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ANNEXURE: USISPF RESPONSE TO TRAI CONSULTATION PAPER ON INPUTS FORFORMULATIONOFNATIONALTELECOMPOLICY–2018TheIndiantelecomindustryisexplodinginleapsandbounds.Currently,Indiahas1.17billionwirelesstelephoneconnections,anditsbroadbandconnectioncustomerbasenowstandsat276.52million.Indiawith462.12millionusersonlineasofMarch2017isalsohomethe2ndhighestnumberofinternetusersintheworld1withthenumbergrowingataCAGRof19.6%between2007and20172. It currently contributes6.5% to India’sGDP,but isexpected tocontributetowards8.2%ofGDP&create30lakhdirectjobsby20203.Inaclearrecognitionofitspotential,FDIequityinflowinthetelecomsectorfromApril,2016toMarch,2017was$5.564billion,whichismorethanfourtimestheaverageinflowofabout$1.3billiondollarseveryyearsince2013-144.Thepotential forcloudservices is limitless.The Indianpubliccloudservicesmarkethadavalue of USD 1817 million in 2017, which is set to grow to 4104 USDmillion by 20205.IncreasedgovernmentexpenditureonNationalOpticalFibreNetwork(NOFN),e-governance,coupledwith growing acceptance of cloud services among small andmedium businesses(SMBs) isexpected todriveup themarket forcloudcomputing in India.CloudcomputingusageamongIndianenterprises isexpectedtocreateoveramillionnewjobsby2022.6 Inordertoharnessthesebenefits,thegovernmentcanplayaleadingroletocreateanenablingenvironmenttofacilitatenewinfrastructurecreationandgrowthoftheindustry.Emergingtechnologytrends–CloudComputing,InternetofThings(IoT),TransitionofBrickand Mortar networks to Software -Defined Networks (SDNs) and Network FunctionVirtualisation(NFVs),MachinetoMachine(M2M),AugmentedandVirtualReality,allhavenecessitatedneed fora robust,enablingandsupportivepolicyandregulatory framework.What is needed are big ticket reforms for bridging the ever-increasing gap betweentechnologyandpolicyinthedataspaceforthegrowthofIndianeconomy.Naturally,thetelecomindustry inIndia ismovingawayfrombeinganchoredintraditionaldefinitionsofmobile,broadbandandwifiandsteadilyinchingtowardsfuturistictechnologieslike5G,IoTandM2M.Dataisakeygrowthdriver,withthesectorseeingasix-foldincreaseindatatraffic-from561millionGBinthefirstquarterto2.988billionGBinthethirdquarterof 2016-17 -which is awhopping400% jump7. Thegovernment’s ambitiousDigital India
1https://www.statista.com/statistics/262966/number-of-internet-users-in-selected-countries/;2 Accelerating Growth & Ease of Doing Business – Telecommunications (August, 2017), KPMG, available athttps://assets.kpmg.com/content/dam/kpmg/in/pdf/2017/08/Accelerating-growth.PDF;3Ibid;4http://www.zeebiz.com/companies/news-not-connectivity-but-application-driven-new-telecom-policy-to-focus-on-end-users-18575;5GartnerSaysPublicCloudServicesinIndiaForecasttoReach$1.8Billionin2017https://www.gartner.com/newsroom/id/35929176CloudComputingtohelpgenerate1.1mnjobsinIndiaby2022:Study,HinduBusinessLine,October26th2017,http://www.thehindubusinessline.com/info-tech/cloud-computing-to-help-generate-11-million-jobs-in-india-by-2022-study/article9925120.ece;7 http://www.zeebiz.com/companies/news-not-connectivity-but-application-driven-new-telecom-policy-to-focus-on-end-users-18575;
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umbrellaprogramme,alsohingesondataconnectivityandaimstobring100%tele-density,high-speedinternethighwaysanddeliveryofcitizen-centricserviceselectronically8.Last2decadesintheIndiantelecommunicationspacehasbeentheyearofvoicetelephonywerewehavedoneexceedinglywell.However,thefutureisofdataandthereforeneedforanenablingandsupportingpolicyframeworkforthegrowthofdataservices.Unlikeinthevoice,dataispredominantlydependantontechnologyandinnovation.Therefore,thepoliciesshouldbeformulatedkeepinginmindwhatisgoodfordata.WethankTRAIandtheDepartmentofTelecommunicationsforprovidingthisopportunitytoprovide inputs to theNationalTelecomPolicy,2018.ThePolicyprovidesa framework forprioritising regulatory, and developmental initiatives as India enters a crucial phase of itsdevelopmentintoafull-fledgeddigitaleconomy.AstheDepartmenthasrepeatedlyemphasised,thePolicymustbealignedwithothernationalinitiativesandvisionsformaximumgainsforthenationalinterest.ThevisionsofthePolicymust be closely alignedwith, and support other path-breaking initiatives includingDigitalIndia,StartUpIndia,andMakeinIndia.WecongratulateTRAI&DepartmentofTelecommunication’svisionfortheNationalTelecomPolicy2018.Webelievethattheextensivemultistakeholderconsultationsconductedinthisregardwillyieldinthecreationofapolicythatwillpre-emptingandenablethetechnologicalleapsthatwillrevolutionizetheindustry.TheentireICTecosystem,hasor iswitnessingmajortransformation,fromvoicecentrictodatacentric,fromfixedlinetowireless/mobilebroadband,fromminimalinternettointernetdominance,noapplicationstotheemergenceofmillionsofapplications,nosocialmediatosocialmediaprevalenceetc.Allthiswillrequirerevolutionaryreformsinthecurrentlicensingframeworktomovetowardsaregimeof“permission-lessinnovation”.Withthisinmindweofferthefollowinggeneralcomments:
• NeedforTime-boundImplementation:InordertoensurethatIndiakeepspacewithglobaldevelopmentsininformationandcommunicationtechnologies(ICT),itiscrucialthat policy initiatives are implemented in a timelymanner.With this inmind,werecommendtheinclusionofaspecifictime-framewithinthe“Objectives”sectionofthePolicy.Withinafast-movingdevelopmentcycleinICT,thiswillensurethatstatusofimplementationofthePolicymayalsobereviewedregularly.
o We recommend that the Policy objectives (contained in section “C”) bereviewed periodically and amended to include a specific timeframe forimplementation/completionby2023.
• Promotingtheeaseofinnovationanddoingbusiness:Inlinewiththegovernment’sobjectivestopromoteinnovationandtheeaseofdoingbusinessinIndia,thePolicymustlooktoreformoutdatedoroverlyprescriptivelegalandregulatoryframeworks,
8https://economictimes.indiatimes.com/articleshow/60454561.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst;
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and clearly orient India towards consolidating its position as a global centre ofinnovation. This includes minimising overlaps in jurisdictions of regulators,institutionalisingexcellenceinresearchandinnovation,andencouragingcompetitioninthemarket.
• Encouraging free and fair competition is critical since the sector is predominantlyservedbyprivateplayersfromIndiaandoverseas.Competitiveforcesandanenablingregulatoryenvironmentwillencouragenewplayerstoenterthemarketandleadtogreaterchoiceforconsumers.CompetitioninIndia’stelecomandservicessectorhasserved India’s consumers and businesses well and has delivered unprecedentedgrowthandaffordabilitytoconsumers.
For purposes of convenience for TRAI, we have made amendments within the text ofChapterTwooftheConsultationPaperitself.Additionalcommentshavealsobeenprovidedtowardstheend.Chapter2:STRUCTUREOFNATIONALTELECOMPOLICY2018A.Preamble:1.World-over, the telecommunication services are being recognized as enabler of socio-economicdevelopment.AnIndianCouncilforResearchonInternationalEconomicRelations(ICRIER) studypointedout thata10percent increase in the rateofgrowthofbroadbandsubscriberswillresultina2.4percentincreaseintheGDPrate.Internationalexperiencealsosuggests that telecommunication services catalyze the growth of all sectors of economy,particularly,thefundamentalsectorsviz.health,education,agriculture,digitalservices,andindustry.Thebottom-of-thepyramidgainsthemostfromthevirtuouscycleofgrowthfueledbytelecommunicationservices.2. After pronouncement ofNTP-2012, during last few years, telecommunication sector inIndiahasseenmassivetransformation.Whilethemobilenetworkshavegotupgradedfrom3Gto4Ginlargepartsofthecountry,theavailabilityofsmartphonesataffordablepricesisdriving the mobile internet subscriptions. Further, with the steep decline in tariffs oftelecommunicationservices,theaffordabilityhasincreasedandtheconsumptionofdatahasincreasedmultifold.Access to internethasempoweredmillionsof Indiansbygiving themaccesstoreal-timeinformation,Governmentservices,marketplaces,andsocialmediathatishavingpositiveimpactonqualityoflife.3.Growthofdatacommunicationsystemsandservicesishelpinginenhancingtheeconomicconditionsinruralandremoteareas,andspurnewbusinessesbyenablingaccessofmarketsto a large number of small andmedium enterprises (SMEs). Above all, growth of digitalcommunicationnetworks isboostingcompetitiveness,enabling innovation,and improvingproductivity.As such,enhanced investments in telecomnetwork infrastructure thatallowfast,reliable,andaffordableinternetconnectivityareleadingtosocio-economicgrowthandjobcreationinIndia.
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4.Theconvergenceofvoice,videoanddataserviceshasalsobecomerealitynow.Onlineaudio-visualcontentinregionallanguagesisimmenselypopularbecauseofthelowliteracyrates.Whilethetelecomnetworksarebeingextensivelyusedtodelivervideoservices,afterdigitizationofthecableTVnetworks,thesearebeingusedtoprovidebroadbandservices.Inorder to meet the growing demand for the video, it would be necessary to encouragedevelopmentofconvergedbroadbandandbroadcastnetworks,andcloudinfrastructureforVideoonDemand(VoD)services.Whilevideodistributioninbroadcastmodecanfulfilltheneedofmasses,thevideoondemandcanmeetthespecificrequirementsoftheconsumers.Convergenceofthenetworkscanensureefficientutilizationoftheavailableresources.Theconvergenceofinformation,communication,andbroadcastingservicesarecreatingvastnewcapabilitiesthatarebenefitingindividual,businessesandsocietyasawhole.5.WhiletheobjectivesofNTP-2012relatingtotelecommunicationserviceshavelargelybeenmet except the rural tele-density, the expected success in making India a global hub ofdomesticmanufacturing, development of state of the art technologies throughR&D, andcreationandincorporationofIndianIPRsinglobalstandardshavenotbeenachieved.6.Thedigital transformation isemergingasakeydriverof sweepingchange in theworldaroundus.Thetelecommunicationindustryisattheforefrontofthistransformation.Afterconnecting the individuals and enterprises, innovators are turning their attention to theMachinetoMachine(M2M)communicationswhichpromisetoconnectbillionsofsensors/devices. Upgradation to 5G networks will connect wearable computers, a vast array ofsensors,andotherdevices,leadingtobetterhealth,economicgains,andotheradvantages.5GnetworksnotonlyaddressesInternetofThings(IoT)deploymentsonamassivescale,butalso of applications previously not possible that depend on ultra-reliable and low-latencycommunications.7.TheconvergenceofthedigitalandphysicalproductsthroughM2MandIoTservicesandapplicationsispavingthewayforFourthIndustrialRevolution(Industry4.0).Itrepresentsatransition to a new set of systems that bring together digital, biological, and physicaltechnologiesinnewandpowerfulcombinations.TheIndustry4.0isbeingbuiltaroundtheIoT/ M2M infrastructure and services for which the availability of global and digitalcommunications; low-cost processing and high-density data storage; and an increasinglyconnectedpopulationofactiveusersofdigitaltechnologiesarepre-requisite.Therefore,justlike physical form of connectives like Roadways, Railways, Airways, and Waterways,telecommunication networks i.e. Iways are also becoming essential infrastructure forindustrialdevelopment. Tokeeppacewith thesedevelopments, itwouldbenecessary toformulatepoliciesthatwouldencouragedevelopmentofnetworksespeciallysuitedforIoT,data centers and associated services, data analytics, cloud computing, and home-growndigital platforms and applications. As these services can be delivered remotely, India canbecomeglobalhubforsuchsystemsandservices.TRAIhasrightfullynotedinitsconsultationpaperthat:
- “Theconvergenceofvoice,videoanddataserviceshasalsobecomearealitynow”.- “Convergenceofnetworkscanensureefficientutilizationoftheavailableresources.
The convergence of information, communication and broadcasting services are
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creatingvastnewcapabilitiesthatarebenefitingindividual,businessesandsocietyasawhole.”
- “TheconvergenceofthedigitalandphysicalproductsthroughM2MandIoTservicesandapplicationsispavingthewayforFourthIndustrialRevolution(Industry4.0).”
- “Regulatory policies and their governing institutions are striving to keeppacewithtechnologicaldevelopmentshappening inthesectortoaddresscomplex issuesthatincludeconvergenceof ICTandmedia,coordinationwithothersectors for IOT,andensuringprivacyandsecurity”.
- “Byrestructuringoflegal,licensingandregulatoryframeworksforreapingthebenefitsofconvergence”.
Theconvergenceofnetwork,servicesanddevicesisinevitableandisbeingadoptedglobally.It is important that thepolicy should recognizeand implement full convergence includingremovalbetweenIPandPSTNacrossallcurrentandfuturelicenses.Thishasbeenlongduecallingforunshacklingofrestrictions.8. Inspiteofdevelopmentof telecommunicationsectoratrapidpaceduringthe last twodecades,therearenumberofchallengesthatneedtobeovercome.Indiaisstillrankedmuchlowerininternationalindicesrelatingtonetworkreadinessandconnectivity.Thegainsfromincreasedconnectivityhavebeeninequitable,withthefullbenefitsnotreachingthosewhoneedthemmost.Further,theaveragespeedoftheinternetinIndiaisstillmuchlowerthantheglobalaverage.RegulatorypoliciesandtheirgoverninginstitutionsarestrivingtokeeppacewithtechnologicaldevelopmentshappeninginthesectortoaddresscomplexissuesthatincludeconvergenceofICTandmedia,coordinationwithothersectorsforIoT,andensuringprivacyandsecurity.9. For achieving the inclusive socio-economic growth in the country, it is essential thatbenefitsofhealth,education,anddigitalservicesreachtothepopulationofurbanaswellasrural areas. Connectivity plays a vital role in extending such benefits.While the physicalconnectivity-Roadways,Railways,Airways,andWaterways-requirementsaredealtwithbyrespectiveMinistries,thispolicyshallbeaimedtomeetthedigitalconnectivityrequirements.Access to secured data connectivity at affordable prices to every person, enterprise, andindustrycanhelpinextendingsuchbenefitstoeveryIndiancitizenacrossthecountry.10.Therefore,NationalTelecomPolicy-2018(hereinafter,referredtoas,theNTP-2018)canhavetwingoalsviz.(i)facilitatedevelopmentofcommunicationinfrastructureandservicestoachieveinclusivesocio-economicgrowthinthecountry,and(ii)topropelIndiatobecomethefront-runner intheFourthIndustrialRevolution.Thispolicywouldsetthemissionandobjectives to be accomplished by the end of calendar year 2022, when India will becelebratingits75yearsofindependence.Itwouldalsospecifythestrategiestoaccomplishsuchobjectivesaswellascapacitybuildingingeneral.The policy needs to encourage innovation in service offerings by adopting current andemerging/newtechnologies.Thiswillhelpprovidenewservicestocustomers.Theneedistoevolvealicensing/regulatoryframeworkwhichengageswithcomplexity,newtechnologyanddesignswithanimbleapproach.
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B.Mission:
• To fulfil the communication needs of the people, enterprises, central and stategovernments and industries at affordable prices and sustainable basis in long andmediumterm
• To enable state-of-the-art secured, technology neutral digital communicationinfrastructure for delivering high-quality quality services to man and machines inurbanaswellasruralareas;
• Toestablish Indiaasglobalhub for internetanddata communication systemsandservicesinanet-neutralenvironment;
• ToestablishIndiaasaglobalhubforresearchanddevelopmentandstandardizationintelecomtechnologiesandservices
• Topromoteandsupportacultureofinnovationandexperimentationoftechnologiesandservicesinthecommunicationssector
• To promote competitive markets in the telecommunications sector to promoteaffordabilityandimprovedqualityofservices
• Toreducebarrierstomarketentrybyreducingregulatorycostsincurredindeployingnetworksanddeliveringservices
• Tomakeavailableubiquitous,ultra-reliable,andsecuredconnectivitywithextremelylowlatencyforIoT/M2Mapplications;
• Todevelophome-growndigitalplatformsandservicesformeetingthespecificneedofthecountry;
• To promote research, development, and deployment of the widest range oftechnologies,servicesandbusinessmodelstoincreaseconsumerchoiceandwelfare
• Toaimforself-sufficiencyintelecomequipmentmanufacturing;• Topromoteandsupportacultureofinnovationandexperimentationoftechnologies
andservicesinthecommunicationssector• To holistically promote overall electronics manufacturing eco-system within the
countrywhichshouldbepluggedintotheglobalsupplychaini.e.productsmadeforIndiaandfortheworld
• FocusontelecomlicensingreformswhichembracemigrationfromvoicetelephonyandmandatoryinfrastructurecreationtoSDNs,virtualizationandcloudplatforms
• EnablealighttouchregulatoryframeworkasagainstlicensingforemergingserviceslikeIoT,M2MandCloud.Internationalbestpracticestobefollowedfortheseservicesthereby preserving the global nature of such serviceswith no restriction on crossborderdataflow,nomandateondatalocalizationandseamlessroamingacrossglobeforeconomicandtradedevelopment.
• Thepolicyneedstoberealisticbasedonmarketconditionstosupporttechnologicalinnovationratherthanbeaprescriptivesetofrules.Oneofthewaystodothatwouldbetorecognizeglobalstandardsandinternationalbestpractices.
C.Objectives:Thefollowingmaybetargetedforachievementby2023:
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(a)Toincreaseruraltele-densityto100%;
(b)Toprovidedataconnectivityofatleast1GbpsspeedtoalltheGramPanchayats;
(c)Toenableaccessforwirelinebroadbandservicesto50%householdsinthecountry;
(d)Toenableaccessforhigh-qualitywirelessbroadbandservicesataffordablepricesto90%population;
(e)Toachieve900millionbroadbandconnectionsataminimumdownloadspeedof2Mbps,outofthatat-least150millionbroadbandconnectionsataminimumdownloadspeedof20Mbps;(f)Todevelop10millionpublicWi-Fihotspotsinthecountry;(g) To attain average speed of 20Mbps for wireless, and 50Mbps for wireline internetconnectivity;
(h)ToleapfrogIndiaamongsttop-50nationsininternationalrankingsintermsofnetworkreadiness,communicationssystems,andservices;
(i)Toenableaccessforconnectingto10billionIoT/M2Msensors/devices;
(j)ToattractaninvestmentequivalenttoUSD100billionincommunicationsector;
(k)Tobecomenetpositiveininternationaltradeofcommunicationsystemsandservices;
(i)Tomovetoaregimewhereindividuallicensesarenecessaryonlyincaseswhentheyareaccompaniedbyexclusiverightstospectrumorrightsofway(g) To bridge the digital gender divide and promote digital empowerment of women byincreasingtheproportionoffemalemobileusers(h)Toensureavailabilityofmissioncriticalcommunicationstoeverystateandcentralpublicsafetyanddisasterreliefagency,includingbroadbandcommunicationsinallmajorcities.D.CommonStrategiestoleapfrogIndiaamongsttop-50nationsininternationalrankingsinterms of network readiness, communications systems and services, to attract aninvestmentofUSD100billionintelecommunicationsector,andtoattainaveragespeedof20Mbpsforwirelessand50Mbpsforwirelineinternetconnectivity:(a) By recognizing communication systems and services as essential connectivityinfrastructurefordevelopmentofIndia;
(b)Bymakingavailablefinanceforcommunicationinfrastructureprojects(iways)atparwithotherconnectivityinfrastructuresectorslikeRoadways,Railways,Waterways,Airwaysetc.
(c)Reviewoflicensefee,USOFlevy,andSUCkeepinginviewimportanceofcommunicationinfrastructureinsocio-economicdevelopment;
(d) By identifying and removing and restructuring legal, licensing and regulatory barriersframeworksforreapingthebenefitsofconvergence
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(e)Withtheseparationofnetworkandservicelayers,requiringlicenses/permissionsonlyforrolloutofnetworks,andnotforprovisioningofservices
(f)Bypermittingandenablingservicesproviderstodeploynetworksandservicesbasedonmarketconditions(g)Byeasinggrantoflicenses/permissionsprocessesforspectrum,wirelessapparatus,andSACFAclearancetoimproveefficiency,innovation,andresearch;
USISPF Comment:We request TRAI to elaborate on the above (g) point by including thestrategyfora“shifttoonlineprocesses”.Electronicdocumentmanagementandsubmissionis highly needed to achieve the government stated policy objective of achieving ease ofbusiness. A complete shift from manual hard copy submissions to online is needed forachieving comprehensive benefits in terms of faster turnaround times, ease of tracking,transparencyandoverallefficiency.Secondly,wewould liketohighlighttheneedforeasinggrantof licenses/permissionsforOther Service Providers as well. There is an urgent need to simplify multiple redundantrequirementsinOSPlicensessuchasneedforlocation-basedbankguaranteeanddocumentsubmission,andprohibitivework-for-homeprovisions.For instance,werequestchange intheOSPTermstoallowCompany-basedLicensingandBank-Guarantee.Locations(sites)andtheir related documents could be updatedwithDoT at the time of submission of annualreports.Similarly,werequestrelaxationoftheregulationfortheneedforindividualleasedlinesforhomeworkingcapabilitiesandallowoptionoftechnologiessuchasVirtualOfficewithanalways-on,secureconnectiontothecorporatenetwork.This should accordingly bemodified as ““By easingandmaking online grant of licenses/permissionsprocessesforspectrum,wirelessapparatus,otherserviceprovidersandSACFAclearancetoimproveefficiency,innovation,andresearch;”
(h) Review of license and regulatory compliance costs on licensees keeping in view theinternationalpractices;
(i)Byallowingbroadcastservicesusingcellularmobilenetworks;
(j)IntegratedregulationofICTandbroadcastingsectorledbyeconomicandsocialpolicygoalsofthecountry;
(k)ByRestructuringofTRAIasconvergedregulator forCommunicationsandBroadcastinginfrastructure
(l)ReviewofSATCOMpolicyforcommunicationserviceskeeping inviewthe internationaldevelopments,andsocial&economicneedsofthecountry;
(m) By engaging with the State Governments and Local Bodies for faster rollout ofcommunicationinfrastructure;
(n)Forensuringnon-discriminatorytimeboundRoWpermissions-anation-widecommonportalforapplicationandapproval.
(o)BydevelopinganetworkreadinessindexforStates/UTstoaddressRoWchallenges;
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(p) Bymapping telecom infrastructure assets likeOFC cables, common service ducts andtowersonNIC’sNationalGISPlatform;
(q)BymakingprovisionsforestablishmentofcommonserviceductsforundergroundtelecominfrastructureintheIndianTelegraphRightofWayRules,2016.
(r)Byreviewingtheobjectivesofspectrummanagementtomaximisesocioeconomicgains;
(s)Bymonitoringefficientutilizationofspectrumbyconductingregularauditofthespectrumallocatedtobothcommercialaswellasgovernmentorganizations;
(t)Bydeclaringroadmapforavailabilityandauctionofspectrumindifferentbandsinensuingperiod;
(u) By ensuring adequate availability of contiguous, broader and globally harmonisedspectrum.(v)Byencouraginginnovationinunlicensedspectrumfornon-exclusiveuse-Byearmarkingunlicensedfrequencybandsperiodicallyforoperationoflowpowerdevicesforpublicuse;
(w)ByreduceentrybarrierstopromoteR&D,innovation,andStart-upsinthesector;
(x)Bydevelopingdigitallyskilledhumanresourcesinthecountry;
(y) By establishing an independent apex institute for policy practitioners, industry,researchers, academicians - By establishing NTIPRIT as an apex institute for policypractitioners,industry,researchers,academicians
(z) By strengthening consumer grievance redressal mechanisms through awareness &protection
(aa) By establishing office of telecom ombudsman and centralized web based compliantredressalsystem
(bb)Byincreasinginternationalcoordination(cc) By recognising the investments alreadymade in countrywith existingmanufacturingunits,R&D,etc.,ofaglobalOEM’sfortelecomproductsinIndiaberecognizedasanIndianmanufacturerandqualifiedforallthegovernmentprocurement.(dd)AmendIndianTelegraphAct1885,ifsorequiredandincludeIP-1sinRoWRules2016.
(ee)SeparatetheInfraLayerfromServiceLayer.
(ff)RedefineActiveandPassiveInfrastructuretoCommonTelecom/DigitalInfrastructureandincludeeveryequipment/component(butnotlimitedtoTower/Pole,OFC,Antennas,Feedercable,RFCable,NodeB,RAN&Transmission System,Coaxial cable,Combiners, Splitters,CouplersandBTSetc.)asCommonTelecomInfrastructure (InfraLayer)andallow IP-1s toown,install,maintainandsharewithServiceProviders(Servicelayer).
(gg)DelinktheInfralayer(CommonTelecomInfrastructure)fromthelicensingregimeandallowIP-1stoprovidethesameundertheirexistingRegistrationwithoutanyadditionalFees&levies.
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(hh) Mandate uniform & common Infrastructure development Policies, Guidelines andnominal one time permission fees for installation, aligned to RoW Rules across allDepartments, States,Municipalities and Panchyats etc. for seamless implementation anddevelopmentofCommonTelecomInfrastructureacrossIndia.
(ii)DefineCommonTelecomInfrastructureasCriticalInfrastructureandprovidestrictPenalProvisionsforSafety&Protectionagainstanydamage,vandalism,thefts,anddisruptionofservices.
(jj)ReaffirmCommonTelecomInfrastructureincludingTelecomTowersasmoveablePlant&MachineryandkeepoutoftheprovisionsofPropertyTaxes.
(kk)IncludeTelecomTowersinthelistofitemsforavailinginputtaxcreditunderthecurrentGSTregime.
(ll) Incentivize indigenousproduction&deploymentofenergyefficientsolutionsatTowerSitestoreducecarbonemissions.
E.Strategiestoincreaseruraltele-densityto100%andtoprovidedataconnectivityofatleast1GbpsspeedtoalltheGramPanchayats:(a)Byfurtherdeveloping institutionalcapacityto improvefocusonexecutionofUniversalServiceObligationFund(USOF)schemesforequitabledevelopment;
(b)Bypromotingsharingoftelecominfrastructureamongtelecomserviceproviders;(c)Byincentivizingthetelecomserviceprovidersforfasterroll-outofservicesinremoteandruralareas;
(d) By facilitating sub-marine cable connectivity to the inhabited islands of Andaman andNicobarIslandsandLakshadweepIslands;and
(e)Bypromotinguseofsatellitestoprovidetelephonyandbroadbandservicesinremoteandinaccessibleareasthrough–i)rationalizationsatellitetransponderandspectrumcharges;and
ii)makingavailableadditionaltransponders,andnewspectrumbands(suchasKaband)forsatellite-basedcommercialcommunicationservices.F.Strategies toenableaccess forwirelinebroadbandservices to50%households in thecountry;toenableaccessforhigh-qualitywirelessbroadbandservicesataffordablepricesto 90% population; to develop 10million publicWi-Fi hotspots in the country; and toachieve900millionbroadbandconnectionsataminimumdownloadspeedof2Mbps,outofthatat-least150millionbroadbandconnectionsataminimumdownloadspeedof20Mbps:(a) By adopting a National Broadband Plan (NBP) for enabling access to at least 90%householdusingwireline,wireless,andsatelliteresourcesoptimally;
(b)ByfacilitatingdevelopmentofOpenAccessNetworkstoimproveaccessandaffordabilityofcommunicationservices;
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(c)Bypromotingsharingoftelecominfrastructureamongsttelecomserviceproviders;
(d)ByupgradationofcableTVnetworksfordeliveryofconvergedbroadcastandbroadbandservices;
(e)Byincentivizingfixed-linebroadbandservices;
(f)BydevisingenablingprovisionsforsustainabledevelopmentofpublicWi-Fihotspots;
(g)Byfacilitatingcontentdeliverynetworksforimprovedqualityofexperience;G.Strategiestoenableaccessforconnectingto10billionIoT/M2Msensors/devices:(a)ByremovingregulatoryandlicensingbarrierstothedeploymentofIoT/M2Mservices
(b)ByearmarkingofsuitablelicensedandunlicensedspectrumforIoT/M2Mservices;
(c) By creating appropriate institutions for coordinated development of 5G services, IoT/M2Msystems,andtheirsecurityframework;
(d) By closely working with sector specific industry councils for preparing roadmap fortransformationofeachsectortoIndustry4.0;Commonstrategiestoensureavailabilityofmissioncriticalcommunicationstoeverystateandcentralpublicsafetyanddisasterreliefagency,includingbroadbandcommunicationsinallmajorcities.
(a) ByrequiringalllicensedtelecomserviceproviderstoimplementNextGeneration112serviceavailabilityinallareasandprovideonlineaccesstocallerlocationanddetailstotheauthorizedcentralandstateagencies.
(b) By doing awaywith the need for captive licenses for emergency communicationsservicesproviders
(c) Bymakingavailablenecessaryspectrumasneededbythepublicsafetyagencies inaccordancewithregionalandglobalstandardsonadministrativecostbasisonly.
(d) Byfacilitatingtheecosystemfornon-terrestrialaccessandbackhaultechnologieslikeSatellites and High-Altitude Platform Stations which may prove vital for disasterrecoverycommunicationswhenterrestrialnetworksaredown.
H. Strategies to establish India as a global hub for data communication systems andservices:(a) By facilitating the deployment of flexible cloud service solutions to expand storagecapacityandenableaccesstoawidernumberandrangeofservices
(b)Bybroadlydefiningdataprivacy,protection,andsecuritylaws;(c)Bycontinuingtofacilitatecross-borderdataflow
(c1) By tapping the enormous potential of the Internet economy by encouragingunfetteredprovisionofandaccesstointernetcontentandapplications.
(d)Byenactingnet-neutralitylaws;
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(d1) Byrecognizingthatdifferentialpricing–morespecifically,zerorating–canbeofferedinanon-discriminatorymannerthatisbothconsistentwiththeprinciplesofnetneutralityandbeneficialtoconsumersespeciallyinemergingmarkets.
(e)ByincentivizingsettingupofInternationalDataCenters(IDCs)inIndia;
(f)InternationallycomparablebandwidthcapacityandcostsforbusinessestoencourageDataCentrelocalizationinIndia;
(g)Byfacilitatingestablishmentofinterconnectexchangesfordataservices;
(h)Byexpeditiousavailabilityof land, electricity, and security fordata centers; (i)Humancapitalfordataanalyticsandproductdevelopment;I.Strategiestobecomenetpositiveininternationaltradeoftelecommunicationsystemsandservices:(a)By facilitatingset-upof ‘SpecialTechnologyZones (STZs)’ forexperimentalproducts toinviteproductandtechnologyinnovationanddevelopmentinIndia;
(b)Byallocationofspectrumfordemonstrationandexperimentalpurposeonexpeditiousbasis;
(c) By establishing Telecom Research and Development Center for identification,customization,anddevelopmentofdigitalproductsandservicesinthecountrytosubstituteimports;
(d) By facilitating development of required infrastructure for research and development,incubation centres, standardization, testing, and certification of digital communicationsystems,productsandservices;
(e)Byearmarking40%ofincrementalUSOFforfinancingR&D,Innovation,anddevelopmentofcommunicationsystemsandservicesasperindigenousneeds;
(f)ByprovidingfinancialincentivesforthedevelopmentofStandardEssentialPatents(SEPs)inthefieldoftelecommunicationservicesandsystems;(g)Byencouragingpartnershipbetweenindustryandacademiafordevelopmentofhumancapital;
(h)Byincentivisinglocalmanufacturingofnetworkequipmentanddevices;
USISPFComment:WerequestTRAItoelaborateonaboverecommendationbyrevisitingitinthe followingmanner – “By incentivising localmanufacturing of network equipment anddevicesforexportsanddomesticmarkets”.ItisessentialthatforIndianmanufacturingpolicytosucceed,anequalimpetusisgiventomanufacturingforexportsaswellasforlocalmarkets.ItisworthnotingthatIndia’sDomesticDemandforelectronicgoodswasapproximately$64billionin2014-15.Incomparison,theworldmarketin2014was$2trillion.Theneedforlargemarketandscaledirectlytranslatesintothenecessityforprovidingincentivesnotjustforproducingfordomesticmarketsbutforexportsaswell.
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(i)Bybecomingglobalhubforremotemanagementoftelecommunicationnetworks;
(j)BycoordinatingwithEXIMBankandTelecomExportPromotionCouncil(TEPC)tofacilitateinternationaltradeoftelecommunicationsystemsandservices;(k)BymakingTECandTSDSIresponsiblefordevelopmentandenforcementofstandardsfortelecomproductsandservices;
USISPF Comment: We request TRAI to also specify that TEC and TSDSI should “increaseparticipation in international standard development process.” It is important that Indianagenciescontribute to internationalstandard-making.Thiswillenable India tobecomeanequal beneficiary of global innovation/ standards and provide an opportunity for Indianmanufacturerstoparticipateinglobalmarkets.
(l)Bydevelopingowntestlabsandcertificationinfrastructure;
(m)ByupgradingthemanufacturingPSUsunderDoTtoactivelyexploittheirstrategicandoperationalsynergies;
*******<ENDOFCHAPTER2*******
Q.1StakeholdersarerequestedtogivetheircommentsonstructureandcontentsoftheproposedinputsforNationalTelecomPolicy,2018,clearlyoutliningthespecificsalongwithjustification.Q.2 Stakeholdersmay also suggest any other issue related to Policy Framework whichstakeholdersfeelisimportantforgrowthoftelecomsector,alongwithjustification.WeareparticularlyencouragedbyTRAI’smissionstatementsandobjectives, includingthegoalsofestablishing“Indiaasaglobalhubforinternetanddatacommunicationsystemsandservicesinanet-neutralenvironment”andleapfrogging“Indiaamongstthetop-50nationsininternationalrankingsintermsofnetworkreadiness,communicationssystems,andservices.”
TRAIrecognizesfurtherthatacriticalcomponentofreachingthosegoalsis“restructuring... legal, licensingand regulatory frameworks for reaping thebenefitsof convergence.”Wewouldliketoraisethefollowingimportantissueforgrowthofinnovativetelecomservices.
I. IP-PSTNMIXING
Current policy of not allowing IP-PSTN mixing undermines growth and innovation andprohibitsIndiafromreapingthefullbenefitsofconvergence.
GovernmentofIndiaprohibitsanymixingbetweenPSTNendpointsandIPendpoints,exceptinrelativelynarrowcasessubjecttolicensingrequirements.Thepolicy,createdoriginallytocombattollbypassandadvanceinnovation,nowproducestheoppositeresultofunderminingTRAI’s core goal of propelling “India to become the front-runner in the Fourth IndustrialRevolution.”
ReasonsforallowingIP-PSTNmixing:
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a) Innovative,convergedservicesmixIPandPSTNstreams
A wide array of innovative offerings often depend on enabling IP and PSTN endpointssimultaneously,particularlyinordertoextractmaximumbenefits.Agoodexampleofthisiscollaborativevideoconferencing,wheremultipleendusersjoinasinglemeetinginwhichtheymeetviavideo,chatviaelectronicmessage,andworkondocumentsandvirtualwhiteboardsinrealtime.Foravarietyofreasons,includingbandwidthlimitsforsomeusersandphysicalequipmentlimitationsforothers,manyparticipantsconnecttheiraudiotothemeetingviaPSTNendpoints,whilemanyothersconnectdirectlyviaIPfromlaptopsandsmartphones.Prohibiting IP-PSTN mixing vastly limits the reach and effectiveness of this kind ofcollaborationservice.
TheprohibitionalsoimpactsmanyInternet-of-Thingsservices.WhilethecoreofmostIOTservices rests on machine-to-machine communications, many applications include acommunicationlayerthatenablesfactorymanagersorotherobserverstointeractwitheachotherinrealtimebasedonthedatatheIoTservicedelivers.Aswithcollaborationservices,thiscapabilityismostvaluablewhenitisopentoallendusers,includingthosethatdonothavereadyaccesstoanIPendpoint.
ThereislittledoubtthattheIP-PSTNbarrierwillimpactawidearrayofinnovativeservicesthat are still on the drawing board. These include applications ranging from connectedhomes, to connected classrooms, tohealthcare, and toautonomousvehicles. The futurescaleofthepotentialimpactisimmense.
b) TheIP-PSTNBarriersdriveawayinnovators
Forthereasonsdiscussedabove,India’scurrentIP-PSTNbarrierposesasignificantchallengetotheinnovatorsdevelopingtheseservicesandtotheconsumersandenterprisesthatusethem.ThisimpactsIndianconsumersandenterprisesdirectly,astheyareoftenforcedtousesignificantlyparedbackversionsoftheservices.ItalsoimpactsIndiamorebroadlyandmoreindirectly, as service providers and innovators will increasingly consider developing andtestingnewadvancedservicesinothercountries.
c) Thebarrierisnotalignedwithglobaltechnologicalconvergence
Whiledifferenttransmissiontechnologieswereoncedistinct intheircapabilitiesanduses,theyarenowvirtually interchangeable. Indeed, TRAI’sConsultationPaper recognizes thepositivechanges inaccessandopportunity thatconvergencedelivers.The IP-PSTNbarrierreinforcesadistinctionthat isno longerapplicabletoadvancedtechnologies;theresult isthatIndianconsumersarenotgettingthefullbenefitsoftechnologicalpossibilitiesasinothercountriesthatallowIP-PSTNmixing.
d) Removingthebarrierwillallowadvancedtelecomservicestoflourish
Forthesereasons,weurgeTRAItoreconsidertheprohibition.Whileitmayhaveservedavalidpurposewhenfirstcrafted,itisnowabarriertoIndia’sadvancementasaworldleaderinadvancedcommunicationstechnologies.
Suggestions:
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Whileeliminatingthebarrieraltogetherwouldbethemosteffectiveapproach,werequestthat TRAI considersnarrowing its scopeof applicability in the first stage. Atpresent, thebarrier is almost total, prohibiting IP-PSTNmixing in virtually any context (except for rareapplicationswhich anyway require licensing or authorization). To the extent the originalpurposewastoaddresstollbypass,TRAIcouldconsiderapplyingthebarrieronlytopoint-to-pointvoicebecausetheyarethecommunicationsmostdirectlyresponsiblefortollbypasslosses.Limitingtheprohibitiontopoint-to-pointcalling–butfreeingIP-PSTNmixinginothercontexts–wouldallowinnovativecollaborationandIOTofferingstothriveinIndia,securingitsplaceasaworldleaderintechinnovation.
Wealso suggest thatTRAIaddapointof “removingpolicybarriers to innovative telecomsolutionsandservices”underChapterIISectionDonCommonStrategies.
II. RecommendationsforNTPonNewTechnologies
a) OTTIssues-Encourageunfetteredprovisionofandaccesstointernetcontentand
applications
India istheonlymarketwithover25on-demandcontentOTTplayers9.TheemergenceofOTThasledtoablurringoflinesbetweencontentcreatorsandplatforms10.OTThasincreasedthe viewing of creative content, including educational ones, online11, has driven up datausage12, and gone a longway in on-boardingmoreusers. We therefore recommend thefollowing:
OTTstodayarecontributingsignificantlytotheIndianGDPandconsumersurplus:
• arecentreportbyICRIERshowsthatOTTscontributedaminimumofUSD20.4billion (Rs. 1357.6 billion) to India’s GDP in the year 2015-16, which willincreasetoUSD270.9billion(Rs.18275.9billion)bytheyear2020.
• arecentreportbyWIKshowsthatOTTusagesavesonaverage803.9minutesperweek,whichtranslatesintoanannualconsumersurplusofUS$98billionin2017.
NTP2018mustincentivisecollaborationbetweentelecomsandestablishedOTTstofurtherinternet reach13 but at the same time provide space for the same OTTs to marketindependently.NTP2018mustmakeanexplicitrecognitionofthedifferencebetweenthenetworklayerandtheserviceslayer14.OTTs,whichmakeuseofthelatter,andhavealreadycausedaflourishingofthedigitalecosysteminIndia,willbeimpededbystringentlicensing9http://indianexpress.com/article/technology/tech-news-technology/ott-players-could-drive-data-consumption-in-india-telcos-try-their-best-to-seal-this-new-deal/;10TakenfromTelecomPost,availableathttp://www.televisionpost.com/technology/the-ott-growth-potential-in-india/;11Between2016-2020,consumptionofvideocontentaspartofIndia’stotalmobiledatatrafficisforecastedtorisefrom49% (2016) to 75% (2021). Source: CISCO VNI Forecast 2016-2021, available athttp://www.cisco.com/assets/sol/sp/vni/forecast_highlights_mobile/#~Country;12 http://indianexpress.com/article/technology/tech-news-technology/ott-players-could-drive-data-consumption-in-india-telcos-try-their-best-to-seal-this-new-deal/;13Note:TelecoscanthemselvesbepartoftheOTTmarket,andcompeteonfairgrounds,inadditiontohostingOTTontheirownnetworks.Forex,UKtelecoO2’sTuGoapp.14Deconstructingthe“LevelPlayingField”argument,BrianWilliamson,May2017:http://static1.1.sqspcdn.com/static/f/1321365/27575015/1495793366237/LPFMay24.pdf?token=AxPym8wn4wb%2BAPWBXfxpyAkgLUE%3D
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regimen, at par with those currently subject to the network layer. Further, unlike OTTs,network layer operators have exclusive right to acquire spectrum, numbering resources,interconnectionwiththePSTN,andtherightofwaytosetupinfrastructure.
b) Devicerelatedstandards&compliances
Analysts and the industry estimate high-speed data services with cross-industry IoTapplications,M2M,&AI-drivenservices,couldopenupcloseto20%ofadditionalrevenueopportunity15. Estimates suggest that there will be approximately 275 million connecteddevicesinIndiaby202016.Indiaisassumedtobeinpossessionof5-6%oftheestimatedglobalIoTindustryby202017,anditisexpectedthatabout10-15millionjobswillbecreatedthroughIoTinIndia18.EncouraginganIoTfriendlyenvironmentcanbebeneficialtoeveryone.IndianTelecomstooareinauniquepositiontoenhancetheirbusinessvaluebyofferingtheircarrierinfrastructuretoprovideconnectivitytomillionsofdevices inthe IoTspace.Further,datacollectedfromIoTdevices–provideditisinaconsumer-consensualandtransparentmanner-canbeveryvaluabletothetelecomsforofferingcustomisedbusinessservices19.InordertobeafullparticipantintheglobalIoTindustry,Indiamuststandardizeitsnormsfortelecomdevices, includingM2Mand smart tech, and harmonize itwith the internationalstandards ecosystem. Additionally, Indian standardization normsmust also be revised toallowfordevicescertifiedinforeignlabstoenterthedomesticmarketwithoutbeingsubjecttofurtherdomesticaccreditation.Thelackofsuchsynchronismintechnologystandardsandprotocolswilllimitthebenefitsderivedfromthis,leavingtheindustryunabletoachievescaleandaffordability20.NTP 2018 could consider the following suggestions that will ensure the unfetteredproliferationoftheIoTdeviceecosysteminIndia:
Ø M2M/IoTServices-Licensing,Spectrum,RoamingAmajorityofIoT/M2Mdevicesoperateoverunlicensedspectrum(PAN/LAN)suchasWiFiorBluetoothorothers.Suchdevicesarealreadywidelysoldinthemarketandtheecosystemisflourishing.Fetterstothisecosystemintheformoflicensingandregistrationobligationsmustberemoved.It may be noted that security considerations for such devices are already adequatelyaddressedsincetheWiFi/Bluetoothaccesspoints isalreadyrequiredtobeverifiedasperexistingregulations.WefurthersuggestthatwecontinuewitheKYCrequirementsforSIMs
15 https://www.indiatimes.com/technology/news/8-things-govt-s-national-telecom-policy-claims-will-achieve-to-get-1-3-billion-indians-online-329603.html;16 Garter Report, as quoted in TRAI M2M consultation paper (2016), available athttp://www.trai.gov.in/sites/default/files/Consultation_Paper_M2M%20_18_October_2016.pdf;17Ibid18https://economictimes.indiatimes.com/articleshow/60516455.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst;19http://www.thehindubusinessline.com/opinion/imprisoned-in-the-box/article7992618.ece; 20 Capitalizing Connected World - India m2m + iot Forum 2017 (4th Edition), available athttps://smartnet.niua.org/sites/default/files/resources/forum_report-india_m2miot_forum_2017_1.pdf;
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basedM2MdevicesandpermittheusageofexistingInternationalRoamingAgreementsasperGSMAforM2Mservices.Globally, there are commercial models between TSPs that provide practical solution foraccommodating and facilitating international use of IMSIs and MSISDNs on a bilateralcommercialbasis.ForemostamongthemistheInternationalM2MRoamingFrameworkthataddressestheissueoftransparencyininternationalroamingforM2Mservices.Thisroamingframeworkenablesuseofhomecarrier'sIMSI&MSISDNtoprovideservicesonglobalbasisthroughsingleSIMarchitecture.
Ø 5GRelatedissuesIndiacurrentlyenforceablanket(all5Ghzwifichannelsexcept1outdoorchannel)EquivalentIsotropic Radiated Power Limit of 23dBm which is one of the lower than many regionsincludingEurope,AsiaandtheAmericas.ThislowEIRPlimitisimpactingthedeviceswirelesslinksrangeespeciallyinIndiaindoorenvironmentswhereconcreteisthematerialofchoiceforbuildings.Though this impact might not be very apparent in India’s wireless consumer electronicsindustryyetduetothefactthat5GHzbandisunderutilized,webelievethat5Ghzbandusagewillincreaseasthethroughputdemandisincreasing(Ex.HD/4Kstreaming).IfthisEIRPlimitisrelaxedabitandalloweddevicestotransmithigherpower,wirelessdeviceswillprovidebetterrangecoverageon5GHzbandinindoorenvironments.
Ø Takeeffectivestepstoprotectconsumers
ItisimportanttointroduceConsumerBroadbandLabellingtohelpinformusersinasimplemanner about key metrics. Further, TRAI’s recommendations on creation of a TelecomOmbudsmanforredressalofConsumerGrievancesmustbeaccepted.It is also important to promote inclusive access to Internet by removing barriers due togender, language, physical disabilities etc. (following e.g. W3C recommendations, whereappropriate) and permit incentives like free data to enhance broadband coverage/usageespeciallytolowincomeconsumers.
III. Licensing&Registration
TheTelecomsectorisexpanding,bothintermsofconsumerbase,aswellasintermsoftheproductsandservicescreated.ThenewNTPisexpectedtobeaforward-lookingpolicythatismoreapplicationdrivenratherthanconnectivitydriven21.Itmustbemoreinclinedtowards‘lighttouch’regulation22whichismoreenablingthanrestrictingsinceitleavesdoorsopenforinnovation.ItmustbeencouragingofemergingtechsuchasM2Msystems,CloudServicesandOTT.
21http://www.communicationstoday.co.in/13641-tech-giants-to-have-say-in-new-indian-telecom-policy;22Note:Lighttouchisusedtodescriberegulatoryframeworksthatarenotstrictoronerous,rathermorealongthelinesofguidelines,essentiallyprescribinga‘wait&watch’approach,butleavingtheecosystemopentoregulationshouldtheneedsoarise.
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ImportlicenseandETAforunlicensedbandsbasedprototypedevices:Currently,businessescannotimportdevicestoIndiawithoutanimportlicense,andanEquipmentTestApprovalcertification.Whilethisisusuallynotaproblemforfinalizedproducts,itposesabottleneckduringdevelopmentphasesofproductswherebusinessesneedtoshipprototypedevicestoIndia.
i. Sincetheproductisnotfinalizedbothonthehardwareandsoftwaresides,obtainingafullETAcertificationduringearlydevelopmentphasescanbechallenging.
ii. WesuggestthatNTP2018allowforWPCprocessreformsthatenabletheimportofprototypedeviceswithouttheneedforexperimentallicense.
iii. Thiscouldbeenabledbyensuringprovisionoflessonerousprocessessuchasissuanceofanearlytestingreportsfromaccreditlabsthatdemonstratethedevicesareusingunlicensedbandonly,andareprototypesallowsforobtaininganimportlicensewithanexemptionofobtainingfullETAwhiledevicesareinprototypingphases.
IV. Spectrum,E&VBandsAtpresent,spectrumisthemostexpensive‘rawmaterial’inuseinthetelecomindustry.The present use and pricing of spectrum is unsustainable, causing telecom profits toplunge.GiventhepotentialforfuturetechlikeIoT,5GandM2M,thegovernmentmustlookintofreeingmorespectrum.Forinstance,spectrumforM2Mcanfallwithineitherunlicensed or licensed bands, or both23. In a cash strapped telecom environment,Telecomsareinauniquepositiontoenhancetheirbusinessvaluebyofferingtheircarrierinfrastructuretoprovideconnectivitytomillionsofdevices intheIoTspace24.Further,telecomoperatorscanbenefitfromtheE&Vbandsspectrum,basedontheinternationalbestpracticesonlicensing,asitallowsthemmorebandwidthforinter-siteconnectivitytoLTEsiteswithtrafficback-haulandfront-haul,facilitatefuture5Gdeployment,smallcells forbroadbandandwi-fi services.Releasingnewbandsof spectrumsuchasE&Vbands can also accelerate last mile solutions in urban areas, since these bands areexpectedtodecreaseinterferencebetweenthemobilesitesandreducepressureonfibrebasedservicestoprovidebackhaulsolutions25.Additionally,theNTPpolicymustexpoundontheefficientuseofspectrum,itstrading,sharingandalsosurrenderingit26
V. MakeinIndia• India’smanufacturinghastobeaddressedasacompletegroundupecosystem.Easy
availabilitytoqualitycomponentsandrawmaterialsispossibleifglobalrawmaterialsuppliersareincentivizedtomanufacturedomestically.
• Thiswill acceleratemanufacturing and buildwidespreadmanufacturing capability,jobs.
23 Note: In India 2.4GHz, 5.8GHz, 5.25GHz and 5.725-5.825GHz are License exempt bands for indoor and outdoorapplications. InadditionTRAIhasrecommendedtotheGovernmentforde-licensingtheV-band(57-64GHz)too.Source:Garter Report, as quoted in TRAI M2M consultation paper (2016), available athttp://www.trai.gov.in/sites/default/files/Consultation_Paper_M2M%20_18_October_2016.pdf;24http://www.thehindubusinessline.com/opinion/imprisoned-in-the-box/article7992618.ece;25 Accelerating Growth & Ease of Doing Business – Telecommunications (August, 2017), KPMG, available athttps://assets.kpmg.com/content/dam/kpmg/in/pdf/2017/08/Accelerating-growth.PDF;26http://www.moneycontrol.com/news/business/will-the-new-telecom-policy-be-the-answer-to-the-many-ills-plaguing-telecom-sector-2395149.html;
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• The Government should encourage companies who have a long-term vision,commitmentforthecountryandtechnology.
• Givingpreferentialtreatmentwillhelpineventuallynurturingaproductvision,furtherinvestmentsinR&D.
• Sustainabilityofbusinessplaysapivotalroleinmanufacturing,unless,theeconomiesofscalecomesintoplaywithlargescaleproductionforexport,besidesthedomesticconsumption.
VI. InvestorFacilitationCell/SPOCtosupportMNC’satDoT
We request to appointaDDG/ Jt. Secretary levelofficer forall investmentshandholdingservices,facilitateinvestmentproposals,Singlewindowclearances,licenses,mandatorytaxregistrations, regulatory filing besides supporting on many doing business challenges;representingtheforeigninvestors.
VII. ProposedmandatorytestingofalltelecomequipmentbyTEClabinIndia• Notificationon“MandatoryTesting”,ofalltelecomequipment’sisanewprocedure
forcertificationoftelecommunicationequipment.• Thispolicyintendsthatallproductstoundergotestingandcertificationpriortosales.• InadditiontoexistingvariousregulatorymeasuresoftestingofproductsinIndia,
o thismandatorylocalscreeningwillcreatepotentialsupplychaindisruptions,increasethecostoftelecomservices,hurtingendconsumers
o adddelaysinsuppliesduetonon-availabilityoftestinfrastructure,aswasseeninCRO(CompulsoryRegistrationOrder)ofMinistryofElectronics.
• While we appreciate and respect the sovereign needs, we request if IndianGovernmentcouldconsider:
o havingaholisticstudyconductedbyanindependentresearcharmonpolicy®ulatorychallengesfacedbytheindustryintheformofvariousexistingandnewtestingregimes
o reviewandadoptglobalbestpracticesfromUS,EuropeandothercountriesontestingsuchasOEMself-certificationinUSorSupplierDocumentationofConformity,SDOC(withtestreportsfromgloballyreputedtestlabs)
VIII. LicensingandRegulatoryFrameworkforCloudServiceProviders(CSPs)
India’scloudenvironmentandeconomyisprogressingstrongly.By2018,atleasthalfofITspendinginthecountryisprojectedtobecloud-based,reaching60%ofallITinfrastructure,and60–70%ofallsoftware,services,andtechnologyspendingby202027.IDCpredictsthatpubliccloudwillaccountforthemajorityofthisspending(60.5%),whileoff-premisesprivatecloudenvironmentswillrepresent14.9%ofspending.Thegrowthofthissectorwillhaveasignificantmultiplier effect on the Indian economy throughmassive cost savings, growthavenuesforsmallandmediumbusinessesaswellascreationofnewjobsinIndia.ToensurethecloudindustrycancontinuetogrowandboostthewiderIndianeconomy,alight touch regulatory approach that provides clarity and certainty to encourage further
27IDCFutureScape:WorldwideITIndustry2016Predictions—LeadingDigitalTransformationtoScalehttps://www.idc.com/research/viewtoc.jsp?containerId=259850;
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investmentissuitedforIndia.TRAIinitsownrecommendationsoncloudcomputinginAugust2017 acknowledged this.28 CSPs are already bound by regulations such as InformationTechnologyAct2000 (“ITAct”), the ITAct (ReasonableSecurityPracticesandProcedures)Rulesor IntermediaryGuidelines, etc.Onceadataprivacy law is enacted, it shall alsobeapplicabletoCSPsfromadatacontroller/processorperspective.Inthisscenario,aparallelregulatory framework with additional licensing and reporting requirements for CSPs willresultinconfusionandundueburdenarisingoutofmultiplicityoflaws,andriskdampeningeconomicgrowththatisderivedfromthecostsavingsandscalabilitythatcloudbrings.OthercountrieshavealsotakenanextremelycautiousapproachtolicensingandregulatoryrequirementsforCSPs,giventhehugeramificationsofcloudregulationonothersectorsoftheeconomy.ManycountrieswithmoredevelopedcloudcomputingindustriessuchasUS,SingaporeandNewZealandhavealsooptedforaself-regulationmodelforCSPs.CountrieslikeChinaandSaudiArabiaarenowexploring licensing requirements forCSPsbut that ispursuanttotheiruniquepoliticalethosandcannowherebecomparedtoIndia.Given that India’s cloud industry is at a nascent stage and requires huge investment ininfrastructuretobringineconomiesofscaleandmeetincreasingdemandforcloudbasedservices,thegovernmentneedstoensureeaseofdoingbusinessinIndiaforCSPs.Anyheavyhandedapproachtoregulatethesectororincreasedentrybarriersintheformofonerouslicensingwillbeahugeimpedimentforthegrowthoftheindustryandthedigitaleconomyasawhole.
IX. IncentivizingsettingupofInternationalDataCenters(IDCs)inIndia
TheIndiandatacenterinfrastructuremarketwasvaluedat$2.2billionin2016andispoisedtobethesecondlargestmarketfordatacenterinfrastructurewithintheAsia/Pacificregionby202029.Increasedpenetrationofinternet(includinginruralareas)andrapidemergenceof e-commerce are themaindrivers for continuedgrowthof data center co-location andhostingmarketinIndia30.Acrosstheworld,wheredatacentersandcloudserviceshavebeenableto flourish, themultipliereffectson jobs,productivityof localcompaniesusingcloudservices,andontaxrevenueshaveallbeenhighlypositive.AstudyinthestateofWashingtonintheUS,forexample,foundthejobmultipliereffectsofdatacenterinvestmenttobe3.54,meaning that forevery jobdirectlycreated inadatacenter,anadditional2.54 jobswerecreated in the surrounding economy, and this coincidedwith a significant increase in taxrevenues.31GeneratinginvestmentindatacentersinIndiawillinvolvedevelopingaregulatoryregimethatincentivizesprivatecompaniestoinvestinIndia.Acomprehensiveincentivespackagethatgoeshand-in-handwithanenablingpolicyframeworkcanhelptoensurethebestbuild
28TRAIRecommendationsonCloudServices,August2017http://www.trai.gov.in/sites/default/files/Recommendations_cloud_computing_16082017.pdf29ConducivePolicy&Regulatoryenvironmenttoincentivizedatacentreinfrastructure,IAMAI,http://www.iamai.in/sites/default/files/position_papers/make-in-india.pdf;30IT&ItesIndustryinIndia,IBEF,https://www.ibef.org/industry/information-technology-india.aspx31 Washington Research Council (2013) ‘Economic Impact of Data Centers on Central Washington’,https://researchcouncil.org/files/docs/2013/08/datacenterssept2013.pdf
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environmentpossible, leadingtoincreasedcompetitivenessoftheIndiancloudcomputingmarketsegment.Potentialincentivesinclude:
1. Favourableelectricityrates.2. Rebateonlandcosts.3. Secureandreliableaccesstowater.4. Special economic zone (SEZ) incentives packages, including a commitment to
expediteSEZdesignationandapprovalfordesiredsiteswithoutcurrentSEZstatus,withprerequisiteimportandincometaxholidaysforareasonableperiodoftime.
5. Waiver of import restrictions & duties on equipment that is essential to theoperationsofadatacenter
6. Reimbursement of Stamp Duty, Transfer Duty, and Registration Fees paid onsale/leasedeedtransactions.
7. Waiverofresidencyrequirementsforemployees.8. FavorableGST(Goods&ServicesTax)rateandotherrelevanttaxrebates,where
applicable.9. ExpeditedIT/ITeSincentiveapproval(MaharashtraIT/ITeSpolicyasamodel).
X. InternationallycomparablebandwidthcapacityandincentivesforBusinesses
Cloud computing services require a highly reliable, low latency, redundant IP-protocolnetwork. CSPs face significant regulatory challenges in building such a network in India,including:1. Inabilitytoaccessdarkfiber:CSPscancurrentlyonlyaccessthetelecominfrastructure
throughalicensedpartnerasthereisnoalternativelicensecategoryavailableforCSPs.Leasingdarkfiberisnotpossiblewithoutalicense,eventhoughthereisavailableunder-utilized network capacity, provided by utilities such as the national railway. A lessstringentlicenseregimewhichallowsCSPstoownorleasedarkfiberwouldhelpCSPstobeself-reliantandwillgoalongwaytoensuringhighqualitytelecominfrastructureanddatacenterinvestmentinIndia.
2. Imports of dual use equipment: CSPs are restricted from importing certain dual useequipment that could be used to provide public telecommunications services. Nodistinctionismadeinthepurposeofpurchase,suchasusingdensewavelengthdivisionmultiplexing (DWDM) and optical switches in a closed-user group (CUG) corporatenetwork which does not interconnect with a public network. Import restrictions anddutiesonequipmentthatisessentialtotheoperationsofadatacentercanonlyhinderinnovationin,andtheefficiencyof,datacentersinIndia.CSPsneedanexemptionfromcurrentrestrictionsonbuyingandinstallingdual-usenetworkequipmentforuseindatacentersthroughaproperlyoutlinedframework.
3. Submarinecablelandingcharges:LargedataserviceproviderscannotbuyIndefeasible
RightsofUsage(IRUs)orbuildtheirownsubmarinecablenetworkswithlandingrights.Co-locationchargesandadditionalfeesatthelandingstationareastronomicallyhighinIndia as compared to other countries (e.g. the US, Japan, Singapore and Europeancountries)andsignificantlyaddtointerconnectioncosts.TRAIcutthesubmarinelandingcharges by 90% in 2012, which was challenged in court by the cable landing station
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owners. Until now, the new pricing guidelines put forward by TRAI have not beenenforcedbythecablelandingstationcompanies,whohavecitedpendinglitigation.ThereisaneedtoresolvethisissueurgentlytomakeIndiagloballycompetitiveinthisrespect.
4. Lesscontrolonnetwork:CSPs requirenetworkconnectionsat twodistinct levels: the
metro-network(throughtheinternetexchangepoint(IXP))andthenationallevel.BothlevelsarecurrentlylimitedtoonlylicensedcarriersinIndia,significantlylimitingtheabilityofCSPstoconfigureandmanageanetworkoptimizedforcustomersandunnecessarilydrivingup the costofCSP services.CSPs shouldbepermitted toaccessboth levelsofnetwork connection, which would have the effect of improving connectivity andincentivizinginvestmentinnetworkinfrastructureinIndia.
Theaboveregulatoryrestrictionsarenotencountered–oratleasttothesamedegree–byCSPsinothercountries(e.g.intheUS,JapanandSingapore),andcanbeliftedwithoutcausingharm to the reliability of either the publicly switched telephone network or key nationalinternetinfrastructure.Indeed,mostoftheregulatedinfrastructurewouldbepaidforandusedexclusivelybytheCSPsthemselves,andarenotpartofthepublicnetworkthatdirectlyservescustomers. Therefore,theserestrictionsshouldberemoved inorderto incentivizecompaniestoestablishdatacentersinIndia,andtohelpestablishIndiaasaglobalhubfordatacommunicationsystemsandservices.
XI. Establishmentofinterconnectexchangesfordataservices
TheNational InternetExchangeof India(NIXI)wasestablishedin2003asacarrier-neutralInternetExchangePoint(IXP)andispresentat10locationsacrossIndia.ToconnecttoNIXI,CSPscanonlyleaseacircuitfromacarrier.Inouropinion,atrulyopenexchangemodelmustbeimplementedforallCSPstointerconnect,inamannersimilartotheAMS-IXexchange(inAmsterdam)andother largeandsuccessfulpeeringsystems.SuchamodelsupportsmorerobustandlowercostexchangeofdatabetweencontentprovidersandIndiancustomersandendconsumers.AsuccessfulexchangewillnotonlymakeanIndiainvestmentmoreattractiveto data center businesses, but will also bring more local content and allow greaterperformance.
