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BT Represented at The Mobile VAS SUMMIT 2009 by Virtue Insight


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BT Represented at The Mobile VAS SUMMIT 2009 by Virtue Insight

  1. 1. “Next Generation Policy and Regulatory Environment-India” Satya N. Gupta Chief Regulatory Advisor India & SAARC, BT Global Services 1
  2. 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 2
  3. 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. 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 4
  5. 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 5
  6. 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. 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 7 - Cable TV
  8. 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. 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. 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) 10
  11. 11. Telecom India – A SWOT Analysis –Strength of present policy framework –Weaknesses –Opportunity –Threats/ Risks 11
  12. 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.) 12
  13. 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. 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) 14
  15. 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 15
  16. 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. 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 17
  18. 18. Thank You Satya N. Gupta Chief Regulatory Advisor India and SAARC, BTGS E-mail:, 18