbytheusersshouldbeconductedandstepstakentoensureefficient utilisationofspectrum. The refarming of the spectrum should be in harmony with the advancement in technology.Apathforintroductionofwirelesstechnologiesinfuturemayalsobedefined andspectrummaybeallocatedbasedonthesame. 5.3 Recommendations on optimum utilisation of scarce spectrum resource and examinethepossibilityofcreationofaSpectrumRelocationFund.Indicatelikelysource andquantumofresourcessogeneratedandguidelinesfortheoperationofthefund. Optimumutilisationcanbeenforcedbyuseofspectrumefficienttechnologies,pricing and spectrum sharing. Newer technologies are becoming more and more efficient. There arecertaintechnologieswhichhavealreadybeeninductedinthenetwork&willcontinue forquitesometime.Hence,spectrumsharingisthenextbestmethodofensuringoptimal usage of the spectrum. A policy in this regard will be required to be framed. Pricing of spectrum separately from licence will also need to be adopted as a policy instead of the presentpolicyofbundlingwithlicencesothattheusershaveincentiveformaximisationof spectrumutilisation.However,whiledeterminingspectrumpricingpolicy,carewillhaveto
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be taken that primary objective of increased penetration of telecom services and affordabilitytotheconsumersarenotlostsightof. Eventopermitspectrumsharing,therewillbeaneedformakingavailableadequate spectrum through refarming. Refarming will be an exercise which may continue for relativelylongerperiodastheexistinguserswillhavetoselectalterativetechnologiesand migrate.Thereforeforquitesometimeevenaftersurrenderofspectrumisagreedbyany useritwillremainlockeduptillmigrationisover. It is noticed that Government agencies are major users of the spectrum which is requiredtobefreedforIMT2000applications.Therefore,theconcernedagenciesmaybe suitably compensated through appropriate mechanism to ensure vacation of spectrum throughmigrationtootherbands/mediaasthecasemaybe. In view of this and also the fact that estimated amount of spectrum which can be actuallyrefarmedatdifferentpointsintimeisnotknown,itwillbedifficulttoworkoutthe sizeofthefundwhichneedstobecreated.Hence,afterformulationofpolicyinthematter and based on the spectrum to be refarmed from time to time required funds can be requestedfromconsolidatedfundofIndia. 5.4 ToevolveaPricingPolicyforservicedeliverylookingatboththespectralefficiency and sectoral business viability. Also, suggest guidelines to encourage and incentivize introductionofspectrumefficienttechnologies. ThepricingforservicedeliveryinTelecomisregulatedbyTRAI.Ithasbeenobservedthatin most cases the actual tariffs are governed by market forces. Since there is already an intensecompetitionintelecomsector,thesectoralbusinessviabilityandspectralefficiency willbetakencareofbythemarketforces.However,certainadministrativemeasuresmay alsoberequiredforefficientutilisationofspectrum. While allocation of spectrum for IMT 2000 applications may be delinked with the issue of licenseforoperationoftelecomservices,thepricingpolicyneedtobesodesignedthatit meetsthefollowingobjectives: (i) penetration of services to rural and remote areas is not inhibited and services remain affordable (ii)sharingofspectrumisencouragedleadingtoimprovedspectrumutilisation. (iii)consolidationinthetelecomservicesmarketisincentivisedwithoutadverselyaffecting thecompetition
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There is also a need to have a relook at the pricing policy for spectrum in non commercialbandtoensurethatallocatedspectrumisefficientlyutilised.Further,asimilar relookisrequiredforspectrumusedforsatelliteandterrestrialcommunicationlinks. Development of technologies is primarily dependent on development of global standards/specifications.Further,thedeploymentoftechnologiesisalsodependentupon the availability of equipment on commercially viable prices and expected volumes of business.Hence,incentivisationofspectrumefficienttechnologiesthroughspectrumpricing policiesdoesnotappeartobedrivingforceforthisobjective. 5.5 Tomakerecommendationsonconvergenceofservicesandalsoreformsrequired in the postconvergence scenario including availability of spectrum, expansion of broadband. WiththeintroductionofBroadbandservicesand3Gtechnologiestheconvergencein telecomserviceshasalreadybegun.Withproliferationofnextgenerationnetworkswhich deliverIPbasedservicesconvergencewillgathermomentum.Broadcastserviceswillalso need to be brought on the same platform so that the benefit of full convergence can be enjoyedbythepeopleofthiscountry. Theconvergencecouldbeoffollowingthreetypes: (i) Convergence of services i.e. convergence of voice telephony, data transmission, video telephony, value added services, audio broadcast and videobroadcast (ii) Convergence of network i.e. convergence of access network, carriage network(NLD/ILD)andbroadcastnetwork (iii) Convergence of devices i.e. telephone, Personal Computer, Television and Radio Thelicensingandregulatoryframeworkwillneedtobemodifiedandstreamlinedin manner which enables seamless delivery of converged services. At the same time it will have to be ensured that rural areas are not left behind especially due to viability/ investmentconstraints.Licensingframeworkwillhavetotakecarethatnewtypeofservice providers, if necessary, may be introduced which could ride on the network backbone createdbylargeserviceproviders.Entrycostwillhavetobekeptlow.Carewillhavetobe takenthatwhilethereiscompetitioninprovisionofservices,thenumberofcompetitorsis suchthattheviabilityofserviceprovisionisensured. Legalframeworkforcontentdeliveryshallberequiredtoregulatethecontentofthe convergedservices.
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5.6
OtherissueofimportancetoLicensingandSpectrumIssues.
(i) Theinfrastructuredevelopmentinthetelecomservicesisdependentonthepolicyof StateGovernments/Localbodiesforallocationofland,powersupply,grantofrightofway andpolicy/bylawsforerectionoftowersetc..Difficultieshavebeenreportedincreationof telecom infrastructure due to nonavailability of these resources in a timely manner and alsoduetodivergentpoliciesacrossstatesandwithinthestates.Therefore,thereisaneed for national level effort to harmonise the policies of various state governments/ local bodies.Ifrequired,asuitablelegalframeworkmayalsobecreated. (ii) Telecom is on the threshold of leveraging benefits of high speed data networks whichmaygetextendedtoruralareastherebyfuellingtheeconomicgrowthinruralareas. For supporting such growth, fiscal and other benefits of infrastructure sector have to be grantedtotelecomsector. (iii) Thereisrequirementtopromotewirelessconnectivityforprivateusewithinestates/ campuses/buildingsforwhichbandswillneedtobeidentifiedincludinginIMT2000bands. This will enable use of the same mobile handsets in commercial and private networks. Suitablepricingforspectrumforsuchuseswillbeworkedout. 5.7Recommendations: i) Around 320 MHz of additional spectrum should be made available during the 12th Plan period and action should be taken so that another 180 MHz of spectrum becomes availableduring13thPlanperiod. ii) Backhaulspectrumin60GHzandabovebandshouldbemadeavailable. iii) To meet the requirement of spectrum for telecom services, refarming of spectrum shouldbetakenupspeciallyinbands450,700,800,900,1800,1900MHzand2.1,2.3,2.5& 3.5 GHz. Bands of spectrum should also be identified to promote indigenous development/manufacturing. iv) Spectrumauditshouldbeconductedtoensureefficientspectrumutilizationbythe users. v) Spectrumsharingshouldbeencouragedtoenableefficientutilizationofspectrum. vi) Pricing of spectrum should be delinked from issue of licence. Spectrum pricing shouldbedeterminedinsuchawaythattheprimaryobjectiveofincreasedpenetrationof telecom services and availability to consumers are not lost sight of. Pricing policy for spectruminnoncommercialbandsandthoseusedinsatelliteandterrestriallinksshouldbe relookedtoensurethatspectrumisefficientlyutilized.
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vii) There is a need for convergence of voice, data and video services, value added service, audio broadcast and video broadcast services. Action should be initiated for creationofrequiredlicensingandregulatoryframeworkforenablingthisconvergenceand seamlessdeliveryofconvergedservices. viii) There is a need for national level effort to harmonise the policies of various state governments/local bodies for allocation of land, power supply, grant of right of way and policy/bylawsforerectionoftowersetc.Ifrequired,asuitablelegalframeworkmayalso becreated. ix) Fiscal and other benefits of infrastructure sector needs to be granted to both wirelineaswellaswireless. x) Wireless connectivity for private use within estates/campuses/buildings may be promoted.Suitablepricingforspectrumforsuchusesmaybeworkedout.
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CHAPTER6 BroadbandandRuralTelephony 6.0Introduction Recognizing the potential of ubiquitous Broadband service in growth of GDP and enhancement in quality of life through societal applications including teleeducation, tele medicine, egovernance, entertainment as well as employment generation by way of high speed access to information and web based communication; Government had announced Broadband Policy 2004. Welldeveloped information and communication network infrastructureandapplications,adaptedtoregional,nationalandlocalconditions,through easilyaccessibleandaffordablebroadbandcanacceleratethesocialandeconomicprogress ofcountry,andthewellbeingofallindividuals,communitiesandpeoples. 6.1 CurrentStatusofBroadbandinIndia Broadband is slowly emerging as an integral component of service delivery in number of sectors including Government services. However, Rural areas have in general lagged behind as far as access to Broadband connectivity and services to such areas is concerned.Insuchascenario,itbecomesimperativetohavefocusedandcoordinatedpush inproliferationofBroadbandandTelephonyservicesinruralareasduring12thPlanperiod. 6.1.2 Ason30thJune2011,12.32millionbroadbandconnections(256Kbps&above)have beenprovidedi.e.broadbandpenetrationisjust1.0%whencomparedwithTeledensityof 73.97. These broadband connections have been provided in 4283 cities, 5767 block headquarters,627districtheadquarterscovering169201villages. 6.1.3 However, compared to growth of telephony in India, growth in Broadband has lagged behind. From a teledensity of 3.8, Indian telecom sector has grown to achieve exponential growth in the last ten years with overall teledensity of 73.97 in June 2011, though rural areas (at teledensity of 35.64) require more efforts to bring it at par with urbanareas(teledensity162.74). At figures of 851.70 million mobile connections (June 2011) with 594.77 million active subscribers,mobilephonesarenomoreadeviceinthehandsofrichoruppermiddleclass alonebutareslowlyemergingasacommonman'sdevicenotonlyforvoicetelephonybut alsoforaccessingvarietyofservicessuchasentertainmentandfinancialservices. 6.2 12thPlanProjectionsforBroadband Theestimatedinvestmentinthe12thPlanforexpansionofBroadbandisexpectedtobeRs. 1,25,000Crore.ThisincludesinvestmentofRs.75,000CroreforBroadbandnetworkrollout andRs.50,000CroreforCustomerPremisesEquipmentlikeUSBDongles,Modemsetc.The
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existingsubscribersbaseof12.32million(June2011)isexpectedtogrowto175millionby March2017. 6.3 DriversforBroadbandGrowth TheWorld Bank has found that inlow and middleincome countriesevery 10 percentage pointincreaseinbroadbandpenetrationaccelerateseconomicgrowth by1.38percentage pointsmorethaninhighincomecountries and morethanforothertelecommunications services.Withahugepopulationof720millionin630,000villagesacross3.2millionsquare kilo metres, and a massive economy accounting for over 50 per cent of India's total GDP, rural India clearly presents a huge growth opportunity for the entire telecom ecosystem including telecom operators, valueadded services providers, and handset and equipment vendors.AddressingtheissuesofAccessibility,AffordabilityandAttractivenessofservicesin theseareaswillprovetobemajordriversforspurringthedemandforBroadbandservices. 6.3.1 Accessibility: The issue of accessibility to Broadband services in Rural Areas may be addressed by followingmeans: Settingupofbroadbandaccesscenters,telecenters,kiosks,andotherpublicaccess pointsandPCOs Connectingeducationalinstitutionstobroadbandnetworks ProvidingwirelessInternetservicesasprimarymeansofruralBroadbandaccess. UtilizingexistinginfrastructureofPrivate,Govt(Central&State)CableOperatorsto providebroadbandserviceinruralareas Trainingallcitizenstoaccessandusebroadbandthroughdigitalliteracyprograms
6.3.2 Attractiveness: AttractivenessofBroadbandservicesinRuralAreascanbeenhancedbyfollowingmeans: Supportinglocal,relevantInternetcontentinlocallanguages Putting government and public information online and creating egovernment and othereapplications(suchasforhealth,education,andagriculture) Providingalegalframeworkforecommerceandotherapplications Educatingcitizensaboutthebenefitsofbroadband Promotingbroadbandusetobusinessesandcommunities ProgramstocreateAwareness
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6.3.3 Affordability: The various steps that will go a long way in improving the affordability of Broadband Servicesare: Lowcostenduserdevices, Affordabletariffs LowcostBandwidth,LeasedLinesandsharingofinfrastructure Subsidizingbroadbandequipmentusedineducationalinstitutions Providing consumers with information on providers, pricing options, and available technology
ThetripledriversofAccessibility,AffordabilityandAttractivenesscancreatetheecosystem required for unleashing the wave of growth in rural areas of the country and meet the objectiveofinclusivegrowth. 6.3.4 PromotingDigitalLiteracy: 6.3.4.1DigitalliteracyisanimportantdriverforgrowthofBroadbandonthedemandside. For creating awareness and promoting digital literacy programs similar to the (The Cyber Cafe Association of India) CCAOI Project Gyan, a 10 day Internet learning Program which is offeredforFreefromCybercafs/CSCsandtaughtinthepreferredlanguageofthecitizen, could be promoted by the Government. To further reach out to the nonEnglish and assistanceseekingcommunity,TRAIhasalsorecommendedthatGovernmentshouldensure availability of the Government services in the local languages and Cybercafs/CSCs and publicaccesssystemsshouldbeencouragedtopromotelocallanguageInternet. 6.3.4.2 Providing Broadband access to all schools, particularly in the rural areas, can help promotedigitalliteracy.Atthesametimeitcanalsobeanimportantmeansforfulfillingthe objectivesoftheRighttoEducation.Promotingtheuseofelearningmodeandtoolsthat provideaplatformforenhancedlearning,costeffectivedelivery,flexibilityoflearningatthe convenience of learner, uniform quality content delivery, promotion of collaborative learningevenbetweenmembersnotlivingatsamelocation,reusabilityofthecontentetc. alsoneedstobeencouraged.CreationofeinfrastructureforeLearningisveryimportant aspecttopromotethismodeoflearning. 6.3.4.3 A panIndia internet awareness campaign needs to be undertaken by the key stakeholders (government, operators/ISPs, VAS providers and NGOs) to develop the basic ICTskillsamongruralpopulation
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6.4 Infrastructure:ExistingScenario&OptimumUtilization: 6.4.1 SpectrumAvailability: On the supply side spectrum availability is the biggest driver for ensuring broadband availability for the masses. Wireless technologies to provide broadband coverage to the majority of population are generally more cost effective than deploying fiber in access network. TRAI has indicated the estimated traffic calculations by 2014 in its Report (May 2010),andconcludesthatforvoiceanddataservices,Indianeedsabout660MHz.However, aspertheindustrystudyreports,thedatatraffichasincreasedbyabout40percentperyear duringlastfewyearsandthistrendislikelytocontinue,ifnotincreasedfurther.Moreover, theincreasingtrendmaybemuchsharperinIndia,whereadoptionofsuchtechnologiesis evenmorerapid.Therefore,theexpectedbandwidthneededinIndiamaybeoftheorderof 800MHzby2014/15andmuchhigherby2020;thismaynecessitateadditionalfrequency bandstobeidentifiedandharmonizedforBroadband.Hence,theGovernmentshouldseek to release as much spectrum into the market as possible, in large and usable amounts. There is large amount of spectrum in the 700 MHz band (digital dividend band), of which someamountiswithgovernmentagenciesandrestisbeingusedforcommercialservices. TherestiswithDoordarshan.Thisspectrumalongwith2.5GHzand450MHzbandshould alsobeconsideredforvacationbyvariousGovernmentAgenciesforprovisionofBroadband services. 6.4.2 Withsuccessfulconclusionofauction&grantof3G&BWAspectrum,rapidgrowth in wireless broadband is now expected. However, most of the private operators are expected to focus on urban areas and viable / prosperous rural areas and employ techniquesofefficientandoptimumutilizationofspectrum. 6.4.3 UtilizationofTowerInfrastructure: 6.4.3.1Thereareabout6.5LakhtelecomtowersinIndiainstalledbyvariousoperatorsover theyears.Outofthese,about3.9Lakhtowersareinruralareas.Thisinfrastructurecanbe readilyleveragedforproliferationofBroadbandnetworkinruralareas.However,ruralIndia isplaguedbythenonavailabilityofbackhaulandlastmileconnectivity.Theseissuesneed tobeaddressedformakingoptimumutilizationofexistingtowerinfrastructure.Sharingof Towerinfrastructurehasbeenusefulinreducingthecostsandincreasingtheproliferation of mobile services. Sharing of active infrastructure can also further help in making viable businessmodels,particularly,forruralandremoteareas. 6.4.3.2TheTowersitescouldalsobeconsideredaspotentialsitesforCSCsastheyalready have adequate infrastructure including land and power. Convergence of IT and Telecom Infrastructurecanleveragethebenefitsofbothandoptimizetheirusage.
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6.5 OngoingInitiativesforBroadband InordertoensuredevelopmentofBroadbandnetworksinruralareas,HonblePresidentof India, in her Address to joint session of the Parliament on 4th June 2009, had mentioned thateverypanchayatwillbeconnectedtobroadbandnetworkwithinnextthreeyearsand theschemeforCSCorekioskswillbesuitablyrepositionedinordertocreateabroadband network of panchayats under Bharat Nirman Common Service Centers to provide government services to citizens in rural areas. The various initiatives undertaken by the GovernmentforexpansionofBroadbandservicesinruralareasareasfollows: 6.5.1BharatNirmanII TheprogramenvisagesBroadbandcoverageofall250,000villagePachayatsby2012.Asof June20111,33,712GPsoutof2,47,864GPshavealreadybeencoveredwithBroadband. 6.5.2NationalOpticalFibreNetwork 6.5.2.1 Broadband penetration in rural areas has been low. Just 5% of the present broadband connections are in rural areas as compared to about 31% of total mobile telephoneconnections.Theprimarycauseoflowpenetrationofbroadbandinruralareasis nonavailability of required transmission media connectivity upto villages, high cost of service roll out and lack of viable business model. Presently about 11,50,000 route Km of optical fibre network is available inIndia. It includes 6,46,000 Km optical fibre network of state owned BSNL. Other operators include Reliance (1.9 lakh R Km), Bharti (1.25 Lakh R Km),TTSL(0.7lakhRKm),Railtel(0.52lakhRkm),VSNL(0.36LakhRKm)&PGCIL0.2lakhR Km). 6.5.2.2 Internationally, it is observed that there are national level broadband plans to increasethereachofbroadbanduptoruralandremoteareas.Allthesenationalplansare initiatedbygovernmentwithasignificantcontribution.Majorityofcountrieshavecreated opticalfibrenetworkcapabletosupporthighspeedbandwidthhungryapplications. 6.5.2.3Amongthevariousavailabletechnologies,Opticalfibreisrobust,stableandscalable. However,creatingcountrywideopticalfibreconnectivitywillrequirealotoffunds,efforts and planning as Creation of optical fibre network involves digging of trenches, laying of HorizontalDirectionalDrilling(HDD)pipes(Plasticducts),pullingtheopticalfibrecablesin thesaidducts,theirjointingandfinallyconnectingtotheopticalfibreterminalequipments. 6.5.2.4 Presently, availability of optical fibre from major service providers is largely restricted up to the district headquarters and in some cases upto block headquarters. Considering various issues Government has decided for creation of national Optical Fiber Network(NOFN)forprovidingBroadbandConnectivityinitiallyto250,000GramPanchayats. Further coverage to villages habitation would be considered in subsequent phases. The
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objectiveoftheNOFNschemeistoextendinitiallytheexistingopticalfibernetworkwhich extendsuptodistrictsHQs/BlockHQsuptotheGramPanchayatlevel.Thiswillbridgethe gap in the Aggregation Layer by extending the network to the Panchayats. Subsequently, extension of fiber to the Shared towers providing Broadband services in rural areas could alsobeconsidered. 6.6 ContentandVAS 6.6.1Indiaiswitnessinganerawhenusersbuymobilephonesnotjusttobeintouch,butto express themselves, their attitude, feelings & interests. Coupled with scenario ofvery low tariffsforvoicetelephony,ValueAddedServices(VAS)presentsanopportunityfortelecom operators to enhance their revenues. The Mobile VAS industry is expected to touch Rs. 100,000 crore by 2020 from Rs. 15,000 crore now With the launch of 3G, Mobile BroadbandServices,MobileCommerce&RuralVASfuellingthisgrowth,contentdevelopers areburningthemidnightoiltocomeupwithbetterandnewerconceptsandservices3G wouldbethedriverofMVASinIndiainthefuturewith3Gservicerevenuesbeingexpected to generate $15.8 billion by 2013 accounting for a share of 46% in the overall wireless servicerevenue. 6.6.2 Currently majority of the available content /applications is in English and mostly targeted towards the urban population. Low number of local language sites reflects the pooravailabilityoflocalizedonlinecontenttobeaccessedbysemiurbanandruralmasses. There is, therefore, a need to develop relevant content for the rural areas. Thrust on initiatives like egovernance, ehealth, telemedicine, mbanking, eeducation can provide necessarypushtoBroadbandinruralareas.CoupledwithUIDprogrammeofGovernment, payments in NREGA through etransfer will not only bring in efficiency but ensure transparencyaswell.While,entertainmentwilladdvalue,theothercontentwillgradually grow. 6.6.3 Opening up BPOs / Call Centres involving local people and providing information in locallanguagesonvariousissuesconcerningruralpopulationwillhelpimproveBroadband penetration while simultaneously generating employment opportunities. Content creation wouldbeaspecializedarearequiringthoroughunderstandingofthelocalrequirementsand languagewhichcanonlybedonethroughlocalentrepreneurs. 6.7 SancharShakti The important contribution that ICT can make in bridging the gender divide and empowering women has been recognized by the International Telecommunications Union ofwhichIndiaisamember.RecognizingthevitalrolethatICTcanplayintheempowerment of Rural women, the Gender Budget Cell and the USO Fund of DoT have launched pilot projectsaimedatfacilitating(SelfHelpGroups)SHGsaccesstoICTenabledservices.These pilot projects address the common impediments to rural ICT connectivity while
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simultaneously providing employment opportunities to rural women. One category of projects in Sanchar Shakti scheme, the Gender Budget initiative of DoTUSOF, relates to provision of a mobile connectivity bundle consisting of discounted handset, prepaid tariff plan and VAS subscription to SHGs with a service validity/warranty of at least one year. Further, promotion of these typesof initiatives is envisaged for growth of Broadband and Ruraltelephonyinthe12thPlan. 6.8 TelephonyandVASforDifferentlyAbled 6.8.1 Itisbelievedthatthereareatleast70millionpersonswithdisabilitiesinIndia.Many of these persons live in rural areas and have no access to basic means of communication and accessing information. They are left out of mainstream education and employment opportunities and are unable to lead a life of inclusion, independence and dignity. In the information society, enjoyment of all other rights, such as education, employment, recreation, access to public information, etc are inextricably interwoven with access to electronicsandinformationandcommunicationtechnologies(ICTs).Thisisespeciallysoin the context of persons with disabilities, since many of them depend solely upon the availabilityofassistivetechnologyandInternetconnectivitytoaccessinformation. 6.8.2 TheuseofassistivetechnologiescombinedwithInternetconnectivityoncomputers andmobilephonesoffertremendousscopeforIndiatobridgethedigitaldivide,especially in the context of persons living in remote and rural areas. There are several accessibility featureswhichcouldbeaddedtolandlineandwirelessphonestomakethemuseablefor personswithdisabilities.Accessibilityconsiderationsneedtobetakenintoaccountinfour aspects, namely, hardware, software, services and content. Initiatives like Subsidies for broadband, Billing in accessible formats, Special measures of access for emergency situations,Texttospeechfacilityto readaloudthetext,ScreenReaders,ClearAudio,etc. canprovidetherequiredimpetusforinclusionofthedifferentlyabledinthemainstream. 6.9 RuralTelephony 6.9.1Theruralsubscriberbaseprimarilycomprisescustomerswithlowdisposableincomes. ThisincreasesthedownwardpressureonARPUsandleadstoanoverallreducedreturnon investment. Operators now need to redefine their business models to reduce operational costsandpromotesavingsincapitalexpenditure,asprovidinglowcostnetworkcoveragein theseregionsistheonlywayforward. 6.9.2Anotherissueisthattheruralpopulationissparseandscattered.Thelowpopulation density, thereby, increases costs. Maximizing the coverage per site and/or minimizing the costpersitearerequired.Thepowerinfrastructureinthecountryisextremelyinadequate andnonavailability ofstableandcontinuous powersupplycouldactuallynegateallother investmentsandeffortsmadetoprovideconnectivityinruralIndia.Theuseoflowpower
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solutionscanhelpreducethecostspersiteinthisregard.Judicioususeofrenewableenergy solutionshasthepromiseofreducingtheoperationalcostsinthelongrun. 6.9.3Indiahaspioneeredtheuseofmanagedservicesmodeltorealizeexponentialtelecom growth.Now,Indiancompaniesshouldtakealeadinusheringininnovativeapproachesfor remoteandruralareas. 6.10 Recommendations 6.10.1IndiashouldutilizetheopportunityofferedbyBroadbandtogivefurtherpushtoits GDP. i) Roll out of rural broadband connectivity through strengthening augmentation and harnessingtechnology 6.10.2Governmentshouldseektoreleaseasmuchspectrumintothemarketaspossible,in largeandusableamounts. 6.10.3 Government should encourage Broadband proliferation through technologyneutral approach. 6.10.4 Necessary Policy changes should be initiated to encourage Cable Operators to provide Broadband Services especially in remote and rural areas by allowing them to use existinginfrastructure. 6.10.5LargepartofthecostofdeployingfibrenetworksisinformofRightofWay(RoW). OperatorshavetoapproachmultipleagenciesforobtainingRoWclearance,whichnotonly delays the rollout plans of the service providers but also increases the cost. The state governments,therefore,needtoaddressthefollowingaspectsforpromoting/development oftelecominfrastructure: a.Speedyacquisitionofsites b.Reliableuninterruptedpowersupply c.Phaseoutmultipleapprovalsfromvariousstateagenciesandreplacebyasingle windowclearancesolution. d.TheessentialRightofWay(RoW)totelecomservice 6.10.6 Government projects like National Optical fibre Network (NOFN) and other infrastructureprojectsshouldberolledoutinatimeboundmanner. 6.10.7 Use of Broadband through Satellite should be promoted for remote areas, like Andaman&Nicobarislands&Lakshadweep.
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ii.OptimumUtilizationofInfrastructure
6.10.8Necessarypolicychangesshouldbeintroducedforencouragingthesharingofactive and passive infrastructure in order to address the various Infrastructure issues related to ruralareas. 6.10.9DevelopmentofBroadbandkiosks,onthelinesofSTDPCOs,shouldbeencouragedin the Rural Areas to provide easy access to rural people to Broadband services. Common ServiceCentres(CSCs)beingsetupcanplayavitalroleinthis. 6.10.10 CSCs may be positioned as distribution channels. They may tie up with various serviceprovidersinthisregard. iii.Applications,Valueaddedservicesanddevices 6.10.11 Government projects like egovernance projects can provide the necessary trigger for the growth of Broadband in Rural Areas. Encouragement of use of facilities like m bankingandsecuredtransactionswillplayavitalroleinthisregard. 6.10.12 Low cost internet enabled customer equipment and Applications with Vernacular contentarecriticalforthegrowthandsuccessofBroadbandandRuralTelephony.Inclusion ofvernacularcontentforGovernmentsvariouseinitiativeswillprovidenecessaryfillipto the industry in this regard. Also lower cost availability of internet access through policy initiativessuchasreductionintaxesondevicesincludingcustomerpremisesequipmentwill helpinreducingthecosts. 6.10.13 BPOs / Call Centres involving local people and providing information in local languagesonsubjectslikeCropAdvisory,Weather,health,educationopportunities,Mandi rates, etc. will help improve Broadband penetration while simultaneously generating employmentopportunities. iv. Other issue of importance for the growth of Broadband and rural telephony and relatedinfrastructure 6.10.14 To tap the Cable TV segment for proliferation of Broadband, synergy should be developedbetweenMinistryofCommunications&InformationTechnologyandMinistryof Information&Broadcasting. 6.10.15 Providing Broadband access to all schools, particularly in the rural areas, may be takenuptohelppromoteliteracythroughelearningprograms. 6.10.16 Concerted and coordinated efforts by various departments of the Government shouldaddresstheGenderissuesandtheneedsofthedifferentlyabled. 6.10.17 For providing telecom connectivity to rural areas with low ARPU, low population andlowpopulationdensityandlackofadequategridpower,useoflowpowersolutionsand renewableenergytechnologiesshouldbeencouraged.
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6.10.18BroadbandDefinition: Broadbandconnectionmaybedefinedas A data connection using any technology that is able to support interactive servicesincludingInternetaccessandsupportaminimumdownloadspeedof 512Kilobitspersecond(Kbps). Theuploadspeedwillatleastbehalfthedownloadspeed. Thisdefinitionofbroadband(BothWirelineandWireless)willbeeffectivefrom1st January2011. Thedownloadspeedof2Mbpswillbeeffectivefrom1stJanuary2015.
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CHAPTER7 TelecomequipmentManufacturing,R&D,ProductStandardsandIPR 7.0 Introduction
Telecommunication infrastructure is a criticalasset of any country and it is a key growth enabler. Telecom networks are missioncritical elements for secure and timely communications.ItisthedeliveryvehicleforalargenumberofITandITenabledservices includinghealthcare,education,financialservices,egovernanceetc.bothtotheurbanas well as rural masses. While telecommunication networks could be setup with imported equipment, it becomes a concern when a large network, such as that of India, require continuouslargeimports,drainingtheforeignexchangeofthecountry.Besides,atelecom network today is vulnerable to security and espionage threat, compromising the security and independence of a nation. Complete dependence on imported equipment, in which malwarecouldhavebeendesignedinandimplantedatthecomponent(IC)leveloratthe levelofhardwareoratthelevelofBIOS(BasicInputOutputSystem)orOperatingSystemor at the application level, makes the nation highly vulnerable. The issue of security can be dealtcomprehensivelyonlywhenwehavesoundmanufacturingbase,higherorderskillsin telecomtechnologiesandskillstodealwithsecurityrelatedissues,whichcanbedeveloped only when we start doing R&D, design and development including manufacturing of the equipmentindigenously. On the other hand, the design, development and manufacturing of its own telecom equipmentisabigopportunityforIndia,creatinghugevalueaswellaslargeemployment, anditisnotthatIndiadoesnothaveanoption;itcertainlyhasthedesigncapabilities,as reflected in large amount of telecom design and development work that is carried out in Indiaformultinationalcompanies.WiththerightpoliciestopromoteR&D,IPRcreationand manufacturing, India can certainly deliver. According to TRAI, the demand for telecom equipmentinIndiawasRs.54765crore(US$12billion)in200910whichwasabout5.5%of theglobaldemand.ThisisprojectedtogrowtoRs96514crore(US$21billion)in2015and Rs 170,091 crore (US$ 37 billion) in 2020. This large domestic demand may be a perfect launch pad for Indian Product industry. A thriving telecom manufacturing industry would havealargepositiveimpactonmanyotherelementsoftheelectronicsmanufacturingvalue chain. This will also provide employment, increased share of manufacturing in GDP and exportofequipmentandservices.Moreover,technicalknowledgeandIPRcreationwillalso have spillover effects for other industries. India has missed having stake in technology standardisation,developmentandcommercialisationsofarandacoupleofmoreyearsof apathywouldsealthefateoftelecommanufacturinginthecountryforever.
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Further, the scenario for telecom equipment design and manufacturing has been fast changing.TheWesterncompanies,whichdidwellinthepast,arecontracting,withmanyof themgoingoutofbusiness.Veryfewhavesurvived.ThevoidhasbeenfilledbytheChinese companies,whichhaveemergedonthesceneonlyinthelasttenyears,andhavealready acquiredleadershipintelecomequipmentmanufacturing3.IfIndiadoesnotstrengthenits owntelecomproductindustry,itwillincreasinglydependonimportingequipmentfromone country, that is China. It is imperative that India moves rapidly in nurturing and strengtheningitstelecomR&D,IPRcreationandproductindustry. Despite significant growth of the telecom network and the subscriber base over the last decade, the telecom manufacturing sector has not shown corresponding increase. The contribution of all domestic products have been 1213% in the year 200910 while Indian Products could meet just 3% of the Indian demand. It is quite clear that the telecom equipmentmanufacturingecosystemhassofarfailedtoadequatelyspurthemanufacturing segmentandasaresult,thedomestictelecomequipmentmanufacturingsegmenthasnot been able to meet the demand forcing the telecom operators to import most of the equipmentrequiredfortheirnetwork. TherearereasonsfortheIndianmanufacturingIndustrynotbeingabletomeetthedemand through domestic equipment manufacture. It includes weak links in the complete chain from basic research to IPR generation, product design and development, product commercializationandachievingeconomiesofscalessothattheproductcancompetewith theimportedone.Manufacturingneedssupportofothercomponentsofthevaluechainto flourish. Manufacture of components and subassemblies in India would help both the Indian Product companiesand Indian manufactured product companies. Largeglobal EMS vendorsneed tobe encouraged tosetupcompetitivelargescaleoperationsinIndia.This would not only reduce the input cost but also enable the same infrastructure to be used across the entire electronics sector. It is very important to have a tax structure that encourages manufacturing. Today, import of some components invites custom duty whereasthefinishedproductsattractzeroduty.Smallerdomesticplayersfacetheproblem ofnothavingeconomiesofscaleandavailabilityoflongtermfinancingatlowinterestrates.
ChinaspoliciesforprotectingandnurturingChineseproductindustriesiswellknown.Butevenasit acquires dominance in telecom product manufacturing, it continues to enhance its support to Chineseproductsandindustries.OnNov15,2009itreleasedpublicdraftoftheCircularonCarrying out the work on Accreditation of National Indigenous Innovation Products, known as Circular 618. Throughthisitannouncedacreationofanewnationallevelcatalogueofproductsthatwillreceive preferentialtreatmentingovernmentprocurement.Itdefinesanindigenousinnovationasonewhich hasIPRownedbyaChinesecompanyandacommercialtrademarkinitiallyregisteredwithinChina.It defined a domestic product as made within Chinas borders with domestic manufacturing costs exceedingacertainpercentageofthefinalprice.Waybackin1999,MOFhadsaidthatproductswith less than 50% of their value produced in China were considered imports. [Chinas Drive for IndigenousInnovationbyJamesMcGregor,GlobalRegulatoryCooperationProject,USChamberof Commerce]
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R&Dfacilities,accesstolowcostfundsandtestingandcertificationareotherareaswhich needtobestrengthenedtomakethemanufacturingenvironmentmoreconducive.Several measuresneedtobetakentoincreasedomesticproductionandenhancethevalueaddition to the products being manufactured in the country. A robust telecom network needs a strong telecom manufacturing base which will in turn contribute handsomely to the GDP and employment in the country. There is, therefore, need for a comprehensive Telecom Equipment Manufacturing Policy that would give the country a definite direction and facilitate it becoming a strong telecom manufacturing hub. We have not been able to leverageourmarketforspurringmanufacturingtilldate. Planning Commission has proposed that the strategic objectives for the manufacturing sectorinthenext15yearsshouldbetobringaboutaquantitativeandqualitativechange viaasetofpolicychoiceswithfollowingcoreobjectives: i) Increasingthegrowthofmanufacturingsectorto1214%overmediumtermsoasto contributeatleast25%totheNationalGDPby2025; ii) iii) iv) v) Increasingtherateofjobcreationinmanufacturingtocreate100millionadditional jobsby2025; Increasingdomesticvalueaddition; EnhanceglobalcompetitivenessofIndianmanufacturingthroughappropriatepolicy support; Ensuresustainabilityofgrowth,particularlywithregardtoenvironment.
Astrategicsectorliketelecomshouldgiveabefittingcontribution to thistarget.Withthe expansion of the manufacturing base, development of ancillaries, support facilities like electronicdesignandmanufacturingclusters,therewouldbeemploymentforhundredsof thousandsofskilled,semiskilledandunskilledworkers.SimilarlyDepartmentofIndustrial Policy and Promotion (DIPP) is in the process of framing a National Manufacturing Policy (NMP) in which it has been envisaged to create National Investment and Manufacturing Zones(NIMZs)whichwillbedevelopedasintegratedindustrialtownshipwiththestateof theartinfrastructureandfavorableexportimportpolicies.TheseZonescanplaytheroleof afacilitatorfortheentrepreneurswhowanttosetuptheirbusinessintheTelecomSector. Indiahasthecapabilitytocreateglobaltelecomproductcompaniesofitsownifitcantap the next wave of telecom growth that would happen in the areas of broadband, Next GenerationNetworksandNextGenerationMobileNetworks. 7.1 TRAIhasproposedthatthetelecomequipmentmanufacturingpolicybeanintegral andsignificantpartofthenewTelecomPolicy.Inthesuggestedmeasuresforpromotionof domestically manufactured products comprising both the Indian Products, which have product IPR in India, and Indian Manufactured Products in which case IPR resides outside India, it has proposed preferential market access for domestically manufactured telecom productsof30%inthefirstyear,whichgoesupto80%in8thyear,andalsotheminimum
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valueadditionof25%inthefirstyeartominimumvalueadditionof65%in8thyear4.Ithas stated thatthe products which are merely being assembled based on CKD/SKD /imported componentsshouldnotberegardedasmanufacturedinIndiatilltheyachievetheminimum value addition recommended by them. The recommendation to give market access in telecomlicensee(publicaswellasprivate)willresultinassuredmarkettoIndianequipment manufacturers for achieving economies of scales and also units set up by multinational companiesinIndia. Beforedelvingdeeperintotermsofreferenceandrecommendations,itmaybeworthwhile toexaminewhatconstitutesvalueadditionintelecomequipmenttoday.TimeMagazinein itsMay16,2011issuepublishedthevariousvaluecontributionsthatgointodaysUSD500 iPhone. The total components and subsystems of the iPhone contributes to USD 174, whereasmanufacturing(assemblyandtesting)consistofmereUSD6.TherestofUSD320 goestoAppletowardsdesign,development,softwareandIPRaswellassales,distribution, financechargesandprofits.Thisexamplegoesontoshowthatthereisverylittlevalueadd in mere manufacturing, or PCB fabrication, test and assembly. The value lies in design, development, IPR and in system software. Without strengthening these aspects, Indias gainswillbelimited. 7.2 FactorsImpedingtheGrowthofTelecomEquipmentManufacturinginIndia Thefactorsimpedingthegrowthofdomesticmanufacturingare Poorinfrastructure
Market Preference for domestically designed and produced telecom goods is being used today by
mostlargenations,wherethelocalindustryisweak.Earlierthismonth,Brazilcameupwithadecree to supportdomesticindustry asreflected inthe technicalregulations, Braziliantechnical standards, limited to twentyfive per cent above the price of the foreign manufactured goods and foreign services.Thedomesticmanufacturedproductsandthedomesticservicesresultingfromdevelopment andtechnologicalinnovationmadeintheCountrymayhaveadditionalmarginofpreference,defined inthedecree,pursuanttotheart.5th,whichaccumulatedtothenormalmarginofpreference,may not exceed the limit of twentyfive per cent the Ministries of Science and Technology and Development,IndustryandForeignTradewillestablishtherequirementsandcriteriaforverification of products and services resulting from technological development and innovation conducted in Brazil..DECREE NR. 7,546, AS OF 08/02/2011 DOU(UNIONS OFFICIAL DAILY)ASOF 08/03/2011: Article3(defines)marginofpreferencefordomesticmanufacturedgoodsanddomesticservices,that meet,besidestherelevant
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Weak links in the complete chain from basic research to IPR generation, product design and development, product commercialization and achieving economies of scalessothattheproductcancompetewiththeimportedone. supportofothercomponentsofthevaluechaintoflourish AbsenceofManufactureofcomponentsandsubassembliesinIndia AbsenceoflargeglobalEMS(EngineeringManufacturingService)vendors Stablefiscalpolicies taxstructurethatencouragesmanufacturing Marketpullfordomesticmanufacturers Nothavingeconomiesofscaleandavailabilityoflongtermfinancingatlowinterest rates R&Dfacilities,accesstolowcostfundsandtestingandcertification SupportforR&D,IPR,StandardsandProductcommercialization 7.3 MeasurestobetakenforPromotingDomesticManufacturing A robust telecom network needs a strong telecom manufacturing base which will in turn contribute handsomely to the GDP and employment in the country. There is, therefore, need for a comprehensive Telecom Equipment Manufacturing Policy that would give the countryadefinitedirectionandfacilitateinbecomingastrongtelecommanufacturinghub. 7.4 InnovationandR&Dduring12thPlan: Recognizing the strategic (network security and huge national imports) disadvantage of being fully dependent on foreign telecom/ICT equipment and with the goal of India becomingadevelopednationby2020,the12thPlanshouldaccordsignificantfocustobuild a national capability to achieve selfreliance in telecom/ICT equipment design & manufacturing.TheGovernmentisintendingtoprescribethatthedomesticindustryshould startmeetingabout30%ofthedemandfromthebeginningofthe12thplanandreachtoa levelby7080%bytheendof12thPlan.Thevolumeofthisbusinessisestimatedtobeof theorderofRs2,50,000crorebytheendof12thPlan. TRAI recommendations have stressed the need of creating Market Pull for indigenous products while incentivizing the operators for its use. It has also recommended having strongR&D,Productdevelopmentandcommercializationflow;furtherithasrecommended financial support and tax incentives for Indian products, to help them overcome financial handicaps and long term working capital at international rates, for domestic and export sales. The subgroup noted that as a country having large talent base must leverage its huge domestic market towards strengthening the Indian Product industry. Product industry requires less capital as compared to simple assembling / manufacturing industry, and is therefore ideally suitable for India. There was a considerable discussion on using
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preferential market access. It was unanimously agreed that government procurement and governmentfundedprojectsshouldhaveclearpreferenceforIndianProductstothefullest extentpossible.Itwasalsoagreedthattelecomoperatorsshouldhaveanobligationtobuy IndianProductsorIndianManufacturedproductandworkoutaplantograduallyincrease indigenousproductcontentintheirnetwork.Theoperatorsshouldbegivenincentives(in formofconcessionsinlicensefees)astheyincreaseindigenouscontentintheirnetwork.It was however felt that penalties would not be the preferred option and instead the operators should commit to support and nurture Indian products. However one or two members felt that failure of the operators to meet indigenous content target in their networkshouldattractapenaltyofupto5%oftheirrevenueinformofacessonlicense fees. 7.5 Recommendation:NationalTelecomManufacturingCell
The task of creating and nurturing an Indian Product industry, where design development andIPRgenerationtakesplacewithinIndia,sothatitmeets70to80%ofdomesticdemand for telecom equipment is indeed a complex one. Even with right policies, coordination between different government departments and telecom operators will be required. This will not happen on its own. Therefore it is recommended that an interdepartmental National Telecom Manufacturing cell may be created to work in a mission mode with membersofacademiaandindustryasitsmembers.Thecellwouldbethebodytodefine, manage, fund and oversee the progress of the entire sector so as to meet the mission objective. The cell should see that current products, developed in India and comparable with those outsideIndiaintermsofthepriceandperformance,bedeployedwidely.Thecellshouldsee that translational R&D towards stateofart telecom products is supported amongst academiaandinindustry,withstrongcollaborations,andIPRgeneratedandintroducedin nextgeneration international standards. It should ensure that design and development of nextgenerationproductsiscarriedoutextensively.Itshouldensurethattheproductsare trialledandnurturedbyoperatorstomakethemrobustandpilotordersaregiven.Itshould seethattheproductsareprovidedpreferentialaccessinGovernmentandnongovernment procurement. It should ensure that the incentives are provided to the manufacturing companies as well as to the buyers. It should ensure that timely finance is available for IndianProductcompanies,bothforR&Daswellasworkingcapital.Itshouldhelpcompanies reacheconomiesofscaleandexporttheproducts.Allthisneedstobedoneasamissionso thatIndianproductsmeet70to80%ofdomesticdemand. 7.6 GoaltoMakeIndiaaTelecomProductManufacturingHub Progressivelyincreaseindigenouscontentintelecommanufacturingtoover80%in nexttenyearsinlinewithTRAIrecommendations.
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Create R&D thrust to deliver Indian Products where product IPR resides in India whichwouldcompeteinqualityandpricetothebestintheworld. Recognition that unless an industry gets high volumes and reaches economies of scale, itcannot become pricecompetitive, nomatter how efficientis the R&D and design.
7.6.1 Recommendations a) LeveragelargedomesticmarkettoprovidepreferentialmarketaccesstoIndian Products. b) A potent policy support to stimulate domestic product manufacturing without adversefinancialimpacttothegovernment. o 100% Preference for Indian products in government procurement and projectsfundedbygovernment/USO. o Obligation for Telecom operators to buy Indian Products (IP) and Indian manufacturedProducts(IMP) o IncreaseIndiancontentinnetworkovernexttenyears. o Incentives for telecom operators to buy Indian Products and progressively increaseindigenouscontentinnetwork. o Anyfuturedecreaseinlicensefeeforoperatorswouldcomeintheformof incentivesforprocuringIndianproductsandIndianManufacturedProducts. c) Penaltiesnotpreferableoption,butoperatorsneedtocommittosupportIndian Productsby o CommitmenttopurchaseIndianproductswhentheyarecomparableinprice andperformancetoimportedproducts. o CommitmenttoparticipateintrialsofnewlycreatedIndianproducts,nurture themandplacepilotorders. o FundingR&DandsupportIndianIPRcreationanddrivinginstandards. 7.6.2 Recommendations Indian Products suffers from disadvantage due to poorer infrastructure, poor and higher cost power supply, higher interest rates, longer custom clearance times (22% as per CII reportandTRAI).Thecommitteerecommends a) DeemedexportstatustosalesofIndianProductsinIndia(sinceimportdutyofthe correspondingproductisanywayzero). b) To make Indian Product companies competitive, they should be given a subsidy of 10%oftheirsales(domesticandexport)forthenext5years. c) CreateNationalInvestmentandManufacturingZones(NIMZs)asproposedbyDIPP and also incentivise manufacturers in line with Modified Special Incentive Program
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scheme (MSIPs) & Electronic Design and manufacturing Cluster (EDMC) of DepartmentofIT. o Incentivise to set up system assembly, components, pieceparts and entire manufacturingecosystemwithinthecluster. o DevelopSupplychainwithinthecountry. d) Support companies with good track record to become strong global players by creating a Telecom Promotion Fund of Rs 10,000 Crores for soft loans (at interest ratesof35%)tomanufacturers ofIndianproducts fordomesticaswellasexports andforoperatorswhodeploytheseproducts. e) IncometaxexemptionforIndianProductcompaniesforaperiodof5years(onthe linesforsoftwareexports). 7.7 RecommendationstoEncourageEntrepreneurship Indiahastremendousentrepreneurialenergywhichmustbeharnessedforthecauseof R&D. There is a need to encourage our bright young entrepreneurs and give them neededfunding(preventureandventurecapital),managementandmentoringsupport. Entrepreneurship Model is particularly suitable to set up new Telecom Product companies. Also creating a market pull would encourage venture capital to invest in suchstartups.Thecommitteerecommends: o PromoteentrepreneurstodevelopandcommercializeIndianproducts(bothsystem aswellasServiceproducts) Create Telecom Entrepreneurship Development Fund of Rs 2500 crore in 12th plan. Combinationofventurefundingandlowinterestloans. Active support and funding to promote Indian Telecom Product brands in internationaltradeshowsandtargetmarkets. 7.8 R&D,IPRandStandardisation
India has witnessed a tremendous growth in the telecom sector in the last decade. However, despite this significant growth, most of the technology and equipment used by Indianserviceprovidersareimported.IndiasinfluenceinInternationaltelecomtechnology developmentispracticallynonexistent,thoughIndiansoftwarecompaniesdoasignificant levelofoutsourcingforforeigntechnologycompanies.Thesoftwarecompaniesimplement sophisticated and current technologies, but own little IPR. The Indian presence in Internationaltelecomstandardsisalsomarginal.ThereisnothrivingR&Decosystemeither leadingtoasignificantoutflowofIPR.Thepartsthatcouldmakeupafunctioningwhole areavailable.Whatismissing,arethelinkagesandwhatisneeded,isgrowingandnurturing ofthevariouseffortssothatcriticalmassisreachedinmorethanoneeffortineverymajor area.
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IPR are a significant value add in todays telecom systems. The top four companies in telecom manufacturing each filed for a significant fraction of the total telecomrelated internationalpatentsin2010.Ofthese,twowere Chinesecompanies.Thecontributionof IPRcouldbecloseto15%ofthesaleprice,whenthesystemsarefirstintroduced,andgoes down as time goes on. This value is realizable, however, only when the IPR goes into standards,basedonwhichthesystemsaredeployed.The designand developmentofthe systemsaddfurthervalue.Intheearlydaysofanynewstandard,significantpartofthesale price is thus contributed by the R&D. There is clear need to promote Indian interests, service providers requirements, and Indian IPR, into International standards and products/services. This will also help to create an ecosystem for telecom equipment manufacturing in India,which today is not a viable business proposition due tosignificant outflowforIPRlicensing. Indiamustsignificantlyscaleupitsinfluenceontelecomtechnologygrowthurgently.Most large countries/markets that seek to influence the trajectory of telecommunications evolution, and play a role commensurate with their size and capability, have a Telecommunication's Standards Development Organization (TSDO), an autonomous body, recognized by the government, under the leadership of industry and with strong participationoftheacademiaandthegovernment.IndiatooneedsaTSDOtobesetupat the earliest. The TSDO of India would be a national body with a responsibility towards facilitating active participation in and contributions to International standards. It should consolidate various efforts in the country and work towards influencing International standards to incorporate Indian requirements/IPR into telecom standards. It should continuously drive consensus regarding national requirements and articulate these in internationalbodies,andfacilitateaccessfortheIndianindustrytointernationalstandards' fora. The TSDO should be a PublicPrivate Partnership (PPP), drawing on both public and privateexpertise. There is intense work going on all over the world on creating standards in telecom. It is essential for Indian companies and organizations to be aware of, to be involved in, and influence standardization developments in the respective areas. Currently India is represented by just a few individual organizations, if at all, in the international standardizationbodies.Theparticipationisintermittentandconcertedefforts,suchasthey exist,aremoredrivenvoluntarilyonneedbasis. Recommendations: a) Promotecompanies/institutionstodevelopcapabilitiesinTechnologyforecastingfor Indian requirements. DOT should set up a council headed by Member of Telecom Commissionconsistingof
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o TechnicalexpertsasmembersfromTelecomServiceProviders,PublicandPrivate TelecomManufacturingIndustry,Government,AcademiaandR&Dinstitutions. o Function as permanent team of experts, to work on collaborative and contributiondrivenprofessionalmodel. o TechnologyandProductdevelopmentforecast. o Evolve, and periodic updates of the national five year rolling program of technology/productdevelopmentanditsfieldabsorption. o Be a nodal group to monitor and ensure the implementations of various recommendationsmadeforpromotingIndianProducts,manufacturingandIPR. b) Fund Telecom R&D towards IPR generation and Product Development and Commercialization o DOT should create Telecom Research Development Fund (TRDF) of Rs. 5000 Croresin12thPlan. TRDF should be managed by a council, consisting of two Government representatives including Secretary DOT, who will chair the council, 2 professionals from telecom operation industry, 2 professionals from Telecom Equipment Companies, 4 telecom Scientists/faculty from leading Indian institutes, 1 person with financial/VC background. The councilshouldhaveasmallsecretariat. TRDF to fund research with clear focus towards tangible patents/IPRs, whichwouldgointointernationalstandardsandfordevelopmentofhigh end products for future telecom systems and services. Incremental research innovations will not be supported through this fund, as other fundingsourcesfromscienceandtechnologyministriesareavailablefor this.Blueskyresearchmaysometimebefunded,however,whenthereis a clear roadmap to convert such research towards next generation standards,culminatingintocommercialproducts,anditappearsthatitis critical to move fast in an integrated manner from basic research to productdevelopment. TRDF to fund technology/product development, for which there is current/future market by Private and Government companies and R&D institutionsasgrantsandsoftloans. TRDF to fund Academic research with grants for futurist technology developmentwithemphasisonIPRCreation. Preference will be given to fund projects involving industry academia consortium. TRDFwillfundIndianparticipationininternationalstandardsbodies,upto 75%feesforfilingandmaintainingpatents.
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c) Strengthen public R&D institutions like CDOT. Encourage and enable them to collaboratewithpublicaswellasprivateindustryandwithacademiafortechnology development o Allow projects where an Industry (public or private) could retain exclusive technology rights for initial three years provided they are jointly funding developmentalongwiththeR&Dinstitution.TheR&Dinstitutioncouldinreturn getroyalty. d)EnableCreationofIPRsandpushintoStandards o CreateTelecomStandardsDevelopmentOrganization(TSDO)ledbyindustryand telecom service providers and with academia, R&D centers and government participation Drive IPR creation and global standards to meet Indiaspecific requirements DOT will vet the final standards before promoting them in ITU as international standards and decide on adopting them as national standards. o Reorient Academic R&D and R&D centers towards IPR generation for telecom standards, leading to development and commercialization of Indian Products. This IPR should be both essential IPR that goes into international standards, as well as implementational IPR that goes into products. Funding support should alsobegivenfortheresearcherstoattendstandardsmeetingsregularlysothat their IPR can be promoted for inclusion in the standards. These meetings take place seven to eight times a year all over the world. As India becomes active, suchmeetingsshouldtakeplaceregularlyinIndiaaswell. AugmentTCOEsforthispurpose SupportasmanyR&Dcentresaspossible,bothinpublic,PPPandprivate spheres.Continuedsupport shoulddependontrackrecordof quality of output,IPRssuccessfullyincorporatedinstandardsorproducts,abilityto launchworkinemergingareas. e)StrengthenTECtocoordinatesettinguplabsfortestingandcertificationofproducts asperinternationalbestpractices. o Create some private and Publicprivate bodies to set up accredited test to test productsforconformance,performance,interoperabilityandsecurity. Desirable to set up such labs in vicinity of strong R&D clusters and academiatoassistindevelopmentprocess.Alotofthetestequipment, particularly software, for emerging technologies are also developed in
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parallel with products. These tend to be very expensive in the initial years, acting as a roadblock for entrepreneurs and industry. Involving academiaincloseproximityisaverycosteffectivewaytobringthecost of tester development down, and leverage the ability of academia to quicklyunderstandnewconcepts. o FundCreationoflivetestbedsfornextgenerationtechnologies,particularlyby consortiaofindustryandacademia.Suchtestbedsshouldbewidelyavailablefor industryandentrepreneursforassistingtheminfinetuningtheirproducts. o ReservecertainspectrumforR&Dandfieldtrials(pilots). o Reserve certain spectrum where only indigenously developed products can be deployed. 7.9 GreenTelecom,useofWind,Solar&HybridTechnologiesforreducing carbon footprints TelecominitiativesinruralIndiaface problemsduetodismalstateofruralelectrification. Thegridpowerisnotavailableinmanyareas,andevenwherethegridsupplyisavailable the power quality is poor (sudden change in voltage, undervoltage/overvoltage, voltage fluctuation)anderratic.Whenavailabilityofqualitypowerisnotassured,batteryisusedas toprovidepowerbackupforcertainnumberofhours.Twoofthemostcommonalternate powersolutionsaredieselgeneratorandinverterbatterysystems.Whilesupply,storage, costof dieselandtheresultingpollution(noiseandenvironmental)posemajorhurdlesin operating diesel generator set, lowvoltage and intermittent supply of electricity renders inverterbatteryineffective. There are about 300,000 mobile BTS towers in the country, having 1520 KVA diesel generatoraspowerbackup.Twobillionlitersofdiesel5isconsumedeveryyear,generating 5.4milliontonsofcarbon.ThemobilesubscriberbaseinIndiahasalreadycrossedthe800 millionmark.Addtoitthenondieselelectricalconsumptioninthetelecomnetworkandit isfoundthattheaveragepersubscriberCO2emissionisaround22kginIndiaascompared totheinternationalaverageof8kgofCO2emissionpersubscriber.Theprimaryculpritis diesel powering of these remote base station and efforts are required to be taken for reductionofcarbonfootprintinthetelecomindustry. One of the approaches is to design and develop low energyconsuming and low radio emissiontelecomsystems.InIndia,wherethewiredlinenetworkislimited,acustomerwill dependmoreandmoreonwirelesstogetbroadbandInternetservices.Itwillthereforelook formoreandmorespectrumtoprovideservicesandtechnologieswithenhancedspectral efficiency(numberofbitperHzpertower).Itisimperativethat,astheamountofspectrum usage goes up and the number of bits transmitted per Hz goes up, the amount of energy
5
oneliterdieselemits2.68kgofCO2and1KWhofgridpowerconsumedemitsaround0.84kgofCO2
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usedperbitsignificantlygoesdown.Thisisimportant bothfromthe view ofenergyused (Green Telecom) as well as the potential harmful effect that increasing electromagnetic (EM)emissionmayhave.WirelessTelecomhastobethoughtofdifferentlyaswegettothe next generation of wireless. R&D in India need to focus or architecture and technologies whichwouldsignificantlyreduceenergyconsumptionperbitandpowertransmittedperbit. Asecondapproachwouldbetoreduceenergyconsumptionrequiredandcellphonetowers forcooling.Theairconditionersinstalledtocoolthechambershousingbasestations,power convertersandbatteriesinthesummerheatconsumemuchofthepower.Alternativesare possibleintermsofdesigningoutdoorbasestationsandalternatecoolingsolutions. Athirdapproachwillbetousealternativeenergysourcesfortelecom.Useofdecentralized solar energy6and wind energy7 for powering towers and rural exchanges could be an answer. Its suitability for decentralized applications and its environmentfriendly nature make it an attractive option to supplement the energy supply from other sources. Solar Photovoltaic Cells could meet the power needs adequately, even as it cuts down harmful greenhouse gases. Alternatively Wind Turbine Generator with a cutin speed of 33.5 m/s andgeneratingpoweratspeeds4.5m/scouldbeused.HybridWindSolarSystemcouldbe another answer, as they make an ideal alternative as solarwind power generations are complementaryandnonpolluting.Theproblemisreliabilityandcostofthesetechnologies. Itmaybeunfair to puttheadditionalcostburdenontelecomoperators,whoarealready feelingthepinch.Therenewableenergyusagemayhavetobesubsidised.Anotherproblem isthatthisrenewableenergystoragerequiresenergystorage(likebatteries).Thebatteries haveproventobeunreliable.OnealternativecouldbegetsomeRenewableEnergyService Companies (RESCOs) to supply electricity to operators and take the subsidy. Alternatively, DOThastocoordinatesothattheoperatorswhoinstallrenewableenergysystemgetthe subsidyaspertheGovernmentofIndiapolicy. Recommendations Keepinginviewtheabove,followingsisrecommended: a) PrioritiseIPRgenerationandR&DindevelopmentofproductsforLowenergy,low ElectroMagnetic(EM)Emission,HighPerformanceWirelessSystems o PushtheseIPRinnextgeneration(5G)wirelessstandards o AimtoreduceEMemissionsperbitbyafactorof100 o Aimtoreduceenergyconsumptionbyafactorof10
InIndiatheannualglobalsolarradiationisabout5KWh/sq.m.perdaywithabout23003200sunshinehours peryear. 7 InIndiathebestwindspeedisavailableduringmonsoonfromMaytoSeptemberandlowwindspeedduring NovembertoMarch.Theannualnationalaveragewindspeedconsideredis56m/s.Whereveraverage windspeedof4.5m/s.andaboveisavailableitisalsoanattractiveoptiontosupplementtheenergy supply.1KWWTGgeneratesaround3units(KWhr)perday.
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b) PrioritiseIPRgeneration,R&Dandproductdevelopmentinlowemissionsinbuilding wirelesssolutions. c) Prioritise R&D and product development in distributed, renewable and hybrid energysourcesfortelecomequipment. d) PromoteR&Dinenergystorageandenergysavings. e) Adopt internationally developed and accepted benchmarks for methods in evaluatingEnergyEfficiencyinthenationalTelecomNetworks. f) GoaltoprogressivelyreduceCarbonemissionforthemobilenetworkby8%bythe year20122013,12%bytheyear20142015,17%bytheyear20162017and25%by theyear201819. g) Aimtopoweratleast50%ofallruraltowersand33%oftheurbantowersbyhybrid power (Renewable Energy Technologies (RET) + Grid power) in the next five years, whileallruraltowersand50%ofurbantowersaretobehybridpoweredby2020. h) Serviceprovidersshouldendeavourtoensurethatthetotalpowerconsumptionof eachBTSwillnotexceed500Wbytheyear2020. 7.10 RecommendationsonEnvironment,RadiationandHealthrelatedissues a)EnsureComplianceagainstexistingEMemissionstandards o Spread awareness on current globally accepted norms and practices with respecttoelectromagneticradiation o Electromagnetic Wireless Emission needs to be handled with Caution. Promote education that wireless emissions need not be hazardous if prescribednormsareobserved. o PromoteStudiesonLowemissiondeployments. b) PromoteStudiesonhealtheffectsoflowpowerradiationfromwirelesssystemsand devices o Fundseveralsuchstudiestoacquirenewknowledge,especiallyonlongterm potentialimpact. 7.11 RecommendationsonUrbanPlanningwithregardtoTelecomInfrastructure i) DeveloptransparentRightofWayPolicyfortelecomcables. ii) Developsafetyandaestheticstandardsforwirelesstowers. iii) DeclareTelecomsectorasInfrastructureSector(bothwirelineandwireless). o Provide all thebenefitsavailabletoinfrastructuresectorstotelecomsector alsotorealizetruepotentialofICTfordevelopment.
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iv) Promote sharing of the tower infrastructure using passive as well active methodologiestominimizetheeventualityoflocatingnewsiteswithinthevicinity ofexistingtowers.[Saywithin200m,inurbanareas&within2Km,inruralareas]. Serviceprovidersshouldplantohaveatleast10%oftheirsitesactivelysharedby theyear2014. 7.12 The CDOT projects related to the development of GPoN, Technologies for rural areas,BroadbandTechnologies,SharedGSMRadioAccessNetwork(SGRAN),etc. During the 11th plan period, CDOT undertook technology development programs inline withthebroadobjectivesoftheplannedperiod,whichlaidemphasisontheemergingareas such as Next Generation Networks (NGN), wireless broadband, telecom network security, infrastructuresharingtoacceleratethepenetrationoftelecomnetworkintheruralsector, andindigenousmanufacturingoftelecomequipment. CDOTmadesignificantprogressintheexecutionofitstechnologyroadmapsetoutforthe 11thplanperiod.Manyofresearchprogramsareeitherinfield/pilottechnologytrialphase orintheadvancestageofdevelopment. Someofthemajor technologyachievementsare summarizedasfollows. o MAXNG Migration of CDOTbased fixedline technology to packetbased Next Generations Networks (NGN). The technology will help BSNL to extend the life of legacynetworksbasedonCDOTcircuitswitchedtechnologyandprovideservicesof thenextgenerationsnetworks o GPON(GigabitPassiveOpticalNetwork)indigenousdevelopment,usefulforthe broadbanddeliveryoverOpticalFibreCable(OFC)networkcateringtohighbandwidth solution for the business applications in Metros and egovernance solution in Rural areas o SGRAN (Shared GSM Radio Access Networks) technology allows mobile active infrastructuresharingtogiveaffordablemobilitytoruralIndiatherebyexpandingthe telecompenetrationtoruralsector. o CDOT ATM technology customization / adaptation for defence applications caterstorequirementsofstrategicsectorlikenavalprogramsforsettinguponboard communicationnetworkcompletelybasedonindigenoustechnology. o CMS(CentralizedMonitoringSystem)technologycaterstotherequirementsof securitymanagementforlawenforcementagenciesforinterception,monitoring,data analysis/mining,antisocialnetworkingusingthecountrystelecominfrastructurefor unlawfulactivities. These technology programs as well as ongoing technology enhancements of the deployedtechnologyareexpectedtoyielddesiredcommercialresultsduringlastyear ofthe11thplanandfirsttwoyearsofthe12thplan.Withmoreandmoreinnovative
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servicesandnetworktechnologiesappearingonthehorizon,Itisrecommendedthat CDOT be strengthened to pursue major technology schemes and solutions in the forthcoming 12th Plan period (20122017) in partnership with academia, and public andprivateindustry. CDOT:ListofMajorTechnologyDevelopmentSchemeplannedinthe12thPlan S. CDOTMajorTechnologyDevelopmentSchemesplannedinthe12thFiveYearPlan No. period TechnologySchemes MajorProjectActivities A1 1. 2. 3. 4. 11thPlanScheme(s)plannedtoberetainedinthe12th Plan Communication&Security Research&Monitoring BroadbandTechnologies Campus TechnologyEnhancements/ Upgradationandadaptations &TechnicalSupport NewSchemesproposedforthe 12thPlan NextGenerationMobile Technology CareerNetworksTransport Technology SecureWireless&Wireline Networks CentralizedMonitoringSystem(CMS) Implementation&Rolloutinthefield R&DforTerabitRouter Constructionofresidentialcomplexhostels &dwellingunits SharedGSMRadio,MAXNG/NGN,ATM Support,NMSSupport,Softwareintensive Applications,etc.
A2 1.
2.
3.
4.
SatellitebasedTechnology
5.
TelecomServices& Applications
R&DforemergingWirelessTechnologiesfor Broadband/&AdhocMeshNetworks4G Technologyetc. OpticalTechnologies XGPON1/2,WDMPON,DWDM,allOptical NetworkPlatform DevelopmentforasecureMobile CommunicationNetworknamelyWiPSbased GSMtechnologieslikeEDGE&3G,panIndia implementationforfixedlineSecure& DedicatedCommunicationNetwork(SDCN) etc. SatellitebasedProductstomeetthe requirementsofregionhavingtough terrains,hillyareas,scatteredpopulation overdifferent&distantareasoftheregion, suchas,NorthEast,Tribal,etc. R&DforconvergedNMS,Softwareintensive Applicationsfornewservices,service
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6.
EnablingTechnologies& TelecomNetworks
7.
PowerefficientandGreen TechnologiesforRural
8.
NextGenerationsecurityfor Telecom&DataNetworks
deliveryplatformtosupportmultiple applicationsandValueAddedServices(VAS) Feasibilitystudies/pilots/consultancyon emergingtelecomtechnologies&piloting trialstogainoperationalinsights& applicationsoftechnologiesandrelated issues R&Dforexploringalternativesourcesof energy,designoptimizationtoenhancethe systemspowerefficiencyandtechnology trialsforruralsectors R&Dfor enhancingthepresentinterception techniques,encryption/decryption,data mining,etc.,toenhancethenetworksecurity tocombattheemergingsecuritythreats
TechnologyMnemonics: XGPON1/2:NextGenerationGPON(GigabitPassiveOpticalNetwork);WDM:WavelengthDivision Multiplexing; CMS : Centralized Monitoring System; WiPS : Wireless in Phone Service; SDCN : Secure and Dedicated Communication Network NMS : Network Management System; EDGE: EnhancedDataforGSMEvolution;ATM:AsynchronousTransfermode
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Annex Broad Area Wireless TelecomTechnologyareasforR&Dfunding Productsthatcanbedeveloped Coretechnologiesinvolved Segment whichis addressed SmartAntennas HSPA+ Wireless Cognitiveradios 4G/5Gsystems Broadband SoftwareDefinedRadios IBS/DASsystems Access/ AdvancedDSP Picocells/femtocellsbased Backhaul Coding&Modulation products techniques Multiprotocollowrange compactbasestations mmWavewirelesssystems IP/Hybridmicrowaveradios Switching/packetprocessing EBandRadiosin60/70/80GHz for1/10Gbpslinks SharedsmallsizeGSMRadio SharingofBSS(BSC,BTS, Active TRAUandOMCR) Infrastructur AccessNetwork esharing WirelessRFpropagation Softwaretoolsforwireless Wireless modelsforIndianterrain networkplanningand Network (keepinginmindhigh optimization Planning density,vegetation& SoftwaretoolsforWireless spectrumallocated) serviceassuranceandnetwork AlgorithmsforKPIskeeping performance inmindIndianregulatory monitoring/reporting requirements Spectrumefficiency optimization BurstModeoptical Broadband 10G/40GPONsystems transmittersandreceiversat Access WDMPONsystems HybridWDMTDMPONsystems 10G/40G Injectionlockedoptical CarrierEthernet sources Broadbandlightsources CyclicAWGs Switching/packetprocessing Ramanamplifiers Backbone UltradenseWDMsystems Coherentoptical networks Allopticalnetworkplatform transmitters/receivers ASONsoftwareplatformfor Integratedopticaldevices ROADM
Optical
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Metro/Aggre gation network
NextGenSDHwithpacket transport&OTNcompliant interfacesPacketOptical TransportPlatform
IP
Ethernet transport/ag gregation carriergrade
Telecom Security
Telecom Services & Applicati ons
PBTbasedonPBBTEandMPLS TP SIPapplicationserversandsoft switches Sessionbordercontrollers Terabitrouters Multiservice MSPPwithMEN/xDSL/XPON platform interfaceswithGbpsbackhaul supportedbyMPLSTPprofile Network Lawfulinterceptmonitoring Security systemssupporting voice/video/dataservices Locationbasedmonitoring systems SecureIPcommunicationdevices andequipments,Hardware basedEncryptors NElevelsecurityconformance Common testingfromcyberattacks criterion certification Applicationlevelsecurity conformancetestingfromcyber lab attacks ServiceProvisioningand Converged ManagementSystem Network Managemen DecentralizedMediationSystems tSystem
likeswitches Allopticalwavelength convertors IPcoresforpacket&OTN compliantinterfacesleading toFPGAs,ASICs,TDMandIP switching,Mappers,Framers etc. IPSwitching,Coresleading to ASICs,protocols,algorithms andsoftwarestacks
IPCoresleadingtoASICs, protocols,algorithmsand softwarestacks Algorithmforinterceptionof connectionoriented networks,Algorithmsfor interceptionofVoIP,Video overIP, GPSbasedmonitoring systems Encryptiontechnologies TelecomProducttesting& infrastructurebuilding
Virtualdata centres Account settlingfor
DataClearingHouse
Mediationsupportforboth legacyandstandardbased NEs Corearchitecturetosupport Multivendor,multi technology,multibrowser, multipleplatforms Virtualizationandcloud computing TAPprocedures
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TSPs Service Delivery Platformsfor supporting multiple applications andVAS
Public safety
Mobile hand held devices andCPEs
Bio engineering studieson EMF radiation impact 3G/4G handsets CPEs
NorthandSouthbandinterfaces toTSPsNOCtosupportOSS& BSS Futureproofsolutionsupporting education,entertainment, enterpriseapplicationsfor deliveryoverwireless infrastructuretothesmart phones/tablets/embedded laptopdevices Basestationswithlessthan1W emissions Handsetswithfewmicrowatt SAR
Telecom related electroni cs Acronyms:
Network powering
IndianOStoreplaceAndroid, Symbion Lowpowerconsumingrugged handsetswithinnovative chargingstations Smartphone,tablets&other handhelddevices MobileVAS CustomerPremisesEquipment forbroadband SolarHybridpowersolution systems Enhancedhighcapacityand efficientbatteriesfornetworking equipmentsanddevices
Algorithmsforconversionto vernacularlanguages ChargingwithEmbedded solarcells,lowpower electronicsetc. SoC,DSPalgorithms
Reliable,efficientandcost effectivesolarcells Batterydesign;material engineering
ASIC:ApplicationSpecificIntegratedCircuit ASON:AutomaticallySwitchedOpticalNetwork AWG:ArrayedWaveGuide BSC:BaseStationController BSS:BusinessSupportSystemsorBaseStation Subsystemdependinguponthecontext BTS:BaseTransceiverStation DAS:DistributedAntennaSolution
DSL:DigitalSubscriberLine DSP:DigitalSignalProcessing GPS:GlobalPositioningSystem HSPA:HighSpeedPacketAccess IBS:InBuildingSolution IP:InternetProtocolorIntellectualProperty dependinguponthecontext KPI:KeyPerformanceIndicators
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MEN:MetroEthernetNetwork MPLSTP:MultiProtocolLabelSwitching TransportProfile MSPP:MultiServiceProvisioningPlatform NE:NetworkElement NOC:NetworkOperatingCentre OMCR:OperationsandMaintenanceCentre Radio OS:OperatingSystem OSS:OperationsSupportSystems OTN:OpticalTransportNetwork PBBTE:ProviderBackboneBridgeTraffic Engineered
PBT:ProviderBackboneTransport PON:PassiveOpticalNetworks ROADM:ReconfigurableOpticalAddDrop Multiplexer SAR:SpecificAbsorptionRate SoC:SystemonChip SDH:SynchronousDigitalHierarchy SIP:SessionInitiationProtocol TDM:TimeDivisionMultiplexing TRAU:TranscoderandRateAdaptationUnit TSP:TelecomServiceProviders VoIP:VoiceoverInternetProtocol WDM:WavelengthDivisionMultiplexing
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8.1
CHAPTER8 TelecomNetworkSecurity GuidelinesforCostsharingandAllocationofR&Dfunds.
The security of the network and communication flowing through the network is not the responsibility of only the Government. It is a shared goal of the Government, Telecom ServiceProviders,SecurityAgenciesandevenofcitizensofthecountry.However,security comesatacost.Thetwomainstakeholderswhoplayvitalroleandthroughwhomcostwill be incurred on security related issues are Government and the Telecom Service Providers (TSP,ISP,UASL,CMTSILD,NLDetc),althoughultimatelyitwillbebornebythecitizensor thecustomers.Nevertheless, itmaybeappropriate,if some broadguidelines arelaidfor sharingofcostbetweenthesetwomainstakeholders.Followingguidingprinciplescanhelp indeterminingthecost/fundsharingbetweenthesestakeholders. a. Forasystemwithonlysecuritydimensionsandwhichconnectsatbothendsi.e.at Service Provider end and Security Agency end, system connectivity and system development cost at agency end would be borne by Government and for creating thefacilitiesatserviceprovidersendcostwillbebornebytheserviceprovidere.g. LawfulInterceptionandMonitoringSystems. Forasystemorfacility,whichhasdualusethatitisusedfororhasthepotentialof use for security and commercial, cost would be borne by TSPs e.g. Location Based Services(LBS). For system or facilities not connected to TSPs and created for sole use of Government,costwouldbebornebyGovernmenti.e.SecuredNetwork. For security sensitive R&D activities, funds would be generally allocated to Government controlled organization. However, for public safety and less security sensitive R &D activities, funds could be allocated to private sector also at its discretion through a transparent and fair process. In such a situation, Government would have the right to share the commercial benefit of the technologies so developedasagreedbeforefinancingsuchR&Dactivities.
b.
c. d.
Inthematterofsecurity,however,Governmenthasthediscretiontolaydownanysecurity conditionforwhichcostmayhavetobebornebyTSPs. 8.2 TheIssuesandRecommendations:
(i) SecurityrelatedissuesinTelecom:Implementationoftheschemeforsettingupof Centre for Communications Security Research and Monitoring and establishment of Centralized Monitoring System (CMS) and Centre for Telecom Testing and SecurityCertification Telecommunication has become one of the basic needs in the modern age and telecommunicationinfrastructurethelifelineofanation.Inthemodernage,itisnotonly
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usedformeretalkinglocallyorlongdistance,alltheeconomicactivitiesofanationandof the society at large have become dependent on telecommunication services. Because of thisdependenceofothersectorsontelecominfrastructure,ithasbecomeimportanteven forthesecurityofthesocietyandthecountryand,hence,hasgrownfrombeingaservice sectortoalmostastrategicone. DuetotheliberalizationofthetelecomsectorandopeningofFDIinthesectorupto74%,it is served by a wide spectrum of companies, including by those companies which have substantialforeignholdingandcontrolledbyforeignentitiesregisteredinIndia.Exponential growth and quick technological development in the telecom sector furthercompound the securitychallengesbecause,theexpandingreachofthesophisticatedtelecomnetworkshas alsoledtothecommunicationsystemsbeingusedby,howeverasmallnumber,individuals, clansandgroups,fromwithinthecountryandoutside,forantisocialandcriminalactivities. The antisocial or antinational elements can use the communication facilities either to communicatetheirplans,coordinateandexecutethecrimeortheycanattackthenetwork, steal the confidential or private information contained in the network devices or flowing throughthenetwork.Thesetwotypesofthreatsrequiredistinctanddifferenthandlingof theissues. To address the first threat, security agencies would like to intercept and monitor the communication made by these threat elements. Since, there are lot of other information also available in the system about the communication, which could be handy for the securityagenciesforanalysisandtakingproactiveaction,ifasystemcouldbebuilttouse the information, with some check and balance, it can be very useful to these agencies in containment,controlandbustingofcrimes.Atpresentthisisdonethroughmanualtaking ofauthorizationatmultipleplacesatthepremisesoftelecomServiceProviders.Thesystem istimeconsumingandfraughtwithdangersofloosingthesecrecy.Further,thereishardly any analytical capability in the system. This is known as communication assistance to the lawenforcement. Fortheassistancetothelawenforcement,in11thfiveyearsplan,aCentralizedMonitoring System (CMS) was envisioned. A proposal for setting up of a Centre for Communication SecurityResearchandMonitoringhasalreadybeenapprovedbytheCabinetCommitteeon SecuritywiththeGovernmentfundingofRs450crores.TheCMSisoneofthetwomodules oftheScheme.AgoodamountofresearchworkonCMShasalreadybeendoneandrollout has begun during the year 201112. In 12th Five Years Plan further research work will be done andfacilityforcentralizedmonitoringwill be createdthroughoutthecountryacross the different telecom and Broadband technologies and services by completing all the phases,whichhavebeenapproved.ThiswouldcostaroundRs350crore.Thesystemwould befurtherupscaledtotakecareofexpandednetworkandbycreatingmorefacilitiesatan
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estimated cost of Rs 150 crores. For operation and maintenance of the system, an expenditureofaboutRs300croreswouldberequiredduringthe12thFiveYearsPlan,which will include the enhanced manpower to maintain and operate the system. Thus total fundingforCMSfromGovernmentisproposedtobearoundRs800croresduringthe12th five years Plan as an overall outlay for the execution and maintenance of the project. For executionoftheproject,TelecomServiceProviders(UASL,CMTS,TSPs,ISPs,andother)at theirowncostwouldberequiredtocreatefacilitiesattheirendtoconnectwithCMS.
The second threat is related to network itself and is more direct. In a multi operator and multivendorenvironment,therearepossibilitiesoftheftandmisuseofdatabase,leakage ofsecureandpersonalinformationpassingthroughthenetworksduetopossiblepresence ofmalwares/securitybugsinthenetworkelementsetc.Thereareconsiderabledangersto thenetworkandservicesofferedthroughthenetworkduetoservicedenialattacksonthe networks,whicharebecomingmoreopenandaccessibleremotely. Thethreatismoreseriousandneedtobetackledthroughpromulgationofsecuritypolicy, inducting safe to connect devices into the network, periodical security audit of the network, monitoring intrusions and attacks and taking effective steps to wardoff and mitigate these attacks. The telecom network now a days is owned by both private and public sector; largely by private sector. Even in the public sector, it is operated on commercialbasis.Theabovementionedthreatstonetworksecuritywouldhavetobetaken care of by the network operators, and the Government would need to create an environment,capacityfortestingandstandardization.Withthis inview, Telecom Testing and Security Certification centre was included as the second module in the scheme of Setting upof Centre for Communication Security Research and Monitoring, which stands approved by CCS. A provision of government funding of Rs 50 crore has been kept for developmentofsecurityteststandards,proceduresandtesttools.Sinceduetochanging technologiesandnewsecuritythreatsemerging,fieldisevolving,newsuitswouldhaveto be developed. Therefore, a provision of Rs 100 Crores (including Rs 50 crore already approved)isproposedtobemadeduringthe12thFiveYearsPlanforTelecomTestingand SecurityCertificationCentre,underthecontrolofDepartmentofTelecommunication(DOT). TheTelecomSecurityTestingLabswouldbesetupfortestingoftelecomequipmentbased on the security test standards, procedures and tools in public, or joint ventures where telecomserviceprovidersandvendorswouldgettheirequipmenttestedonpaymentbasis. These labs would be certified by Telecom Testing and Security Certification Centre on paymentoffee. Recommendation: Up scaling of the two modules of Centre for Communication Security Research and MonitoringcentreaGovernmentfundingofRs900Croreisproposedduringthe12th FiveYearsPlanforthefollowing:
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a) Centralized Monitoring System with a Government funding of Rs 800 Crores and b) TelecomTestingandSecurityCertificationCentrewithGovernmentfundingof Rs 100 crore. Hence, total for the scheme of setting Centre for Communication Security Research and Monitoring during the 12th five years Plan. (ii)ImplementationofWirelessPhoneandSecurityNetwork: Many email and VoIP users in India rely on services of foreign origin such as Yahoo Mail, GoogleMailSkypeetc.Theseservicesuseproprietaryencryptions,whichareconsideredto besecure.Theservicemaybesecurefromhackers,antisocialelements,rivalsetcbutstill the communication made through these services can be accessed by the Government of othercountries,wheretheserversforprovidingtheseservicesarehosted,byinvokingthe provisions of their laws. That is why for the security of communication flowing within the country, it is desired that this traffic should not flow outside the country and should be routed through NIXI. However, due to capacity constraint and nonenforcement of this, muchofthecountrytrafficflowsoutsidethecountry.Forthesecurityofcommunication,it is proposed that it is mandated that within country traffic should be routed through NIXI andtheprovisionisenforcedlegallyaftercreationofnecessarycapacity. A lot of intragovernment communication is classified.Thesecurity of thiscommunication hastobeensuredbyalternativemechanismbecauseneitheritisadvisabletowaitforsuch amandatingandcapacitybuildingnoritmaybeappropriatetorelyonthelevelofsecurity providedbysuchaschemeascommunicationwouldstillremaininopendomainofInternet. ForhighsecurityofclassifiedGovernmentcommunication,securedcommunicationnetwork isproposedtobeestablishedforfixedandwirelesscommunicationatanestimatedcapital costofRs300crores.Further,Rs100croresforfiveyearsareproposedtobeearmarkedfor operationalexpenditureandRs50croreforR&D.BSNLandMTNLwouldbereimbursedfull capitalcosttheyincurforbuildingthesecuredcommunicationfixednetwork,whichisbeing rolledoutbythemoncommercialbasis.Inlongrunbuildingandmaintainingthenetwork oncommercialbasisisneitherpracticalnordesirable.Evenwhentheexpenditureisborne by user departments they have to make provision in their budget, and hence, amount of outlay provision would still remains the same. Thus budget outlay of Rs 450 crore is proposedforthisactivity. Recommendation: To develop and deploy a Pan India secure network and networkbased services such as email, VoIP, mobile communication through a survivable and available network architecture for secured communication for Government use with a GovernmentfundingofRs450Crores.
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(iii) Disaster Management: Building effective communication networks for providing effectivecommunicationduringvariousNatural/ManmadeDisasters: Whenever natural or manmade disasters occur, the most stressed infrastructure is the communication. Most systems do not degrade gracefully leading to nonavailability of communicationatcriticaltimes.Furtherinmostsituationsirreparabledamagemayoccurto thecommunicationsystemitself,likeinthecaseofcyclonesorfloods.Insuchsituations,a rapidly deployable cell system catering to multitude of services is a must. These base stations should be able to switch calls from police, civil services, medical teams and also connect to public network and commercial phones. Further, they should be capable of supportingAsynchronousandsynchronouscommunication,VoIP,datatransfersfromPDA, LaptopetcandalsotoSatellitephonessothatalltheagenciesdeployedduringthedisaster management could communicate seamlessly across within and with each other groups. They in effect support Interoperability Solutions w/PSTN, DISN, IP, SATCOM, & First ResponderCommsandvehicledataandtrackingsystems.Manysuchoperationalsystems thatcanbedeployedwithintwohoursareavailableacrosstheworld.Thecapabilitytobuild such rapidly deployable systems exists within the Indian Industry and the Governmental LaboratoriessuchasCDOTandBEL. Further,thedevelopment ofindoorpositioningsystems thatarerapidlydeployableinthe buildingsundersiegealsoneedtobedeveloped. TheNDMAiscreatingthenecessarytelecominfrastructureformitigatingtheaftermathof disasters.TheministryofHomeAffairs,thedesignatednodalagencyforcoordinatingrelief in the aftermath of natural disaster, directed all central ministries concerned to prepare detailedStandardOperatingProcedure(SOP)totheaboveeffect.TheobjectivesoftheSOP fortheDepartmentofTelecommunicationsare: (a)Coordinationofnationalactionstoassuretheprovisionoftelecommunicationsupport tothecentre,stateanddistrict. (b)Coordinatetherequirementoftemporarytelecommunicationintheaffectedareas. (c)Providehumanservicesundertheministryofcommunications. TelecommunicationEngineeringCentre(TEC)haspreparedtheSOPlayingdownthespecific actionsrequiredtobetakenbytheDepartmentofTelecommunicationsandPSUsunderits control and Private Telecom Service providers for restoration of telecommunication services. This SOP also lays down the procedure to be followed for receiving reports, analysingthemandthereafterissuingfollowupactionforcohesiveactionforrestorationof telecomservices. Recommendation: I)ARapidlyDeployableMultiProtocolWirelessCommunicationsysteminteroperableacross alltheservicesthatareengagedindisastermanagementshouldbedeveloped.
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ii) An indoor positioning system to fix positions of men engaged in disaster management withinabuildingtoanaccuracyofafewcentimetersshouldbedeveloped. iii) As a policy, there should be at least 100 cells phone and fixed line numbers given to disaster management agencies by every service provider who should receive guaranteed servicelikehotlineservicesduringdisasters. iv) A budget of Rs 50 crores is proposed for development of systems mentioned at recommendationi)andii)aboveandallocatedtopublicorprivateorganizationasdecided byafocusgroupsetupbyGovernment. iv)ImplementationofLBSFacilitiesthatcanAssisttheLawEnforcementAgencies: Location based service (LBS) can help the security agencies in locating the criminal or the siteofthecrime,whichfacilitatesthemtoprevent,control,detectandanalyzethecrime. ThelocationaccuracyhasalreadybeenmandatedfortheTelecomserviceProviders,upto 201314 and could be revised as per national needs keeping in view practicability. The LocationBasedSolutionsaregoingto becomenecessarynot onlyforsecurity reasonsbut these are going to become popular for rendering commercial services also. The solution could be hardware or software based. Software basedsolutions could turn out to be cost effective. There is a strong case to research and develop local LBS solution, particularly software based. Organization like CDoT in public or private sector should take up the development of solution for LBS and budget of Rs 50 Crore should be allotted for developmentofLBSsolution. Recommendation: Alreadymandatedlocationaccuracyistobeimplementedanddependinguponthenational needs and practicability based on available technologies, it could be revised. For developmentofindigenousandcosteffectivetechnologiesandsolutionsaprovisionofRs 50croresisproposedinthe12thfiveYearsPlan.
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CHAPTER9 HRDandSkillDevelopment 9.1 ScenarioAnalysis a) Deregulation, increasing privatization, competition, and technological advancementshavecountrystelecomtogrowexponentiallyfromteledensityof 2.32in1999toteledensityof73.97in2011(June2011).Duringthelastcouple ofyears,theyearlygrowthhasbeenaround40%. b) CurrentSubscriberbaseisofapprox.886million(June2011)subscribersandis the second largest mobile network in the world with approx. 852 million (June 2011)wirelesssubscribers. c) Rolloutofservicesinmorethan8000townsandcitiesandover5,90,000villages with12to14mobileoperatorsinmostoftheserviceareas. d) Telecom sector has contributed significantly to the GDP of the country and is expectedtogrowfurtherinviewofambitioustargetstobringconnectivityand BroadbandtounconnectedIndia. e) More services are getting introduced by exploiting the telecom network capabilities.Thistrendoffasttechnologicalchangealongwithintroductionofa hostofnewservicesislikelytocontinueinfuturealso. 9.2 AnalysisofProblems a) Though for the telecom sector as a whole authentic Human Resource statistics could not be readily obtained, however, as per study by National Skill DevelopmentCorporation(NSDC),incrementalhumanresourcerequirementfor telecomequipmentindustryhasbeenprojectedasfollows: 2008 Projectedhumanresource 2012 2018 2022 incremental requirement 20082022(in`000s) TelecomEquipment 184 400 880 759 575 b) Further,incrementalhumanresourcerequirement,educationwise,till2022(in 000s)fortelecomequipmentsegmenthasbeenprojectedbyNIDCasbelow:
Incremental human resource requirement (in000s) Ph.Dand Research scholars Engineers Diploma andother equally certified skills ITIandother Other graduates vocational suchas courses B.Sc MBA/ CA/C WA 10th/ 12th
Telecom equipment
29
230
115
38
86
32
45
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(b) It is expected that the telecom sector itself would need around one million additional skilled human resources during the 12th Plan period. These skills wouldspanthedomainofvocation,engineering,technical,R&D,etc.,atmulti levelsofgranularities.Theskilldescription,theassociatedjobdefinitions,the corresponding content evolution and finally the certification process would requirebeinginplaceforsuccessfullyaddressingoftheissuesofskillgap. (c) In the context of contribution towards global standards, generation of Indian IPR and becoming a leader in manufacturing we need right and competent manpowerinspecializedareastohandlehighskillworkprofiles.Further,from organizational perspective, fast changing technological as well as service scenario not only requires higher level of technical skills but a higher organizational capability than before for handling more complex tasks that require multifunctional skills, ability to use IT effectively, high degree of communicationskillsetc. (d) Whiletherearefewinstitutesprovidingworkreadyhumanresourcesthatsuit forstandardization, IndianIPRneeds, stillsignificant gapexistsin thehigher education (M.Tech & PhD levels). Further, huge demand gaps exist, on a qualitativebasisatalllevelsduetolackofrequiredcompetencies(viz.abilityto applyknowledge,designskills,problemsolvingskills,technicalcompetenceetc.) inmakingfreshengineeringgraduatestobeworkready. (e) Therefore, there is a need to focus on aligning the engineering/technology curriculum of various undergraduate/ postgraduate programmes for meeting the human resource requirements in the fast evolving technologies in the telecommarket.Further,hugeinvestmentswouldalsoberequiredtobuytest equipments, handling new standards/technologies for learning in specialized courses. (f) The endtoend eco system of telecom in the country, leading upto highend indigenous manufacturing, Indian IPR, etc. would need promotional initiatives forentrepreneurshipdevelopmentinthecountry.Theestablishmentofstate ofartlabsintheGovernment/privatedomainalongwithothersupportfrom Government/privatebodieswouldenhancesuccessonthisaspect. 9.3 SkillDevelopment:Toevolvestrategyforcapacitybuildingintelecomsector a) The presently available human resource projections relating to telecom sector basically provide input with regard to human resource requirements only for telecomequipmentindustry.Thereisanurgentneedtoundertakestudyabout current level of directly or indirectly deployed human resources and their skill
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sets as well as demand projections about incremental requirement of human resourcesandtheirskillsetsforatleastanother10yearsperiodfortheentire telecomsector. b) Thepresenttechnicaleducationisnotadequatetomeettheskillrequirements ofthetelecomsector.ThereisaneedtoputinplaceahighlevelApexbody within the telecom department to oversee and act as guiding/enabling source for aspects relating to skill and learning development in Telecom field in the country.Thisapexbodyshouldbesupportedbyappropriateadvisorygroup(s) consisting of representatives from industry, academia, PSUs and other stakeholders. c) There is a need for creation of appropriate mechanism which acts as a single point source/repository of various aspects linked with telecom knowledge domain, which is updated periodically and is available across the country through web so that this information can be used by institutions at various levels to update their curriculum based on emerging trends, by various stakeholdersoftelecomIndustry,andbytheusergroupsforawarenessrelated initiativesetc. d) Further, above suggested single point information source may also act as a potentialfacilitatortodisseminateknowledgeinruralareasaboutvarioususer applications and facilities as well as establishing skill development centres in ruralareas. e) Thereisalsoaneedofaccreditationofskillcertificate.Activeparticipationof industry,academiasupportedbygovernmentandPSUsinfrastructuretoplaya vital role in this regard. Acceptance of such certification by the industry as recognitionofpossessionofrequisiteknowledgewillbeagreatenablerforjob orbusinessopportunitiesinthetelecomsectoringeneralandinoperationand servicesupportinruralareasinparticular. f) Thereisaneedforregularandcontinuousupgradationofknowledge,skilland capabilitieswithinthegovernmenttounderstandtelecomissuesarisinginthe fastchangingtechnical&businessscenariotoeffectivelyadministerthesector. g) The training infrastructure available with the Government bodies should be strengthened, continuously upgraded and the training resources should be made available to the entire telecom industry. These training centres should conduct training programme open to common people, entrepreneurs/private sector to take the training to rural masses so that required skilled manpower becomeswidelyavailableatDistrict/Block/Villageleveltoprovideinstallation, operationandservicesupportacrossthecountry h) Thereisastrongneedtostrengthentheresearchfacilitieswiththegovernment and private sector in the country through appropriate funding and coordinate
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their efforts for being in sync with national requirements through an enabling body. Research facilities can be strengthened by setting up higher education institutes dedicated to telecom and by actively supporting telecom streams of B.Tech.,M.Tech.andPhDinexistinginstitutions. 9.4 Reformulate strategy for enabling DOT organisations to effectively flourish in a competitive world through improving QoS, Planning and discovery of synergy amongstvariousunitsofDOT. a) Strategic synergistic alliance amongst PSUs and other DOT organisations holds tremendous potential for sector as a whole and in turn their own viability/relevance. The capabilities of product development by CDOT, its manufacturebyITI&utilisationbyBSNL/MTNL/TCILreflectpotentialimpactof combination synergies which can be brought about through appropriate facilitatingmechanism. b) Toharnesstheirrespectivestrengthandforoptimalutilisationoftheresources tothemutualadvantageofalliancepartners,DOTneedstomandateutilisation ofeachorganisations resourcesby any oftheorganisationof the allianceon mutuallyagreedtermsandconditions.Thiswillhugelyfacilitateunhindereduse ofproductsandservicesavailablewithinthealliance. c) ProductioninfrastructureinexistingfactoriesofITIneedtobeupgradedtothe stateofArt level so that they can provide world class and cost effective manufacturingservicestoIndianManufacturingcompanies. d) TCIL has potential to be one of the Nodal agencies for executing/promoting bilateralprojectsfundedbyGovernmentofIndiainfriendlycountries.TCILcan also take the role of major System Integrator (SI) from India for taking Indian productsandtechnologiestoothercountries. 9.5 RECOMMENDATIONS A. SkillDevelopment:Toevolvestrategyforcapacitybuildingintelecomsector a) A study should be undertaken on priority to assess current level of directly or indirectly deployed Human Resources and their skill sets as well as demand projections for at least another 10 year period about incremental human resourcerequirementsandtheirskillsetsfortheentiretelecomsector. b) An Apex body, comprising of 5 to 7 members, drawn from within the Department/MHRD, academia and Telecom Industry may be set up under the chairmanshipofSecretary(T)tooverseeandactasguiding/enablingsourcefor different aspects relating to monitoring, regulating and managing all the skill developmentrelatedframeworkrequiredforthetelecomsector.
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c) The above Apex body may be supported by appropriate advisory groups consisting of representatives from service providers and their associations, service users and consumer associations, manufacturing industry and their associations, PSUs and other organisations of DOT etc. to provide required inputsforeffectivefunctioningoftheApexBody. d) Createaframeworkfor (i) Developing national occupation standards in collaboration with industry formappingjobprofilesandcompetencystandards.
(ii) Grading of competencies required for each job profile and setting of certificationlevelforeachcompetencystandard. (iii) Organise certification tests for employees, trainers as per industry requirementsandacceptance. (iv) Acareerguidefortelecomindustry (v) Sharingofworkplace,experience,machineryandequipment (vi) Facilitatingemploymentoftrainedgraduates (vii) Promotionofacademicexcellence. The same framework will also assist the already employed manpower, either within DOT anditsorganisationsorTelecomindustryasawhole,infurtheracquisitionofspecificand mandatoryskills.Thisisproposedtobeimplementedthroughvasttraininginfrastructure availableacrossthecountrywithDOTaswellasitsorganisations.Thesameinfrastructureis also recommended for evolution into delivery of formal higher education up to post doctoralstudy/research,asnosuchexclusivetelecominstitutionexistsinthecountry.This willsetbenchmarkinlongtermforintegrationofstudieswithR&Dintelecom. e) A comprehensive repository of all telecom related information/ standards/benchmarks/resources/programme curriculum, etc. may be created and regularly updated by National Telecom Institute of Policy Research, Innovation &Training(NTIPRIT)to workasthemainpointsourceforTelecom field related information dissemination. This would help in homogeneous spread of standard telecom education, generating single window reference data,qualityinformationdisseminationandavailabilityofadatabaseofskilled, certifiedmanpowerproposedabove.Thisrepositorywillalsobeavailableforall those involved in providing school/higher education/vocational training. This will also provide a single window reference point for all consumer awareness relatedinitiatives. f) Settingupofstateofarttelecomlabsinallhighendtechnologyareasincluding the emerging technologies, besides upgrading the existing ones, with the appropriate support from the government for skill/capacity upgradation of
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associated manpower. Such highend infrastructure would also facilitate R&D activities, entrepreneurship initiatives in the country, as well as enhance innovative practices in line/sync with the available international benchmarks. The visibility of India in the International standards space would be bolstered throughsupportfromsuchlabs.Thisstateoftheartlabs/infrastructurewould beavailabletodesignatedwillingpremierengineering/academicinstitutionsto assist the scholars in appreciating/visualising the real time telecom environment. g) PresumingtheavailabilityofmanpoweralreadywithDOTshallbeavailablefor above initiatives, additional funding to the tune of around Rs. 455 crores as capexand238croresasopex,isestimatedtoberequiredduringthe12thFive Year Plan to support setting up of above facilities and meeting other related expenses. h) The institutions available with DOT organisations are already proposed to be upgradedsuitablytofacilitatehigherlevellearningandresearchdimensions. However, research facilities in Telecom domain need to be significantly augmented in the existing IITs and other premier institutions for which HRD Ministryneedstoprovidetherequiredsupport. i) InterventionofHRDMinistrymayalsobesoughtforinclusionofElectronicsand Telecom to bepart ofthecurriculumatthepolytechnic levelandinIndustrial Training Institutes for trades specific to telecom. These can be utilised by entrepreneurs, manufacturers, service providers etc. for training their employeesintradesspecifictoTelecom. B. Reformulate strategy for enabling DOT organisations to effectively flourish in a competitive world through improving QoS, Planning and discovery of synergy amongst variousunitsofDOT. a) For ensuring DOT organisations, viz. BSNL/MTNL/ITI/TCIL and CDOT, to effectively flourish in the competitive telecom market, there is a need that individualstrengthsoftheseorganisationsbeexploitedtotheirmutualbenefit. For this, as a policy, this alliance needs to be recognised for according preferential treatment for procurement of products and services rendered by individual organisations. They may adopt any of the models, viz. Managed Services,ManagedCapacity,oranyothermutuallyagreedtermsandconditions for procurement of the products available within the alliance with necessary checksandbalances. b) An appropriate body may be formed within DOT for identification of products having commercial potential, developed through R&D by CDOT, TCOEs and even in private sector. The selected products need to be appropriately supportedforgoingthroughproductionphase.
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c) ProductioninfrastructureinexistingfactoriesofITIneedtobeupgradedtothe stateofArt level so that they can provide world class and cost effective manufacturing services to all. A Capex of Rs. 300 crores and opex of Rs. 78 croresisestimatedtoberequired. d) Theproductandservicesavailablewiththeorganisationsofthealliancemaybe preferentiallyconsideredforexecutionofprojectsfundedbyGovernmentof India. e) TCIL may be recognised as the nodal agency in respect of product/services available within the alliance for executing/promoting bilateral projects funded by Government of India in friendly countries. This will also facilitate reach of IndianproductsandservicestoothercountriesthroughTCIL.
9.6
Resultsexpectedtobeachievedduringthe12thPlanPeriod i) Directandindirectnewjobopportunitiesforapprox.1.0millionpeople ii) StrategisingskillneedsinTelecomforapprox.3millionpeopleexpectedtobe directlyorindirectlyinvolvedintelecomsector. iii) Frameworkforawarenessneedforapprox.400milliontelecomserviceusers. iv) Providingframeworkforundergraduates,postgraduatesandDoctoralstudies v) Creation of support framework for telecom R&D, entrepreneurship & innovationpromotion. vi) Creationofinternationalbenchmarksandstandardsinskilldevelopmentand education vii) Addressskillneedsforindigenousmanufacturing viii) Availabilityofworkreadymanpowerinruralareas. ix) Effectively enabling synergistic alliance of DOT organisations in the competitivetelecommarket.
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CHAPTER10 SchemesandFinancingofTelecomsector 10.1 Background
Telecommunications has been recognized the world over as an important tool for socio economicdevelopmentforanation.Itisoneoftheprimesupportservicesneededforthe rapid growth and modernization of various sectors of the economy. The Government of India has always recognized that the development of worldclass telecommunication infrastructureisthe keytorapideconomicgrowthandsocialdevelopmentofthecountry drivenbyvariouspolicyinitiativesoftheGovt. TheIndianTelecomsectorhaswitnessedacompletetransformationinthelastdecadeand half.Thoughthegrowthhasbeenphenomenalthereisstillaneedtofurtherexpandthose services especially in rural areas where a large population is yet to have access to the benefitsofthisgrowthstory.Theruralmarketisexpectedtodrivethenextroundofgrowth for the voicebased services while the data services will create the much needed churn withinmaturingurbanmarkets.Itisnecessarytoincreasethebroadbandconnectivityfor the knowledge based society to grow quickly and for reaping the consequent economic benefits. Keeping in view the importance of telecom services on the economy as a whole, faster expansion of the telecom sector especially in the rural and remote areas should be the primarycriteriainformulatingschemesandinvestmentsinthesector. Ithasbeenrecognizedthatfinancialinclusionthroughmobileplatform,enhancingthereach offibrecableandbroadbandconnectionstoPanchayats,leveragingcableinfrastructureto improve connectivity at grassroot level, encouraging domestic manufacturing are some of themajorchallengeswhichneedtobeaddressedduringthePlan. Therealsuccessstoryofthetelecommunicationrevolutionisthegrowthofarobustprivate sectorwhichhasplayedanimportantroleintheexpansionoftelecomservices.Duringthe nextPlanperiodalsoamajorpartofthegrowthwouldbefinancedbythePrivatesector. The areas where investment would be required in the 12th Plan would be network expansion, especially in rural and remote areas, network upgrades because of shrinking technology cycle /customer demand cycle. 3G is expected to account for about 25% of subscriber base by 2017. Other major areas needing investment would be Broadband expansion(BWA),ValueAddedServices,ManufacturingandR&D.
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10.2
EstimatedInvestment
TheestimatedcapacityadditionforTelecomequipmentduringthe12thPlanperiodinboth 2Gand3Gsegmentwouldbeabout500millionlineseach.AtanestimatedRs2,700perline for 2G equipment and about Rs 3,000 per line for 3G the total cost for core telecom equipmentwouldcometoaboutRs1,35,000croresandRs1,50,000croresfor2Gand3G segmentrespectively. The cost of transmission network and access network would be about Rs 40,000 crores (about14%ofthecoreequipment)andRs1,00,000croresrespectivelyduringthe12thPlan. Another important area where significant investment is envisaged is the Broadband segment.ThetotalcostofbroadbandrolloutisexpectedtobearoundRs75,000crores.The costofmanufacturingCPEsisestimatedtobearoundRs50,000crores. Theseestimatesaremadetakingintoconsiderationtheincreaseinnetworkcapacityfrom approximately 875 million to about 1200 million by the end of 12th Plan i.e. March 2017. About 25% of this would be 3G/4G subscribers. The number of Broadband subscribers is expectedtobearound175millionbytheendofthe12thPlan. Spectrum charges, on account of renewals/fresh releases due in the 12th Plan period, are expectedtobearoundRs1,00,000crores.Thiswouldalsobeamajorareaofinvestment duringthe12thPlanperiod. Thus the total investment required for the 12th Plan period would be around Rs 6,50,000 crores inclusive of both Private and Central sector investments. Taking into account the totalCentralsectorinvestmentofaboutRs1,10,000crorestheprivatesectorinvestments duringthe12thPlanwouldbeaboutRs5,40,000crores. 10.3 ConcernsraisedbytheIndustry Theconcernsraisedbytheindustryrepresentativesthroughtheirwrittensubmissionsare summarizedasbelow: Largescaleadditionalinvestmentsrequiredfor: i. ii. Rollingoutservicestotheunconnected Totakethebenefitsof3G&BWAtothemasses
SignificantslowdowninFDI&CapexinTelecomSectorexplainedtoagreatextentby poordeterioratingfundamentalsoperatingandfinancialparametersofoperators FallintheMinutesofUseperconnectionpermonth SteepfallinARPUandStagnationintelecommarketrevenues Inadequateavailabilityoffundstoploughbackintoexpansionofservice Declininginvestmentsinexpansionofservice
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TelecomdoesnotfallwithinthepurviewofthedefinitionofInfrastructureProjectsto qualifyforfundingfromIIFCL Data services are now growing significantly, the bandwidth charges should also be allowedaspassthroughsimilartotheperminuteaccesschargebeingconsideredfor voice Thereisasignificantburdenofdifferentleviesanddutiesincludingservicetax,sales tax, Octroi, VAT, Stamp duty, entry tax, levies on towers, license fees, spectrum chargesetc.thatworksouttoaround30%oftheAdjustedGrossRevenue.Thereisa caseforrationalisationofleviesinthesectortomakeservicesmoreaffordabletothe consumer. 10.4 CentralSectorInvestmentintheTelecomSector TheCentralsectorcomprisesofPublicSectorandGovernmentsectorfundedthroughGross BudgetarySupport.ThemaininvestmentinthepublicsectorisbythePSEsBSNL&MTNL. The finances for the investments to be made by these PSEs would be generated through theirInternalResourcesandalsoextrabudgetaryresourcessuchasbonds,debenturesetc. Duringthe11thPlanthetotalPublicsectoroutlayasapprovedbythePlanningCommission isdepictedinthetablegivenbelow: (Rs.inCrores) Government/Public Total11thPlanOutlay Sector BSNLIEBR 80607.78 MTNLIEBR 8636.31 TotalIEBR 89244.09 DoTGBS 1752.01 GrandTotal 90996.10 Duringthe12thPlanthemainfocusofthepublicsectorinvestmentwouldbeonschemesfor upgradation/augmentationofexistingnetworktoNGNsolution,fixedmobileconvergence, broadbandpenetrationinruralareasetc. TheothercomponentofGovernmentSectorspendingisthroughtheschemes/plansofthe Department and its various units. This is fully financed through the budgetary support of GovernmentofIndia.Someoftheschemesproposedtobefinancedthroughthebudgetary support system are the schemes of USOF, OFC based network for Defence Service, R&D programmes & the Central Monitoring System (CMS) Project of CDOT etc. The support fromUSOFhasbecomepartoftheplanfundedexpendituresince201112.Anestimated expenditure of about Rs 35,350 crores is likely to be incurred on USOF subsidy spending duringthe12thPlanperiodwhichincludesacomponentofRs21,000croresonaccountof
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National Optical Fibre Network (NOFN) and Rs 12,000 crores for Wireless Broadband project. The schemes and estimated investment for the PSEs (funded through IEBR) and the Governmentschemes/units(fundedthroughGBS)aredetailedinAnnexureIIAnnexureXIII attheendofthisChapter. The total Central Sector investment during the 12th Plan is expected to be around Rs 1,10,000crores.TheoutlayoftwoPSUsviz.BSNL&MTNLwouldbeaboutRs53,581crores andtheoutlayofDOTanditsunitswouldbeaboutRs56,000crores.Thiswouldbeinclusive of the subsidy support of Rs 35,350 crores through the Universal Service Obligation Fund during the 12th Plan Period. A substantial amount of this subsidy support would be for financing the roll out of National Optical Fibre Network (NOFN) and also for Wireless Broadbandproject.Schemes/PlansoftheGovernment/Publicsectorwouldbeformulatedin such a manner so as to fulfill the objectives envisaged for the 12th Plan. The estimated outlayforthe12thPlanfortheCentralsectoramountingtoRs1,10,000croresisanincrease of over 21% from the approved Plan outlay for the 11th Five year Plan (of Rs 90996.10 crores). The total proposed outlay for the Central sector for the 12th Plan is depicted in the table below: (RsinCrores) Government/Public Total12thPlanOutlayEstimates Sector IEBRofthePSUs+CDOT 54681.40 GBSofDoT&Units 53523.43 GrandTotal 108204.83 SayRs1,10,000crores Thus the total investment expected during the 12th Five Year Plan would be about Rs 6,50,000 crores out of which the Central sector investment would be about Rs 1,10,000 croresandinvestmentfromPrivateSectorwouldbeaboutRs5,40,000crores. Thetablebelowdepictsthetotalsectoralinvestmentsexpectedduringthe12thPlanperiod: TelecomSector PrivateSector CentralSectorinclusiveofPSUinvestments GrandTotal Total12th PlanOutlayEstimates(ìncrores) 540000.00 110000.00 650000.00
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10.5 In addition three funds as indicated below have beenproposed to be createdduring the12thPlanrequiringRs17,500crorestakingthetotalGBStoRs1,27,500crores: TelecomPromotionFund Rs10,000crores TelecomEntrepreneurshipPromotionFund Rs2,500crores TelecomResearchDevelopmentFund Rs5,000crores 10.6Recommendations The grant of infrastructure status for the telecom sector is essential for further growthandexpansionforbothwirelessandwireline. Telecom sector may also be allowed to access funding from Indian Infrastructure FinanceCompanyLtd.(IIFCL). In addition, Telecom Finance Corporation may be created as a vehicle to access funds at competitive rates to facilitate the funding needs of the sector if found necessary. Rationalizationofleviesandtaxesinthesectormaybereviewedfromtimetotime toensureaffordabledeliveryofservicestotheconsumer 10.7 AnticipatedFundrequirementsforSkillDevelopment Thedetailsofanticipatedfundrequirements(inRs.crores)foraboveinitiativesinrespect ofDOTanditsorganisationsduringthe12thPlanperiodareasbelow: Anticipatedrequirementoffunds(inRs.Crores) 201213 items Capex Capex Capex Capex Capex capex 0 175 280 300 Opex Opex Opex Opex Opex Opex 12 161 65 78 316 201314 201415 201516 201617 Total
Information Repository* NTIPRIT Labsin Training Centres ITI Infrastructure Upgradation Total
0 15 20
2 17 3
0 65 50
2 28 5
0 75 90
2 35 10
0 15 70
3 38 20
0 5 50
3 43 27
50 85
1 23
100 215
6 41
100 265
17 64
50 135
27 88
0 55
27
100 755
*capexincludedinNTIPRIT
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Page 78 AnnexureII th GovernmentSector(DoT&Units)Schemesforthe12 Plan:FundedThroughGBS TEC (ìnCrores) Unit Schemes Existing Schemes retainedin th the12 Plan NameofScheme TransportLab W/LLab NGNLabs IMSLab CPELab 4GLab SARLabMumbai TEC New th Schemes12 Plan NTI NERegion Infra Lab FuelCellProject ModelTSATL Lab TSATL TSATLtocover othersecurity relatedareas 14.00 14.00 85.00 4.00 5.00 1.00 10.00 8.00 9.00 201213 3.00 10.00 10.00 5.00 201314
201415
201516 5.00
201617 1.00 Total 4.00 10.00 10.00 5.00 5.00 4.00 5.00 1.00 19.0 8.0
Total
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Page 79 AnnexureIII CDOT (inCrores) Unit Schemes Existing Schemes retainedin th 12 Plan NameofScheme Communication&Security Research&Monitoring(CMS) BroadbandTechnologies Campus TechnologyEnhancementsetc NextGenerationMobile Technology CareerNetworksTransport Technology CDOT New Schemes th 12 Plan SecureWireless&Wireline Networks SatellitebasedTechnology TelecomServices&Applications EnablingTechnologies&Telecom Networks PowerefficientandGreen TechnologiesforRural NextGenerationsecurityfor Telecom&DataNetworks Total Fundsexpectedtobegeneratedfrominternalresources TotalGBS 201213 201314 201415 500.00 205.00 25.00 230.00 750.00 200.00 50.00 135.00 100.00 105.00 100.00 250.00 201516 201617 Total 500.00 205.00 25.00 230.00 750.00 200.00 50.00 135.00 100.00 105.00 100.00 250.00 2650.00 1100.00 1550.00
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Page 80 (inRs.Crore) Unit NameofScheme MARRA RCPs UncoveredI UncoveredII WirelineBroadband MobilePhaseI OFCAssam USOF OFCNEI OFCNEII WirelessBroadband SatelliteBroadband SMCF SancharShakti OFCVillagePanchayat Total 201213 66.00 1.00 25.00 81.40 100.00 100.00 24.75 17.90 59.70 3200.00 0.00 8.00 4.00 2000.00 5687.75 201314 0.00 0.00 0.00 20.80 200.00 100.00 24.75 17.90 59.70 3200.00 10.00 8.00 0.00 5500.00 9141.15 201415 0.00 0.00 0.00 20.80 300.00 100.00 16.80 10.75 35.82 1920.00 10.00 0.00 0.00 5500.00 7914.17 201516 0.00 0.00 0.00 20.80 200.0 100.00 16.80 10.75 35.82 1920.00 10.00 0.00 0.00 4000.00 6314.17 201617 0.00 0.00 0.00 0.00 200.00 100.00 16.80 10.75 35.82 1920.00 10.00 0.00 0.00 4000.00 6293.37 Total 66.00 1.00 25.00 143.80 1000.00 500.00 99.90 68.05 226.86 12160.00 40.00 16.00 4.00 21000.00 35350.61
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Page 81 V WMO Unit NameofScheme TechnicalSchemes: Typeapproval&testingofRadio equipment ProcurementofM/wmonitoringterminal facilities(27SHFterminalsincluding1for T&Dcentre) Terminalsfornetworkanalysisand coveragemeasurementofpublic commercialservices(28inno.) ProcurementofCbandandotherSatellite monitoringfacilities WMO AugmentationofHF/V/UHFandDF monitoringfacilities(27inno.) Establishmentof6wirelessmonitoring stations Seabornemonitoringfacilities(4inno.) Airbornemonitoringfacilities(6inno.) SpecializedRadiomonitoring Specialmeasurementsetups CivilWorksSchemes: Constructionof15officebuildings Constructionofothercivilinfrastructure forWMS Constructionof6newWMS Total WPC Unit WPC 500.00 150.00 150.00 350.00 350.00 201213 201314 201415 201516 201617 (ìnCrores) Total
NameofScheme
201213 22.20 24.20
201314 6.36 30.50
201415 6.46 15.00
201516
(ìnCrores) 201617 6.46 24.00 Total 48.24 113.70
NRSMMSAMC IARSEMS#
6.46 20.00
#InstituteofAdvancedRadioSpectrumEngineeringandManagementStudiesSociety NICF(ìnCrores) Unit Schemes Schemesin th the12 Plan NameofScheme MidCareerTrainingforIP&TAFS NICF SettingupofPhysical InfrastructureforNICF Total 201213 2.75 23.11 201314 3.25 34.22 201415 4.00 25.27 201516 4.50 20.00 201617 5.00 11.78 Total 19.50 114.38 133.88
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Page 82 AnnexureVIII ITIProjectedCapitalExpenditure (ìnCrores) Unit A. ITI B. NameofScheme/Products ProjectsunderDiversification&non TelecomProducts NPR/MNID NGN+LTE SemiconductorFAB SolarPanel Contractmanufacturing IT,CloudComputing,ManagedIT services&BOOTProjects Securitylab DataCentre SCADA LEDBasedProducts SDR ProjectsunderGovernment&Telecom Products GSM(West&SouthZone) GPON/GEPON ADSLCPE TransmissionequipmentslikeDWDM, STMs(1,4,16,64),CarrierEthernetetc. DefenceProjects DSLAM BroadbandforRuralPanchayat SMPS RuralInfrastructureSites Total 75.00 15.00 5.00 10.00 120.00 10.00 20.00 5.00 10.00 1002.00 15.0 10.00 10.00 300.00 5.00 80.00 1.00 5.00 1675.00 5.00 930.00 5.00 300.00 10.00 100.00 200.00 70.00 200.00 7.00 10.0 2.00 60.00 200.00 201213 135.00 201314 25.00 100.00 600.00 2.00 60.00 200.00 40.00 200.00 201415 80.00 300.00 201516 75.00 30.00 15.00 25.00 720.00 15.00 100.00 6.00 20.00 3607.00 201617 Total 160.00 180.00 900.00 12.00 200.00 600.00 70.00 400.00 7.00 12.00 60.00
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Page 83 AnnexureIX ITIFundingSupportfromGovernment Sl.No. 1 2 3 4 5 6 7 8 9 10 CapitalexpenditureasperRevivalPlan RedemptionofPreferenceShareCapital Arrearsrelatedto2007PayRevision(upto2011) Arrearsrelatedto1997PayRevision(for39months) ReimbursementofVRSexpenses Reimbursementofoverduestatutorypayments(March2011) Repaymentofoldoverdueliabilities EstablishmentcostduringimplementationofRevivalPlan(oneyear) ReplenishmentofBankBorrowing FundsrequiredforVendorFinancing Total Items ìnCrores 3607.00 300.00 635.00 165.00 155.00 270.00 400.00 408.00 490.00 400.00 6830.00
BudgetarysupportoftheMinistryisrequiredthrough: i. Equitywhichwouldenhancetheequitybase,improvethedebtequityratioandincreasethefinancialflexibilityofthe Companyforborrowings ii. GrantswhichwouldhelptheCompanytocopeuptheoutstandingfinancialcommitmentsandpayoutsintheshortruntillthe Companyisrevived iii. Softloan(interestfree)whichwouldreducetheburdenoffinancingchargesandwouldalsobetreatedasquasiequitybythe FinancialInstitutions
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Page 84 AnnexureX PublicSectorSchemes(PSUs)forthe12 Plan:FundedThroughIEBR MTNL(ìnCrores) Unit NameofScheme NGN/IMSCore(NewProject) NGN/IMSAccessincluding/MSAN/PON /SIPetc.(NewProject) GSM/3GNetworks(OngoingScheme) CreationofadditionalPoPsonIP/MPLS network(OngoingScheme) FTTH/MetroEthernetPorts/DSLAM (OngoingScheme) FibreKmaddition(OngoingScheme) MTNL SubTotal OtherMiscellaneousProjects (OngoingScheme/newinitiativesasper requirement) ITbasedServices(OngoingScheme/new initiativesasperrequirement) Building&CivilWorks(OngoingScheme) TotalCapitalOutlay InvestmentinJVs/Subsidiaries(Ongoing Scheme) TotalFinancialOutlay 201213 30.00 10.50 116.00 20.00 20.00 18.00 257.40 60.00 201314 60.00 52.50 125.00 20.00 20.00 18.00 354.60 60.00 201415 50.00 52.50 125.00 20.00 30.00 18.00 354.60 65.00 201516 75.00 52.50 90.00 20.00 35.00 18.00 348.60 67.00 201617 0.00 48.00 100.00 20.00 40.00 18.00 271.20 70.00 Total 215.00 216.00 556.00 100.00 145.00 90.00 1586.40 322.00
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50.00 50.00 417.40 50.00 467.40
50.00 50.00 514.60 50.00 564.60
50.00 50.00 519.60 50.00 569.60
50.00 50.00 515.60 50.00 565.60
50.00 50.00 441.20 50.00 491.20
250.00 250.00 2408.40 250.00 2658.40
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Page 85 BSNL (ìnCrores) AnnexureXI Unit BSNL Unit Schemes NameofScheme IPenablingofentire Wirelinenetwork Conversion/up gradationofRLUswith NGNsolutions FixedMobile Convergence 201213 201314 201415 201516 201617 Total NameofScheme InternalResources Bonds/Borrowings/EBR TotalIEBR 201213 7434.00 5166.00 12600.00 201314 8966.00 1979.00 10945.00 201415 9677.00 235.00 9912.00 201516 9701.00 1235.00 8466.00 201617 9658.00 658.00 9000.00 Total 45436.00 5487.00 50923.00
FixedLine Segment
Mobile Segment Wireline Broadband Segment
Procurement& Commissioningof15m GSMlines NMEICT CSC USOF
BSNL
1711.00*(742.49) 1760.00*(605.00)# 1800.00*(105.71) 750.00 100.00 125.00 500.00 100.00 150.00 50.00 75.00 1850.00 600.00 50.00 100.00 500.00 100.00 150.00 50.00 50.00 1600.00 450.00 50.00 100.00 500.00 100.00 0.00 15.00 50.00 1265.00 450.00 50.00 100.00 250.00 100.00 0.00 15.00 50.00 1015.00 450.00 50.00 100.00 250.00 100.00 0.00 15.00 50.00 1015.00 2700.00 300.00 525.00 2000.00 500.00 300.00 145.00 275.00 6745.00
OFCRKM Trans.Equipment(STM, DWDM) CPANCarrierEthernet FTTH(Port) CoreNetwork Segment MPLS Routers(New) Routers Radio(6GHz/Radio Modem) Satellite(Eqpts./VSATs) Total
*Amountalreadyreceived;#Outofthetotalamount50%fundingisbyDIT(i.e.`880crores) AnnexureXIContd. BSNL Unit Schemes NameofScheme CustomerFixedAccess CDRbasedConvergent Billing&CustomerCare System ZonalPrintingSystems InternetDataCentre MigrationtoIPV6based network BPCM Segment NationalDucting 3Gmobilesystemfrom WCDMAtoHSPA&toLTE NGNRollOut FixedMobileConvergence 201213 201314 201415 201516 201617 Total
ITCFA Segment
BSNL
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Page 86 AnnexureXII UnitwisetotalproposedinvestmentsthroughDepartmentSchemes&itsUnitsinthe12 PlanPeriodFundedthroughGBS (ìnCrores) 201213 201314 201415 6830.00 500.00 22.50 24.20 9.00 1.40 41.00 6.36 30.50 10.00 1.50 23.00 6.46 15.00 11.00 1.60 9.00 1550.00 8098.00 23.11 2.75 5687.75 Total #InstituteofAdvancedRadioSpectrumEngineeringandManagementStudiesSociety AnnexureXIII ProposedPSUInvestmentsinthe12 PlanPeriodthroughIEBR (ìnCrores) Unit BSNL MTNL CDOT Total 13067.40 11509.60 10481.60 9031.60 201213 12600.00 467.40 201314 10945.00 564.60 201415 9912.00 569.60 201516 8466.00 565.60 201617 9000.00 491.20 9491.20 Total 50923.00 2658.40 1100.00 54681.40
th th
Unit ITI WMO WPCNRSMMS (AMC) WPCIARSEMS# TRAI TDSAT TEC CDoT DS NICF MCT USOF
201516
201617
Total 6830.00 500.00
6.46 20.00 12.00 1.70 9.00
6.46 24.00 14.00 1.80 3.00
48.24 113.70 56.00 8.00 85.00 1550.00 8098.00
34.22 3.25 9141.15
25.27 4.00 7914.17
20.00 4.50 6314.17
11.78 5.00 6293.37
114.38 19.50 35350.61 52773.43
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Chapter11 SummaryofRecommendations Based on consultation with stakeholders, the Working Group has followings recommendationsforthe12thFiveyearplan. 11.1 LicensingandSpectrum
Recommendations: i) Around 320 MHz of additional spectrum should be made available during the 12th Plan period and action should be taken so that another 180 MHz of spectrumbecomesavailableduring13thPlanperiod. Backhaulspectrumin60GHzandabovebandshouldbemadeavailable. To meet the requirement of spectrum for telecom services, refarming of spectrumshouldbetakenupspeciallyinbands450,700,800,900,1800,1900 MHzand2.1,2.3,2.5&3.5GHz.Bandsofspectrumshouldalsobeidentifiedto promoteindigenousdevelopment/manufacturing. Spectrumauditshouldbeconductedtoensureefficientspectrumutilizationby theusers. Spectrum sharing should be encouraged to enable efficient utilization of spectrum. Pricingofspectrumshould be delinked fromissueoflicence. Spectrumpricing should be determined in such a way that the primary objective of increased penetrationoftelecomservicesandavailabilityto consumersarenotlostsight of. Pricing policy for spectrum in noncommercial bands and those used in satellite and terrestrial links should be relooked to ensure that spectrum is efficientlyutilized. Thereisaneedforconvergenceofvoice,dataandvideo services,valueadded service,audiobroadcastandvideobroadcastservices.Actionshouldbeinitiated for creation of required licensing and regulatory framework for enabling this convergenceandseamlessdeliveryofconvergedservices. Thereisaneedfornationallevelefforttoharmonisethepoliciesofvariousstate governments/localbodiesforallocationofland,powersupply,grantofrightof way and policy/bylaws for erection of towers etc. If required, a suitable legal frameworkmayalsobecreated. Fiscalandotherbenefitsofinfrastructuresectorneedstobegrantedtotelecom sector. Wirelessconnectivityforprivateusewithinestates/campuses/buildingsmaybe promoted.Suitablepricingforspectrumforsuchusesmaybeworkedout.
ii) iii)
iv) v) vi)
vii)
viii)
ix) x)
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11.2 BroadbandandRuralTelephony IndiashouldutilizetheopportunityofferedbyBroadbandtogivefurtherpushtoitsGDP. i. Roll out of rural broadband connectivity through strengthening augmentation and harnessingtechnology i) Governmentshouldseektoreleaseasmuchspectrumintothemarketaspossible,in largeandusableamounts. ii) GovernmentshouldencourageBroadbandproliferationthroughtechnologyneutral approach. iii) Necessary Policy changes should be initiated to encourage Cable Operators to provideBroadbandServicesespeciallyinremoteandruralareasbyallowingthemto useexistinginfrastructure. iv) LargepartofthecostofdeployingfibrenetworksisinformofRightofWay(RoW). Operators have to approach multiple agencies for obtaining RoW clearance, which notonlydelaystherolloutplansoftheserviceprovidersbutalsoincreasesthecost. The state governments, therefore, need to address the following aspects for promoting/developmentoftelecominfrastructure: a.Speedyacquisitionofsites b.Reliableuninterruptedpowersupply c.Phaseoutmultipleapprovalsfromvariousstateagenciesandreplacebyasingle windowclearancesolution. d.TheessentialRightofWay(RoW)totelecomservice v) Government projects like National Optical fibre Network (NOFN) and other infrastructureprojectsshouldberolledoutinatimeboundmanner. vi) UseofBroadbandthroughSatelliteshouldbepromotedforremoteareas,Andaman &Nicobarislands&Lakshadweep. ii.OptimumUtilizationofInfrastructure i) Necessarypolicychangesshouldbeintroducedforencouragingthesharingofactive and passive infrastructure in order to address the various Infrastructure issues relatedtoruralareas. ii) DevelopmentofBroadbandkiosks,onthelinesofSTDPCOs,shouldbeencouraged in the Rural Areas to provide easy access to rural people to Broadband services. CommonServiceCentres(CSCs)beingsetupcanplayavitalroleinthis.
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iii) CSCs may be positioned as distribution channels. They may tie up with various serviceprovidersinthisregard. iii.Applications,Valueaddedservicesanddevices i) Government projects like egovernance projects can provide the necessary trigger forthegrowthofBroadbandinRuralAreas.Encouragementofuseoffacilitieslike mbankingandsecuredtransactionswillplayavitalroleinthisregard. ii) Low cost internet enabled customer equipment and Applications with Vernacular contentare criticalforthegrowth andsuccessofBroadbandandRuralTelephony. Inclusion of vernacular content for Governments various einitiatives will provide necessaryfilliptotheindustryinthisregard.Alsolowercostavailabilityofinternet access through policy initiatives such as reduction in taxes on devices including customerpremisesequipmentwillhelpinreducingthecosts. iii) BPOs / Call Centres involving local people and providing information in local languagesonsubjectslikeCropAdvisory,Weather,health,educationopportunities, Mandi rates, etc. will help improve Broadband penetration while simultaneously generatingemploymentopportunities. iv. Other issue of importance for the growth of Broadband and rural telephony and relatedinfrastructure i) To tap the Cable TV segment for proliferation of Broadband, synergy should be developed between Ministry of Communications & Information Technology and MinistryofInformation&Broadcasting. ii) Providing Broadband access to all schools, particularly in the rural areas, may be takenuptohelppromoteliteracythroughelearningprograms. iii) Concerted and coordinated efforts by various departments of the Government shouldaddresstheGenderissuesandtheneedsofthedifferentlyabled. iv) ForprovidingtelecomconnectivitytoruralareaswithlowARPU,lowpopulationand lowpopulationdensityandlackofadequategridpower,useoflowpowersolutions andrenewableenergytechnologiesshouldbeencouraged. 11.3 TelecomequipmentManufacturing,R&D,ProductStandardsandIPR Recommendations:LeveragingDomesticMarket i) Leverage large domestic market to provide preferential market access to Indian Products. ii) A potent policy support to stimulate domestic product manufacturing without adversefinancialimpacttothegovernment. o 100% Preference for Indian products in government procurement and projectsfundedbygovernment/USO.
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o Obligation for Telecom operators to buy Indian Products (IP) and Indian manufacturedProducts(IMP) o increaseIndiancontentinnetworkovernexttenyears. o Incentives for telecom operators to buy Indian Products and progressively increaseindigenouscontentinnetwork. o Anyfuturedecreaseinlicensefeeforoperatorswouldcomeintheformof incentivesforprocuringIndianproductsandIndianManufacturedProductsonly. iii) Penaltiesnotpreferableoption,butoperatorsneedtocommittosupport IndianProductsby o CommitmenttopurchaseIndianproductswhentheyarecomparableinprice andperformancetoimportedproducts. o CommitmenttoparticipateintrialsofnewlycreatedIndianproducts,nurture themandplacepilotorders. o FundingR&DandsupportIndianIPRcreationanddrivinginstandards. 11.3.1 Recommendations:Fiscal&InfrastructureDevelopment Indian Products suffers from disadvantage due to poorer infrastructure, poor and higher costpowersupply,higherinterestrates,longercustomclearancetimes.Itisrecommended that i) DeemedexportstatustosalesofIndianProductsinIndia(sinceimportdutyof thecorrespondingproductisanywayzero). ii) TomakeIndianProductcompaniescompetitive,theyshouldbegivenasubsidy of10%oftheirsales(domesticandexport)forthenext5years. iii) Create National Investment and Manufacturing Zones (NIMZs) as proposed by DIPPandalsoincentivisemanufacturersinlinewithModifiedSpecialIncentive Programscheme(MSIPs)&ElectronicDesignandmanufacturingCluster(EDMC) ofDepartmentofIT. a. Incentivise to set up system assembly, components, pieceparts and entiremanufacturingecosystemwithinthecluster. b. DevelopSupplychainwithinthecountry. iv) Supportcompanieswithgoodtrackrecordtobecomestrongglobalplayersby creating a Telecom Promotion Fund of Rs 10,000 Crores for soft loans (at interestratesof35%)tomanufacturersofIndianproductsfordomesticaswell asexportsandforoperatorswhodeploytheseproducts. v) IncometaxexemptionforIndianProductcompaniesforaperiodof5years(on thelinesforsoftwareexports).
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11.3.2 RecommendationstoEncourageEntrepreneurship India has tremendous entrepreneurial energy which must be harnessed for the cause of R&D.Thereisaneedtoencourageourbrightyoungentrepreneursandgivethemneeded funding (preventure and venture capital), management and mentoring support. EntrepreneurshipModelisparticularlysuitabletosetupnewTelecomProductcompanies. Alsocreatingamarketpullwouldencourageventurecapitaltoinvestinsuchstartups.Itis recommendedthat Promote entrepreneurs to develop and commercialize Indian products (both systemaswellasServiceproducts) Create Telecom Entrepreneurship Development Fund of Rs 2500 crore in 12th plan. Combinationofventurefundingandlowinterestloans. Active support and funding to promote Indian Telecom Product brands in internationaltradeshowsandtargetmarkets. 11.3.3 R&D,IPRandStandardisation India has witnessed a tremendous growth in the telecom sector in the last decade. The IndianpresenceinInternationaltelecomstandardsisalsomarginal.Thereisclearneedto promoteIndianinterests,serviceprovidersrequirements,andIndianIPR,intoInternational standards and products/services. This will also help to create an ecosystem for telecom equipmentmanufacturinginIndia,whichtodayisnotaviablebusinesspropositiondueto significantoutflowforIPRlicensing. India should have Telecommunication's Standards Development Organization (TSDO), an autonomous body, recognized by the government, under the leadership of industry and withstrongparticipationoftheacademiaandthegovernment.Itshouldconsolidatevarious effortsinthecountryandworktowardsinfluencingInternationalstandardstoincorporate Indian requirements/IPR into telecom standards. The TSDO should be a PublicPrivate Partnership(PPP),drawingonbothpublicandprivateexpertise. Recommendations: a) Promotecompanies/institutionstodevelopcapabilitiesinTechnologyforecastingfor Indian requirements. DOT should set up a council headed by Member of Telecom Commissionconsistingof o TechnicalexpertsasmembersfromTelecomServiceProviders,PublicandPrivate TelecomManufacturingIndustry,Government,AcademiaandR&Dinstitutions. o Function as permanent team of experts, to work on collaborative and contributiondrivenprofessionalmodel. o TechnologyandProductdevelopmentforecast.
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o Evolve, and periodic updates of the national five year rolling program of technology/productdevelopmentanditsfieldabsorption. o Be a nodal group to monitor and ensure the implementations of various recommendationsmadeforpromotingIndianProducts,manufacturingandIPR. b) Fund Telecom R&D towards IPR generation and Product Development and Commercialization o DOT should create Telecom Research Development Fund (TRDF) of Rs. 5000 Croresin12thPlan. TRDF should be managed by a council, consisting of two Government representatives including Secretary DOT, who will chair the council, 2 professionals from telecom operation industry, 2 professionals from Telecom Equipment Companies, 4 telecom Scientists/faculty from leading Indian institutes, 1 person with financial/VC background. The councilshouldhaveasmallsecretariat. TRDF to fund research with clear focus towards tangible patents/IPRs, whichwouldgointointernationalstandardsandfordevelopmentofhigh end products for future telecom systems and services. Incremental research innovations will not be supported through this fund, as other fundingsourcesfromscienceandtechnologyministriesareavailablefor this.Blueskyresearchmaysometimebefunded,however,whenthereis a clear roadmap to convert such research towards next generation standards,culminatingintocommercialproducts,anditappearsthatitis critical to move fast in an integrated manner from basic research to productdevelopment. TRDF to fund technology/product development, for which there is current/future market by Private and Government companies and R&D institutionsasgrantsandsoftloans. TRDF to fund Academic research with grants for futurist technology developmentwithemphasisonIPRCreation. Preference will be given to fund projects involving industry academia consortium. TRDFwillfundIndianparticipationininternationalstandardsbodies,upto 75%feesforfilingandmaintainingpatents.
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c) Strengthen public R&D institutions like CDOT. Encourage and enable them to collaboratewithpublicaswellasprivateindustryandwithacademiafortechnology development o Allow projects where an Industry (public or private) could retain exclusive technology rights for initial three years provided they are jointly funding developmentalongwiththeR&Dinstitution.TheR&Dinstitutioncouldinreturn getroyalty. d)EnableCreationofIPRsandpushintoStandards o CreateTelecomStandardsDevelopmentOrganization(TSDO)ledbyindustryand telecom service providers and with academia, R&D centers and government participation Drive IPR creation and global standards to meet Indiaspecific requirements DOT will vet the final standards before promoting them in ITU as international standards and decide on adopting them as national standards. o Reorient Academic R&D and R&D centers towards IPR generation for telecom standards, leading to development and commercialization of Indian Products. This IPR should be both essential IPR that goes into international standards, as well as implementational IPR that goes into products. Funding support should alsobegivenfortheresearcherstoattendstandardsmeetingsregularlysothat their IPR can be promoted for inclusion in the standards. These meetings take place seven to eight times a year all over the world. As India becomes active, suchmeetingsshouldtakeplaceregularlyinIndiaaswell. AugmentTCOEsforthispurpose SupportasmanyR&Dcentresaspossible,bothinpublic,PPPandprivate spheres.Continuedsupport shoulddependontrackrecordof quality of output,IPRssuccessfullyincorporatedinstandardsorproducts,abilityto launchworkinemergingareas. e)StrengthenTECtocoordinatesettinguplabsfortestingandcertificationofproducts asperinternationalbestpractices. o Create some private and Publicprivate bodies to set up accredited test to test productsforconformance,performance,interoperabilityandsecurity. Desirable to set up such labs in vicinity of strong R&D clusters and academiatoassistindevelopmentprocess.Alotofthetestequipment, particularly software, for emerging technologies are also developed in parallel with products. These tend to be very expensive in the initial
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years, acting as a roadblock for entrepreneurs and industry. Involving academiaincloseproximityisaverycosteffectivewaytobringthecost of tester development down, and leverage the ability of academia to quicklyunderstandnewconcepts. o FundCreationoflivetestbedsfornextgenerationtechnologies,particularlyby consortiaofindustryandacademia.Suchtestbedsshouldbewidelyavailablefor industryandentrepreneursforassistingtheminfinetuningtheirproducts. o ReservecertainspectrumforR&Dandfieldtrials(pilots). o Reserve certain spectrum where only indigenously developed products can be deployed. 11.3.4 GreenTelecom,useofWind,Solar&HybridTechnologiesforreducing carbon footprints TelecominitiativesinruralIndiafaceproblemsduetodismalstateofavailabilityofpower. Thegridpowerisnotavailableinmanyareas,andevenwherethegridsupplyisavailable the power quality is poor (sudden change in voltage, undervoltage/overvoltage, voltage fluctuation)anderratic. Recommendations Keepinginviewtheabove,followingsisrecommended: a) PrioritiseIPRgenerationandR&DindevelopmentofproductsforLowenergy,low ElectroMagnetic(EM)Emission,HighPerformanceWirelessSystems o PushtheseIPRinnextgeneration(5G)wirelessstandards o AimtoreduceEMemissionsperbitbyafactorof100 o Aimtoreduceenergyconsumptionbyafactorof10 b) PrioritiseIPRgeneration,R&Dandproductdevelopmentinlowemissionsinbuilding wirelesssolutions. c) Prioritise R&D and product development in distributed, renewable and hybrid energysourcesfortelecomequipment. d) PromoteR&Dinenergystorageandenergysavings. e) Adopt internationally developed and accepted benchmarks for methods in evaluatingEnergyEfficiencyinthenationalTelecomNetworks. f) GoaltoprogressivelyreduceCarbonemissionforthemobilenetworkby8%bythe year20122013,12%bytheyear20142015,17%bytheyear20162017and25%by theyear201819. g) Aimtopoweratleast50%ofallruraltowersand33%oftheurbantowersbyhybrid power (Renewable Energy Technologies (RET) + Grid power) in the next five years, whileallruraltowersand50%ofurbantowersaretobehybridpoweredby2020.
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h) Serviceprovidersshouldendeavourtoensurethatthetotalpowerconsumptionof eachBTSwillnotexceed500Wbytheyear2020. 11.3.5 RecommendationsonEnvironment,RadiationandHealthrelatedissues i)EnsureComplianceagainstexistingEMemissionstandards Spread awareness on current globally accepted norms and practices with respecttoelectromagneticradiation Electromagnetic Wireless Emission needs to be handled with Caution. Promote education that wireless emissions need not be hazardous if prescribednormsareobserved. PromoteStudiesonLowemissiondeployments.
ii)PromoteStudiesonhealtheffectsoflowpowerradiationfromwirelesssystemsand devices Fundseveralsuchstudiestoacquirenewknowledge,especiallyonlongterm potentialimpact.
11.3.6 RecommendationsonUrbanPlanningwithregardtoTelecomInfrastructure i) DeveloptransparentRightofWayPolicyfortelecomcables ii) Developsafetyandaestheticstandardsforwirelesstowers iii) DeclareTelecomsectorasInfrastructureSector(bothwirelineandwireless). Provide all the benefits available to infrastructure sectors to telecom sectoralsotorealizetruepotentialofICTfordevelopment. v) Promote sharing of the tower infrastructure using passive as well active methodologiestominimizetheeventualityoflocatingnewsiteswithinthevicinity ofexistingtowers.[Saywithin200m,inurbanareas&within2Km,inruralareas]. Serviceprovidersshouldplantohaveatleast10%oftheirsitesactivelysharedby theyear2014. 11.3.7 The CDOT projects related to the development of GPoN, Technologies for rural areas,BroadbandTechnologies,SharedGSMRadioAccessNetwork(SGRAN),etc. Duringthe11thplanperiod,CDOTundertooktechnologydevelopmentprogramsin line with the broad objectives of the planned period, which laid emphasis on the emerging areas such as Next Generation Networks (NGN), wireless broadband, telecom network security, infrastructure sharing to accelerate the penetration of telecom network in the rural sector, and indigenous manufacturing of telecom equipment.
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CDOTmadesignificantprogressintheexecutionofitstechnologyroadmapsetout for the 11th planned period. It is recommended that CDOT be strengthened to pursuemajortechnologyschemesandsolutionsintheforthcoming12thPlanperiod (20122017)inpartnershipwithacademia,andpublicandprivateindustry. 11.4 TelecomNetworkSecurity 11.4.1 SecurityrelatedissuesinTelecom:Implementationoftheschemeforsettingupof Centre for Communications Security Research and Monitoring and establishment of Centralized Monitoring System (CMS) and Centre for Telecom Testing and SecurityCertification Recommendation: Up scaling of the two modules of Centre for Communication Security Research and MonitoringcentreaGovernmentfundingofRs900Croreisproposedduringthe12th FiveYearsPlanforthefollowing: a) Centralized Monitoring System with a Government funding of Rs 800 Crores and b) TelecomTestingandSecurityCertificationCentrewithGovernmentfundingof Rs 100 crore. Hence, total for the scheme of setting Centre for Communication Security Research and Monitoring during the 12th five years Plan.
11.4.2ImplementationofWirelessPhoneandSecurityNetwork: Recommendation: To develop and deploy a Pan India secure network and networkbased services such as email,VoIP,mobilecommunicationthroughasurvivableandavailablenetworkarchitecture for secured communication for Government use with a Government funding of Rs 450 Crores.
11.4.3 Disaster Management: Building effective communication networks for providing effectivecommunicationduringvariousNatural/ManmadeDisasters: Whenever natural or manmade disasters occur, the most stressed infrastructure is the communication. Most systems do not degrade gracefully leading to nonavailability of communicationatcriticaltimes.Furtherinmostsituationsirreparabledamagemayoccurto thecommunicationsystemitself,likeinthecaseofcyclonesorfloods.Insuchsituations,a rapidlydeployablecellsystemcateringtomultitudeofservicesisamust.
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TheNDMAiscreatingthenecessarytelecominfrastructureformitigatingtheaftermathof disasters.TheministryofHomeAffairs,thedesignatednodalagencyforcoordinatingrelief in the aftermath of natural disaster, directed all central ministries concerned to prepare detailedStandardOperatingProcedure(SOP)totheaboveeffect.TheobjectivesoftheSOP fortheDepartmentofTelecommunicationsare: (a)Coordinationofnationalactionstoassuretheprovisionoftelecommunicationsupport tothecentre,stateanddistrict. (b)Coordinatetherequirementoftemporarytelecommunicationintheaffectedareas. (c)Providehumanservicesundertheministryofcommunications. Recommendation: I)ARapidlyDeployableMultiProtocolWirelessCommunicationsysteminteroperableacross alltheservicesthatareengagedindisastermanagementshouldbedeveloped. ii) An indoor positioning system to fix positions of men engaged in disaster management withinabuildingtoanaccuracyofafewcentimetersshouldbedeveloped. iii) As a policy, there should be at least 100 cells phone and fixed line numbers given to disaster management agencies by every service provider who should receive guaranteed servicelikehotlineservicesduringdisasters. iv) A budget of Rs 50 crores is proposed for development of systems mentioned at recommendationi)andii)aboveandallocatedtopublicorprivateorganizationasdecided byafocusgroupsetupbyGovernment. iv)ImplementationofLBSFacilitiesthatcanAssisttheLawEnforcementAgencies: Recommendation: Alreadymandatedlocationaccuracyistobeimplementedanddependinguponthenational needs and practicability based on available technologies, it could be revised. For developmentofindigenousandcosteffectivetechnologiesandsolutionsaprovisionofRs 50croresisproposedinthe12thfiveYearsPlan. 11.5 HRDandSkillDevelopment a) SkillDevelopment:Toevolvestrategyforcapacitybuildingintelecomsector i) Astudyshouldbeundertakenonprioritytoassesscurrentlevelofdirectlyor indirectlydeployedHumanResourcesandtheirskillsetsaswellasdemand projectionsforatleastanother10yearperiodaboutincrementalhuman resourcerequirementsandtheirskillsetsfortheentiretelecomsector. ii) An Apex body, comprising of 5 to 7 members, drawn from within the Department/MHRD,academiaandTelecomIndustrymaybesetup under the chairmanship of Secretary(T) to oversee and act as guiding/enabling source for different aspects relating to monitoring, regulating and
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managing all the skill development related framework required for the telecomsector. iii) The above Apex body may be supported by appropriate advisory groups consistingofrepresentativesfromserviceprovidersandtheirassociations, serviceusersandconsumerassociations,manufacturingindustryandtheir associations,PSUsandotherorganisationsofDOTetc.toproviderequired inputsforeffectivefunctioningoftheApexBody. iv) Createaframeworkfor Developing national occupation standards in collaboration with industry formappingjobprofilesandcompetencystandards. Grading of competencies required for each job profile and setting of certificationlevelforeachcompetencystandard. Organise certification tests for employees, trainers as per industry requirementsandacceptance. Acareerguidefortelecomindustry Sharingofworkplace,experience,machineryandequipment Facilitatingemploymentoftrainedgraduates Promotionofacademicexcellence.
v) Thesameframeworkwillalsoassistthealreadyemployedmanpower,either withinDOTanditsorganisationsorTelecomindustryasawhole,infurther acquisition of specific and mandatory skills. This is proposed to be implemented through vast training infrastructure available across the country with DOT as well as its organisations. The same infrastructure is also recommended for evolution into delivery of formal higher education uptopostdoctoralstudy/research,asnosuchexclusivetelecominstitution existsinthecountry.Thiswillsetbenchmarkinlongtermforintegrationof studieswithR&Dintelecom. vi) A comprehensive repository of all telecom related information/ standards/benchmarks/resources/programme curriculum, etc. may be created and regularly updated by National Telecom Institute of Policy Research,Innovation&Training(NTIPRIT)toworkasthemainpointsource for Telecom field related information dissemination. This would help in homogeneous spread of standard telecom education, generating single window reference data, quality information dissemination and availability of a data base of skilled, certified manpower proposed above. This repository will also be available for all those involved in providing
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school/highereducation/vocationaltraining.Thiswillalsoprovideasingle windowreferencepointforallconsumerawarenessrelatedinitiatives. vii) Setting up of stateofart telecom labs in all highend technology areas including the emerging technologies, besides upgrading the existing ones, with the appropriate support from the government for skill/capacity upgradation of associated manpower. Such highend infrastructure would alsofacilitateR&Dactivities,entrepreneurshipinitiativesinthecountry,as well as enhance innovative practices in line/sync with the available international benchmarks. The visibility of India in the International standards space would be bolstered through support from such labs. This stateoftheartlabs/infrastructurewouldbeavailabletodesignatedwilling premier engineering/academic institutions to assist the scholars in appreciating/visualisingtherealtimetelecomenvironment. viii) PresumingtheavailabilityofmanpoweralreadywithDOTshallbeavailable foraboveinitiatives,additionalfundingtothetuneofaroundRs.455crores ascapexand238 crores asopex,isestimatedtoberequiredduringthe 12th Five Year Plan to support setting up of above facilities and meeting otherrelatedexpenses. ix) TheinstitutionsavailablewithDOTorganisationsarealreadyproposedtobe upgraded suitably to facilitate higher level learning and research dimensions. However, research facilities in Telecom domain need to be significantly augmented in the existing IITs and other premier institutions forwhichHRDMinistryneedstoprovidetherequiredsupport. x) InterventionofHRDMinistrymayalsobesoughtforinclusionofElectronics and Telecom to be part of the curriculum at the polytechnic level and in Industrial Training Institutes for trades specific to telecom. These can be utilisedbyentrepreneurs,manufacturers,serviceprovidersetc.fortraining theiremployeesintradesspecifictoTelecom. b) Reformulate strategy for enabling DOT organisations to effectively flourish in a competitive world through improving QoS, Planning and discovery of synergy amongstvariousunitsofDOT. i) For ensuring DOT organisations, viz. BSNL/MTNL/ITI/TCIL and CDOT, to effectively flourish in the competitive telecom market, there is a need that individual strengths of these organisations be exploited to their mutual benefit.Forthis,asapolicy,thisallianceneedstoberecognisedforaccording preferentialtreatmentforprocurementofproductsandservicesrenderedby individual organisations. They may adopt any of the models, viz. Managed Services, Managed Capacity, or any other mutually agreed terms and
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conditions forprocurement oftheproductsavailablewithinthealliancewith necessarychecksandbalances. ii) An appropriate body may be formed within DOT for identification of products having commercial potential, developed through R&D by CDOT, TCOEs and even in private sector. The selected products need to be appropriately supportedforgoingthroughproductionphase. iii) ProductioninfrastructureinexistingfactoriesofITIneedtobeupgradedtothe stateofArt level so that they can provide world class and cost effective manufacturing services to all. A Capex of Rs. 300 crores and opex of Rs. 78 croresisestimatedtoberequired. iv) Theproductandservicesavailablewiththeorganisationsofthealliancemaybe preferentiallyconsideredforexecutionofprojectsfundedbyGovernmentof India. v) TCIL may be recognised as the nodal agency in respect of product/services available within the alliance for executing/promoting bilateral projects funded by Government of India in friendly countries. This will also facilitate reach of IndianproductsandservicestoothercountriesthroughTCIL.
11.6 SchemesandFinancingofTelecomsector Recommendations The grant of infrastructure status for the telecom sector is essential for further growthandexpansionforbothwirelineandwireless. Telecom sector may also be allowed to access funding from Indian Infrastructure FinanceCompanyLtd.(IIFCL). In addition, Telecom Finance Corporation may be created as a vehicle to access funds at competitive rates to facilitate the funding needs of this sector if found necessary. Rationalizationofleviesandtaxesinthesectormaybereviewedfromtimetotime toensureaffordabledeliveryofservicestotheconsumers. *****
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AnnexureI
OM of Planning Commission dated 21st June 2011 (3 page document)
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AnnexureII TermsofReferenceandcompositionofSubgroups i)SubGrouponLicensingandSpectrumIssues TermsofReference i) To make specific recommendations on refarming of spectrum and harnessing technology. ii) Tomakerecommendationsofoptimumutilisationofscarcespectrumresourceand examine the possibility of creation of a Spectrum Relocation Fund. Indicate likely sourceandquantumofresourcessogeneratedandguidelinesfortheoperationof thefund. iii) ToevolveaPricingPolicyforservicedeliverylookingatboththespectralefficiency andsectoralbusinessviability.Also,suggestguidelinestoencourageandincentivize introductionofspectrumefficienttechnologies. iv) Tomakerecommendationsonconvergenceofservicesandalsoreformsrequiredin the postconvergence scenario including availability of spectrum, expansion of broadband. v) AnyotherissueofimportancetoLicensingandSpectrumIssues.
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SubGrouponLicensingandSpectrumIssuesCompositionoftheSubGroup SlNo. Name(Sh/Mr./Mrs./Ms. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. ChandraPrakash,Member(T) Chair SCMisra,Member(Services) ShadhnaDikshit,Member(F) AshokChandra,WirelessAdvisor BKZutsi,ExChairperson,TRAI NNeelakantan,D/OSpace MinistryofFinanceRepresentative BrigLBChand,VSM,M/oDefence DrCMurliKrishnaKumar,SrAdv,PlanningCommission VVRSastry,CDoT RKUpadhyay,CMD KuldeepSingh RamNarain,DDG(Security) RSMathews,COAI SCKHANNA,AUSPI BKSyngal,FICCI ArvindKumar,JS,M/oI&B ArunimaSharma,CII RajivMehrotra,TEMA ProfAbhayKarandikar,IIT,Bombay ProfAJhunjhunwala,IIT,Madras RajeshChharia AjaySharma AKMittal,Sr.DDG(AS),MemberSecretary
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ii) SubGrouponBroadbandandRuralTelephony TermsofReference i) To make specific recommendations for roll out of rural broadband connectivity throughstrengtheningaugmentationandharnessingtechnology. ii) Applications,Valueaddedservicesanddevices iii) OptimumUtilisationofInfrastructure iv) AnyotherissueofimportanceforthegrowthofBroadbandandruraltelephonyand relatedinfrastructure.
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SubGrouponBroadbandandRuralTelephony
SlNo. Name(Sh/Mr./Mrs./Ms. 1. AjayBhattacharya(AdministratorUSOF) Chair 2. B.K.Gairola,DGNIC 3. ShankarAggarwalAdditionalSecretaryDIT 4. Dr.R.S.SharmaICMR,D/OHealthNewDelhi 5. BKZutsi,Ex Chairperson,TRAI 6. NNeelakantan,D/OSpace 7. MinistryofRuralDevelopment Representative 8. MinistryofFinanceRepresentative 9. N.K.SinhaAddlSecretaryD/OHigherEducation 10. DrCMurliKrishnaKumar,SrAdv,PlanningCommission 11. VVRSastry,CDoT 12. RKUpadhyay,CMDBSNL 13. AKPathak,ED(Tech),MTNL 14. NitinJain,DDG(DS),DoT 15. RadhaChauhanJS(SE&L)M/OHRD 16. RSMathews,COAI 17. SCKHANNA,AUSPI 18. RajeshChharia 19. BKSyngal,FICCI 20. N.K.SrivastavaSr.DDGTEC 21. ArunimaSharma,CII 22. RajivMehrotra,TEMA 23. ProfAbhayKarandikar,IIT,Bombay 24. ProfAJhunjhunwala,IIT,Madras 25. SaurabhK.TiwariDDG(LFII),DoT 26. G.P.Srivastava,DDG(CS),DoT 27. RamakrishnanSrinivasan 28. K.K.MinochaDDG(BB),MemberSecretary
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iii)SubGrouponManufacturing,R&D,ProductStandardsandIPR TermsofReference i) To review the performance of telecom equipment manufacturing sector with identificationofconstraintsandmakerecommendationsforevolvinganappropriate policytopromoteindigenousmanufacturing; ii) Toevolvestrategyformakingtheconformancetonationalstandardsasmandatory for all telecom products, setting up of labs carrying out testing, certification and development of framework of Conformity Assessment Bodies (CAB) for testing, as wellasfurtheringtheactivitiesunderMutualRecognitionAgreement(MRA); iii) Green Telecom, use of Wind, solar and hybrid technologies for reducing carbon footprint; iv) Environment,radiationandhealthrelatedissues; v) IssuesrelatedtourbanplanningwithregardtoTelecomInfrastructure vi) The CDOT projects related to development of GPoN, Technologies for rural areas, BroadbandTechnologies,SharedGSMRadioAccessNetwork(SGRAN)etc; vii) To suggest measures for further promotion of private sector investment and encourageentrepreneurshipinthesector; viii) Anyotherissueofimportanceontheabovesubject. SubGrouponManufacturing,R&D,ProductStandardsandIPR
Sl.No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. Name(Sh/Mr./Mrs./Ms.) ProfAJhunjhunwala,IIT,MadrasChair SecretaryDepartmentofEconomicAffairs(Representative) DrCMurliKrishnaKumar,SrAdv,PlanningCommission Dr.GulshanRai,DGCERT J.S.DeepakJSD/OCommerce Dr.AjayKumarJSDIT ArvindKumar,JS,M/oI&B AKMittal,Sr.DDG(AS) P.K.PanigrahiSr.DDG(BW) RamNarain,DDG(Security) VVRSastry,CDoT RSMathews,COAI SCKHANNA,AUSPI BKSyngal,FICCI R.K.Pathak,DDG(IP)DoTMemberSecretary GopalPrasad,DeputySecretary,DIPP ArunimaSharma,CII RajivMehrotra,TEMA RajeshChhariaISPAI
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20. 21. 22. 23. 24.
ProfAbhayKarandikar,IIT,Bombay ProfBhaskarRamamurthiIITChennai ProfN.BalakrishnanIISCBangalore Dr.R.S.SharmaICMR,D/OHealthNewDelhi N.K.SrivastavaSr.DDGTEC
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iii) SubGrouponNetworkSecurityIssues TermsofReference i) SecurityrelatedissuesinTelecom:Implementationoftheschemeforsettingupof CentreforCommunicationsSecurityResearchandMonitoringandestablishmentof Centralised Monitoring System (CMS) and Centre for Telecom Testing and Security Certification; ii) ImplementationofWirelessPhoneandSecurityNetwork. iii) Disaster Management: Building effective communication networks for providing effectivecommunicationduringvariousNatural/ManmadeDisasters. iv) Any other issue of importance to security of telecom infrastructure and policy formulationforthetelecomsector. SubGrouponNetworkSecurityIssues CompositionofSubGroup Sl.No. Name(Sh/Mr./Mrs./Ms.) 1. ProfN.BalakrishnanIISCBangalore 2. Dr.GulshanRai,DGCERT 3. MinistryofHomeAffairs Representative 4. AKMittal,Sr.DDG(AS), 5. NitinJainDDG(DS)DoT 6. BrigLBChand,VSM,M/oDefence 7. VVRSastry,CDoT 8. RSMathews,COAI 9. 10. 11. 12. 13.
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SCKHANNA,AUSPI N.K.SrivastavaSr.DDGTEC RajivMehrotra,TEMA NationalDisasterManagementAuthority RamNarain,DDG(Security)MemberSecretary
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v)SubGrouponHRD&SkillDevelopment TermsofReference i) SkillDevelopment:Toevolvestrategyforcapacitybuildingintelecomsector ii) Issues related to PSUs: Reformulate strategy for enabling DOT organisations to effectively flourish in a competitive world through improving Q&S, Planning and discoveryofsynergyamongstvariousunitsofDOT. iii) Anyotherissueofimportanceontheabovesubject. SubGrouponHRD&SkillDevelopment CompositionoftheSubGroup Sl.No. Name(Sh/Mr./Mrs./Ms.) 1. SCMisra 2. Dr.R.S.SharmaICMR,D/OHealthNewDelhi 3. N.K.SinhaAdditionalSecretaryD/OHigherEducation 4. RadhaChauhanJS(SE&L)M/OHRD 5. N.K.SrivastavaSr.DDGTEC 6. RKUpadhyay,CMDBSNL 7. SPPachauri,DIR(HR),MTNL 8. N.K.JoshiDDG(SU) 9. VVRSastry,CDoT 10. RSMathews,COAI 11. SCKHANNA,AUSPI 12. RajivMehrotra,TEMA 13. Dr.RekhaJainIIMAhmedabad 14. RajeshChhariaISPAI 15. ArunimaSharma,CII 16. SanjeevGuptaDirector(PSUI) MemberSecretary
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vi)SubGrouponSchemesandFinancingofTelecomSectorfor12thPlan TermsofReference i) Toreviewtheexistingpolicies/schemesofthesectorandrecommendtheschemes toberetained/includedintheTwelfthPlan. ii) FinancingofTelecomSectorforthe12thFiveYearPlan iii) Anyotherissueofimportanceontheabovesubject. SubGrouponSchemesandFinancingofTelecomSectorfor12thPlan CompositionofSubGroup Sl.No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. Name(Sh/Mr./Mrs./Ms.) ShadhnaDikshit,Member(F) DepartmentofEconomicAffairsRepresentative DrCMurliKrishnaKumar,SrAdv,PlanningCommission AshokChandra,WirelessAdvisor RKUpadhyay,CMDBSNL MsAnitaSoni,DIR(F),MTNL K.L.DhingraCMDITI K.K.MinochaDDG(BB), RamNarain,DDG(Security) N.K.JoshiDDG(SU) RSMathews,COAI SCKHANNA,AUSPI RajivMehrotra,TEMA RajeshChhariaISPAI ArunimaSharma,CII ShahbazAliDDG(TPF),DoTMemberSecretary
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Page 1

REPORTOFTHEWORKINGGROUP ONTHETELECOMSECTORFORTHE TWELFTHFIVEYEARPLAN (20122017)

Member Member Member Member Member Member Member

Member Member Member Member

Member Member Member Convenor

xii) xiii) xiv)

CHAPTER2 CurrentStatusoftheTelecomSector 2.1 Introduction

2007 2008 2009 2010 2011 June'11

205.87 300.49 429.73 621.25 846.33 886.00

Distribution of Telephones PSUs' Wireline in June'2011 3.18%

PSUs' Wireless Private 11.20% Wireline 0.69%

Private Wireless 84.93%

119.45% T eled sity en

Village Public Telephones

Gross Domestic Product

23.65 519155 478

22.91 564166 1261

20.89 609223 2558

18.58 658548 2554

15.71 698557 1665

15.03 700852 1212

4.2.2 4.2.3 4.2.4 4.2.5 4.2.6 4.2.7 4.2.8 4.2.9

CHAPTER7 TelecomequipmentManufacturing,R&D,ProductStandardsandIPR 7.0 Introduction

Metro/Aggre gation network

NextGenSDHwithpacket transport&OTNcompliant interfacesPacketOptical TransportPlatform

Ethernet transport/ag gregation carriergrade

Telecom Services & Applicati ons

Virtualdata centres Account settlingfor

TSPs Service Delivery Platformsfor supporting multiple applications andVAS

Mobile hand held devices andCPEs

Bio engineering studieson EMF radiation impact 3G/4G handsets CPEs

Telecom related electroni cs Acronyms:

Algorithmsforconversionto vernacularlanguages ChargingwithEmbedded solarcells,lowpower electronicsetc. SoC,DSPalgorithms

Reliable,efficientandcost effectivesolarcells Batterydesign;material engineering

ASIC:ApplicationSpecificIntegratedCircuit ASON:AutomaticallySwitchedOpticalNetwork AWG:ArrayedWaveGuide BSC:BaseStationController BSS:BusinessSupportSystemsorBaseStation Subsystemdependinguponthecontext BTS:BaseTransceiverStation DAS:DistributedAntennaSolution

DSL:DigitalSubscriberLine DSP:DigitalSignalProcessing GPS:GlobalPositioningSystem HSPA:HighSpeedPacketAccess IBS:InBuildingSolution IP:InternetProtocolorIntellectualProperty dependinguponthecontext KPI:KeyPerformanceIndicators

CHAPTER8 TelecomNetworkSecurity GuidelinesforCostsharingandAllocationofR&Dfunds.

Inthematterofsecurity,however,Governmenthasthediscretiontolaydownanysecurity conditionforwhichcostmayhavetobebornebyTSPs. 8.2 TheIssuesandRecommendations:

CHAPTER10 SchemesandFinancingofTelecomsector 10.1 Background

201213 22.20 24.20

201314 6.36 30.50

201415 6.46 15.00

(`inCrores) 201617 6.46 24.00 Total 48.24 113.70

50.00 50.00 417.40 50.00 467.40

50.00 50.00 514.60 50.00 564.60

50.00 50.00 519.60 50.00 569.60

50.00 50.00 515.60 50.00 565.60

50.00 50.00 441.20 50.00 491.20

250.00 250.00 2408.40 250.00 2658.40

Mobile Segment Wireline Broadband Segment

Procurement& Commissioningof15m GSMlines NMEICT CSC USOF

Total 6830.00 500.00

6.46 20.00 12.00 1.70 9.00

6.46 24.00 14.00 1.80 3.00

48.24 113.70 56.00 8.00 85.00 1550.00 8098.00

34.22 3.25 9141.15

25.27 4.00 7914.17

20.00 4.50 6314.17

11.78 5.00 6293.37

114.38 19.50 35350.61 52773.43

ii)PromoteStudiesonhealtheffectsoflowpowerradiationfromwirelesssystemsand devices Fundseveralsuchstudiestoacquirenewknowledge,especiallyonlongterm potentialimpact.

OM of Planning Commission dated 21st June 2011 (3 page document)

20. 21. 22. 23. 24.