1. “Next Generation Policy and
Regulatory Environment-India”
Satya N. Gupta
Chief Regulatory Advisor
India & SAARC,
BT Global Services
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2. 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
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3. Broad ICT Statistics-India
(July, 2009)
1) Population- 1.1 billion
2) 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 million
7) No. of TVs- 120 million
8) No. of Cable TV Connections- 65 million
9) International Connectivity- 500 Gbps/16.7Tbps (Designed)
10) National connectivity- 10 Gbps (7 Lakh Kms)
11) Broadband Connection (>=256 Kbps) – 6.5 Millions
12) International Gateways - 30 ( Including 9 on Submarine cables)

4. NGN – a layered architecture distributing intelligence
at every layer
Control
Bearer
Application Application
Layer Services
Internet
Service Control
Layer Softswitch IP Service
Control Switching
Transport Layer
(core and access)
Media
PSTN Gateways
Multiservice
Broadband RAS
RAS Packet Switching X
Access DSLAM X
DSLAM X National Optical
X X X X
GbE ACCESS Metro Optical
GbE X
NETWORK X
Frame/
Frame/ X
ATM
ATM
CORE NETWORKS
CPE
CPE
Wireless
Wireless
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5. Emerging NGN Applications – EOIP
Voice over IP Unified Messaging BB - High Speed Internet
Primary line Content Delivery PC to Phone
Second line Games Phone to PC
IP Centrex usage Downloads (MP3) IP VPN (data)
Voice VPN Gambling BW on-demand
IP Centrex Video on demand QOS on demand
TV on demand Quad play
Instant messaging presence management
Multimedia Conferencing
Virtualisation
Collaboration
Grid computing Long distance bypass MMS on fixed network
Location Based Services (LBS)
FMC (Fixed Mobile Con.)
Distance learning 3G & beyond applications
E-Commerce
Remote lab IP offload
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6. Institutional Framework for the Indian Telecommunication
Act/ Legislation Parliament of India
Making
Recommendations
Govt. of India (Ministry for Licensing TRAI TDSAT
Policy
Making
of Communications &IT)
Regulation (Tariff, Dispute Resolution &
Interconnection, QOS) Appeal for DOT & TRAI
Directives
Spectrum Wireless DOT/ Telecom
Management Planning & Executive and
Commission Licensing
Coordination
Wing (WPC)
Standardization
Telecom Centre for Development
& Technical
Inspection Engineering of Telematics (C-DOT) Operators
Centre (TEC)
Telecom Service
Type Approvals R&D Provision
Equipment Manufacturers and End
Supply Subscribers Usage
System Integrators

7. Categories of Telecom Licenses
i) Access Providers (APs) ----- (Access to Customer/ Local Service)
- Fixed Service Providers/ Basic Service Operators (BSO) Combined as Unified Access
- Cellular Mobile Service Providers (CMSP) Service (UAS) since Oct’03
- 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
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- Cable TV

8. Service specific licensing in India
Type of Service Service Area Connectivity Entry Fee Annual License Fee
with PSTN (% revenue share)
ILD International Full PSTN/PLMN Rs.25 million 6%
Interconnection
NLD National -do- Rs. 25 million 6%
Unified Access Circle -do- Different for each Type A - 10%
(Fixed and Mobile) Circle based on Type B - 8%
(UASP) bidding for 4th Type C - 6%
license
Global Mobile International -do- Rs. 10 million 6%
Communication by
Satellite
VSAT National No Rs. 3 million 6%
Interconnection
Radio Paging City wise and One Way 5%
Service Providers Circle wise Interconnection
with PSTN
Internet Service National, Circle -do- Rs. 3 Million (All Nil (6% for Internet
Providers wise India) Telephony)
Public Mobile Radio City wise and Limited One Nil 5%
Trunked Service Circle wise way
Infrastructure National NA Nil Nil
Providers Cat I
OSP (Other Site Specific Application Nil Nil 8
Service Providers) services

9. Promoting Competition and Liberalisation in
Phases
Value Added
Fixed Services (VAS)
Mobile
0 Monopoly
Duopoly in Nation wide Monopoly in
1 Duopoly Access, Monopoly Duopoly Access,
in Long distance competition in
Long distance
2 3-4
operators
Open competition
Unified Unrestricted entry in all
3 segments e.g. India
Access
4 Unified Licensing/ Authorization (de-licensing)
Single service-agnostic license for all telecom services and class license
(authorization) for all value added services 9

10. 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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11. Telecom India – A SWOT Analysis
–Strength of present policy framework
–Weaknesses
–Opportunity
–Threats/ Risks
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12. Strength of present Licencing
framework
• 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,Calling
Cards,Waiving off of ADC etc.)
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13. Weaknesses-Major Challenges
• Multiple regulatory agencies - licensor (DOT),
spectrum management (WPC), technical regulation
(TEC), interconnection, tariff & QOS (TRAI),dispute
settlement(TDSAT),USO,SecurityAgencies,Competitio
n Commission – (Fragmented) .
• Policy Maker, Regulator, Incumbent Operator –
managed by same cadre on reversible secondment
basis.
• 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 13

14. 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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15. 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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16. Security
Security
Regulation of
Regulation of
“Plain Old Telephone
“Plain Old Telephone Privacy
Privacy
Service (POTS)”
Service (POTS)”
Consumer
Consumer Quality of
Numbering
Numbering Quality of
protection
protection Service
Service
Interconnection
Interconnection Emergency
Emergency
Access
Access
Competition
Competition
Interconnection
Interconnection
“Next Generation” Long
term issues
Core policy areas:
•Competition (level-playing
field), Interconnection
•Consumer (QOS, privacy,
Regulatory implications of NGN emergency access)
•Security & legal interception
Source: ASTAP05_WS.IP&NGN-09 Scope for light-touch regulation16

17. 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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18. Thank You
Satya N. Gupta
Chief Regulatory Advisor
India and SAARC, BTGS
E-mail: satyen.gupta@bt.com,
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