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

Digital India: The way forward

Although the Digital India initiatives are focused on reducing the digital divide, a multi-pronged strategy is required for India to emerge as a leading digital economy.

Published: 15th July 2018 04:00 AM  |   Last Updated: 15th July 2018 08:52 AM

By G Krishna Kumar

Information technology minister Ravi Shankar Prasad recently stated that the government had added more services through the UMANG (Unified Mobile Application for New-age Governance) app for smartphones. This app offers 242 services from 57 departments in 12 states. This is unprecedented progress for a government initiative that was launched by PM Narendra Modi six months ago as part of the Digital India push. While the initiatives must be lauded, a recent global survey on Internet/App usage by global research firm Pew Research Centre ranks India lowest amongst the 39 large economies surveyed. Although the Digital India initiatives are focused on reducing the digital divide, a multi-pronged strategy is required for India to emerge as a leading digital economy.

Infrastructure, implementation
The national telecom policy, rechristened as the National Digital Communications Policy (NDCP-2018), is expected to be announced shortly after Cabinet approval.

We have seen three national telecom policies—NTP 1994, NTP 1999 and NTP 2012—in the past and the Broadband Policy in 2004. We have struggled when it comes to implementation of the stated objectives in the policies. Free roaming was part of the NTP 2012 objectives, but it has not been fully implemented (Outgoing calls while roaming are still charged).Another example: NTP 2012 stated that broadband Internet should have a minimum download speed of 2 Mbps, while to-date, an Internet speed of 512kbps is considered broadband in India. In comparison, leading economies have already increased the minimum speed to 7-20 Mbps.

While superlative Internet speeds are still a distant dream, the government, regulator TRAI, and telecom firms have failed miserably in providing basic mobile call quality. The call drop menace continues, with no accountability whatsoever, letting down subscribers. The telecom sector has been in financial turmoil with debts rising, thanks to mindless spectrum auctions pushing the telcos into bankruptcy. The hyper-competitive environment has led to some operators going out of business. 

The NDCP-2018 has set a lofty goal of investment of $100 billion in four years. With over `7 lakh crore in debt, how will the telcos mobilize funds? 

Also, the cumulative taxes paid by Indian telcos are the highest in the world. The telcos pay over 32 per cent of their revenue as taxes (including spectrum usage charges, licence fees, GST etc.) to the government, compared to 3-8 per cent in other countries. The government must attempt to reduce the tax burden on the telcos.

Considering the current challenges in the telecom sector, the government could even consider delaying the NDCP-18. Instead, it could prioritize and draw up specific actions for improving the health of the sector before the new policy is introduced.

The PSU angle and delays
Although mobile phones are easily available, the inherent inefficiency in spectrum management and poor network infrastructure have resulted in poor quality of experience for end users. State-owned firms Bharat Sanchar Nigam (BSNL) and MTNL are making losses for several years with no sign of revival. Successive governments have provided free/discounted spectrum to the PSUs with the hope of revival. Despite the preferential treatment, the PSUs have struggled to stay relevant even in rural India, where private players are dominant. Spectrum being a scarce resource, the government should look at improving efficiency in the spectrum held by BSNL/MTNL by allowing private players with the right checks and balances.

For high-speed Internet access, fixed broadband can be an alternative.
BharatNet, a special purpose vehicle envisaged in 2011, was an ambitious plan to connect all the 2,50,000 gram panchayats through a high-speed optical network. Incessant delays meant only 25-30 per cent completion against the target. The Telecom Commission has drawn up revised plans to complete this by March 2019. While we await completion of this network, Reliance is planning to disrupt broadband through an advanced fibre-based solution (1Gbps speed), and aims to be an all-in-one broadband service by encompassing IPTV, landline, video conferencing etc. Reliance Jio’s track record in disrupting mobile communication in the country is well known. BSNL, the current leader in fixed broadband service, will be displaced soon should Reliance taste success in this space.

Spur innovation
Most of the e-governance websites and apps are not intuitive and even e-literate citizens would find it challenging to navigate them. Internet users are exposed to world-class apps and websites and expect a similar experience on government websites. For the rural populace to become an integral part of Digital India, simpler, innovative and intuitive user experiences must be created.

The National Knowledge Network (NKN), a government initiative, can play a key role in bringing students, researchers, academics and the government on a common platform for improving the quality of experience. The government would do well to encourage the NKN to pursue cognitive science programmes that would look at easy ways to communicate and represent information through artificial intelligence and human-computer interaction. Such an initiative will immensely help the semi-literate/illiterate population.

India’s telecom sector has come a long way through the adoption of mobile technologies. However, for India to emerge as a dominant digital economy, the government needs to prioritize achievable targets and ensure the implementation of the initiatives.

G Krishna Kumar
ICT professional and columnist based in Bengaluru
Email: krishnak1@outlook.com

Fleeing stone-pelters in paradise on Earth

Let me first pay my deepest condolences to the family of Thirumani who was killed by stone-pelters in Kashmir on May 7.

Published: 10th May 2018 04:00 AM  |   Last Updated: 10th May 2018 01:13 AM

By G Krishna Kumar

Let me first pay my deepest condolences to the family of Thirumani who was killed by stone-pelters in Kashmir on May 7. While I was watching the news about the youngster’s death, a thought crossed my mind: It could have very well been me or my family member as we were present in Srinagar just a day before this incident. After much deliberation, we decided to visit Kashmir after giving Sikkim, Munnar and Coorg a pass. It was a brave decision, considering the on-and-off encounters and stone-pelting incidents in the Valley.

We were lucky to have returned home after a memorable trip to Kashmir. But we had our share of tense moments with the bandh and stone-pelting incidents. One day, as we were driving down a road in Srinagar, a passerby alerted the driver that people were pelting stones a few hundred meters away. The driver immediately took a diversion. After a while, when we returned to the area, we found many stones on the road; not mere stones but huge broken concrete blocks.

But the sheer beauty of the place helped us overcome the anxiety. Kashmir is indeed paradise on earth with beautiful landscapes and snow-covered mountains. The pristine water flow in Doodhpathri, lush green landscapes in Pahalgam (mini Switzerland), miles of ice at “Zero point” in Sonamarg, snowfall in Gulmarg should never be missed. The best part about the Valley are the people who are known to care for the visitors, an attitude often termed as Kashmiriyat.

How can things go wrong in such a beautiful place with hundreds of people getting killed every year? A place blessed with unmatched natural resources and very friendly people. The cities and towns looked so normal like any other place in India. With my broken Hindi I managed to talk to a few locals. They are up-to-date on encounters. They have learnt to “live with encounters”. But people have very strong political affiliations. Killing of civilians makes them angry.

It was shocking to see “Go back India” slogans written on walls. It was equally shocking to find thousands of people attending the funeral of slain militants. The economy is hugely dependent on tourists and stone-pelting incidents will severely impact the region.

Had the situation been normal, I am sure Kashmir would have overtaken Switzerland or Austria as the most popular tourist destination. But that looks impossible as of now.

G Krishna Kumar

Email: krishnak1@outlook.com

Technology’s always been a job creator

G. KRISHNA KUMAR

AI is here to stay. Sure, some jobs will go, but others will be created. And human intervention will always be required

Recently, economist Paul Krugman warned that India could lose its dominating position in the global services trade space due to the threat of artificial intelligence. He feels this could result in massive unemployment.

Artificial intelligence or AI is the intelligence demonstrated by machines. Essentially, computers continuously ‘learn’, mimicking cognitive functions like humans. AI has already started impacting our lives. Voice-based search used in smartphones is an example of AI. Self-driven cars is another .

According to Gartner’s Technology hype cycle, mainstream adoption of AI is expected to take off over the next 2-5 years.

From an industry perspective, the evolution of technology must be juxtaposed with the rate of change of customer needs. This means IT companies are required to support customers with stable/legacy technologies (such as the airline booking system or 2G or core banking software); at the same time, customers need leading edge technologies. The challenge for companies is to create the right mix.

Will AI be a threat to the current and future IT workforce? Will it wipe out the IT Industry? Certainly not. We still need people to monitor and maintain automated systems.

Co-existence is the mantra

The tech era is about 50 years old. Historical data shows that evolving technology has been a job creator. Man and machines need to co-exist. Many of the jobs that exist today did not exist 20 or 30 years ago; back then the same issues and concerns existed around job security.

It is a fact that AI-based bots and chatbots have already taken away jobs in the IT industry. This will continue and automation will certainly take over manylow engagement jobs.

However, over a period of time, we will end up with a more engaged and motivated workforce that would like to perform exciting and challenging tasks rather than mundane activities. For this to happen, an environment that can foster innovation is needed.

AI is likely to create more jobs than it would destroy. A Gartner’s report predicts that by 2020, automation will create 2.3 million jobs, while only 1.8 million jobs will be lost.

In order to keep pace with disruptions, the IT workforce need to Learn, Unlearn and Relearn. Reskilling/upskilling both out of individual interest and through organisational initiatives will be required. The key is the willingness of an individual to learn and adapt. The IT workforce needs to demonstrate the right attitude, analytical skills, strong domain knowledge and programming skills to stay relevant.

Collaborations and partnerships are needed to demonstrate agility and relevance in the industry. Lately, experts are being hired on need basis for specific tasks; they may end up working for different companies simultaneously. ‘Uberisation’ of the workforce is gaining popularity. Uberisation simply indicates freelance work as opposed to permanent jobs.

A recent WEF report states that US leads the way in uberisation. Already, 36 per cent of its workforce are freelancers and by 2027 the majority will be freelancers. They keep themselves abreast of evolving technology.

Organisations must be willing to accept and promote the concept of remote workers, anywhere on the planet, with negligible ‘control’ over the people. This calls for a shift in mindset.

Better training

Other than the fact that engineering colleges piggybacked on the IT industry in India, industry-academia collaboration for ensuring industry ready talent has been a challenge. We need an IT workforce that can be future-proofed through better training.

The output from engineering colleges has been a major cause of concern for the IT industry. There are over 3,000 engineering colleges in the country, with close to eight lakh students passing out every year. Some 55 per cent of the students aspire for software employment while only 3 per cent of them are ready for such jobs.

Strict action from the Government to reduce admissions into engineering colleges must be put in place. In addition, tighter industry-academia collaboration is extremely important. The Government should consider imposing mandatory six-month training (similar to the concept of interns in the medical field). However, the sheer volume of students passing out every year is a deterrent for IT industry participation in guiding aspiring software engineers and getting them close to industry-ready.

Considering that AI and technology disruption is a given, we need innovative models through which gen-next engineers can gear up to face future challenges.

So, how shall we prove Krugman wrong? We know man and machines will co-exist. We need cohesive actions for upskilling existing talent, embrace uberisation of the workforce and ensure high quality gen-next engineers for India to handle the impact of AI.

The writer is an ICT professional and columnist based in Bengaluru. The views are personal

Published on March 28, 2018

India, America and net Neutrality

By G KRISHNA KUMAR  |   Published: 25th December 2017 04:00 AM  |  

Social media is abuzz with the US Federal Communications Commission’s (FCC) decision to repeal the net-neutrality regulations. The regulations, aimed at ensuring a free and open Internet, were proposed in 2015. The FCC had then famously reclassified high-speed Internet as a telecommunications service, subjecting internet service providers (ISP) to penal action for violations. The Internet ecosystem comprises three key players—the ISPs or telecom service providers like Airtel and BSNL, the ‘content providers’ like WhatsApp and Facebook, and the end user.

Net neutrality implies the ISP must treat all data as exactly the same without discrimination based on source of the data or the intended recipient. This also means there should be no discrimination in terms of priority or pricing discrimination. The user must have the same experience when accessing any website on the Internet (be it Google, Facebook or any local news portal). By providing a level-playing field, net neutrality will encourage the content providers, especially the smaller ones, to come up with innovative solutions. This would spur the start-up ecosystem.

However, in an ISP controlled/non net-neutrality regime, the bigger content providers could have an ‘understanding’ with the ISPs and potentially kill the smaller companies. Opponents of net neutrality argue that its enforcement would not motivate the ISPs to improve Internet infrastructure as they are not able to monetise their existing infrastructure, like radio spectrum. The US move will give powers to the ISPs for controlling and throttling Internet content. It is unprecedented considering a recent survey found that 83 per cent of US consumers support net neutrality. Pai has said the FCC would no longer be in the business of micromanaging business models and pre-emptively prohibiting services that could be pro-competitive. Many consumer groups are pursuing a legal route.

As expected, ISPs like AT&T and Comcast have welcomed this move. While tech giants like Amazon and Facebook expressed unhappiness, the fact that these giants enjoy a huge loyal customer base puts them in a powerful position when negotiating with the ISPs. The scrapping of net neutrality in the US will have a rub-off effect. Many nations consider the US as the beacon for technology regulations. A recent report talks about possible implications in Australia, as the nation follows the US on Internet access. While most EU nations have some form of net neutrality enabled, Portugal is an exception where service providers are using loopholes in the regulation to charge more. India has been a proponent of net neutrality for the past few years.

Recently, IT minister Ravi Shankar Prasad has said that right to Internet access is ‘non-negotiable’. In its recent recommendations, the telecom regulator TRAI said that Internet- access services should be governed by a principle that restricts any form of discrimination or interference in the treatment of content, including practices like blocking, slowing down or granting preferential speeds or treatment to any content. The TRAI said ‘specialised services or other exclusions’ will not come under the purview of the recommendations.

It has also suggested that it does not see any issue with adoption of reasonable traffic management practices by the service provider. The special services could include healthcare and other areas. By using some of the clauses in the TRAI recommendation, will we see some form of zerorating like Facebook’s Free Basics again? In early 2016, Facebook started Free Basics allowing users free, but restrictive Internet access. Facebook had to stop this service due to the government’s clampdown on discriminatory pricing. The TRAI has taken the step in the right direction by allowing some flexibility for the ISPs. But this is desirable with the right checks and balances.

The Internet is becoming complex with so many stakeholders like search engine providers, content providers, mobile phone makers and platform providers, all competing for their share. The ISPs could differentiate based on the broad category of applications—for e.g., voice applications. However we don’t want specific content providers’ data to be given different priority—for e.g., Skype or WhatsApp should not be treated differently. For TRAI, monitoring such cases will be a challenge. However, on monitoring internet traffic, the TRAI has said that the DoT needs to establish an industryled collaborative framework. Presently, India has 400 million Internet users, of which rural penetration is abysmal at 16 per cent. Reports suggest rural India can add 750 million subscribers.

So demand for Internet access and India-specific content will increase a lot over the next few years. So, Internet is undoubtedly an important platform that can unleash innovation potential through startups, e-governance and the ‘Digital India’ programme. However, India’s Internet speeds are much lower compared to global averages. India is ranked 109th in terms of mobile Internet speed amongst 122 countries and 76th in fixed Internet. While India has seen improvement in the Internet speeds during 2017, the speeds are one-tenth that of Norway or Singapore.

Even Sri Lanka and Pakistan are ahead of us. So the government’s effort in enabling synergy amongst the key stakeholders is paramount. The ISPs must be able to run a viable business, while nurturing innovation from content providers and ensuring superlative user experience to the end users. India’s stand on allowing free and non-discriminatory internet access must be applauded. However, implementation of net neutrality by supporting the ecosystem and ensuring superlative user experience will be the key.

G Krishna Kumar
ICT professional and columnist based in Bengaluru
Email: krishnak1@outlook.com