indian telecom story

POLICY ON TELECOM REGULATION

MADE BY – Akhil Kapoor – 3064

Snehaj – 3068 Sarin Sio – 3083Yash Pant - 3093

Final Cut (Pub AD ).wmv

• 1991-92 – PRIVATE PLAYERS ALLOWED IN TELECOM

• 1994 - NATIONAL TELECOM POLICY FORMULATED • 1997 – TRAI FORMULATED • 1st OCT 2000 – BSNL CREATED AS PSU TO PROVIDE

SERVICES ACROSS INDIA `

THE JOURNEY SO FAR

NTP 1999

• Revenue Generation not main Objective • Importance assigned to TRAI (Telecom Regulatory Authority

Of India)

• Revenue sharing arrangement (15% of Adjusted gross revenue [AGR]) instead of fixed license fee, with effect from August 01, 1999.

• Migration package offered to existing licensees (42 CMTS(Cellular Mobile Telecom Service, 6 Basic)

THE EXPLOSION

Increase In Competition

The Future of Telecom

• Rural Telecommunications

• 3G • VAS – Value Added Services

– Data Transfers – GPS – Custom Downloads– MMS

Growth Of VAS

Rural Telecom

NATIONAL TELECOM POLICY - 2011

SPECTRUM POLICY

• ALL FUTURE SPECTRUM ALLOCATIONS TO BE DONE ON MARKET PRICES.

• SPECTRUM POOLING, SHARING AND TRADING TO BE ALLOWED.

• PREPARE A ROADMAP FOR SPECTRUM AVAILABILITY FOR THE NEXT 5 YEARS.

• FREE 300 MHZ OF AIRWAVES FOR COMMERCIAL TELEPHONY BY 2017.

CONTD…

• RESERVATION OF SPECTRUM FOR INDIGENEOUS DEVELOPMENT OF PRODUCTS AND TECHNOLOGIES.

• ENACTMENT OF THE SPECTRUM ACT TO DEAL WITH ALL THE ISSUES RELATED TO SPECTRUM TRADING AND SPECTRUM IN GENERAL.

• LICENSE TO BE DELINKED FROM SPECTRUM.

MOBILE PERMITS

• FRAMING OF AN EXIT POLICY TO ALLOW NEW ENTRANTS TO SURRENDER THEIR MOBILE PERMITS AND AIRWAVES.

• ALLOWING SHARING OF NETWORKS AND REGULATE VALUE ADDED SERVICES.

• TO PROVIDE CLEAR RULES FOR RENEWAL OF MOBILE PERMITS.

• MOBILE PERMITS TO BE TECHNOLOGY NEUTRAL.

CONTD….

• TO INCREASE RURAL TELE-DENSITY TO FROM 35% TO 60% BY 2017 AND TO 100% BY 2020.

• TO MANUFACTURE 80% OF TELECOM NETWORKS DOMESTICALLY.

• REDUCING CARBON FOOTPRINT OF TELECOM SECTOR.

• FACILITATING USE OF GREEN TECHNOLOGY TO POWER TOWERS.

Broaaaad band

WHAT IT AIMS: TO PROVIDE BROADBAND ON DEMAND BY 2015.

TO ACHIEVE A TARGET OF 175 MILLION BROADBAND USERS BY 2017.

TO PROMOTE R&D & PRODUCT DEVELOPMENT IN TELECOM.

BROADBAND SPEEDS TO BE REVISED TO 512 KBPS AND FURTHER TO 2MBPS BY 2015.

FOR THE AAM AADMI…

• ROAMING CHARGES TO BE ABOLISHED.

• CONSUMERS CAN NOW USE MNP SERVICE EVEN WHEN THEY SHIFT TO A NEW CITY WITHOUT PAYING ROAMING CHARGES.

• STRENGTHENING OF GRIEVANCE REDRESSAL MECHANISM.

• REGULATOR TO ENHANCE CONSUMER AWARENESS ON SERVICES AND TARIFFS.

ETC….

• TO PUT IN PLACE LEGAL,REGULATORY AND LICENSING FRAMEWORK FOR CONVERGENCE OF SERVICES, NETWORKS AND DEVICES.

• MOVE TOWARDS AN UNIFIED LICENSE REGIME THAT ALLOWS OPERATORS TO OFFER ANY SERVICES.

• RELXATION OF M&A NORMS TO ALLOW CONSOLIDATION.

CONTD……..

• PROMOTION OF TRAINING INSTITUTES IN RURAL AND URBAN AREAS & COLLABORATION WITH IIT’S.

• DoT TO LOOK AFTER LICENSING AND SPECTRUM ALLOCATION AND MINISTRY TO FOCUS ON POLICY MAKING.

• CREATION OF TELECOM FINANCE CORPORATION TO FACILITATE INVESTMENT IN THE SECTOR.

To Gain Not to Gain

• THE BIGGEST BENEFIT TO THE CONSUMERS IS THE REMOVAL OF ROAMING CHARGES AND NATIONWIDE MNP.

• HOWEVER THIS MOVE ADVERSELY AFFECTS THE OPERATORS WHO GAIN 5-7%OF THEIR REVENUES FROM ROAMING CHARGES.

• IN THE LONG RUN THOUGH THEY STAND TO GAIN FROM INCREASED VOICE AND DATA USAGE.

CONTD…

• FOR OPERATORS DE-LINKING OF NETWORKS FROM SERVICE DELIVERY WILL ENABLE QUICKER ROLL OUT OF SERVICES.

• NETWORK SHARING WILL REDUCE ENTRY BARRIERS AS NEW PLAYERS NEED NOT INVEST IN NETWORK BUILDING.

• EXISTING OPERATORS CAN ENHANCE REVENUE BY UTLISING THEIR NETWORK ASSETS.

CONTD….

• THE PROPOSAL OF SPECTRUM BEING TRADED ON MARKET PRICE MIGHT DRIVE UP THE COST OF SPECTRUM.

• THIS COST COULD BE PASSED ON TO THE CONSUMERS IN TERMS OF INCREASED TARIFFS.

• SPECTRUM SHARING HOLDS WELL FOR THE ENTIRE INDUSTRY AND ENSURES OPTIMAL UTILIZATION OF THE SPECTRUM.

CONTD…

• DESPITE BEING A HIGH GROWTH MARKET, TELECOM LAGS BEHIND IN CREATION OF IPR.

• BY PROMOTING DOMESTIC MANUFACTURING SECTOR THIS SCENARIO MIGHT CHANGE.

• ACCORDING TO TRAI ESTIMATE IN LAST 5 YEARS TELECOM IMPORT GREW BY 24TIMES WHILE EXPORTS BY ONLY 7 TIMES.

• INCREASING DOMESTIC PRODUCTION CAN HELP CHANGE THE TREND AND ALSO GENERATE EMPLOYMENT.

CONTD…

• CONVERGED SERVICES WILL BRING NEW USERS ACROSS URBAN AND RURAL AREAS.

• THIS IS EXPECTED TO DRIVE END USER DEVICE DEVELOPMENT AND REDUCE PRICES.

• SUBSCRIBERS CAN LOOK FORWARD TO QUALITY VERNACULAR CONTENT.

• MOBILE DEVICE WILL BRIDGE THE DIVIDE IN ACCESS TO EDUCATION, HEALTH & GOVERNANCE.

PuLLing Down….

• HOWEVER THE PROPOSED SPECTRUM ACT HASN’T BEEN ELABORATED IN THE DRAFT.

• IMPLEMENTATION OF KEY REGULATION CONTROLS DEPEND UPON THE SPECTRUM ACT.

• THE DRAFT IS ALSO SILENT ON THE EXISTING 2G SPECTRUM AND HOW IT WLL BE TREATED UNDER THE NEW LICENSE FRAMEWORK.

CONTD…

• THE DETAILS REGARDING THE M&A POLICY IS STILL UNCLEAR.

• THE DRAFT POLICY ENSURES EASY EXIT POINTS FOR NEW PLAYERS.

• M&A CAN HELP CONSOLIDATE THE CROWDED TELECOM MARKET BUT WITH MORE DEFINITE GUIDELINES.

Wake up Bodyguard lovely singh…

• THE DRAFT HIGHLIGHTS THE IDEA OF CONVERGENCE OF TECHNOLOGIES.

• HOWEVER SECURITY CONCERNS RELATED TO EXISTING PUBLIC SWITCHED TELECOM NETWORK HAS NOT BEEN PROPERLY ADDRESSED.

• THE DRAFT ALSO NEEDS TO FOCUS MORE ON EMERGING TECHNOLOGIES.

The Household fight…

• THE POLICY SHOULD LAY DOWN ROLES AND RESPONSIBILITIES OF VARIOUS REGULATORY AGENCIES.

• A STRONG COMPILANCE AND MONITORING AGENCY IS REQUIRED TO CONSTANTLY PERCEIVE THREATS.

• WAR BETWEEN DOT, TRAI & MR. OUTSIDER- TDSAT.

• THE TELECOM POLICY SHOULD ALSO CONSIDER IMPLEMENTING A REGULATORY BODY TO MANAGE COMMUNICATION INFRASTRUCTURE DURING EMERGENCIES.

Election speeches & promises…

• THE PROPOSAL OF 80% OF TELECOM’S SECTOR DEMAND TO BE MET DOMESTICALLY IS DIFFICULT TO BE IMPLEMENTED IN ABSENCE OF A SUPPLY CHAIN.

• NEW BROADBAND SPEEDS THOUGH PROMISING BUT STILL LOW WHEN COMPARED TO OTHER NATIONS.

• MORE CLARITY IS REQUIRED TO MAINTAIN THE PRESENT TAX STRUCTURE ON MOBILE HANDSETS UNDER THE UPCOMING GST REGIME.

THANK YOU