Strategy for Rural Broadband Infrastructure Roll-out to deliver Digital Services to Rural Population

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About Author
KUMAR RANJAN
Independent Telecom Consultant
20 Years of Telecom and ICT Projects experience with various Telecom
Operators in India/SA and IT companies for Consulting, Solution Design,
Budgeting, Procurement, Implementation, Industry Co-ordination
Worked with Fujitsu ICIM, CRIS, DOT/BSNL, IBM, BBNL/CSC,
Principal Consultant to BBNL/CSC from 2015 to 2016 for Consulting on
BharatNet Project
https://www.linkedin.com/profile/preview?locale=en_US&trk=prof-0-sb-
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Disclaimer: Opinion Expressed in this document is author’s own and
information/recommendation is based on publicly available Digital India
project information.

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• 2.5 Lakh Gram Panchayats and 6 Lakh Grams in 6600 Blocks
and 641 Districts
• Spread over approx. 15 Lakh Sq km geographical area of
varied & vast terrain
• Approx. 800million Rural Population
• Settlement in Pockets and pockets are spread over large
area.
• Traditional way of providing Wireless Broadband Service
through 3G/4G/LTE is not economically viable unless there is
significant population in Gram Panchayat which can make
business viable.
Breadth & Spread of Rural India

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• Unavailability of Block to GP reliable & scalable backhaul Service network
• Government rolling out National Optical Fiber Network (NOFN) project,
approx. 1.5lakh Km Linear fiber network laid with approx. 10000 GP lit
against target of 6Lakh Km for 1.5 Gram Panchayats
• Poor reliability of GPON equipments & technology selection issues
• Unavailability of District to Block reliable & scalable backhaul Service
network, not more than 30% blocks are connected over 10Gbps bandwidth
• Government is yet to plan this important project, absence of which is
creating bottleneck to connect TSP/ISP and extend high Internet & Intranet
bandwidth (envisaged in BharatNet Project). Internet Bandwidth Provider
POPs are primarily at district which can present very competitive rural
internet bandwidth
• Unavailability or Unreliability Rural Telecom Network and Unavailability of
Wireless Broadband Access Network at Grams, Gram Panchayats and Blocks
• Government’s NOFN (BharatNet) project mission shall be “A Project of Rural
India, for TSP/ISP to provide services to Rural Population and preferably by
TSP/ISP to build and operate.
Key Issues and Projects required for bringing Rural Digital Connectivity

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• Create Backhaul Network from Block to GP and District to Block
• Provide On demand backhaul connectivity to all
• Enable flexible point of Ingress and Egress to TSP/ISP/ Govt. Users
• Accessible to all on a non-discriminatory basis
• Enable TSP/ISP for proliferation of Telecom and Wireless Broadband
Rural Access Network at Gram Panchayat and further up to villages
• Mobile, Internet, Cable TV Services, Rural Theatre
• E/M-Banking, E-Commerce, Mobile Money, Rural Advertising
• E-Governance, E-Skill, E-Education, E-Health, Rural BPO, Agriculture
Kiosks etc
Why BharatNet Project Critical for Connecting Rural India
CONNECTI
VITY
NON-
DISCRIMI
NATORY
DIGITAL
SERVICES

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Two prong strategy to provide Rural Wireless Internet Connectivity
Phase1 - Adoption of Short Coverage Wireless Technology to provide
mobile internet Connectivity at Outdoor SPOTs with per user high internet
Bandwidth (100m coverage, 100Mbps total bandwidth)
- Using Unlicensed band Wi-Fi 802.11n based Access Points
- Using Unlicensed band 3G/4G/LTE Small cell Base Stations
- Extending internet Backhaul through P2MP based 802.11n tech
Phase2 - Adoption of Wide Coverage Wireless Technology to provide
mobile Internet Connectivity throughout Gram Panchayat/Block with per
user low Internet BW (5Km Coverage with one BTS, 40Mbps total
Bandwidth)
- Based on 3G/4G/LTE Macro-cell base station
- Based on Whitespace technology base station
- Google Loon Project
Short Coverage Technology is complimentary solution, not an alternative to
Wide Coverage Technology Solution.
Recommendation for Rural Wireless Broadband Connectivity

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Technology Adoption
- Using Unlicensed band Wi-Fi 802.11n based Access Points
- Using Unlicensed band 3G/4G/LTE Small cell Base Stations
- Extending internet Backhaul through P2MP based 802.11n tech
Existing Mobile Devices have 802.11n and 3G interface
Access Type
1. Outdoor SPOT Connectivity (100m coverage) to Places where Rural
population come together for some purpose (School, Hospital, Rural
Market place, Panchayat office, Post-office)
2. Best effort residential internet connectivity using outdoor CPE
Phase1 Approach – Short Coverage Wireless Broadband Access

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Wi-Fi Outdoor Access Points based on Point to Multi-point Wireless
Technology - Important for Rural Connectivity
Initially mission is to provide Broadband Connectivity at select SPOTs wherein Rural
population come together for some purpose (School, Hospital, Rural Market place,
Panchayat office, Post-office etc.)
Wi-Fi Outdoor Access Points at these SPOTS which are spread across Gram Panchayat and
may be separated by large distance in multiple Kms
Options to extend Internet Bandwidth at these SPOTs are limited
a. Thru Overhead Fiber connecting NOFN POP at GP HQ to Wi-Fi Access Point SPOT
- Costly option as overhead fiber on natural objects / poles would cost more than Rs70000
per Km of connectivity
b. Thru Point to Point Wireless Connectivity from NOFN POP at GP HQ to Wi-Fi Access Point
SPOT
- Costly option as number of PTP links along with solar backup required will be as many as
Wi-Fi AP SPOTS. Approx. Rs60000/- per Link
c. Thru Point to Point Wireless Connectivity from NOFN POP at GP HQ to Wi-Fi Access Point
SPOT
- Economical & scalable option, average cost of connectivity per SPOT would be Rs25000/-
assuming 6 Wi-Fi Outdoor Access Points are to be covered.

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Point to Multi-point Radio – Unlicensed Band
Unlicensed Frequency band
5.8GHz Wireless Backhaul based on 802.11n or others
Coverage Up to 10km**
Channel Bandwidth 40MHz
Data rate 100Mbps at 4Km
Power Consumption < 20W
Beam Width of polarized directional antenna 90/120 degree
** Lower coverage due to EIRP restriction
* Coverage can be increased with higher EIRP, if permitted by SACFA
* Higher Bandwidth can be achieved by obtaining additional 40MHz channel from SACFA

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Rural Business Model is not supportive enough for TSP/ISP to have
separate Wireless infrastructure deployment. Therefore Shared
Access Infrastructure is key to faster provisioning of Rural Broad
band Services.
Y1 Y2 Y3 Y4 Y5 Y6 Y7 Total
Annual Revenue per District (In Cr) 1.104 2.16 4.44 17.76 30.96 44.4 66.48 167.304
Annual Total OPEX Cost per
District (In Cr)
5.15 6.37 10.01 16.30 26.24 32.75 46.99 144
Revenue – Opex per District (in Cr) -4.05 -4.21 -5.57 1.46 4.72 11.66 19.49 23.5
Annual CAPEX Cost per District 16.2 0.4 0.4 1 1.6 17.4 2.4 39.4
Cash Flow per District (in Cr) -20.25 -4.61 -5.97 0.46 3.12 -5.75 17.09 -15.91
Cumulative Cash Flow per District
(in Cr)
-20.25 -24.86 -30.83 -30.37 -27.25 -32.99 -15.91
Per District, Revenue and Expenses
An Illustration of TSP/ISP Revenue, CAPEX & OPEX for Rural Broadband Business
Rural ISP Business - Viability Issues

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Rural ISP Business - Viability Issues
• For viable Rural ISP business, there will be need of Viability Gap
funding for rural internet business.
• Initial funding of approx. 10000Cr is required for meeting CAPEX
requirement for Access Infrastructure setup.
• Government should form New SPV for Rural Wireless Network
Infrastructure Company and call for TSP/ISP participation as
equity partner.
• Government can enter into revenue sharing arrangement with
TSP/ISP.
• It will generate approx. 1Lakh jobs to youths in Rural India.

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Phase1 - Short Coverage Wireless Technology
Wi-Fi Access Network
Shared Infrastructure Deployment Model

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Fiber Connected GP - Outdoor Public Wi-Fi Access-Point (OPAP)

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Connecting Enterprise/Home Users (Post-office, School, CSC, Health Center)
Connecting Home Users – On feasibility basis
GP HQ
School
School
Post Office
CSC CenterOPAP
OPAP
Wi-Fi CPE
Hospital
OPAP
AP
User Wi-Fi Access
2.4GHz, Bridge Mode
Mesh
Wi-Fi CPE at
Household
Wi-Fi CPE
House
Wi-Fi CPE
House
Wi-Fi CPE
Connectivity Enterprise/Home Users (Post-office, School,
CSC Center, Health Center)
a. Through fiber from GP L2 Switch
b. Through OPAP/CPE connected to P2MP
c. Through OPAP connected in mesh
d. Through CPE connected to OPAP over bridge mode

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Rural Wireless Access Network – Execution & Operation Model
Operation
Model
Infrastruc
ture
Managed
Service
Provider
Business
Model
Multiple
Service
Provider
(TSP/ISP)
Execution Model
Shared Wi-Fi Infrastructure
Provision distinct SSID for each
TSP/ISP

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MODEL A
Execution Model
 New SPV formation for Access Network Roll-out
 50% Equity owned by USOF and remaining shared by TSP/ISP
 Capital infusion proportionately to Equity for CAPEX & OPEX
 Initial Capital base of Rs 2000 Cr, later increased to Rs10000 Cr in 5 years
 SPV to be manned by Industry Professionals
 Initially each GP will have two TSP/ISP allotted, later on can be increased to 4
 Participating TSP/ISP should have minimum 10% of Internet Subscriber base
 Allotment of each GP to two TSP/ISP to be done based on states in which
TSP/ISP operates and done through draw
Operation Model
 Network Operations to be managed by Outsourced Partner
Marketing/Business Model
 TSP/ISP to provide Internet Service with integration to their broadband core
network and on their brand

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MODEL B
Execution Model
 BBNL SPV to roll-out infrastructure
 Complete Network CAPEX & OPEX by USOF
 BSNL & other PSU can roll-out a portion based on build & transfer model
 BBNL to be manned by Industry Professionals
 Initially each GP will have two TSP/ISP allotted, later on can be increased
to 4
 Participating TSP/ISP should have minimum 10% of Internet Subscriber
base
 Allotment of each GP to two TSP/ISP to be done based on states in which
TSP/ISP operates and done through draw
Operation Model
 Network Operations to be managed by Partner
Marketing/Business Model
 TSP/ISP to provide Internet Service with integration to their broadband
core network and on their brand

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 Operator will incur following CAPEX for deployment of Access Network
 CAPEX for Outdoor Wi-Fi Access Points, P2MP, CPEs, Solar Backup
 CAPEX for Service Gateway, Router, Server, VAS, SMPS etc
 Operator will incur following OPEX for Wireless Access Network operations
 Annual OPEX on IT Application (BSS/OSS)
 Annual OPEX on Internet Bandwidth at District (X)
 Annual OPEX on Long Distance Connectivity between Block to District (Y1)
 Annual OPEX on Block to GP NOFN Backhaul Bandwidth cost (Y2)
 Annual OPEX on Network Infrastructure Hosting cost
 Annual Business Operation Cost
 Internet Bandwidth can be procured at Rs 3Lakh per 10Mbps per Annum
 BharatNet District to Block Fiber Network project will be required for flexibly
provisioning Internet Bandwidth at Block through competitive bidding
 Assuming NOFN Block to GP Backhaul BW cost at Rs7000 per 10Mbps per Annum
 Electronics Hosting cost per 1U space and 100W can be procured @ Rs50000 per Annum
by competitive bidding
Rural Internet Service Business Model

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Phase2 - Wide Coverage Wireless Technology
4G/LTE/Whitespace
Shared Infrastructure Deployment Model

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4G/LTE Technology
 Licensed Band (>800 MHz)
 Bandwidth of 40Mbps with
10MHz Channel in each
sector
 Up to 5Mbps download
speed
 MIMO technology for
reliable data delivery
 3-5 km Coverage
 Power 100W
 Existing Device Eco-system
• Wide Coverage Network Deployment shall be deployed in Phase2 for providing
Roaming Mobile Access over vast area of Gram Panchayat/Block.
• In Phase1, deployment at some GP/Block shall be done if supported by viable
business model.
- Based on 3G/4G/LTE base station
- Based on Whitespace technology base station
- New Evolutionary projects like Google Loon Project
Whitespace Technology
 Unlicensed Band (500MHz)
 Bandwidth of 20Mbps
(with 10MHz channel)
 Up to 1Mbps download
speed
 MIMO technology for
reliable data delivery
 5-10Km Coverage
 Power 50W
 New Device Eco-system
required
Google Loon Project
 Technology in Pilot stage
 Band (>800 MHz)
 Bandwidth of 40Mbps per
10MHz channel
 Up to 2Mbps download
speed
 Aerial Coverage from
height of 32Km
 Can be customized to rural
needs
 New Device Eco-system
required
Wide Coverage Wireless Broadband Service – Technology Option

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