Manoj Sinha, Minister of State
The government’s reform policies and thrust on technological advancements have helped the telecom sector embark on new growth gradients globally. Today, India holds the top spot in terms of data consumption and is the second largest market in terms of smartphone usage. The telecom ministry, steered by Manoj Sinha, Minister of State (Independent Charge), has been working at a brisk pace to ensure that connectivity reaches the remotest corners of the country and the Digital India vision becomes a reality. Excerpts from Sinha’s remarks at recent industry events, highlighting the progress of the sector, the role of the National Digital Communications Policy (NDCP), 2018 in addressing the industry’s challenges, and the government’s increasing thrust on 5G technology…
Telecom infrastructure expansion
Government spending on telecommunications infrastructure and services has witnessed a sixfold increase, from Rs 99 billion during 2009-14 to Rs 600 billion (actual and planned) during 2014-19. The number of mobile base transceiver stations (BTSs) has more than doubled from 790,000 in May 2014 to more than 2 million in May 2018. Similarly, optic fibre cable (OFC) coverage across the country has doubled from 700,000 km in May 2014 to 1.4 million km in May 2018.
BharatNet, the government’s flagship project, which envisages fibre-based broadband connectivity to all 250,000 gram panchayats in the country, is possibly the largest rural connectivity project in the world. The infrastructure it is creating is available for use by all service providers on a non-discriminatory basis. So far, highspeed OFC networks have been rolled out in nearly half of the total gram panchayats in the country. As of December 2018, 123,489 gram panchayats have been connected as compared to 59 in June 2014. Of the total connected gram panchayats, equipment has been installed in 116,876. Further, a total of 310,097 km of OFC has been laid under the project so far. OFC was laid at a peak rate of 800 km per day, with an average of over 200 km per day. The government plans to complete the network roll-out in the remaining gram panchayats by March 2019.
“The implementation of the NDCP, 2018 will greatly accelerate our move to a state where digital communication becomes the biggest multiplier of the socio-economic growth and development of India.”
In a bid to ensure that the social and economic benefits of digital connectivity reach the rural and remote corners of the country, BharatNet is being supplemented by various other mobile connectivity projects targeted at hitherto neglected regions of the country. In terms of connecting far-flung areas, a total of 2,335 mobile towers were installed in left-wing-extremism affected areas in Phase I, at a total outlay of Rs 47.81 billion. An additional 4,072 towers have been approved for installation in Phase II, with a total outlay of Rs 73.3 billion. Projects with a total outlay of over Rs 108 billion, connecting the border areas, highways and unconnected villages, have been undertaken in the north-eastern region. Further, submarine cable connectivity to the Andaman & Nicobar Islands and strengthening of connectivity within the islands and in Lakshadweep were announced at an outlay of Rs 22.5 billion.
Significant improvement has been made under the Network for Spectrum (NFS) project for defence forces. Approximately 51,000 km of OFC has been laid in the past four years.
Rise of digital India
A few years ago, we launched Digital India, a flagship programme of the government. It embodies the vision of transforming India into a digitally inclusive and empowered society, where the benefits of digital connectivity are available to each and every citizen.
Digital payment transactions through mobiles have grown by four times, from 168 million as of November 2016 to 600 million as of December 2018. Further, the government has undertaken an extensive expansion of the Wi-Fi ecosystem in rural areas, with an outlay of Rs 100 billion. To this end, Bharat Sanchar Nigam Limited (BSNL) has set up 25,000 hotspots in rural exchanges while common service centres have installed 7,000 hotspots. An additional 1 million hotspots are planned by March 2019.
Overall teledensity increased from 75 per cent in June 2014 to 93 per cent in March 2018, with the addition of 305 million subscribers. The number of mobile internet subscriptions more than doubled from 233 million in March 2014 to 491 million in June 2018. The industry registered more than a 107 per cent increase in internet coverage from 251 million users in June 2014 to 512 million in June 2018. Broadband access has grown seven times, from 61 million subscribers in March 2014 to 447 million subscribers in June 2018. Consequently, the average mobile data usage per subscriber has grown 51 times, from 62 MB per month to 3.2 GB per month. Globally, India has the highest mobile data consumption at 3.4 billion GB per month and the lowest data tariff, which fell by 96 per cent from Rs 300 per GB in 2014 to Rs 12 per GB in June 2018.
Progressive reforms and measures
During the past few years, we have undertaken meaningful reforms to facilitate the operation of a robust, competitive and sustainable telecom sector and make it easier for companies to do business in the sector. We have allowed spectrum trading and sharing to drive greater efficiency in resource usage and boost competition as well as spectrum harmonisation, resulting in the freeing up of spectrum for auction. Further, we have allowed the sharing of passive infrastructure comprising fibre and towers as well as active infrastructure such as BTSs to improve infrastructure utilisation.
To reduce financial stress in the sector, we have deferred payment liabilities. We have also eased right-of-way (RoW) rules and charges to enhance speed and reduce the cost of execution, and enabled full mobile number portability for subscriber convenience. Moreover, virtual network operator (VNO) licences have been introduced for effective infrastructure utilisation and input credit for VNO licensees has been allowed to ease the tax burden.
Towards 5G
The government is undertaking proactive engagement, planning and investment to leverage new technologies for the welfare of citizens. Talking about the future, 5G is a topic of immense relevance to India. The government is playing the role of an enabler and facilitator in fostering a robust 5G ecosystem in the country. Our objective is to position India as a globally synchronised participant in the exploration, design, development and manufacture of 5G-based technologies, products and applications. A high-level 5G India 2020 forum was set up in 2017 to articulate India’s 5G vision, and recommend the required policy initiatives and action plans. In August 2018, the forum submitted its recommendations to the government, and these are currently under deliberation.
To promote the emergence of innovative solutions through effective testing of 5G technologies, we have established advanced test beds in collaboration with the industry and premier academic institutions of India such as the Indian Institute of Technology (IIT) Madras and the Indian Institute of Science, Bengaluru. Budgetary support for this important initiative has already been provided. These test beds provide an enabling environment for testing technology and its refinement as a precursor to final adoption. We are now moving forward with field trials to further assess the capabilities and strengths of 5G. 5G field trials are expected to be conducted over the next 12 months.
NDCP, 2018
The NDCP, 2018, approved by the union cabinet in August 2018, defines our path for the next five years. The NDCP, 2018 summarises our aspirations and determination for transforming India. It will align the efforts of various stakeholders and help us foster and sustain a robust, competitive and citizen-centric digital communication sector. Its three missions – Connect India, Propel India and Secure India – embody the goals and strategies to achieve the vision of the policy. Connect India entails providing universal broadband coverage at 50 Mbps, Propel India entails attracting investments worth $100 billion and Secure India aims to establish a strong, flexible and robust communication infrastructure and data protection regime. I expect the implementation of the NDCP, 2018 to greatly accelerate our move to a state where digital communication becomes the biggest multiplier in the socio-economic growth and development of India.
