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“Next Generation Policy and Regulatory Environment-India”
Satya N. GuptaChief Regulatory Advisor
India & SAARC, BT Global Services
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Content• Broad ICT scenario – India
• Existing licensing regime -Salient features
• Next Generation India – SWOT analysis of present Licencing framework
• Regulatory Challenges for NGN
• Road ahead – Next Generation Policy and Regulation
Broad ICT Statistics-India (July, 2009)
1) Population- 1.1 billion2) Fixed Teledensity – 3.5 (39 million nos.) 3) Mobile Teledensity – 33.0 (400 million nos.) 4) Overall Teledensity- 40 (440million nos.)5) Internet Connections- 12 million ( 45 mn including wireless)6) No. of PCs- 25 million7) No. of TVs- 120 million8) No. of Cable TV Connections- 65 million9) International Connectivity- 500 Gbps/16.7Tbps (Designed)10) National connectivity- 10 Gbps (7 Lakh Kms)11) Broadband Connection (>=256 Kbps) – 6.5 Millions12) International Gateways - 30 ( Including 9 on Submarine cables)
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NGN – a layered architecture distributing intelligence at every layer
ApplicationLayer
ControlBearer
Service Control Layer Softswitch
ControlIP ServiceSwitching
ApplicationServices
Transport Layer(core and access)
PSTN
Internet
MultiservicePacket Switching
XX X XX
CORE NETWORKS
XNational Optical
BroadbandAccess
GbEGbEDSLAMDSLAM
ACCESSNETWORK
RASRAS
Frame/ATM
Frame/ATM
WirelessWireless
CPECPE
Media Gateways
Metro OpticalX
XX
X
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Emerging NGN Applications – EOIP
Voice over IP Unified Messaging BB - High Speed InternetPrimary line Content Delivery PC to PhoneSecond line Games Phone to PCIP Centrex usage Downloads (MP3) IP VPN (data)Voice VPN Gambling BW on-demandIP Centrex Video on demand QOS on demandTV on demand Quad play
Instant messaging presence managementMultimedia ConferencingVirtualisationCollaborationGrid computing Long distance bypass MMS on fixed networkLocation Based Services (LBS)FMC (Fixed Mobile Con.) Distance learning 3G & beyond applicationsE-CommerceRemote lab IP offload
Institutional Framework for the Indian Telecommunication
Govt. of India (Ministry of Communications &IT)
Wireless Planning &
Coordination Wing (WPC)
DOT/ Telecom Commission
Telecom Engineering
Centre (TEC)
TRAI
Parliament of India
Operators
Manufacturers and System Integrators
TDSAT
Subscribers
Executive and Licensing
Recommendations for Licensing
Type Approvals
Spectrum Management
Policy Making Regulation (Tariff,
Interconnection, QOS) Dispute Resolution &
Appeal for DOT & TRAI Directives
Standardization & Technical Inspection
Service Provision
Act/ Legislation Making
Equipment Supply
Centre for Development of Telematics (C-DOT)
Telecom R&D
End Usage
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Categories of Telecom Licensesi) Access Providers (APs) ----- (Access to Customer/ Local Service)
- Fixed Service Providers/ Basic Service Operators (BSO)- Cellular Mobile Service Providers (CMSP)- Internet Service Providers (ISP)- Cable TV Operators (CaTVO)
ii) Long Distance Operators -----(Long Distance telecommunication)- National Long Distance Operators (NLDO)- International Long Distance Operators (ILDO)
iii) Infrastructure Providers ------(Infrastructure to the Licensed Telecom Service Providers)- Infrastructure Provider Category –I (IP-I)- Infrastructure Provider Category –II (IP-II) – Migrated to NLDO
iv) Value Added Service Providers -(Other than Access & Long Distance Services)- Public Mobile Radio Trunking Service Providers (PMRTS)- Paging Service Providers (PgSP)- VSAT Service Providers (VSATSP)- Voice Mail/ Unified Messaging Service Providers (VMSP/ UMSP)
v) Other Service Providers (OSP) -----(Other than all above, Non-facility based Operators)- ITES, Call Centres- CUG (Closed User Group)- Emergency Communication Services- Tele-medicine, Tele-health, Tele-education etc.
vi) Broadcast Services- Radio & TV Broadcast (FM, Terrestrial TV etc.)- DTH- Cable TV
Combined as Unified Access Service (UAS) since Oct’03
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Service specific licensing in India
NilNilApplication services
Site SpecificOSP (Other Service Providers)
NilNilNANationalInfrastructure Providers Cat I
5%NilLimited One way
City wise and Circle wise
Public Mobile Radio Trunked Service
Nil (6% for Internet Telephony)
Rs. 3 Million (All India)
-do-National, Circle wise
Internet Service Providers
5%One Way Interconnection
with PSTN
City wise and Circle wise
Radio Paging Service Providers
6%Rs. 3 millionNo Interconnection
NationalVSAT
6%Rs. 10 million-do-InternationalGlobal Mobile Communication by
Satellite
Type A - 10%Type B - 8%Type C - 6%
Different for each Circle based on bidding for 4th
license
-do-CircleUnified Access (Fixed and Mobile)
(UASP)
6%Rs. 25 million-do-NationalNLD
6%Rs.25 millionFull PSTN/PLMN Interconnection
InternationalILD
Annual License Fee (% revenue share)
Entry FeeConnectivity with PSTN
Service AreaType of Service
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Promoting Competition and Liberalisation in Phases
Monopoly
Duopoly in Access, Monopoly in Long distance
Nation wide Duopoly
Monopoly in Access,
competition in Long distance
Open competition
3-4 operators
Unified Licensing/ Authorization (de-licensing)
MobileFixed
Value Added Services (VAS)
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3 Unrestricted entry in all segments e.g. India
Duopoly
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Single service-agnostic license for all telecom services and class license (authorization) for all value added services
Unified Access
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Salient features of existing regime• Unified Access (technology-neutral) – coexistence of GSM/ CDMA
(WLL), Fixed• Very low termination rates (< 1 cent/min) (same for fixed and mobile)• Very low carriage charges (1 cent/min)• Very low mobile tariff (2 cent/min)• Very low long distance tariff (2 cent/min)• Very low ARPU (8 US$/month)• Very low Broadband charges (5 US$/month)• Low rural tele-density (< 12%)• Unmet mobile network coverage (< 75% of population)• Overcapacity for international bandwidth (17 Tbps/ 500 Gbps)• Wide spread national backbone (7.5 lakhs Km) • Dominance of wireless access (365 million mobiles vis-à-vis 39 million
wirelines)• Monthly subscribers additions – >10 million• Large cable TV homes population- (65 million)
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Telecom India – A SWOT Analysis
–Strength of present policy framework
–Weaknesses
–Opportunity
–Threats/ Risks
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Strength of present Licencingframework
• Open unrestricted competition in all segments (including mobile)• Access service provision unified (broadband, triple play, internet
telephony permitted in addition to voice, fixed/ mobile/ WLL) • General technology-neutrality (technology option left to operators)• General tariff forbearance (Except leased lines where competition
is not enough)• Broadband policy in place (Govt’s mission to accelerate access)• Access network dominated by wireless (440 million out of 480
million)• More than 10 million mobiles additions per month • 65 million cable TV homes and 39 million wirelines• Proactive regulator (initiatives on emerging issues like VOIP
NGN,IPv6,Unified Licensing,Resale in IPLC,MVNO,MNP,CallingCards,Waiving off of ADC etc.)
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Weaknesses-Major Challenges• Multiple regulatory agencies - licensor (DOT),
spectrum management (WPC), technical regulation (TEC), interconnection, tariff & QOS (TRAI),disputesettlement(TDSAT),USO,SecurityAgencies,Competition Commission – (Fragmented) .
• Policy Maker, Regulator, Incumbent Operator –managed by same cadre on reversible secondmentbasis.
• Non-functional separation of national infrastructure (no competition for bottleneck facilities)
• Legacy interconnection regime- Usage based,CPNP• NO General Resale(non-facility based operators) • Value-added service providers,ISPs not treated as
interconnection entity and not allowed full play.• USO Adm-A Govt. Arm-Huge Unspendable Surplus
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Opportunity• Large unmet demand for telecom services (telephony tele-
density– 38%, Broadband penetration - 0.5%)• Mobile coverage only 75% (25% of large geography green)• Rationalization of network resulting into simplicity and
reduced OPEX• Network expansion by using future proof technology (NGN)• EX-ANTE regulation for NGN to remove uncertainties • Involvement of industry in various issues fully in a pro-
active manner• Learn from the experiences of developed countries • Be a part of NGN pioneers for the region (Asia-Pacific)• Bring urban services to rural area (bridge digital divide)
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Threats
• Standards and interoperability issues yet to be settled
• Technical challenges in Emergency access/ Security monitoring
• High CAPEX without corresponding increase in ARPU ( ROI Issue)
• Project oriented risks due to huge scope and costs in dynamic technology environment
• Uncertainty over spectrum issues
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NumberingNumbering
Regulation of“Plain Old Telephone
Service (POTS)”
Regulation of“Plain Old Telephone
Service (POTS)”
Quality of ServiceQuality of
Service
“Next Generation” Long term issues
Emergency Access
Emergency Access
PrivacyPrivacy
SecuritySecurity
CompetitionCompetition
Consumer protectionConsumer protection
InterconnectionInterconnection
Core policy areas:•Competition (level-playing field), Interconnection•Consumer (QOS, privacy, emergency access)•Security & legal interceptionScope for light-touch regulation
Regulatory implications of NGNSource: ASTAP05_WS.IP&NGN-09
InterconnectionInterconnection
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Road ahead – Next Generation Policy and Regulation
• Unification of Licensing and regulatory functions – Converged Regulator with Empowerment and Autonomy
• Manning of regulatory positions by industry experts also and not only from incumbent and government
• Autonomy to USO Adm and Moratorium on USO Levy • A single technology-neutral, service-agnostic license (one license - one
network – all services)• Class/Authorisation for value added , application and content services • A capacity based, open access, interconnect regime • Functional separation of incumbent to unlock the potential of existing
infrastructure and to enable competition• Telecom Ombudsman to enforce QOS. • Next generation telecom policy based on emerging technological and
regulatory trends to encourage the investment, innovation and competition
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