1. Deployment of Triple
Play Services over Cable
TV Network
Issues and Regulatory challenges
Praphulla Pandey,
(Electronics and Communication Engineering
National Institute of technology uttarakhand )
7/13/2016
This Paper mainly Deals with the challenges of deployment
of broadband (Data) over cable television network along
with Voice and Videos. The report consists of some
international experiences of incentives taken by them to
promote the broadband and some technical description of
cable networks.

2. 1
Acknowledgment
The internship opportunity I had with Telecom Regulatory Authority of India was a great chance for
learning and professional development. Therefore, I consider myself as a very lucky individual as I
was provided with an opportunity to be a part of it. I am also grateful for having a chance to meet so
many wonderful people and professionals who led me though this internship period.
Bearing in mind previous, I am using this opportunity to express my deepest gratitude and special
thanks to the Mr. S.K. Singhal (Advisor B &CS) who in spite of being extraordinarily busy with his
duties, took time out to hear, guide and keep me on the correct path and allowing me to carry out
my project at their esteemed organization and extending during the training.
I express my deepest thanks to Mr. S.M.K. Chandra (Joint Advisor B &CS) for taking part in useful
decision & giving necessary advices and guidance and arranged all facilities to make life easier at
TRAI. I choose this moment to acknowledge his contribution gratefully.
It is my radiant sentiment to place on record my best regards, deepest sense of gratitude to Mr. G.S.
Kesharwani (Dy. Advisor B &CS) and Mr. Anil Kumar Pathak(Senior Research Officer) for their careful
precious suggestions which were extremely valuable for my study both theoretically and practically.
I perceive as this opportunity as a big milestone in my career development. I will strive to use gained
skills and knowledge in the best possible way, and I will continue to work on their improvement, in
order to attain desired career objectives. Hope to continue cooperation with all of you in the future,
Sincerely,
Praphulla Pandey,
New Delhi
Date:-13/07/2016

3. 2
Contents
Telecom Regulatory Authority of India ……………………………………………………………………………………………..4
Introduction to the Project ……………………………………………………………………………………………………………….7
1. Current Scenario of Indian Media and Entertainment Industry
1.1 Introduction:-................................................................................................................................8
1.2 Current Market Scenario:- ............................................................................................................8
1.3 Status of digitization in India:-...............................................................................................9
2. Current scenario of fixed broadband in India
2.1 Importance of broadband:-.......................................................................................................11
2.2 Broadband impacts all facets of life:- .......................................................................................12
2.3 TRAI Recommendations National Broadband Plan 2010:- .......................................................12
2.4 National Telecom Policy 2012 vision:-......................................................................................13
2.5 Why Fixed broadband?.............................................................................................................13
2.5.1 Impact of Broadband on GDP:-.........................................................................................15
2.5.2 Economic impact of universal internet access:- ...............................................................15
2.5.3 Need for High speed:-.......................................................................................................15
2.6 Current Status of Broadband in India:-.....................................................................................16
2.6.1 Current status of different technologies used for internet delivery in India:- .....................16
2.6.2 Broadband and Narrowband Subscribers:-.......................................................................16
2.6.3 Ranking of India:- ..............................................................................................................17
2.6.4 Ranking of India on various parameters as per state of broadband commission:-..............17
2.6.5 Fixed broadband penetration table in BRICS countries:-......................................................17
2.6.6 Affordability of fixed broadband:- ....................................................................................18
2.6.7 Speed of fixed line broadband in BRICS countries:-..........................................................18
2.6.8 Different devices used for accessing internet in India:- ...................................................19
2.7 Future outlook for India............................................................................................................19
3. Various TV broadcasting methods deployed in India

4. 3
3.1 Different methods:- ....................................................................................................................20
3.1.1 Cable TV:-................................................................................................................................21
3.1.2 Direct to home services:-.............................................................................................................22
3.1.3 Headed in the Sky (HITS) services:-..........................................................................................22
3.1.4 IPTV:-........................................................................................................................................22
3.2 Limitations on Analogue Cable TV System:- ...................................................................................22
3.3 Need for Digitization and addressability:- ......................................................................................25
3.4 Demography of Indian telecom Industry:-...............................................................................25
4. Network Structure of different Broadband Cable networks
4.1 DOCSIS:- ....................................................................................................................................27
4.1.1 Different component of DOCSIS:-.....................................................................................27
4.1.2 Delivering data through cable systems:- ..........................................................................28
4.1.3 Different versions of DOCSIS:- ..........................................................................................29
4.1.4 Some specifications of versions of DOCSIS 2.0 and 3.0:-..................................................30
4.1.5 The comparison between DOCSIS 3.0 and 3.1:- ...............................................................30
4.2 GPON:- ......................................................................................................................................30
4.2.1 Exact definition of GPON:-.......................................................................................................30
4.2.2 GPON network model:-............................................................................................................30
4.2.3 Features of GPON technology:- ...............................................................................................31
4.2.4 ..................................................................................................................................................32
4.3 Metro Ethernet:-.......................................................................................................................32
4.3.1 Introduction:-....................................................................................................................32
4.4 Major internet service providers:-............................................................................................33
5. Analysis of Broadband in different Country and Regulatory
Challenges
5.1 Status of fixed Broadband in some developed and developing countries:-.............................35
5.1.1 Fixed broadband penetration:-.........................................................................................35
5.1.2 Speed of fixed broadband in some selected countries:- ..................................................36
5.1.3 Broadband Plan of different countries and their targets:- ...............................................37
5.2 Funding Models:- ......................................................................................................................38
5.2.1 Funding scheme adopted by European Union:- ...............................................................38

5. 4
5.2.2 Funding scheme adopted by South Korea:-......................................................................41
5.2.3 Funding Scheme adopted by United States of America:-.................................................41
5.2.4 Funding Scheme Adopted by Sri Lanka:-...........................................................................42
5.3 Indian Strategy:-..............................................................................................................................42
5.3.1 Analysis of approx. cost of deploying optical fibre:-................................................................42
5.3.2 Total Estimated cost:- ..............................................................................................................43
5.4 Major hurdles with deployment of broadband in India:-.........................................................43
5.41 Regulatory Hurdles:- .................................................................................................................43
5.4.2 Lack of fibre infrastructure:-....................................................................................................43
5.4.3 Issues related to Right of Way:-...............................................................................................44
5.4.4 Last mile Connectivity:-........................................................................................................44
6. Incentives taken by TRAI and Possible Solutions
6.1 Recommendations by TRAI:-.....................................................................................................45
6.1.1 NOFN Network project:- ...................................................................................................45
6.1.2 TRAI recommendations on Bharat net:- ...........................................................................46
6.1.3 Concept of MVNO (Mobile Virtual Network Operator):-..................................................46
6.1.4 Department of telecommunication guidelines for Virtual Network Operator:- ..............47
6.1.5 Waive Landline Broadband Fee to Lower Cost:-...............................................................48
6.1.6 TRAI recommendations to promote the broadband quickly:-..........................................48
6.1.7 Tax exemptions in Broadband infrastructure:-.................................................................48
6.1.8 Recommendations for Cable Television ...........................................................................49
6.2 Possible Solutions: ....................................................................................................................49
4.3 Promotion to Digital India:- ......................................................................................................51
Annexure 1............................................................................................................................................53
Figure basic DOCSIS Network architecture...................................................................................53
CM/CMTS protocol stack:-....................................................................................................................56
Major Vendors of DOCSIS:-...................................................................................................................57
Annexure 2............................................................................................................................................57
Annexure 3............................................................................................................................................64
References:-..........................................................................................................................................71

6. 5
Telecom Regulatory Authority of India
The genesis of the Telecommunication Regulatory Authority of India (TRAI) lies in the bidding
process for the grant of cellular licenses and the litigation that followed the grant of the first set of
cellular licenses under the Telecom Policy of 1994.
In the litigation that followed the award of the licenses, one of the grounds of challenge of the
Telecom Policy 1944 was that, the policy neither provided for the creation of separate telecom
regulatory authority, nor did it provide for the delegation of power by the Central Government to
such an authority to supervise the functioning of Telecom Policy of 1944.
The entry of private and international players resulted in need of independent regulatory body. As a
result, The Telecom Regulatory Authority of India (TRAI) was established on 20 February 1997 by an
act of parliament called "Telecom Regulatory Authority of India Act 1997".
The Telecom Disputes Settlement and Appellate Tribunal:-
I. To adjudicate disputes between a licensor and a licensee, two or more service provider and
a group of consumers
II. To hear and dispose of appeal against any direction, decision or order of the TRAI
This is the appellate function of the Tribunal provided as the alternative to filing an appeal in the
High Court. An appeal from any order, other than an interim order of the tribunal, lies with the
Supreme Court of India.
The Recommendatory and Regulatory functions are vested with the TRAI are as following:-
a. Recommendatory Functions :-
TRAI has power to make recommendations either by its own initiative or on the demand of other
licensee. It makes the following recommendations:-
I. Need and timing for the introduction of new service providers.
II. Terms and condition provide license to service providers
III. Revocation of license for Non-compliance with its terms and conditions
IV. Measures to facilitate competition and promote efficiency in the operation of
telecommunication services so as to facilitate growth in such services
V. Technological improvements in the services provided by the service providers.
VI. Type of equipment to be used by the service providers after inspection of equipment used
in the network
VII. Measures for the development of technology and any other matter relatable to
telecommunications industry in general
VIII. Efficient management of available spectrum
b. Regulatory functions of TRAI:-
I. Ensure compliance with terms and conditions of license
II. Fix the terms and conditions of inter-connectivity between the service providers,
irrespective of the terms of the license issued prior to the TRAI Amendment Act 2000

7. 6
III. Ensure technical compatibility and effective inter-connection between different service
providers
IV. Regulate arrangements amongst service providers for sharing their revenue derived from
providing telecommunication services
V. Lay down the standards of quality of service to be provided by the service providers to
ensure the quality of service and conduct periodic survey of such service providers so as to
protect the interest of the consumers of telecommunication service
VI. Lay down and ensure the time period for providing local and long distance circuits of
telecommunication between different service providers
VII. Maintain register of interconnection agreements and of all other matters as may be
provided in the regulations
VIII. Ensure effective compliance of universal service obligation
IX. Levy fees and other charges at such rates and in respect of such services as may be
determined by regulations.
X. Notwithstanding anything contained in the Telegraph Act 1885, the TRAI may, from time to
time, by order, notify in the Official Gazette the rates at which the telecommunication
services within and outside India shall be provided including the rates at which messages
shall be transmitted to any country outside India. The TRAI may notify different rates for
different persons or class of persons for similar telecommunication services after recording
the reasons.
In this way, TRAI as a regulatory authority tries to promote the telecom sector. It has accelerated the
telecommunication services with fair and transparent regulatory regime. It is because of its
regulations, India has become of the emerging players in telecom world.

8. 7
Introduction to the Project
India faces numerous potential challenges in achieving ubiquitous deployment of broadband, to say
nothing of ultra-fast Next Generation Access (NGA). As in many developing countries, the current
deployment of the fixed network is weak, corresponding to low percentage of the population. The
reach of cable networks is three to four times greater, but it still not efficiently used in most of the
countries. Developing countries like India, where digitization of cable TV has almost done, most of
the cable operators are still hesitant to provide broadband on cable TV. What role could and should
cable play in the ultimate build-out of conventional broadband, and of NGA? How can optical fibre
fulfil the demand of high speed?
In several proceedings, the telecom regulatory authority of India (the TRAI) and the Ministry of
Information Broadcasting have recognized the importance of modernizing the cable plant to make it
both digital and addressable, and to enable the cable to take its part in broadband deployment.
What impediments exist? How likely are these plans to achieve their goals? What are the
implications for public policy?
The first three chapters mainly deal with the current situation of Indian Television Industry and the
condition of broadband in India. Chapter four gives the technical feature description of the Cable
Networks which are currently used in most of the developed countries for high speed broadband
delivery. The chapter five focuses on the major issues related to broadband in India and experience
of some developed countries where broadband penetration is quite high. The chapter six describes
the incentives taken by TRAI to promote wire-line broadband and some of the possible solutions of
the issues. A glimpse of Digital India program is also encapsulated in the end.

9. 8
Current Scenario of Indian Media and
Entertainment Industry
1.1 Introduction:-
The Indian Media and Entertainment (M&E) industry is a sunrise sector for the economy and is
making high growth strides. Proving its resilience to the world, the Indian M&E industry is on the
cusp of a strong phase of growth, supported by rising consumer demand and improving advertising
revenues.
1.2 Current Market Scenario:-
The Indian media & entertainment sector is expected to grow at a Compound Annual Growth Rate
(CAGR) of 13.9% year-on-year to reach Rs 196,400 crore (US$ 28.82 billion) by the year 2019.
In 2015, the overall Media and Entertainment industry grew 11.7 percent over 2014. The largest
fraction, India’s television industry, is expected to maintain its strong growth momentum led by
subscription revenues, representing a year-on-year growth of about 13.2 percent to reach Rs 60,000
crore (US$ 8.8 billion) in 2015.
Industry estimates reveal that video games industry grew at a record 22.4 per cent in 2014 over
2013, wherein its net worth rose to US$ 392 million. The Indian animation industry was valued at
US$ 748 million in 2014 and is forecasted to grow at 15-20 percent per annum.
The Foreign Direct Investment (FDI) influences in the information and broadcasting (I&B) sector
(including print media) in the period April 2000 – December 2015 stood at US$ 4.55billion, as per
data released by Department of Industrial Policy and Promotion (DIPP).
Figure 1.2.1 TV industry Size (Source: KPMG-FCCI Report 2016)
213 245 281 329 361 407 468
548
637
733
116
125
136
155
181
210
242
276
320
365
2011 2012 2013 2014 2015 2016P 2017P 2018P 2019P 2020P
Subscription revenuein millions
Advertisemnt revenue in millions
Chapter 1

10. 9
1. In India, advertisement revenue mainly depends upon the e-commerce and strong
performance of sports like IPL and Cricket World Cup.
2. Subscription revenue is increasing slower than that of advertisement revenue.
3. Advertisement revenue is increasing at a rapid rate Because of digitization, the popularity of
channel is well known to investors. This knowledge of popularity manages the
advertisement revenue in an organized manner.
4. Because of support from current government of India, investment in digital India, also
improves the ad revenue growth rate.
5. In five years between 2015 and 2020, the overall print industry size will grow at a CAGR of
7.8%. However, its advertising revenue will see a better CAGR at 8.6%.
The Government of India has supported Media and Entertainment industry’s growth by taking
various initiatives such as digitising the cable distribution sector to attract greater institutional
funding, increasing FDI (A foreign direct investment) limit from 74 per cent to 100 per cent in cable
and DTH satellite platforms, and granting industry status to the film industry for easy access to
institutional finance.
1.3 Status of digitization in India:-
Figure: - 1.3.1 Number of subscribers (KPMG-FCCI Report 2016)
0
50
100
150
200
250
2011
2012
2013
2014
2015
2016P
2017P
2018P
2019P
2020P
Millions
Free
DTH
Pay DTH
digital
TV

11. 10
Phases Regulatory date
for shutdown
No. of C&S subs*
(in million)
No. of digitized
subscribers (in
million)
Digitization
including DTH*
(in million)
phase1 June 2 13 1.2 100% (excl
Chennai)
Phase2 Mar 13 25 1.2 >95%
Phase3 Dec 15 41 10 ~75%
Phase4 Dec 16 81 52 ~35%
Total 160 65 ~60%
Figure 1.3.2 Status for digitization in December 2015
 With the combined efforts from TRAI and Broadcasters, number of analog TV has
substantially decreased.
 In 2015, TV households in India were 175 million.
 With completion of phase 4(excluding some areas), total 60% digitization has been done.
Because of some legal issues, phase 4 is expected to complete by December 2016.
 The number of cable TV and satellite TV households is estimated to touch the figure of 160
million.
 Excluding the free-Dish services, there are 145 million TV households in India.
Figure 1.6 DTH and cable ARPU (Average Revenue per User) Source: KPMG-FCCI Report 2016
The Indian Media and Entertainment industry is on an impressive growth path. The revenue from
advertising is expected to grow at a CAGR of 13 percent and will exceed Rs 81,600 crore (US$ 12.29
billion) in 2019 from Rs 41,400 crore (US$ 6.24 billion) in 2014. Internet access has surpassed the
print segment as the second-largest segment contributing to the overall pie of M&E industry
revenues.
If broadband is combined with Television industry, the revenue generated from the industry is
expected to grow drastically. As customers have choices to switch their preferences. A customer will
have data, voice and video services on the same equipment. The broadcaster will need not to worry
about the maintenance of all the three networks separately. This will make it cost effective. This will
also be a promoter of e-commerce and advertisement revenue, e-governance, entrepreneurship
which will further lead to the employment opportunity.
ARPU(INR
per
month)
2015P 2016P 2017P 2018P 2019P 2020P 5-year CAGR
DTH 248 258 266 299 334 367 8%
Digital Cable 214 219 230 261 298 343 10%

12. 11
Current Scenario of Fixed Broadband in
India
2.1 Importance of broadband:-
“Broadband is a data connection that is able to support interactive services including Internet access
and has the capability of the minimum download speed of 512 kbps to an individual subscriber from
the point of presence (POP) of the service provider intending to provide Broadband service.”
Broadband is an important target of MDG. ITU and UNESCO have set up the Broadband Commission
for Digital Development in response to UN Secretary-General Ban Ki-Moon’s call to step up UN
efforts to meet the Millennium Development Goals .Today, the vast majority of the world’s
population now rely on Information and Communication Technology (ICT) networks and
applications, even if they do not themselves have first-hand access. It is now possible to leverage the
tremendous power of ICTs in the development agenda, to help accelerate progress towards meeting
the MDGs – through e-health, e-education, e-government, e-agriculture and more.
Simply because broadband penetration is at its lowest levels in developing and least developed
countries do not mean that broadband is irrelevant – to the contrary, the benefits of broadband
prove the greatest in those countries where the needs are greatest. Broadband networks offer the
ability to:-
 Control and use energy more efficiently.
 Manage healthcare in poor, ageing or isolated populations.
 Deliver the best possible education to future generations.
 Take better care of our environment.
 Streamline transport networks.
 Accelerate progress towards the MDGs
Broadband can help the world in many ways. Here are some examples of how broadband can help
achieve the MDGs:
 Broadband and MDG 1: Reducing poverty in the Information Age
 Broadband and MDG 2: Seventy million children still in need of UPE
 Broadband and MDG 3: Can broadband empower women?
 Broadband and MDG 4: Child health –the most important challenge of broadband?
 Broadband and MDG 5: Broadband and maternal health
 Broadband and MDG 6: Combatting HIV/AIDS, malaria and other diseases
 Broadband and MDG 7: Using broadband to ensure environmental sustainability
 Broadband and MDG 8: Broadband empowers partnerships for development.
Chapter 2

13. 12
2.2 Broadband impacts all facets of life:-
Figure 2.2.1 impact of broadband in life
Because of these requirements, many developed and developing countries have launched their
broadband policies to promote broadband. India launched its broadband plan in 2010.
2.3 TRAI Recommendations National Broadband Plan 2010:-
In 2010, the number of broadband connections was only 10.3 million as against a target of 20 million
by the year 2010.Therefore, the requirement of National Broadband plan was felt by the
government and TRAI. The major points and incentives of NBP 2010 are as follows:-
a. Establishment of national broadband network with open access optical fibre network connecting
all habitation with population of 500 and above in two phases, the 1st
phase covering all cities,
urban areas and Gram Panchayats ,completed by the year 2012 and 2nd
phase as the extension
of 1st
phase, completed by 2013.
b. Establishment of NOFA (National optical Fibre agency), 100% owned by the government, for
establishing the networks in all the 63 cities covered under Jawahar Lal Nehru Urban Renewal
Mission (JNURM).
c. Formation of SOFA (State Optical Fibre Agency) ownership 51% and 49% by the central and state
governments respectively. NOFA is the holding companies of all SOFAs.
Broadband
New business
opportunity
Social
Networking
Sustainable
Society
Entertainment
Enterprises
Efficiency
Government
efficiency
Personal
efficiency
Industrial
Growth

14. 13
d. SOFAs will be responsible for establishing broadband network in the cities other than JNURMs,
under the guidance of NOFA.
e. The optical fibre network would support backhaul bandwidth requirement for provision of
broadband and facilitate broadband growth.
f. Total estimated cost =60,000 crore, financed by USO fund and the loan given/ guaranteed by
Central Government.
g. Targets= 75 million broadband connections (17 million DSL, 30 Million cable and 28 million
wireless broadband) by the year 2012 and 160 million broadband connections (22 million DSL,
78 million cable and 60 million wireless broadband) by the year 2014.
h. The optical fibre network would support following bandwidths:
 10 Mbps download speed per household in 63 Metro and large cities (covered under
JNURM) for every wire-line connection by the year 2014.
 4 Mbps download speed per household in 352 cities for every wire-line connection by
the year 2014.
 2 Mbps download speed per household in towns and villages for every wire-line
connection by the year 2014.
i. Enabling cable industry to go fully digital.
2.4 National Telecom Policy 2012 vision:-
a. Boost broadband subscription to 175 million by 2017 and to 600 million by 2020
b. Deliver a minimum download speed of 2Mbps, with speeds of 100Mbps or more available on
demand
c. Increase rural telecom penetration to 70 per-cent by 2017 and to 100 per-cent by 2020
2.5 Why Fixed broadband?
2.5.1 Comparison between wireless and wire-line broadband speed capability in USA:-
Figure 2.4.1 Speed of internet through different modes of broadband (Source: - Report of white
house, office of Science and Technology Policy &The national Economic council on “four years of
broadband growth” June 2013.)
From the above chart, it is clear that high speed demand of the world can be fulfilled only by the
fixed broadband. It can be analysed easily that high speed greater than 25 Mbps is possible at large
≥3Mbps ≥6Mbps ≥10Mbps ≥25Mbps ≥50Mbps ≥100Mbps ≥1Gbps
All
broadband
98.10% 96.17% 94.39% 78.51% 75.15% 47.09% 3.17%
wire-line
Broadband
93.41% 92.81% 90.91% 78.11% 74.85% 46.87% 3.17%
Wireless
Broadband
94.37% 84.17% 80.66% 4.94% 3.03% 1.80% 0.00%

15. 14
scale only through wire-line. That is why every country has been taking incentives to promote the
wire-line broadband.
Specifications Wired network Wireless network
Speedof
operation
Higher lower compare to wired networks, But
advanced wireless technologies such as
LTE, LTE-A and WLAN-11ad will make it
possible to achieve speed par equivalent to
wired network
System
Bandwidth
High Low, as Frequency Spectrum is very scarce
resource
Cost Less as cables are not expensive More as wireless subscriber stations,
wireless routers, wireless access points and
adapters are expensive
Installation Wired network installation is
cumbersome and it requires
more time
Wireless network installation is easy and it
requires less time
Mobility Limited, as it operates in the
area covered by connected
systems with the wired network
Not limited, as it operates in the entire
wireless network coverage
Transmission
medium
copper wires, optical fibre
cables, Ethernet
EM waves or radio waves or infrared
Network
coverage
extension
requires hubs and switches for
network coverage limit
extension
More area is covered by wireless base
stations which are connected to one
another.
Applications LAN (Ethernet), MAN WLAN, WPAN(Zigbee, Bluetooth), Infrared,
Cellular(GSM,CDMA, LTE)
Channel
Interference and
signal power loss
Interference is less as one wired
network will not affect the
other
Interference is higher due to obstacles
between wireless transmitter and receiver
e.g. weather conditions, reflection from
walls, etc.
QoS (Quality of
Service)
Better Poor due to high value of jitter and delay in
connection setup
Reliability High compare to wireless
counterpart, as manufactured
cables have higher performance
due to existence of wired
technology since years.
Reasonably high, This is due to failure of
router will affect the entire network.
Figure 2.3.2 a comparison between wired and wireless network

16. 15
2.5.1 Impact of Broadband on GDP:-
Figure 2.4.1 percentage impact of Broadband over GDP Source: Christine Zhen-Wei Qiang (2010) -
Broadband infrastructure investment in stimulus packages: relevance for developing countries-
Emerald Insight
2.5.2 Economic impact of universal internet access:-
Universal Internet access would add substantially to GDP in major developing countries by 2020.
Achieving universal Internet penetration could expand world output by $6.7 trillion.
Figure 2.5.2 Additional cumulative GDP growth from achieving 100% internet penetration ( in US$
billions2014, in selected countries (Source: PWC 2016 report on Connecting the world & Ten
mechanism for Global inclusion)
2.5.3 Need for High speed:-
The bandwidth needed for different applications are as bellow:-
Application Bandwidth required
VoIP, Basic e-mail, Simple web browsing 500 Kbps to 1 Mbps
Streaming music ,Remote surveillance, Low
quality gaming
1 to 5 Mbps
Video download, HD Gaming, Remote
education
5 to 10 Mbps
Telemedicine, IPTV HD ,Surveillance HD 10 to 100 Mbps
Telemedicine HD, Video on demand HD, Full
telecomputing
100 Mbps to 1 Gbps
Research Applications, Virtual reality 3D, HD TV 1 to 10 Gbps
Figure 2.5.3 requirement of internet speed for different Tasks
0.43 0.6 0.77
1.21
0.73 0.81
1.12
2.4
Fixed mobile internet broadband
high income econmies
low income economies
1052 1037
376 152 125
China India Indonasia Brazil Maxico

17. 16
2.6 Current Status of Broadband in India:-
This section will show the current status of broadband in India with some comparisons among the
BRICS countries, ranking of India etc.
2.6.1 Current status of different technologies used for internet delivery in
India:-
2.6.2
Figure 2.6.1.1 Technology trend for wired and wireless Internet access
Above graph clearly depicts very heavy reliance of Indian subscribers on wireless networks. It is also
increasingly clear that countries aspiring to be on the forefront of innovation, global trade and
knowledge leadership must have next generation broadband roll-out on their agenda. Carriers
should continue pushing mobile broadband as a substitute for fixed broadband in areas with scarce
broadband access, and as a complement to home broadband for urban users until the National
Optical Fibre Network (NOFN) project is implemented.
2.6.3 Broadband and Narrowband Subscribers:-
Figure 2.6.2.1 Narrowband and broadband internet penetration in India (Data from:-Unleashing
the Potential of the Internet -Indian Case Study)
78.2
17.9
2.2 1.7
70
17.5
7.7 3.9 0.5 0.3
0
10
20
30
40
50
60
70
80
90
% of
subscribers
108.85
120.88 136.53 149.75
210.57 204.07 195.13 192.9
319.42 324.95 331.66 342.65
0
50
100
150
200
250
300
350
400
Jun-15 Sep-15 Dec-15 Mar-16
Millions
broadband
narrowband
total internet

18. 17
2.6.4 Ranking of India:-
Sector Fixed
broadband
Mobile
Broadband
Internet Smartphone
Ranking 131 155 136 2
India Penetration 1.2% 5.5% 18% 167.9M
World’s average
Penetration
10% 32% 40% 1.91B
Figure 2.6.3.1 India in the world (source: - A Report by the Broadband Commission 2015
2.6.5 Ranking of India on various parameters as per state of broadband
commission:-
2014 2015
Fixed broadband subscription 125
(1.2 subscription per 100)
131
(1.2 subscription per 100)
Mobile broadband
subscription
113
(3.2 subscriptions per 100)
155
(5.5 subscriptions per 100)
Percentage of households
with internet, developing
countries
75 (13.0%) 80 (15.3%)
Percentage of individuals
using the internet
142 (15.1%) 136 (18%)
Figure 2.6.4.1 India on different parameters as per the state of broadband commission
2.6.6 Fixed broadband penetration table in BRICS countries:-
Ranks Percentage
2013 2014 2013 2014
Brazil 75 76 10.1% 11.5%
China 62 67 13.6% 14.4%
India 117 131 1.2% 1.2%
Russia 51 56 16.6% 17.5%
South Africa 102 110 3.1% 3.2%
Figure 2.6.5.1 Comparison of broadband penetration and ranks of BRICS countries in 2013 and
2014 (ITU 2014, 2015)

19. 18
2.6.7 Affordability of fixed broadband:-
The scenario in the realm of affordability of internet is not much better for India. Comparable data
for the BRICS countries show that though the average cost of fixed broadband is towards the lower
end at USD 16 in PPP terms and USD 4.8 monthly averages, the percentage of average GDP per
capita required is 3.66%, which is the highest .Consequently, the rank is 74. This becomes worse
when the affordability of mobile broadband is compared. The rank drops to 101 and the percentage
of average GDP per capita required for access becomes a whopping 12.39% with the cost at USD
54.2 in PPP terms. According to PWC 2016 “report on Connecting the world & ten mechanisms for
Global inclusion”, in India, 66% price reduction needed for internet to make it affordable to 80% of
population. As rural India has 833 Millions of population out of which 66% of population lives on less
than Rs. 35 per day. The table below shows the affordability of broadband in different BRICS
countries.
Country Rank Percentage USD(month
Average)
USD in PPP
Brazil 78 1.42% 13.8 16.6
China 73 3.54% 19.4 31.9
India 74 3.66% 4.8 16
Russia 5 .54% 6.3 11
South Africa 63 2.85% 17.1 30.3
Figure 2.6.6.1 Affordability of wired broadband in BRICS countries
2.6.8 Speed of fixed line broadband in BRICS countries:-
Figure 2.6.7.1 Akamai’s State of the Internet Report for Q4 2013,
The average broadband connection speed in India at 1.5 Mbps was the lowest in the Asia-Pacific
region. South Korea leads the pack at 21.9 Mbps followed by Japan at 12.8 Mbps. China is more than
double of India at 3.4 Mbps.
13.31
29.43
6.88
27.08
7.1
4.48
28.16
4.73
12.63
3.64
0
5
10
15
20
25
30
35
Brazil Russia India China South
Africa
Speed in Mbps (
Download)
Speed in Mbps
(Upstream)

20. 19
2.6.9 Different devices used for accessing internet in India:-
There is still high growth potential in PC market with just 10% penetration in India. The global PC and
laptop market is growing at 4.2% while smartphone market is growing rapidly at more than 40%.
Internet of-things is bringing a new range of devices such as smart TV, purifiers, glass, watch,
routers, etc. to the ecosystem for connectivity.
Figure2.6.7.1 Device used for internet Access in India Source: Deloitte Global Mobile Consumer
Survey, 2013 - India Results
2.7 Future outlook for India
The following interpretations have been made for Indian broadband industry:-
a. Cable broadband expected to grow from current 6-7 lakhs to 1 crore by 2020-as per
industry estimates
b. Mobile broadband is expected to grow from 5 crore to 7 crore subscribers by 2020;
through delayed by 1 year.
c. Revenue from broadband subscribers currently at 3x the cable video revenues
d. ROI for cable broadband infrastructure is 3 years
e. Internet constitutes 3.4% of GDP for most countries i.e. more than utilities and
education.
As already specified that availability of superfast internet is the demand of the day. It is considered
as the index of development of a country. Many developed countries like South Korea, USA, UK,
Brazil, Australia, Germany, Japan etc. have acquired very fast internet speeds. My main motto of this
paper will be the incentives required to provide high-speed internet in India. This paper mainly deals
with the challenges that authority and service providers are currently facing and the incentives by
which they can help in providing high-speed broadband in India.
69 64
26
14
4 4 3
0
20
40
60
80
% of device are
used

21. 20
Various TV broadcasting methods
deployed in India
In India, television was launched by DOORDARSHAN in 1959, in terrestrial mode. NASA and ISRO
jointly conducted the first satellite based reception programme named as SITE (satellite instructional
television experiment) in 1975-76 to avail the informational programs to rural area. The experiment
was carried out for one year from 1 August 1975 to 31 July 1976 and covering more than 2500
villages in 6 Indian states.
In India, the first live TV was broadcasted on 15th
August 1982. In the same year, DOORDARSHAN
launched the colour television in India.
First cable TV in India was implemented in 1983 in rural areas of Rajasthan, it soon gained spread
popularity. Major broadcasters started using satellite for relaying TV signals which increased the
accessibility of TV signals to remote and far off location of India.
3.1 Different methods:-
 Cable TV ( can be deployed with triple play services)
 DTH
 HITS
 IPTV (can be deployed with triple play services)
Figure 3.1 the schemata of television transmission
Chapter 3

22. 21
3.1.1 Cable TV:-
There are four side entities in cable TV:-
 Broadcaster: - It owns the content that is to be transmitted and to be shown to the
consumers. They uplink the content signal to the satellite from where it is downlinked by the
distributor. There are around 200 broadcasters in India. Broadcasting business is mainly
driven by two sources which are subscription fee and advertisement. The broadcasters bear
mainly the cost of production, marketing of the product and distribution.
 MSO (multi system operators):-
MSOs mainly downlink the broadcaster’s signal and decrypt it and forward it to LCOs. The
major MSOs working in India are:
a. Asianet
b. Den network ltd.
c. Digicable
d. Hathway Datacom
e. Indusind media and communications
f. KAL India
g. Ortel etc.
They are dependent on broadcasters for content and LCOs for connectivity and revenue
collection. Some of them have a direct connection with last mile subscribers.
 LCO (local cable operator):-
The role of LOC is to collect the bundles from MSOs and then retransmit it to the subscribers
of his area.
There are two types of cable TV used:
1. Analogue or non-addressable cable TV: - In analogue TV, signal is provided in analogue form
by the cable operator directly to the consumer’s TV without STB. This is also known as Non-
CAS (conditional access system). In such systems due to transmission capacity constraint of
cable, a consumer can receive about 70 to 100 channels only. Also a consumer cannot
exercise any choice in selection of channels. The quality of signal is inconsistent and depends
upon the quality of cable network varying cable to cable.
2. Digital or addressable TV system: - Cable TV signal are provide through Digital addressable
format. This requires a STB on receiver’s end to decrypt the encrypted signals for both paid
and Free to Air services. This has following advantages over analogue system:-
a. Large number of channels can be multiplexed into a single cable.
b. The consumer has a choice to subscribe the channel or unsubscribe it as it uses an STB.
c. The high quality of picture and sound available.
d. Broadband over the same connection can also be provided.
e. DAS is not susceptible to services disruption during rainfall other environmental
changes.

23. 22
3.1.2 Direct to home services:-
DTH is a satellite service that provides TV signals directly to subscriber anywhere in the country.
Signals are directly received by the subscribers from the satellite by using a small outdoor dish
antenna mounted to the point towards the satellite. A customer has to purchase customer premises
equipment including a STB, a small dish antenna and cable for connecting the antenna and STB. The
main advantage of DTH services is that connection can be given to any remote area with advantage
of digital signal but they face problems during the rainfall. There are currently seven DTH operators
in India. They are respectively DD direct plus, Airtel Digital TV, Big TV, Dish TV, Sun Direct, Tata Sky
and Videocon d2h.
3.1.3 Headed in the Sky (HITS) services:-
HITS services are the mixture of satellite and cable TV. The HITS operator uplinks the TV broadcast to
a satellite, which is further downlinked by LCO and distributed to the subscribers of his area through
a cable network. Thus, HITS operator, supply the signal through a cable TV network to customers.
This broadcasting is relatively low cost and does not require all the users to have a dish antenna
placed at their premises. This is very little vulnerable (effectively not) to rain.
3.1.4 IPTV:-
Signals are delivered to the customers through a wireline that can also be provided using broadband
internet access. It is purely digital broadcast and in an addressable mode using internet protocol.
This is quite interactive because of availability of two-way communication system between
consumer and service providers. Some of the IPTV features are as discussed below:-
1. Video on demand (VoD):- customers can browse an album of videos which does include in
TV programmes.
2. Time shifted Television:- consumers can view their television programmes at their
convenient tie using time shifting feature.
3. High picture quality because of use of digital transmission.
4. Live TV related to the current TV show.
5. “Triple play services”; that is data, voice and video on the same bundled connection.
3.2 Limitations on Analogue Cable TV System:-
The following the limitations have been obtained by TRAI from the feedbacks of different
stakeholders:-
 Lack of clarity regarding the cable subscriber base:-
a) On the basis of data collected from different stakeholders, in analogue TV, it has been seen
that there is no reliable information regarding the channels used by the subscribers. They
have admitted that revenue is made on negotiable based between stakeholders and MSO’s.
This leads to mistrust between them in unavailability of proper information about the
distribution of channels.
b) In this type of system, The MSO has to furnish the updated list of cable operators along with
their subscriber base to the broadcasters every month. As the system is non-addressable, it

24. 23
is difficult to workout with real subscriber base. This often leads to disputes between
broadcaster and MSO’s. The broadcaster’s intense is to enhance the subscription
revenue on the basis of the increment in subscriber base of MSO’s while that of
MSO’s are to reduce the subscription cost on the basis of perceived reduction in
subscriber base. As the number of subscriber is estimated, there is no clarity on
actual subscriber base line.
 Frequent disputes and lack of collaboration among stakeholders:-
a. From the comments and counter comments of stakeholders, it is obvious that
there is a strong mistrust and lack of transparency in business models in the
industry. The major reason behind this is that the subscriber base line is derived
rather than the actual number and mostly it is based on pre-defined cost and the
reported ceiling wholesale price. The decision of price of subscription is made in
absence of accurate data and price of channel can’t be effectively negotiated
without exact number of subscriber base.
 Relative importance of advertisement revenue in the broadcasters’ revenue stream
and its impact on content:-
a. The distribution of subscription revenue across the supply chain, in the absence
of addressability, the subscription revenue transaction is being undertaken either
as a fixed fee or on the basis of negotiated subscriber base. Lack of visibility
impacts the distribution of subscription revenue, so their earnings through this
are limited. Due to all this, broadcasters tend to focus on revenue generated by
advertisements which further depends on the effect of that on the targeted
audience. Since there is no addressability available, so the advertisement
television business is broadly dependent upon the rating of TAM systems which
are available only few major cities.
b. The contents displayed by broadcasters mainly depend upon the interest of
viewers involved in the survey made by TAM system. This is totally dependent
on the Television rating Point (TRP) which is mostly skewed. The content shown
by the broadcasters may not be as much popular as their expectations.
 Incidence of carriage and placement fee:-
In India, analogue cable TV dominates the market with 75% cable and satellite
connections. Cable has a capacity to carry 80 analogue channels however there are
550 analogue channels available in the market. So there is a demand supply
mismatch and this has led to auction of bands to the channels which are willing to
pay more to be carried. In this respect, TRAI has noticed that the incidence of carrier
and placement fee is emerging.
 Lack of effective competition:-

25. 24
a. The distribution of cable TV in India is mainly dominated by a few broadcaster
and MSOs. The last mile connectivity is highly fragmented and therefore there
are so many disparities in bargaining powers of various players in distribution
systems. At the subscriber’s end, there is no choice of channels; this leads the
last mile connection in monopoly market where there is little competition
among the broadcasters.
b. There are some large broadcasters who own 33% of channels, mid-size players
controlling 2-3 channels (almost 43%) and small size controlling 1 channel (22%).
It is also found that competition among the NSOs is also increasing; national
operators are trying to touch the threshold market share before undertaking the
major investments. Their business is not uniform throughout the country, certain
cities like Delhi and Mumbai have more than 5-6 MSOs, while in other cities like
Allahabad, Kanpur, Hyderabad ; 90% of television business is done by single
MSO.
The above analysis suggests that due to legacy reasons and business pressures, the
stakeholders have, over a period of time, aligned their business models to operate in a non-
transparent and inefficient environment. Lack of addressability is a root cause for the
evolution of inefficient and non- transparent business models. There is a need to overcome
these shortcomings.
 Some technical issues with analogue TV signals:-
1. Low channel Capacity:-
In analogue mode of transmission, the PSNR (according to Shannon theorem) is
very low, as at every level there is some noise added. Also, in analogue mode of
transmission, number of channels that can be multiplexed in a single cable is very
less (about 80 channels per cable). Lack of proper compression techniques, the
data rates in analogue mode is very less than that of digital.
2. Security issues:-
Analogue signals are not suited for encryption. So if an attacker can sense the
signal, he can extract all the information. Although, there is same security
problem with digital signals, but there exist so many techniques to encrypt it for
security.
3. Attenuation problem and environmental factors:-
Analogue signals face the problem of attenuation and distortion. They mainly
use IIR filters which sometimes are affected by bad environmental conditions.
But in digital signals, they use FIR filters which are free from distortions and
environmental factors.

26. 25
3.3 Need for Digitization and addressability:-
The need for digitalization and addressability is presented by TRAI is as follow:-
 For effective and efficient management, all the stakeholders are agreed to deploy digital
methods in place of analogue. This will enable them to reduce the incidence and placement
charges as there will not be any mismatch between demand and supply. It will lead to
better customer experience and lower tariff.
 For integration of cable TV into triple play services (data, voice and video), the process of
digitization should adopted.
 In the present system of analogue TV, both the stakeholder and consumers are in loss.
Consumers have to pay for the channels which they don’t want to watch and same for the
broadcasters. They don’t have the exact knowledge of number of subscriber base; so they
have to negotiate with the MSOs for subscription fee. By assigning the digital addresses,
they will be able to have exact data of subscribers which will increase the transparency and
reliability.
 The market of advertisement will also improve as broadcasters have the knowledge of
popular channels and shows watched by consumers. So the revenue from advertisement
will improve. This will also cause a race among the broadcasters.
 Digitization will solve the problems related to capacity constraints and will enable the value
added services (video on demand, time shifted videos, broadband over cable and radio
services). This will improve the choices of customers and financial viability of service
providers.
 The improved broadcasting technology will attracts the investors towards telecom which
will further improve the development rate and it will grow in very organized manner.
3.4 Demography of Indian telecom Industry:-
Figure 3.2 Availability of different telecom technologies in India
101
220
25
0.14
penetration in millions)
cable Homes
wireless smartphones
wireline phones
fiber homes

27. 26
This is clear that availability of cable homes is quite high. Technically, a cable has infinite capacity of
occupying digital signal. Video and voice signals occupy a little amount of bandwidth and remaining
capacity of cable remains unused. So, if we deliver the other services like broadband, value added
services and interactive services, the telecom industry will get a boost which will work as catalyst for
economic and social development. As the digitization is in its progress, So TRAI is taking incentives to
promote broadband over the cable TV network. The issues and incentives are discussed in the
following chapters.

28. 27
Network Structure of different
Broadband Cable networks
There are mainly three methods of fixed broadband delivery:-
1. DOCSIS
2. GPON
3. Metro Ethernet
4.1 DOCSIS:-
It is the acronym of “Data over cable service interface specification”. In coming future, HFC is the
main pathway to broadband because of their omnipresence and inherit greater capacity than
commercial telephone copper wire (DSL). Although cable networks are facing challenges in achieving
the optimum performance because of high deployment costs of fiber to premises network structure.
Cable operators are able to offer a maximum downstream speed of 150 Mbps but not able to sustain
it.
DOCSIS is standardized by ANSI (American National Standard institute) with the help of SCTE (Society
of cable telecommunication Engineers). It has a qualification process for CMTS and cable modems
which is executed by CableLabs. DOCSIS is basically a set rule to define interface specifications for
cable modems that are involved in high speed data (MPEG and IP) transferred over existing cable TV
network.
4.1.1 Different component of DOCSIS:-
There are two major components in DOCSIS system:-
a. CM or Cable Modem:-
It is located at the subscriber end. Various devices like PC, laptop, phone etc. can be
connected through it. It is similar to DSL modem in traditional wire-line broadband system.
b. CMTS or cable modem termination system:-
It is located at the cable operator end which is called as head end and connected to the
internet.
Chapter 4

29. 28
Figure 4.1.1 Basic DOCSIS network infrastructure
Since the most of the data flow is assumed to be in downstream direction, so downstream
bandwidth is comparably high to upstream. But with the growing trends in such as online gaming,
the upstream requirement is catching up the downstream bandwidth. CMTS provides services like
DHCP (Dynamic host Configuration Protocol), time of the day etc.
4.1.2 Delivering data through cable systems:-
Figure 4.1.1.2 DOCSIS Protocol
The above image shows only the CMTS portion of the stack. CM and CMTS both can act as end hosts
and forwarding agents. While sharing some controlling information the packets are destined to CM
and CMTS only so in that case they act as end-hosts while in case a device connected to CM is
interacting with some other host on Internet then in that case the CM and CMTS are only acting as
forwarding agents.
Since CM-CMTS can act both as end-host and as forwarding agents so different protocol stacks exist
in CM/CMTS for each role (as shown in the figure). CM-CMTS interaction holds the key to smooth

30. 29
bidirectional IP data flow on the existing cable infrastructure. To achieve this in DOCSIS network, the
IP packet goes through a completely different protocol stack (as shown in the figure).
The increase in speed would require the up gradation in amplifier, nodes, and subscriber drop
cables. In the same way, upgrading to the version of DOCSIS will require the replacement of cable
modem and other active sections. This will incur extra charges both on consumer and service
providers.
Figure 4.1.2.2 DOCSIS 3.1 deployment spectrum
4.1.3 Different versions of DOCSIS:-
Figure 4.1.1.1 evolution of DOCSIS from 1.0 to 3.1
Following data has been extracted from CISCO
DOCSIS 1.0 – data, 40 Mbps, (1997)
DOCSIS 1.1 – QoS (Quality of Service), VoIP (Voice over Internet Protocol), (2001)
DOCSIS 2.0-ATDMA (Advance Time Division Multiple Access), CM load Balancing
DOCSIS 3.0- Bonding, 1 Gbps, (2009)
DOCSIS 3.1 OFDM (Orthogonal Frequency Division Multiplexing), 3-10 Gbps, (2016)
DOCSIS 1.0
high speed
internet
DOCSIS 1.1
Voice,
Gaming,
Streaming
DOCSIS 2.0
capacity for
Symmetric
services
DOCSIS 3.0
Cannel
Bonding, IPV6
DOCSIS 3.1
OFDM,
Wideband
Channel

31. 30
4.1.4 Some specifications of versions of DOCSIS 2.0 and 3.0:-
DOCSIS 2.0 DOCSIS 3.0
Less number of throughputs Higher number of throughputs
Single channel at a time Multi-channel bonding
Supports only 64QAM upstream modulation Supports up to 128QAM upstream modulation
Upstream 5 to 42MHz 5 to 85MHz
Downstream 88 to 860MHz 108MHz to 1.002GHz
Figure 4.1.4.1comparison of DOCSIS 2.0 and 3.0
4.1.5 The comparison between DOCSIS 3.0 and 3.1:-
Figure 4.1.5.1 the comparison between DOCSIS 3.0 and 3.1 (source: - CISCO)
4.2 GPON:-
A GPON system, bi-directional point-to-multipoint network architecture, deploying optical access
lines between a carrier’s central office and customer sides. It is the most deployed method of FTTH.
Now a days FTTX is being deployed point to point and point to multipoint. These networks are
generally time division multiplexed and have passive optical network architecture. FTTH is now a
days well known for its capability of long distance reachability, effectiveness, its fast speed
characteristics, low leakage , low loss and it requires less maintenance cost.
4.2.1 Exact definition of GPON:-
Gigabit Passive Optical Network (GPON) is defined by ITU-T recommendation series G.984.1 through
G.984.4. G.984 standard series define general characteristics of GPON (G.984.1) as well as physical
layer specification(G.984.2), transmission layer specification(G.984.3) and ONU (Optical Network
Unit)management and control specification (G.984.4).GPON can transport not only Ethernet, but
ATM and TDM (including PSTN, ISDN, E1 and E3) traffic by using GPON encapsulating method.
4.2.2 GPON network model:-
Gigabit passive optical networks (GPONs), which represent one optical solution for local access
networks typically, provide distributed connectivity over a large geographic area. Its topology is as

32. 31
similar to as that of tree, consisting of one OLT, ONT and OND (optical network distribution/
splitters).
The OLT is the starting optical point in GPON access network. It terminates the GPON Transmission
Convergence (GTC) layer on the user side and forwards Ethernet frames to Ethernet layer on the
network side. Figure bellow shows the basic network model for a traditional GPON technology. OLT
is generally located at central office and ONU is at customer home or curb. The splitters are in
between OLT and ONU which divide single fibre into separate strands provide connections to many
users. The GPON and EPON provide broadband symmetrical (upstream and downstream) up-to
2.488 Gbps and 1 Gbps respectively. One OLT can support ten ONU’s and provide broadband speed
at a high rate irrespective of distance ( 20 kms). In this technology we generally use WDM(
wavelength division multiplexing in which we transmit signal in optical fibre using different
wavelengths of LASER).
Only single mode optical fibre runs from the central office to splitters. At central office, there is a
wavelength multiplexer where different data for different customer is being uploaded on the line.
Then by the splitter connection is divided to many of the customers using optical fibre itself. The
number of splitting path varies from 2 to 64 paths.
Figure 4.2.2.1 General network for FTTx technology
4.2.3 Features of GPON technology:-
Data rate (Upstream/Downstream Gbps) 1.24416/2.4882
Maximum physical reach 20 km
Split Ratio 1:64/1:128
Maximum differential fibre distance 20 km
Figure 4.2.4.1 Different feature of Basic GPON Technology

33. 32
4.2.4 Evolution of GPON Technology:-
Figure 4.2.5.1 Evolution of GPON Technology
4.3 Metro Ethernet:-
4.3.1 Introduction:-
A Metro Ethernet Network is the generally defined as the network that bridges or connects
geographically separated enterprise LANs while also connecting across the WAN or backbone
networks that are generally owned by service providers. The Metro Ethernet Networks provide
connectivity services across Metro geography utilizing Ethernet as the core protocol and enabling
broadband applications.
Ethernet is a widely deployed cost-effective and well-known technology, and Ethernet interfaces are
available on a plethora of data communication/telecommunication devices. Standards-compliant
interfaces are available for 10/100/1000 Mbps and the standard for 10 Gbps Ethernet was ratified in
the IEEE in 2002.
Gigabit capable PON
-PON standard
dominate in Europe
-Statndard ITU-
TG.984
- 2.5Gbps
down/1.25Gbps up
-Upto 20 Kms
-TDM/TDMA
10Gigabit capable
PON
-standard ITU-TG.987
-10Gbps down/2.5 Up
(XG-PON1)
-10Gbps down/up
(XG-PON2)
-upto 40 Kms
-TDM/TDMA
NGPON2
Minimum
requirement
-40 Gbps down/up
-40 Kms
-64 users
Forecast of
development and
standardization
2009
2012
2015

34. 33
Figure 4.3.1 a typical view of metro Ethernet connectivity
Links are primarily point-to-point and can be any speed of Ethernet. Ethernet Services can be
topologically classified into either E-Line (point-to-point as shown), or E-LAN (multipoint-to-
multipoint). Services can be further classified according to the bandwidth provisioned and which can
be exclusive or shared across multiple users. Bandwidth can be provisioned on demand e.g. from
1Mbps to 1Gbps.
The details of DOCSIS, GPON, and Metro Ethernet have been given in Annexure1, 2 and 3
respectively.
4.4 Major internet service providers:-
4.4.1 State-owned or Public Sector companies:
a. BSNL - servicing all of the India except Mumbai and Delhi. FTTH, Triple-play Broadband
Services provided by ADSL and VDSL.
b. MTNL - servicing Mumbai and Delhi. FTTH, Triple-play Broadband Services provided by
ADSL under the "Tri-Band" brand. Also providing GPRS and 3G internet services
4.4.2 private owned:-
a. Access Smart Solutions
b. ACT Broadband operating as Beam Fiber in Hyderabad - Broadband over fibre cable
c. Aircel - GPRS & 3G
d. Airlive Broadband
e. Airmesh - Wireless Broadband
f. Airtel - ADSL, GPRS, 3G & 4G,GPON
g. Catla Broadband (Guwahati)
h. Connect Internet Broadband Services
i. Digi Infosol - Wireless Broadband

35. 34
j. Dvois Broad Band
k. Esto Internet
l. Evergreen Internet Excitel
m. Hathway - Broadband over cable
n. Home Digital Broadband
o. Idea cellular - GPRS & 3G
p. Jio - 4G LTE
q. Nextra - Broadband over fibre
r. Reliance Communications - ADSL, GPRS, 3G, Metro-Ethernet, CDMA/EV-DO, Wimax
s. Sikka Broadband (Uttar Pradesh)
t. Siti Cable - (Delhi NCR and West Bengal)
u. Spectranet - Broadband over fibre cable
v. SwiftMail Communications
w. Tata DoCoMo - Fiber Broadband, GPRS, & 3G
x. Tata Indicom - ADSL, CDMA/EV-DO, Metro-Ethernet, WiMax, GPON
y. TTN - TTN Broadband, FTTH Broadband, and Leased Line (Bengaluru)
z. Ultranet Services[21] Fiber and lease line services.
aa. Vasudha Telecom Pvt. Ltd. (Andhra Pradesh & Telangana)
bb. Vodafone - GPRS & 3G
cc. Wish Net Broadband Fiber broadband (West Bengal)
dd. You Broadband - Broadband over cable
Thus the infrastructure and features of different cable networks have been discussed. From the
discussion it is clear that high speed demand of internet can be fulfilled only through optical fiber
networks. Although one time deployment cost for FTTx networks may be high, but the maintenance
cost and delivery charges are very less. Most of the developed countries and some developing
countries are deploying fiber optics network for the delivery of broadband.
The deployment of metro Ethernet is 40% cost effective than that of DOCSIS. The cost of deploying
DOCSIS is Rs 8000 per connection (assuming 20% penetration) whereas that of metro Ethernet is Rs
5000 only.

36. 35
Analysis of fixed Broadband in different
Country and Regulatory challenges
5.1 Status of fixed Broadband in some developed and developing
countries:-
5.1.1 Fixed broadband penetration:-
Figure 5.1.1.1fixed broadband penetration in some developing and developed countries
From the above chart, it is clear that the status of India is very poor regarding the fixed broadband
penetration statistics. (Source:-ITU world telecommunication statistics Database)
The telecom Regulatory authority of India has recommended the existamnce of virtual network
operator to promote the broadband services over existing cable. According to the guidelines of TRAI,
1. VNOs to be permitted to set up their own network equipment viz. BTS, BSC, MSC, RSU,
DSLAMs, LAN switches, where there is no requirement of interconnection with other NSO(s).
Therefore, they should not be allowed to own/install equipment viz. GMSCs, Soft-switches
and TAX.
2. VNOs may also be allowed to create their own service delivery platforms in respect of
customer service, billing and VAS.
But this has led to frequent disputes among MSO’s and VNOs. Some other disputes have also arisen
among MSOs and LCOs. In the meeting with TRAI, some MSOs informed the officers that there are
many LCOs who are providing the internet /broadband by taking bandwidth from category b and
category c ISPs which are mostly unreported. They are providing internet access at low cost; bills are
not given to customers. Places like Hyderabad have many such types of service providers. And the
46
41.440.2
38.137.435.8 35 34.232.330.530.4
25.8
17.5
14.4
11.5
3.3 2.6 1.2 fixed
broadband
penetratio
n %
Chapter 5

37. 36
issues related to MSO and LCO disputes, MSOs think that if the collection of the bill is made by LCOs,
then it may not reach to them properly.
LCOs are hesitant to invest in providing broadband because of following two reasons:-
1. Spending money on the reality which may not yield in benefit as other technologies can.
2. The ownership of the customer being at MSO they may get customers at a slow rate, which
may expedite the development of cable networks.
3. Elements of last mile are quite expensive.
5.1.2 Speed of fixed broadband in some selected countries:-
Figure 5.1.2.1 Speed of fixed broadband in some selected countries
It is clear from the above graph that most of the countries are moving towards high broadband
speed. It can be analysed clearly that Korea have the fasted internet speed (21.2 Mbps). While we,
Indians have only an average downloading speed of 2Mbps only. The high speed broadband is
possible only through Optical fiber network. For this purpose, current government has planned to
spent 1.13 Trillion in next 3 to 5 five years. The plan aims to connect 250,000 village councils at a
cost of Rs.27,000 crore, to be completed by December 2016.
0
5
10
15
20
25
30
35
40
45
50
256 Kbps to 2 Mbps
2 to 10 Mbps
>=10mbps

38. 37
5.1.3 Broadband Plan of different countries and their targets:-
Figure 5.1.3.1 broadband plan of different countries and their goals
Most of the countries have almost achieved their goals but India is still struggling with some issues
because of following reasons:-
A. Slow rate of laying optical fibre. Building the NOFN without addressing this problem will
leave us exactly where we are.
B. BSNL’s optical fibre cable network currently extends to 96 per cent of all districts and 80 per
cent of blocks. However, this has not translated into the delivery of broadband. Supply does
not create its own demand. The demand for broadband is determined by the affordability of
devices, the cost of internet access, and, most important, the availability of useful
programmes/ applications that cater to local needs in local languages.
C. Over the past three-five years, the focus has been on the NOFN. But where are we on
software? But for sporadic efforts by a few state governments and the private sector,
nothing really meaningful on e-governance has been delivered over the past decade. The
repeated chanting of the mantra of e-health and e-education has not delivered any usable
programmes.
Establish Broadband Delivery UK, 2010
25+ Mbps 90% coverage, 2015
25+ Mbps 95% coverage by 2017
25+ Mbps 100% coverage by 2020
Singapore began Next Gen NBN project for laying FTTH, 2010
100 Mbps 95% coverage by 2014
100 Mbps 100% coverage by 2015
Australia Began NBN Project in PPP model in 2009
100 Mbps 28% coverage by 2013
100 Mbps 93% coverage by 2021
India began NOFN project 2010
100 Mbps 50,000 Gram Panchayats by 2015
100 Mbps 250,000 Gram panchayat by 2017
2 Mbps 100% coverage by 2020
china Began Broadband china project in 2013
4 Mbps rural and and 20 Mbps urban connection by 2015
12 Mbps rural and 50 Mbps urban by 2020

39. 38
D. The availability of financial resources and the appropriateness of institutional structures.
E. We find that the prepaid handset based access is much less than it is for China, and the fixed
broadband is by far much cheaper at only 9.8 times as compared to the other countries. But
these multiples also tell us how difficult it would be for those living at less than $2 a day to
get these services. India with more than 60% of the population earning $2 a day or less is far
more disadvantaged than other countries where the percentage of those at poverty levels is
much less.
F. Illiteracy and the population density are the most suppressing reasons for almost all the
problems in India. Illiterate people don’t understand the benefit of e-services. It becomes
clear, when you go to some railway station and find people standing in the row for booking
the tickets. High population density also creates problem.
G. Funding techniques will be discussed in next section, but it is also a factor that has been a
challenge for the delivery of broadband.
5.2 Funding Models:-
5.2.1 Funding scheme adopted by European Union:-
Country Funding
Structure
Funding
Requirement
Funding Overview
United
Kingdom
Public Funding
and Private
Sector Funding
(Debt &
Private Bond)
£1.7 billion in
Public Funding
(Estimated)
Structure/Owners
hip Gap
intervention
 Public sector funding comes from Central
Government, local and regional authorities
and EU structural funds such as the ERDF.
 For illustrative purposes, Superfast
Cornwall (£134m) was financed by: – ERDF:
£53.5m; – Cornwall Council: £1m; and – BT:
£78.5m.
 It is understood that BT finances this
programme from their balance sheet. BT
PLC has total net debt of £7bn at 31 March
2014. This net debt is comprised of: – £9bn
in listed bonds (private placement); and –
£0.5bn in other loans and borrowings.
 BT PLC has a credit rating of BBB long term
(S&P).
France Bank Debt
(Construction)
and Project
Bond Initiative
(Operations)
€189.1m
Structure /
Ownership Public
Private
Partnership
(‘PPP’)
 Bank debt was raised at the HoldCo level
for the construction period.
 Subsidies in the form of a capital grant
were provided, resulting in full market and
demand risk borne by Axione
 Following construction completion,
financing by 11-year amortizing Bond of
€190m was raised for the operational
period.
 Included in the €190m is an unfunded
Project Bond Credit Enhancement (‘PCBE’)

40. 39
facility of €20m provided for the
operational phase.
 The PBCE solution proved to be
significantly more competitive against bank
debt structures, providing credit
enhancement from BB+ to BBB (1.5
notches).
 The bond term is 11 years at 2.622%.
Specific
Australia Government
Equity
(Construction)
and Private
Sector
Investment /
Debt
(Operations)
$44bn Structure/
Ownership Public
Sector designed,
built, owned and
operated
 The level of government equity
contribution is limited to $30.4bn.
 It is expected that $14bn in private sector
investment/debt will be required.
 Project Finance debt marketsand corporate
debt markets are being considered by NBN.
 NBN could access the project finance debt
markets at an earlier stage than it could
access the corporate debt markets, but the
tight covenant packages and strict lender
controls, particularly on further borrowing,
that project finance lenders typically
require, would constrain NBN Co’s ability
to react to changing circumstances.
 The use of project finance also would
require a stronger commitment from the
Government as shareholder, and limit the
Government’s flexibility.
 NBN’s ability to raise corporate debt will be
contingent on achieving an appropriate
credit rating, which is deemed challenging,
particularly in the absence of a
Government guarantee
New
Zealand
Share Rights,
Government
Funding,
Private Debt
and Bonds.
$1.35bn
government
funding and
varying levels of
private funding
 . The government is contributing $1.35
billion to the initiative with
significant amounts of private co-
investment by CIPs.
 As outlined in detail in Section 4.3 of the
Ownership Report, the
infrastructure is purchased by the LFC’s.
CFH funds this purchase
through share purchase and CIP’s will also
receive shares with
dividend rights.
 CFH also entered into an agreement with
Telecom, the former
public operator, to partner in the delivery
of the network.
 Telecom split Chorus into a separate

41. 40
company in 2011 and will
invest $929 million over the project life,
50% being non-voting
shares and 50% interest free loans.
 As at June 2014, Chorus had total
borrowings of $1.6bn comprising:
– Syndicated bank facilities: $1.14bn
– Euro Medium Term Notes: $0.5bn
 The syndicated bank facilities are in place
on market standard terms,
with $1.6bn total committed facilities, of
which $0.5bn is undrawn
and is available for future operating
activities.
 None of Chorus’ debt has been secured
against assets. However,
there are financial covenants and event of
default triggers.
 Chorus Limited established a Euro Medium
Term Note (‘EMTN’)
programme, guaranteed by Chorus New
Zealand Limited. Chorus is
listed, and the EMTNs issued under that
programme are quoted on
the Luxembourg Stock Exchange.
 Chorus issued GBP£260m of notes, at a
6.75% interest rate and are
carried at $504m.
 Chorus has a credit rating of BBB long-
term, stable (S&P)
Italy Equity, Debt
and Mezzanine
€2bn  80% of the capital for the SPV is to be
provided by telecoms equipment vendors
with the remaining 20% provided by a
NewCo.
 Per the project projections, the planned
investment source split,
outlined as the maximum outstanding over
the project life, is:
– Senior Debt: €1.084bn at 30 June 2018
– Mezzanine: €846m at 30 June 2018
– Equity and Sub Debt: €398m at 31
December 2017
 Upon completion of construction, the
vendors and New Co will enter into a put &
call agreement with a specialist
medium/long-term investment fund.
 For the vendors, the put & call is to sell
their participation in the SPV.

42. 41
5.2.2 Funding scheme adopted by South Korea:-
The South Korean government’s national broadband strategy includes direct and indirect support for
broadband infrastructure development, including loans and other incentives. The KII(Korea
information and Infrastructure) consisted of three sectors and three phases: KII-Government, KII-
Private, and KII-Test bed called KOREN (Korea Advanced Research Network). KII-Government spent
$24 billion to construct a national high-speed public backbone network, which service providers
could use to deploy broadband services to about 30,000 government and research institutes and
around 10,000 schools.
The Korean initiative also provided government test beds for companies to use for research and
development. Meanwhile, KII-Private worked to spur private funding to construct an access network
for homes and businesses, aiming to stimulate broadband deployment in the “last mile.” The KII
provided a combination of government support and private sector investment. Specifically, the
government provided $1.76 billion in government low-cost loans between 2000 and 2005 from its
Public Fund Program while the private sector invested $14.5 billion for a total public-private
investment of $16.3 billion.
In addition, to stimulate demand for broadband, the South Korean government gave small and
medium-sized businesses a tax exemption equal to 5 per-cents of their total investment in
broadband communications systems. The lop-sidedness of the percentage of government to private
funding reflects the fact that the South Korean government expects its private companies to drive
the investment in broadband infrastructure with government support in the form of loans and tax
subsidies as their incentive. This pattern continued with the successor programs to the KII – the
Broadband Convergence Network (BcN) and the IT839, though which the Korean government
provided broadband service providers incentives of over $70 billion in low-cost loans to build high
speed broadband networks while broadband providers pledged to invest an equal amount.
5.2.3 Funding Scheme adopted by United States of America:-
Connect America Fund (High-Cost) Program (~$3.75 billion disbursed in 2014; capped at $4.5
billion/year):-
In 2011, the Commission comprehensively reformed and modernized the high-cost program to focus
support on voice and broadband capable networks. Of the $4.5 billion annual budget, the
Commission allocated up to $1.8 billion to geographic areas served by the larger
telecommunications carriers (known as Phase II of the Connect America Fund), up to $2 billion to
those areas served by the smaller carriers, $500 million to the Mobility Fund, and at least $100
million for remote areas.
Ten telecommunications carriers accepted $1.5 billion in annual support for rural broadband
deployment. Most of the ten carriers are major national carriers, and their acceptance will infuse
over $9 billion from the Connect America Fund into rural broadband over the next six years. The
2011 Order largely maintained existing support mechanisms for the smaller carriers, but phased out
some forms of legacy high-cost support and limited support to $250/month/line.
As of December 31, 2013, approximately 23 million Americans lacked access to infrastructure
capable of providing 10/1 Mbps fixed broadband. Phase I of the Connect America Fund authorized

43. 42
nearly $440 million in funding to serve over 1.66 million previously un-served individuals in 45 states
and Puerto Rico. Phase I of the Mobility Fund is making available up to $300 million to address gaps
in mobile coverage in rural areas, with recipients extending mobile service to up to 83,000 road
miles in 31 states and 1 territory. Phase II of the Connect America Fund aims to bring broadband
service to the Americans living in rural areas lacking broadband through a combination of wire-line,
fixed wireless and satellite technologies.
5.2.4 Funding Scheme Adopted by Sri Lanka:-
Every International operator has to pay an international telecommunications operator levy (ITO
Levy) to the TRCSL in respect of every incoming international call terminated within Sri Lanka with
effect from 3rd March 2003. A defined percentage of this levy is considered as a Telecom
Development Charge (TDC) which is paid by the operator directly to the TRCSL. Each operator may
claim up to two thirds of the funds paid by him to the TDC within a period of three years for
telecommunication network development in underserved and un-served areas as determined by the
Commission. Guidelines for the disbursement of the TDC fund were formulated by the TRCSL to be
utilized exclusively for meeting Universal Service Obligations.
Already financial support for infrastructure under the TDC fund has been provided as subsidy
support for setting up of 9 hundred and 9 towers in 23 districts spread over 9 provinces for mobile
and fixed wireless services in specified rural and remote areas where there were inadequate existing
fixed wireless and mobile coverage. The infrastructure so created is shared by operators. The TRCSL
has disbursed Rs3457 million (approx. 31.42 US$ million) from March 2003 to March 2008. The
Commission is in the process of finalizing the disbursement for the period 2008-2009 and is
scheduled to disburse up to Rs2326 million (approx. 21.14 US$ million). The infrastructure support
under the TDC has resulted in the use of such infrastructure for the development of broadband
services. For the installation of rural household telephone connections during March 2003 to March
2008 the Commission has disbursed a subsidy of Rs2563 Million (approx. US$ 23.3Million) from this
fund. The disbursements from the TDC fund for 2008/09 for fixed domestic PSTN operators are
expected to be approx. Rs177 million (US $ 1.6 million).
5.3 Indian Strategy:-
5.3.1 Analysis of approx. cost of deploying optical fibre:-
Cost of fibre, trenching and laying
1. Cost of Optical Fibre (Rs/Km) 30,000 Rs/km
2. Average Digging and pulling Cost of OFC (Rs/ Km) 1,62,000 Rs/km
3. Cost of HDPE Pipes In Rs. Per Km 33,000 Rs/Km
4. Total cost of OFC including labour and material
(Rs/Km)
2,25,000 Rs/km
Cost of end equipment
5. Cost of OLT per unit 80,000 Rs
6. Cost of ONT per unit 15,000
Figure 5.3.1table of cost analysis of deploying optical fibre, data From: National Broadband Plan
2010.
The total cost of the fibre network to be created by the proposed agency would be Rs 55298 crores.
If it is presumed that priority would be given to 63 cities identified by the Jawarharlal Nehru Urban
Renewal Mission (JNURM) i.e. 7 Category A (above 4 million populations), 28 Category B (1-4 million

44. 43
populations) and 28 Category C(less than 1 million population) cities. To make an estimation of cost,
based on feedback for some service providers, it is estimated that the Category A cities would
require on an average about 1000 route km of fibre, Category B cities about 500 route km of fibre
and the rest of the cities on an average about 300 route km fibre. The total requirement would,
therefore, be about 29,400 route km of fibre at a cost of about Rs 662 crores. For the remaining
4315 towns if we presume that 100 km of fibre will be laid then the total cost would be about Rs.
9709 crores.
5.3.2 Total Estimated cost:-
Rural+ JNURM cities+ Other cities= 55298 crores+ 662 crores+ 9709 crores= 65669 crores
In NBP 2010, it was suggested that the project would own by central and state Governments. The
Government would make available the funds for creation of the block level aggregation network and
the backhaul. The company would be eligible to get grants from Government funds like USOF and
MGNERGS. USOF had an available balance of about Rs 13789 cr. The previous year collection was
5778.00cr and assuming same collection for next two years then funds of the order of 24000 cr
would be available. The company can also raise finance from the market.
5.4 Major hurdles with deployment of broadband in India:-
5.41 Regulatory Hurdles:-
According to World Bank, it is estimated that a 10% increase in broadband penetration improves the
economic growth by 1.38% in developing countries. Apart from the regulatory issues, Indian telecom
sector was hard hit by the onslaught of multiple issues and procedural delays typically associated
with public offices. Investors in telecom industry, who got their fingers burnt in 2G (in 2G scam),
taught the industry that investment in India’s telecom sector is a risky affair. Also, the reactionary
policies that immediately follow such delays and implemented without having a futuristic outlook,
make the scenario worse for the investors. So, Regulatory has to take care of the benefits of
stakeholders, MSOs, LCOs and consumers. It is a tough practice to create a balance among them.
5.4.2 Lack of fibre infrastructure:-
The poor quality of service (QoS) and call drop issues are primarily attributed to the country’s low
investment in fibre and backhaul infrastructure The fact that less than 20% of the towers in India are
backhauled compared with an average of 80% in countries like the US, China, and Korea emphasizes
the need for an effective policy that gives due importance to fibre deployments. It is revealed in
Industry reports that in India, currently an average of 15 million kilometres of fibre is deployed every
year in contrast with current demands indicate it needs to increase to at least 50 million kilometres
per year. But the major problem is that the deployment of such a large network will require a large
amount of investment, but from where this investment will come? Regulatory and government of
India should be clear about this. The disparity in broadband penetration between urban and rural

45. 44
India continues to haunt Indian economy. TRAI’s September 2015 report reveals that India’s rural
tele-density is less than 50% whereas the urban figure comes about 150%.
5.4.3 Issues related to Right of Way:-
Currently RoW charges vary from a few lakhs to Rs 1.5 crore per km across different states. With
different states having different RoW policies; telcos are losing out significant amount of their
infrastructure investment to municipal bodies across different states.
5.4.4 Last mile Connectivity:-
The NOFN project was launched to bring optic fibre as close to the end-user as possible so that
high-speed broadband can be made available to the customers. The NOFN had envisaged laying
OFC connecting all the 2,50,000 Gram Panchayats of the country. The work for laying the cable was
allotted to three CPSUs—BSNL, RailTel and PGCIL—in the ratio of 70:15:15 respectively. Also, non-
discriminatory access to the NOFN was to be provided to all service providers. The network was
supposed to be commissioned in two years; however as per the information available from BBNL,
as on November 2015 only limited Gram Panchayats have been connected despite best efforts.
From the above description, it is clear that in order to provide the fast and universal broadband,
the government of India and TRAI will have to work together, keeping the benefits of stakeholders,
MSOs, LCOs and customers in mind.
.

46. 45
Recommendations made by TRAI and
Possible Solutions
6.1 Recommendations by TRAI:-
In order to promote broadband services, Telecom Regulatory authority of India reviews the situation
of broadband and made recommendations time to time. The following sections will give a glimpse of
Recommendations made by TRAI:-
6.1.1 NOFN Network project:-
The NOFN project was approved by Cabinet in 2011 and deadline to connect all panchayats was
fixed by end of 2013 then deferred to September 2015 by UPA government. The Mr. Narendra
Modi-led government re-examined project status and set target to complete roll out in 50,000
village panchayats by March 31, 2015, and another 1 lakh by March 2016 and the rest by end of
2016.
At present OFC (Optical Fibre Cable) connectivity is available in all State Capitals, Districts, HQs and
up to the Block Level. There is a plan to connect all the 2,50,000 Gram Panchayats in the country.
This will be done by utilizing existing fibers of PSUs (BSNL, Railtel and Power Grid) and laying
incremental fiber to connect to Gram Panchayats wherever necessary. Dark fiber network thus
created will be lit by appropriate technology thus creating sufficient bandwidth at the Gram
Panchayats. This will be called the National Optical Fibre Network (NOFN). Thus connectivity gap
between Gram Panchayats and Blocks will be filled.
Non-discriminatory access to the NOFN will be provided to all the Service Providers. These service
providers like Telecom Service Providers (TSPs), ISPs, Cable TV operators and Content providers can
launch various services in rural areas. Various categories of applications like e-health, e-education
and e-governance etc. can be provided by these operators. The NOFN project is estimated to cost
about Rs. 20,000 Cr. It is proposed to be completed in 2 years’ time. The project will be funded by
the Universal Service Obligation Fund (USOF).
In its recommendations on delivering broadband quickly, TRAI has made following recommendations
regarding NOFN project:-
a. It recommends that there should be strict rules to complete the each milestones at
prescribe time. For this, there is a need to set up a monitoring system that measure the
quality of work on every milestone completion.
b. Bharat broadband network limited (BBNL) should be managed professionally like Delhi
Metro Rail Corporation (DMRC).
c. Project implementation on central state private public partnership mode by involving private
sectors and state governments.
d. Engineering procurement Construction should be given on contracts by the BBNL to private
sectors. The role of private sectors whether they will work for regional-wise.
Chapter 6

47. 46
6.1.2 TRAI recommendations on Bharat net:-
National Optical Fibre Network (NOFN) was initiated in 2011 and has already missed several
deadlines. The project was to be funded by Universal Service Obligation Fund with the aim of
providing broadband connectivity to over 2 lakh gram panchayats (GPs). On 1st
Feb 2016, after a
detailed review and discussion with stakeholders, Telecom Regulatory Authority of India (TRAI) has
recommended the following points:-
1. Public private partnership (PPP) that aligns private incentives with long term service delivery
in the vein of the Build-Own-Operate Transfer/Build-Operate-Transfer models as the
preferred choice for the national broadband network, BharatNet.
2. In its recommendations to the government, the telecom regulator has suggested
broadening of the work of Private Sector Company or concessionaire to include deployment
and implementation optic fibre cable (OFC) as well as operating the network. It has also
suggested that period of concession should be of 25 years which can be further extended in
block of 10, 20 or 30 years.
3. The model tries to implement a BOOT (built, own, operate and transfer) protocol. TRAI has
suggested that concessionaires be selected through a reverse bidding process to determine
minimum viability gap funding (VGF) sought for the concession. The area of implementation
may be analogous with the licensed service areas (LSAs) of the state/union territory.
4. It has also suggested that central and state government should become minority partner of
the concessionaire with 26 per-cent stake as it can lower the perceived risks and cost of
obtaining private finances for the project. Central and state government should become
anchor client of this project to purchase minimum bandwidth of 100 Mbps at market rate as
well as suggested arm’s length relationship between concessionaire and service providers,
adding that 50 per cent of the optical fibre should be reserved for telecom and cable service
providers.
6.1.3 Concept of MVNO (Mobile Virtual Network Operator):-
A mobile Virtual Network Operators (VNO) is an operator that offers mobile services but does not
own its own radio frequency. Usually, this operator has its own network code and in many cases
issues its own SIM card. The mobile VNO can be a mobile service provider or a value-added service
provider. (Definition Given by ITU).
According to TRAI, the following recommendations are made for MVNOs:-
a. MVNO should be free to choose its business model. However MVNO shall not set up its
own Radio Access Network (RAN)/ Base Station Subsystem (BSS).
b. The licensed service area (circle) of MVNO should be same as that of parent MNO.
However, the MVNO could offer service anywhere within the licensed service area
(circle) of the parent MNO as specified in the mutual agreement between MNO and
MVNO. Separate licence for each service area shall be required.
c. Net worth: 10% of the net worth specified for the MNO for the service area i.e. Rs.10
Crores for Metros/’A’ Category, Rs 5 Crores for ‘B’ Category, Rs 3 crores for ‘C’ Category
d. Paid up Capital: 10% of the prescribed net worth for the MVNO.

48. 47
e. If due to some reason, agreement between MVNO & MNO is terminated, the license of
the MVNO would also be terminated. Fresh licence will have to be obtained by the
MVNO if new agreement is being signed by the MVNO with another MNO.
f. MVNO cannot get attached to more than one MNO in the same service area.
Responsibility of MVNOs:-
 Customers’ acquisition, management and grievance handling.
 Achieving QoS parameters as prescribed by TRAI from time to time.
 Complying with Billing and metering requirements as prescribed by TRAI including audit
/ surveys.
Entry Fee for MVNOs:-
The entry fee imposed on MVNO should be nominal. It may be 10% of MNO’s entry fee as prevailing
on date in that service area subject to a maximum of Rs. 5 crores for Metros and Category ‘A’, Rs. 3
crores for Category ‘B’ and Rs. 1 crore for Category ‘C.
The rate of annual licence fee as well as definition of AGR for MVNO shall be on similar lines as
defined in the Access Service Providers’ licence to which the MVNO is parented.
To harmonize the FDI limit for various services in telecom sector, level of FDI up to 74% may be
permitted in MVNO. As in the case of MNO up to 49% FDI through automatic route and beyond 49%
up to 74% with prior FIPB (foreign investment promotion board) approval may be prescribed. All the
other conditions related to FDI applicable to MNO would be applicable to MVNO also.
6.1.4 Department of telecommunication guidelines for Virtual Network
Operator:-
 VNOs are retailers of telecom services who buy bulk minutes from telecom operators and
sell them under a different brand. So, a VNO is an entity providing telecom services like
mobile landline and internet but only as retailer for full-fledged telecom operators such as
BSNL, MTNL and Airtel etc.
 For obtaining UL VNO, interested companies will need to pay a one-time non-refundable
entry fee for authorisation of each service they want to provide and for each service area
where they wish to operate in.
 According to guidelines of DoT, the total amount of entry fee shall be subject to a
maximum of Rs 7.5 crore, for those who want to offer all telecom services For others, the
fee would range from Rs 15 lakh for national-level Internet services to Rs 1.25 crore for a
long-distance telecom licence.
 The permits would be valid for 10 years, which could be reviewed after three-four years
depending upon the technological changes and experience gathered.

49. 48
 VNOs will pay a licence fee and spectrum usage charges (SUC) in addition to the entry fee.
At present, the licence fee is 8% of the annual revenue, including the USO levy. The SUCs
will correspond to that of the network service operator and may change from time to time.
6.1.5 Waive Landline Broadband Fee to Lower Cost:-
On 17 April 2015, TRAI has asked the government to exempt fixed line broadband service from
license fee for at least 5 years and suggested a series of measures to expedite the roll out of high-
speed network. It has suggested allowing telecom operators to bundle desktops, laptops, tablets and
so on with their broadband schemes.
6.1.6 TRAI recommendations to promote the broadband quickly:-
On 17th
April 2015, in its recommendation to promote broadband quickly, TRAI has recommended
following incentives in order to promote the fixed-line broadband:-
a. For using the electric pole for last mile delivery, workout with state governments.
b. Duct or optical fibre penetration should be made mandatory in the laws for the certifications of
a building like electricity, water supply.
c. Central government as well as state governments should follow the rules and standard process
for fibre deployment.
6.1.7 Tax exemptions in Broadband infrastructure:-
Other measures are to bring down customs duties and other taxes. The telecom sector has one of
the highest tax structures in the country. The government needs to relax this regime as lower cost
services will lead to higher adoption, more efficiencies in the economy and more income and service
tax to the government.
To promote fixed line BB, the TRAI has recommended that the license fee on the revenues earned on
fixed line BB should be exempted for at least 5 years. The infrastructure of PSUs is lying unutilized
and thus they should be mandated to unbundle their network and allow sharing of outside plant.
The TRAI has already noted this in its plan for making cable digitized and addressable, but the
principle potentially has wider applicability throughout the sector.
Exemptions offered by government of India under the promotion of Make in India are as follow:-
1. Sector specific initiatives: The government of India provides sector specific subsidies for
promoting manufacturing for example in order to boost manufacturing of electronics, the
Govt. of India provides capital subsidy of up to 25% for 10 years.
2. Export Incentives: Under the foreign trade policy exports have been provided with several
incentives like duty drawback, duty remission schemes etc.
3. Initial validity period of Industrial License has been increased to three years from two years,
also, two extensions of two years each in the initial validity of three years of the Industrial
License shall now be allowed up to seven years.

50. 49
6.1.8 Recommendations for Cable Television:-
TRAI has taken actions to promote broadband through cable TV. It has recommended Cable
operators should be allowed to function as resellers of ISP license holders to enable them to take
advantage of their cable network to provide BB. A viable business model is to be created by
encouraging the LCOs entrepreneurship skills. LCOs should be given proper financial support by
loans from banks and USOF (universal service obligation fund).
The timeline for the digitization of tier 2 and tier 3 should be completed within time bound. And
proper time extension if needed for the next phases. Tier 4 is expected to be completed by
December 2016. Lower the costs of infrastructure investment by lowering customs duty on Hybrid
Fibre Coaxial (HFC) based network equipment and Customer Premises Equipment (CPE).
Other incentives taken by TRAI are to allow TSPs bundled tariff schemes on customer premises for
broadband, making people aware and interested in Broadband services by promoting the e-
Governance, computer education in school, making the certain availability of contents in regional
languages on internet.
6.2 Possible Solutions:
The provision of broadband throughout India is a worthy goal, TRAI’s emphasis in the National
Broadband Plan on cable is appropriate.
a. For the promotion of high speed wire-line broadband network access, the following incentive
can be taken :-
1. Street side cable installation permission to TSPs
2. Mandatory broadband connectivity in buildings like water and electricity connections
3. NOFN project would promote a strong middle mile but for a sustainable and scalable
ecosystem with viable and profitable business models. The biggest problem with NOFN
is that it doesn’t focus on core and last mile access.
4. The role of private ISPs was not mentioned in the NOFN project. With the experience of
most of the developed countries with high broadband penetrations, it is clear that
private ISPs play a major part of actions.
b. For Cost Minimization, following steps are needed for Wire-line broadband access
technologies:-
1. Reduce Customs duty and declare Customs Holiday for wire-line broadband access
infrastructure and CPE.
2. Get Wire-line Infrastructure and CPE to be manufactured in India.
3. Apart from the above suggested measures, Government can also incentivize TSPs in
terms of lower license fee especially in rural India.
4. Uniform/ Nil RoW for promotion of wire-line based services
c. Suggestion to Right of Way (RoW ) issues:-
1. No RoW charges for lying of fibre by Private TSPs. This is similar to the RoW waiver
provided for the NOFN project.