An electric car on a 900 km journey

Ever since I bought a brand new Korean-made electric car a few months ago, I was keen to go on a long drive with the family. 
Published: 16th December 2019 04:00 AM  |   Last Updated: 16th December 2019 02:20 AM

By G Krishna Kumar

Express News Service

Ever since I bought a brand new Korean-made electric car a few months ago, I was keen to go on a long drive with the family.  

Despite some opposition, I managed to convince my family members to take the electric vehicle (EV) from Bengaluru to Sirsi for attending a wedding. Sirsi is a hill station and a popular tourist spot in Uttara Kannada district. The overall trip of over 900 km seemed like a tall ask as there is no charging infrastructure along highways. This meant some serious planning for charging the car and I had to carry fast-charging equipment along with me.

A distance of about 285 km from Bengaluru to Shivamogga was covered comfortably. After charging the car overnight, it was an easy drive from Shivamogga to Sirsi (a distance of 150 km)  via the famous Jog falls. Nice roads, greenery and pleasant weather made it an enjoyable driving experience. Without any additional charging at Sirsi, we were able to drive back to Shivamogga. One more round of charging there meant a good time to catch up with friends and family and then it was back to Bengaluru, about 310 km (via NH75) with no further charging.  

The range an electric vehicle can provide greatly depends on the difference in altitude between origin and destination, quality of road and driving style. The range anxiety cannot be ignored due to the nonexistent public fast-charging infrastructure. The car had to be driven at lower than optimal speed and it was slightly disheartening to see smaller petrol and diesel cars zipping past the electric car. The journey was adventurous as we were solely dependent on personal charging infrastructure.

It was encouraging to see awareness of electric vehicles amongst people in places like Sagar and Sirsi. People’s curiosity about the range and cost per kilometre is worth mentioning. Many of them are keen to go for such a vehicle as it is known to be non-polluting.

While many new electric cars are poised to hit the Indian roads shortly, for them to be a true all-purpose family car, the charging infrastructure on highways and tier 2/3 cities should be established on a war footing. The government has done a great job in improving awareness about electric vehicles, reducing the GST on electric vehicles and providing income tax benefits to the buyer. But without good infrastructure, the job is only half done.

G Krishna Kumar
Email: Krishnak1@outlook.com

Ultra-low mobile tariff versus quality

Telcos must move away from the tariff war. The Centre must take a soft approach on taxes and insist on high-quality user experience

Published: 04th November 2019 04:00 AM  |   Last Updated: 04th November 2019 02:03 AM

By G Krishna Kumar

The Supreme Court’s recent judgment upholding the definition of AGR (adjusted gross revenue) and asking telecom firms to pay around `92,000 crore to the government has placed the sector in further financial crisis. The AGR definition has been controversial for about two decades now. As per telcos, AGR should include only the core telecom revenue, while the Department of Telecommunications (DoT) wants all revenues earned by telcos, including interest from bank deposits and foreign exchange gains, asset sale gains, etc. The telcos are appealing to the government to clarify or review the SC judgment.

This SC verdict has come when telcos like Airtel and Vodafone Idea are in a dilemma over Reliance Jio’s move asking its subscribers to pay 6 paise per minute as Interconnect Usage Charges (IUC) for calls made to other network providers. Will all telcos follow suit and is it time to bid goodbye to the ultra-low mobile tariff regime?

The IUC is a charge payable by network provider A, whose subscriber originates the call, to network provider B where the call terminates. An IUC of 6 paise per minute has to be paid by A to B. The telecom regulator TRAI had reduced IUC from 20 paise to 14 paise in March 2015 and further to 6 paise in September 2017. In 2017 TRAI had announced that the IUC would be made zero from January 2020. But it is likely that the IUC may continue for a longer time. In fact, a recent report indicates the government is not able to fix a floor price for mobile tariff and by retaining the IUC at 6 paisa for the next couple of years, the Centre may be indirectly influencing the floor price. It is a clear indication that other telcos would increase their tariff very soon.

Most advanced countries follow zero IUC or Bill and Keep (BAK) mode that allows for calls to be terminated at zero charge. The telcos recover the costs from their own customers instead of charging other operators. Where the voice call traffic amongst telcos is roughly similar, BAK would be appropriate. In India, asymmetricity of voice traffic was prominent five years ago as there were 8-10 telcos per circle and the top 2-3 enjoyed maximum market share. As it stands now, the top three have anywhere between 30-35 crore subscribers, but the asymmetricity continues. TRAI has issued a recent consultation to assess the need to continue the IUC or scrap the same due to the asymmetric voice traffic. Sample this: Jio has 64% outgoing calls to other networks and 35% incoming calls. Airtel has 45% outgoing calls and 54% incoming calls, while Vodafone Idea has 40% outgoing calls and 59% incoming calls.

The challenge in India is the ultra-low tariff that has resulted in an average revenue per user (ARPU) of `74 per month. That is 10 times lower than in most advanced countries. Indian mobile subscribers’ data consumption has gone up significantly over the past two years. The average data consumption is over 9.7 GB now, while it was about 2 GB in 2017. This is among the highest in the world. The average cost to subscriber per GB wireless data has gone down from `17.43 in 2017 to `7.7 in 2019.

The telcos have to constantly update their infrastructure. But in an industry with around `7 lakh crore debt, they are struggling to improve the infrastructure. This has led to extremely poor call quality, constant call drops and inconsistent data connectivity. The overall user experience is pathetic. Most of us have witnessed a drop in the quality of mobile experience in the past few years; this can be directly correlated with the reduced mobile tariff. This artificial low tariff is killing the industry. Many telcos have closed their operations.

For India to benefit from the strong mobile connectivity, high-quality network infrastructure is required. The tariff war that telcos are indulging in must end. The focus must be on providing better quality of experience for subscribers. According to a report, if the top three operators start charging 6 paise IUC to their subscribers, the telecom sector revenue is likely to go up by `15,000 crore. This is welcome money for a sector reeling under severe financial constraints.

The government on its part should take a relook at the regulatory fees imposed on the telcos. The regulatory levies and taxes (license fees, GST, etc.) in India are the highest in the world, with telcos having to pay 25-30% of the gross revenue as tax. A recent news report indicates that the government is working towards reducing the universal service obligation from 5% to 3%. The revenue share license fee is likely to be brought down to 6% of the adjusted gross revenue of the telco. The government has recently set up a panel to suggest steps for providing much desired relief to telcos.

The government action on reducing taxes and providing longer timeframe for deferred payment of spectrum fees will provide respite to the telcos. Along with this, the inevitable increased tariff (quality over cheap tariff) will enable the telcos to improve their infrastructure to meet the ever-growing demand from the mobile subscribers. 

But the government should mandate the telcos to provide the right quality of service. There were discussions on the government imposing penalties for poor quality voice and internet connection. The government should certainly bring some tight controls.  

With Digital India ambitions from the present government still intact and with several services planned to go digital in the country, a robust telecom sector is the need of this hour. Telcos must move away from the tariff war. The government must take a soft approach on taxes and yet insist on high-quality experience for the end users. Quality should win over low tariff.

G Krishna Kumar

ICT professional and columnist based in Bengaluru. Views are personal

Email: krishnak1@outlook.com

How to make the most of an electric car

Reasons included tax benefit offered on the loan availed for purchasing it, reduction in GST, no road tax, registration fees, etc. Add to that the fact that the Kona Electric has a decent range (claimed is 452 km on its 39.2 kWh battery pack).

• By: G Krishna Kumar
• October 3, 2019 4:49:30 PM
• A few months ago, I wanted to buy a `20-25 lakh petrol car. Since none met my expectations, I decided  Hyundai Venue, the compact SUV (about `10 lakh). During the process, I learnt about then to-be-launched Hyundai Kona Electric. At the same time, it was encouraging to see the government’s Budget announcement to encourage sales of electric cars. While the launch price of the Kona was above my budget (over `25 lakh), with the GST reduction on the anvil, I booked it. Reasons included tax benefit offered on the loan availed for purchasing it, reduction in GST, no road tax, registration fees, etc. Add to that the fact that the Kona Electric has a decent range (claimed is 452 km on its 39.2 kWh battery pack).
  I was aware charging would be a problem. While I got a slow charger and a fast-charging AC equipment free for charging at home, public infrastructure is almost non-existent. Then I got to know BESCOM, the electricity provider in Bengaluru, has set up 12 fast-charging stations across the city—the government of Karnataka and BESCOM are also planning to set up charging stations along national highways.I was among the first few customers to get the delivery of the car, in August. Its ride quality is fantastic. The intuitive cluster, infotainment system and the button-based drive-mode selector are futuristic. Interestingly, many people have asked me the typical ‘kitna deti hai’ question.
  I’ve driven during rush hour, off-peak hours, and on a short stretch on highways. Practical storage spaces are worth mentioning, and ventilated seats are a boon in hot weather. Also, during rush hour traffic, I have been getting about 7.5 km per kWh (translates to 294 km range). During off-peak hours and if driven at 30-50kph, the efficiency improves to 11 km per kWh (431 km range). The key to getting better range is easy acceleration, regenerative braking set at level 3, using driver-only AC (if you are the only one in the car). Also, range improves when going downhill as that helps recharge the battery. With five people travelling and AC switched on, about 9 km per kWh is achievable (352 km range). On the highway, the best range is possible when driving at 70-90kph.I’ve observed the Kona returns a range of 320-370 km during urban driving and about 300 km on the highway. Customers like us definitely need more choices as far as electric cars are concerned, and surely such electric cars that have a range long enough not to give us range anxiety.
• The author is an ICT professional and Kona owner based in Bangalore. krishnak1@outlook.com

Getting India ready for the electric mobility revolution

Electric car sales cannot revive the struggling industry in the immediate future. But the benefits of electric vehicles are too good to ignore.
Published: 21st July 2019 04:00 AM  |   Last Updated: 21st July 2019 12:54 PM

By G Krishna Kumar

Over the past few weeks, the interest level around EVs (Electric vehicles) has suddenly increased in the country, thanks to the recent budget announcement by the finance minister about promoting electric mobility, by reducing GST for EVs to 5 per cent and allowing income tax benefits for EV buyers.While these sops must be lauded, there are limited options for electric car buyers, unlike with regular petrol/diesel vehicles or internal combustion engine cars or ICE cars, where the options are aplenty. The automotive industry is reeling under pressure, with ICE car sales at 18-year lows. The industry’s woes are compounded with the need for BS VI emission compliance for ICE cars.

Electric car sales cannot revive the struggling industry in the immediate future. But the benefits of electric vehicles are too good to ignore.  EVs help in curbing pollution in our cities and towns through reduced carbon dioxide emissions. Also, electric mobility can help reduce India’s oil import dependency. Currently India imports 84 per cent of its oil demand. A NITI Aayog report indicates that by 2030 India can save 474 million tonnes of oil if 30 per cent of private cars, 70 per cent of commercial cars, 40 per cent of buses and 80 per cent of two and three-wheelers become electric.

Global EV scenario
Globally, EV prices are at least 50 per cent higher than those of ICE cars, and the price is expected to fall to ICE car levels over the next 3-5 years. The battery is the most important component of EVs. A Bloomberg report states that the cost per kwh (kilowatt hour) was over $1,000 in 2010 and it is expected to go below $100 by 2024. Research reports indicate that EVs will become cheaper compared to ICE cars once the cost per kwh goes below $125.

The European Union is leading the way in electric mobility adoption with new policies and regulations. Norway is widely seen as a pioneer in the EV market, with over 20 per cent of new cars sold being electric. The government offers subsidies, toll fee waiver and special parking to aid EV adoption. The UK’s Road to Zero strategy is aimed at removing ICE vehicles by 2040. The US EV market is expanding rapidly and is expected to add over 4 lakh electric cars this year.A recent report suggests that the world’s EV sector growth is healthy, and by 2025 the global market will be worth $570 billion, with China leading with a market share of 60 per cent. 

India’s EV journey
Electric cars have been around in India since 2001, but only over the past few years have we seen the government’s active involvement with policy changes. Since 2017, the government has made a strong pitch for electric vehicle deployment in India through initiatives such as FAME (Faster Adoption and Manufacturing of E-vehicles), FAME-2, Green Mobility Fund and Make in India. In a bold move, the government is pushing for sale of EVs only after 2030.

As per The Society of Manufacturers of Electric Vehicles (SMEV), there are more than 4 lakh electric two-wheelers and a few thousand electric cars on Indian roads. With several new electric cars and two-wheelers planned to be launched in the coming months, adoption should improve. However, there are significant challenges.

Challenges and opportunities
A recent report indicates that 2.1 crore two-wheelers were sold last year, and electric scooters’ share was less than one lakh. While over 3 lakh cars were sold in FY19, less than 10,000 electric cars were sold. Despite zero road tax in several states and government subsidy to the manufacturers, the high price is a deterrent. But then it is a great opportunity for companies to innovate and bring the prices down. The battery is the costliest component of EVs and India is dependent on China and other countries for both the technology and the supply of lithium for manufacturing batteries.

It is an opportunity for the government to task the premier technical institutes, such as IISC and the IITs, to come up with innovative battery storage/alternative technologies. Innovation in reducing cost and improving charging speed for the mass market are the need of the hour.The next challenge is about range anxiety, a term used to indicate an electric car driver’s worry that the battery will run out of power before a suitable charging point is reached.Newer cars are expected to hit the Indian market with a 300-400 km range with a fully charged battery. This is much better than the 100-km range cars currently in the market.

Range anxiety is all the more serious as public charging infrastructure is almost non-existent at present. Even with the infrastructure, it would take 45 minutes to several hours to charge a car, depending on the technology used for charging batteries. While people are used to instant refuelling with ICE vehicles, the time taken for charging will be a dampener.There is a possible opportunity for companies to create innovative replaceable/detachable batteries. This will significantly reduce range anxiety and would make it convenient for the car and two-wheeler users. 

Standardisation of the charging infrastructure would play a pivotal role. The government and the industry should strive for indigenous technology using solar power for developing a robust charging infrastructure. India’s electricity infrastructure needs significant improvement to cater to increasing demand. Sustainable electricity generation through mini/micro and nano grids can be the way out.

Disruption in the job market can be another big challenge. Sample this: The number of moving parts in a normal ICE car would be over 2,000, while an EV counterpart would just have 20 odd moving parts. The fewer the moving parts, the lesser the need for maintenance. This could affect the established petrol/diesel-based automobile industry ecosystem, which includes service centres, spare parts manufacturers etc.

The present automobile ecosystem has provided jobs to over 5 lakh people in the organised sector and several lakhs of unorganised jobs. The government would do well to create a 5-10-year road map that would allow for a gradual move towards creating a strong EV ecosystem. Also, the government and industry should embark on reskilling the existing workforce. For India to emerge as a global electric mobility leader, a robust ecosystem involving government, industry and academia must be created, with a  charter to drive road map implementation and  spur innovation.

G Krishna Kumar
ICT professional and  columnist based in Bengaluru
Email: Krishnak1@outlook.com

Getting BSNL off life support

Hyper competitive environment can be blamed for the woes of this sick PSU. The situation also shows how lack of agility can pull a firm down.
Published: 03rd April 2019 04:00 AM  |   Last Updated: 03rd April 2019 07:43 AM

By G Krishna Kumar

Recently, BSNL, the state-owned telecom PSU, was in the news for
failing to pay salaries to its 1.7 lakh employees for February. The 
Centre’s action to ensure that employees are not affected, at least 
for the immediate future, must assuage the employees.

BSNL, which was a Navaratna company just 10-12 years ago now
has over Rs 90,000 crores of accumulated losses. The new
 government should takesome significant steps to get BSNL back 
on track. The wage bill for BSNL and MTNL (the state-owned telco
 providingservices in Delhi and Mumbai) is about 60 per cent of the 
revenue. 

This was about 20-22 per cent 12 years ago. Over the past several 
years the wage bill increased
 while the revenue has been stagnant or reducing. Meanwhile,
private telcos operate at 9-14 per cent wage bill as a percentage of 
their revenue.

While the hyper competitive environment can be blamed for the woes
of this sick PSU, the situation also shows that poor management and 
lack of agility can pull down any profitable organisation rapidly. A 
recent report shows how
the paltry productivity of BSNL/ MTNL compares with their private
peers. On an average, each employee of the PSU manages about
 500 subscribers,
 while the private telcos manage 20,000 to 28,000 subscribers per 
employee.Interestingly, even China’s state-run mobile operator, 
China Mobile is better
 than BSNL in this parameter. China Mobile has a base of a whopping
 90 crore
 subscribers and its employees handle over four times the subscribers
compared to the BSNL staff.
The merger of BSNL and MTNL has been on the cards for some time,
but successive governments have failed in taking action.

Way back in 2009, the government tried to encourage BSNL by
 providing 3G

spectrum before the auction was held for private players. But BSNL
 could not
 make any impact with the head start. There was no such luck for
 BSNL when
 it came to the 4G spectrum. The lack of 4G offering has put BSNL
 on the
backfoot. After Reliance Jio’s entry, private players are competing to
 provide
better rates for the subscribers. And all this while, BSNL’s services
have been
 limited to just 2G and 3G. This has been a huge disadvantage for the
 PSU.
BSNL and MTNL account for less than 10 per cent of the wireless
subscriber
 base. And BSNL has not been able to match the private players
 when it
comes
 to marketing their services.

Bureaucracy and slow decision making during equipment purchase
and
managing contracts, and inadequate management flexibility in pricing
 plans
and challenges around vendor management contribute to BSNL’s woes.
Added
to all this, BSNL staff are indifferent when it comes to customer retention.

In fact BSNL has tried to implement the FTTH (Fiber to the Home)
connectivity
 through vendors, but it has not been a smooth ride. The back-and-forth
between
 BSNL and the vendors puts the subscribers in a spot. Perhaps, BSNL
needs to
 learn from the private telcos on how to handle managed services from
vendors.

Notwithstanding the shortcomings, BSNL still commands the highest
 market
share in wireline broadband with lakhs of kilometers of optical fiber
cable
across
 the country. It has infrastructure/towers and a talented workforce. This
means
 the PSU can rise again. The government’s actions must go beyond the
tactical
 bailout package which is being worked out.

Perhaps the government should learn from Telstra of Australia and
British
Telecom of the UK. They are great examples where the government
control
was drastically reduced. The companies are listed in the stock exchange
and
have improved and agile management structure. They are now
accountable to shareholders. Despite stiff competition, both the 
companies have performed
 exceedingly well. The Centre should consider a stake sale and bring in
management talent and create a professional board. Accountability
must be enforced.

It is estimated that the land assets owned by BSNL is worth over
Rs 70,000
crore. The government must create the right checks and balances to
monetise
 the amount either by selling the assets or leasing them out. It must
conduct an
 audit of the active infrastructure being used by BSNL and suggest
 means of
improving the unutilised/under utilised assets. The company must
soon find
 ways of offering next gen technologies. News reports suggest that
BSNL
could take a lead on 5G. That is heartening. However, keeping in mind
the
company’s track record, implementation could be a cause for worry.

The government must set a 18-24 month goal of right sizing the
workforce and
 bringing in efficiencies using industry benchmark on productivity.
The
government should look beyond voluntary retirement schemes.
It should
actively encourage entrepreneurship amongst employees and
 create a
platform for employees to come up with ideas. It can enable a
support
system
 for localised content and solutions for the Indian market and
also utilise
the
 start-up ecosystem for upskilling.

The new government must play a pivotal role in creating and
implementing
 a strategy to breathe life into the PSU. Genuine efforts are
 needed to get
BSNL off life support.

G Krishna Kumar
ICT professional and  columnist based in Bengaluru
Email: Krishnak1@outlook.com

Addressing India’s 5G conundrum

Mobile communication in India was primarily voice-based for many years.

Published: 08th March 2019 04:00 AM  |   Last Updated: 08th March 2019 03:17 AM

The recently concluded annual Mobile World Congress in Barcelona was abuzz with the emerging technology called 5G, which is expected to transform the communication landscape the world over. As with any technology life cycle, we witness hype before reality sets in. How soon will 5G become a reality and how quickly will India embrace this technology? Before looking at the possible solutions, let us understand this emerging technology a bit.

5G stands for the fifth generation of mobile internet connectivity. 5G promises 10 to 100 times faster data download and upload speeds compared to 4G. This technology will be applicable to an ecosystem of infrastructure devices (maybe billions of devices!) and is not just limited to smartphones. A recent report suggests that there are 7 billion connected devices globally, mostly comprising mobile phones, but that would increase 15-fold by 2025. This is because of the addition of connected home appliances, cars, transportation infrastructure, etc. 5G is also expected to reduce the latency (time taken for sending data from one point to another). This can help in innovative real-time applications across manufacturing, healthcare, education, etc.  

The rollout of 5G across the globe will happen gradually; 5G network suppliers as well as mobile phone makers are in a hurry to get their products into the market. Telcos across the globe are trying to outsmart each other. No wonder, a leading telco in the US recently started a controversial marketing campaign called 5GE or 5G Evolution (which is advanced 4G and has nothing to do with 5G). It is expected that the US, Japan, South Korea and the EU would roll out 5G services during the next couple of years. Any new wireless technology would involve complete infrastructure deployment as well as the availability of mobile handsets.  

Mobile communication in India was primarily voice-based for many years. However, over the past couple of years, India has suddenly emerged as a leading market for data consumption. A leading mobile network provider says that data consumption on mobile networks per user in India is among the highest in the world. While the increase in mobile usage is laudable, Indian mobile subscribers are a frustrated lot due to poor voice call quality, call drops and substandard data rates for browsing. While the benefits of 5G are too good to ignore and would help India become a ‘technology-first’ nation, the question remains: Will Indian telcos take the 5G plunge?

The biggest challenge is the availability of 100 per cent backhaul fibre optic network. Reports suggest that the US and China have over 80 per cent of the backhaul network fiberised, while in India, it is just about 25 per cent. In addition, what about the ability of the telcos to acquire equipment, infrastructure and more importantly spectrum? The total debt in the industry is over Rs 7 lakh crores.

Many telcos have requested for delayed payment for the spectrum they had acquired, and there are rumours that some telcos will file for bankruptcy. The situation is similar to the one we witnessed in the late nineties when the government intervened in bailing out the telcos that had filed for bankruptcy.
Should India wait for 5G to mature in other countries before bringing it here? Certainly not. The government’s Digital India push would get a major boost through the ultra high speed 5G network. Through Digital India initiatives, the government has already launched close to 70 services (including UMANG, Jan Dhan, eKYC, etc.) With more services on the anvil and more citizens availing the services, a robust 5G-ready infrastructure is the key.

The government has announced India will be 5G ready by 2020, but that seems far-fetched. It has plans to auction 5G spectrum. However, reports suggest even at the base price, the spectrum is 3-4 times more expensive compared to the cost in nations like South Korea. Considering the tepid response to previous auctions, the government is on the backfoot. 5G infrastructure would mean huge expenditure from the telcos for building the telecom backbone and for spectrum. The present price war and the ultra low cost tariff initiated by Jio has left the incumbent telcos struggling financially. In fact, a leading telco recently said the artificially low tariff for Indian subscribers would stop very soon as it is simply unviable for them.

How can the government help in bringing 5G? Firstly, the pricing for 5G must be reasonable with relaxed payment terms. But this would go against the government’s objective of maximising revenue from spectrum sale. Secondly, private players should be incentivised and the “Fibre First Initiative” mentioned in the National Digital Communications Policy (NDCP) 2018 should be aggressively implemented. Thirdly, the government should aim at reducing the regulatory taxes paid by Indian telcos, among the highest in the world.

They pay 30-32 per cent of their revenue as taxes (including spectrum usage charges, licence fees, GST etc.). Also, the government must push for ‘Make in India’ manufacturing for 5G infrastructure, equipment and even mobiles. Finally, an ecosystem should be created for coming up with India-specific applications by involving the right stakeholders including industry and academia.

Notwithstanding the current challenges in the telecom industry, India needs to embark on the 5G journey for the Digital India initiatives to be effective. The government and telcos must work together in building the right infrastructure that can provide superlative data speeds and user experience for all of us.

G Krishna Kumar
Columnist and ICT professional based in Bengaluru. Views are personal
Email: krishnak1@outlook.com