Infrastructure and Literacy

Financial Express ,  FE Special

G Krishna Kumar | Updated: Oct 26 2011, 03:40 IST

Despite all the hype about information technology, India is ranked a lowly 116 among 152 countries in the ICT Development Index (IDI) as per ITU’s (International Telecommunications Union) 2011 report. In fact, India has just improved by one rank in the IDI between 2008 and 2010.
It is well established that broadband uptake plays an important role in a country’s ICT growth. Reports suggest that a 10% increase in broadband penetration results in close to a 1.4% increase in a country’s GDP. In fact, in China, every 10% increase in broadband penetration is seen as contributing an additional 2.5% to GDP growth.
Globally, the US, Korea and Japan are leaders in broadband penetration. There are plenty of examples of government initiatives yielding unprecedented growth in broadband— South Korea’s Korea 21, Australia’s National Broadband Network, the EU’s Digital Agenda, Singapore’s iN2015 Master Plan etc. For the technically inclined, broadband is defined as a connection that provides a minimum of 256kbps. While the US has recently tried to raise the minimum speed, the rest of the world, including ITU and OECD, still consider 256 kbps as broadband. In fact, this speed is quite adequate for a large majority of users.
The recent draft National Telecom policy (NTP) 2011 plans to achieve 175 million broadband connections by 2017. Considering that the previous broadband policy failed to meet the goals, how can we be sure that this time around the goals are realistically achievable? Should we simply depend on 3G for broadband uptake?
Why was the broadband uptake slow?
The 2004 broadband policy had set a goal of 20 million broadband users in India by 2010, but in reality only half of that was achieved. Why? The PSU telcos enjoyed a huge monopoly in the fixed-line segment, with over 80% connections. It is well known that the PSUs have challenges in adding broadband connections by themselves due to their antiquated procedures/policies. Also, due to the lack of regulation on unbundling of local loop (sharing the infrastructure among Internet service providers and competing operators), the ISPs were not able to utilise BSNL’s last mile infrastructure. Broadband tariff has not seen reduction akin to the mobile world. It is also observed that India’s fixed-line broadband speeds are far lower compared to the rest of the world, primarily due to lack of maintenance.
Although cable TV has picked up significantly in India, coaxial cable-based broadband did not witness similar uptake due to licensing requirements, quality of infrastructure, and lack of awareness in terms of cost and quality of connection. The lack of awareness among people concerning Internet usage and availability of simple plus meaningful local content acted as a dampener for broadband uptake. Another factor was the inadequate availability of affordable Internet-enabled devices together with high broadband connection costs. So, BSNL enjoyed no competition for two years in 3G deployment and still was not successful in increasing the wireless broadband user base.
Create infrastructure and ecosystem
After the 2010 spectrum auction, 3G and BWA trends indicate that mobile broadband is certain to witness significant addition over the next few years, especially with newer and lower-priced devices like tablets, laptops etc hitting the market. This, coupled with more attractive tariffs, will boost broadband adoption. Any government regulations to improve spectrum efficiency by allowing re-farming and spectrum-sharing among operators will certainly augur well for mobile broadband adoption.
However, due to the limitations of spectrum availability, infrastructure costs and the anticipated demand for huge bandwidth, an alternative long-term broadband solution is needed for India.
The government’s plan to create a pan-India, wired broadband infrastructure with USOF-funded National Optical Fibre Network (NOFN) is certainly a step in the right direction. NOFN is expected to connect 2,500 village panchayats and would allow all the private operators’ broadband services to rural areas. India already has 7.5 lakh kilometres fibre laid out by private operators. Globally, there are several examples of optical fibre-based networks being successfully deployed and resulting in a huge uptake in broadband.
Once implemented, NFON will certainly give impetus for e-governance initiatives such as e-health, e-banking and e-education. However, given that a PSU telco has been tasked with implementing NFON, the moot question is whether the NOFN infrastructure will really be ready by 2014?
Availability of affordable tablets or PCs will certainly help in rapid broadband adoption. So the government’s initiative in launching the subsidised ultra-low-cost tablet device Aakash is a welcome move. The government’s plan in supporting semiconductor fabs will enable indigenous hardware development. This, coupled with encouragement for R&D and IPR creation, will provide the impetus for availability of affordable devices. Relevant local content and attractive tariffs are also needed for broadband uptake.
Literacy/e-literacy
India has seen unprecedented growth in mobile connections with teledensity reaching over 70%, and with rural teledensity growing at an impressive rate from 1.9% in 2005 to over 35% now. In spite of this phenomenal transformation in communication, India’s human development index stands at an appalling 119th rank of 169 countries.
The literacy level in India must be increased as it is well established that literacy translates into growth and economic development. The latest United Nations HDI trends indicate that countries like Russia, Brazil and China are way ahead compared to India in terms of youth literacy. All the three countries are far ahead of India in terms of broadband penetration as well.
Reports suggest that overall India has less than 10% computer literate population and only 32% of people living in cities are computer literate. Another important area for successful adoption of broadband is to improve e-awareness. This would enable users to understand and appreciate the value of technology and help increase the adoption rate. It is equally important to encourage meaningful/productive use of the Internet. The government could deploy USOF and embark on a mission to increase Internet/mobile broadband/computing awareness with an active collaboration amongst various stakeholders such as the government, telcos, learning content providers, universities, schools and local administration.
NTP 2011 aptly recognises the need for Right to Broadband. A strong broadband network can form the backbone of this country and hence the need to treat broadband
as an essential basic service. For enhancing positive network externalities, it is imperative that the government undertakes measures to improve infrastructure, support an indigenous ecosystem, and rapidly increases literacy/e-literacy across the country.
The author is director and delivery head for mobile devices, Teleca software solutions India.
Views are personal

For Telecom Sense Today

Econmic Times, 21st October 2011, Editorial Page

Draft Telecom Policy 2011 lacks an operational framework

The writers, V Sridhar & G Krishna Kumar are wireless professionals based in Bangalore. Views are personal
The recently-announced draft Telecommunications Policy, 2011, lacks an operational framework. It has a clause on spectrum sharing, but recent DoT action to scrutinise the 3G roaming pacts of certain operators raises a fundamental question as to whether the government should put a stop to the actions of the operators who, by sharing the infrastructure and scarce spectrum, try to improve the efficiency of providing wireless broadband services.

This is not to say that operators can violate rules and regulations. However, since telecom regulations and policies are found to be trailing technology and practice for most parts, is it time to rethink about being flexible in our policy formulation and implementation?
Given the constraints in spectrum, lower disposable income of the general populace and the glaring rural-urban divide, telecom operators in the country indeed have done a tremendous job in their innovative offerings- often referred to as frugal innovation - to increase the utility of their subscribers. This is evident in the improved telecom penetration levels, low prices and the increased contribution of the telecom sector to the country's GDP: more than 3.5% currently.
By cooperatively sharing the spectrum, much like the passive tower-sharing as being practised as a norm in the industry, the operators can potentially reduce costs, optimally use the allotted spectrum and enlarge coverage areas, leading to the birth of 'secondary spectrum market' in India. As long as it increases the social welfare - i.e., profit of the operators as well as subscriber utilities - government shall not stand in the way. However, the process should be transparent so that all stakeholders, including subscribers and the government, are aware of the sharing pacts. Hence, the need of the hour is guidelines for spectrum-sharing for operators to follow.
Some CDMA operators use 800 MHz spectrum to provide 3G EVDO service. Though 800 MHz was allotted for 2G services, it is better suited for 3G services. This method of use, referred to as spectrum refarming, is not allowed in the policy. However, nobody is complaining as both the operators as well as subscribers earn positive net utility out of this initiative. Though the draft policy reiterates delinking licence (for the provisioning of services) from spectrum, appropriate interpretation and implementation is required relating to the above context.
Similarly, the recent move to cancel the licences of one of the spectrum winners of broadband wireless access (BWA) service on what seem to be minor deviations in the application process, might throw a spanner in India experimenting with leading-edge technologies in wireless broadband service (reports suggest this move is now being withdrawn).
The licensing procedure should be simple enough as long as scarce resources such as spectrum for providing the required service are priced and paid for appropriately. In a very good move, the draft policy advocates unifying different licences to just two - network service operator and service delivery operator - that should simplify the licence maze.
It is not that the government and regulator didn't track technology and market activities earlier. On some occasions, the policies were modified in tune with the market conditions. In early 2003, the government imposed access deficit charge (ADC), a cross-subsidy initiative wherein private telecom operators were required to pay to fixedline providers, mainly BSNL, for sustaining its rural wireline network. However, taking cognisance of the fact that ADC created an unfair tax burden on mobile, national and international long-distance service, and also to stop grey market operations, the Trai abolished the ADC in April 2008.

Another example is the changes brought out in the applicability of Universal Service Obligation Fund (USOF). Though NTP 1999 envisioned reimbursement of the net cost of providing universal service in rural areas from the USOF only to basic telecom operators, realising the role of mobile services in providing affordable communication services, the government enabled support for mobile services as well from the USOF through Indian Telegraph (Amendment) Rules, 2006.
To sum up, though the draft Telecom Policy, 2011, recognises convergence, technology evolution and market developments, the government and the regulator should interpret the broad policy initiatives within the context of improving social welfare and act accordingly. Thanks to the much publicised 2G scam, decisions in telecom are being stalled and postponed. Micromanaging by posing bureaucratic hurdles only will stall progress of telecom in the country and might turn the once golden goose of liberalisation to a dead horse!
 

IT.biz loses fizz

Bangalore, Oct 18, DHNS: Deccan Herald

 

BangaloreIT.biz, once considered the flagship event of the state’s growing IT industry, appears little more than a pale shadow of its past.

The event, inaugurated on Tuesday in the city by former President A P J Abdul Kalam, has been marked by steady decline in numbers and little interest from the industry it claims to represent.

The number of delegates has fallen from 6,000 at its peak to mere 1,000 this year. Though the 130 exhibitors may be numerically the same as last year, most of them are small and lesser known names.

It was a far cry from the event that kicked off in 1997 to provide a platform for a fledgling industry eager to showcase its potential. The initial editions also lured several onlookers who were mesmerised by the sudden spurt of the city’s high-tech industry.

G Krishna Kumar, director-engineering at the Bangalore branch of a multinational, said the industry has lost interest in IT.biz. “Not many of the 500 people in our Bangalore office wouldn’t even know that the event is starting today,” he said. Organisers have attempted to re-brand the event to make it more appealing for the business sector, rechristening it from Bangalore IT.in and later Bangalore IT.biz. A former official of I-flex said the major draw of the event in the past was conferences.

“We attended many editions as they drew senior officials of important banks, our target customers. But as the quality of conferences deteriorated and the participation thinned, we stopped attending IT.biz,” he said. Krishna said unlike Nasscom conferences which are organised around specific issues, IT.biz remains a generic event offering little value to participants.
A Nasscom event organiser speaking on the condition of anonymity said it was unfair to compare a state government event with Nasscom conferences. “Nasscom is a member-driven organisation. It works closely with members in deciding the conference themes, agenda and speakers. As members pay hefty fee, they have high expectations, which would have be met.”

“The event organisers should improve their act before IT.biz becomes a painful annual ritual. Bangalore is India’s biggest IT brand. The industry here deserves a better organised event than IT.biz,” he said.