The year 2014 has been significant for the entire Indian telecom sector, with orders of over Rs 250 billion being placed across the optic fibre cable (OFC) industry. Due to the fast pace of work being carried out by the government, India is finally on track for deploying a nationwide broadband network, with the government announcing its ambitious National Optical Fibre Network (NOFN) project to provide broadband connectivity with adequate bandwidth to 250,000 gram panchayats.

Also, with the power push given to the Digital India campaign by the government, it is anyone’s guess where this will place the standards of consumer telecom in India in the next 10 years. The NOFN and defence Network for Spectrum (NFS) projects have already been fast-tracked and work has begun on major packages of these projects. The deployment of 4G networks and an increase in fibre-to-the-home (FTTH) deployments have given a fillip to the demand for OFC in India.

During the past fiscal year, the Indian domestic optical fibre market has grown tremendously and is expected to reach a total value of $290.8 million by 2018, registering a compound annual growth rate of 12.5 per cent. The demand for OFC is poised to ride an upward growth curve with the emergence of next-generation technologies and government initiatives under the National Telecom Policy (NTP), 2012.

Data growth in the Indian telecom market has reduced the prominence of traditional wireline broadband technologies such as digital subscriber lines and cable modems. These technologies are not efficient enough to meet the customer demand for high-bandwidth applications such as high speed internet access, video-on-demand (VoD), high-definition TV, IPTV and online gaming. In this scenario, FTTH technology, which offers advantages like high bandwidth capacity and the delivery of high speed, high quality and multiplay services (data, voice and video) through a single channel, presents a major business opportunity for telecom operators.

The FTTH network’s ability to deliver high bandwidth has made investments in this infrastructure segment very important for operators. They are increasingly deploying FTTH technology to supplement their wireless networks. Spectrum crunch is another major factor that has led operators to look for viable alternative mediums. In addition, to achieve the broadband targets set by the government under the NTP, 2012, it will be important for operators to drive FTTH growth along with that of other technologies.

FTTH is now being deployed by many diverse organisations, including incumbent and alternative operators, governments and local authorities, real estate developers and residential associations, utility companies, and municipalities. These companies may be gaining new revenue streams from IPTV entertainment services, lowering the total cost of network ownership, or acquiring subscribers from their competitors. Others may be leasing infrastructure assets, providing application content or earning wholesale revenue. There are many ways to capitalise on the FTTH value chain.
The FTTH business model is fairly straightforward. It involves building the fibre infrastructure at a rational cost, and then renting out the fibre to service providers, or alternatively taking on some complexity and creating one’s own services. Although the concept is simple, the details and execution required can be formidable. Since many organisations now planning or setting up FTTH networks are not from traditional telecommunications backgrounds, they may face a steep learning curve.

Why fibre?
The answer lies in understanding the advantages of FTTH, with respect to its previous technological competitors. FTTH has clear advantages for the end-user, because it can provide higher bandwidth and better reliability, both now and in the foreseeable future, compared to broadband services that have ADSL or cable as the underlying technology.

The advantages for the end-user translate into benefits for the service provider because they help the service provider attract and retain customers. However, the potential upside for the service provider extends further to include new revenue opportunities, lower operating costs, central office consolidation, and a future-proof network infrastructure, guaranteeing ease of upgrading in the future.
FTTH will also be an enabler for considerable social, environmental and economic benefits. These benefits are already tangible in countries that have adopted fibre over the past decade, such as Sweden. For the government, local authorities or communities, these benefits may represent compelling arguments for fibre in their own right. Commercially driven organisations may also be able to gain financial benefits from these network externalities, for example, by winning public funding, or signing up a health care provider as a core customer.

Provision of Urban Amenities in Rural Areas
As articulated by Dr Abdul Kalam, the word “PURA” (Provision of Urban Amenities in Rural Areas) has become widely used in the socio-economic system for sustainable growth. It stands for a well-planned drive towards achieving inclusive and integrated development, starting at the village household level, and involves the following:

Physical connectivity: This refers to infrastructure such as schools, colleges, hospitals, irrigation networks and amenities for the local population. Physical connectivity would facilitate the movement of goods and people, thereby enabling enterprises to have wider access to their inputs, markets or intended beneficiaries.

Electronic connectivity: Villagers must have access to good education from the best teachers; the benefit of good medical treatment; and the latest information regarding their occupation, such as agriculture, fishery, horticulture and food processing. Electronic connectivity is essentially a facilitator for creating knowledge networks, enhancing educational initiatives, connecting hospitals and remote locations, bringing in better banking services, and opening up market access in a faster and more transparent manner.

Knowledge connectivity: Once physical and electronic connectivity are enabled, knowledge connectivity has to be set up in order to facilitate an increase in productivity and spread awareness for health and welfare. Some of the important functions performed by knowledge connectivity are distance education; e-health care; mapping of land, water and other resources; environment and forest management; and weather management.

Economic connectivity: Establishing physical, electronic and knowledge connectivity will, in turn, facilitate economic connectivity, which will lead to the creation of employment, entrepreneurship and income augmentation in rural areas. The economic connectivity model needs customisation in terms of the quality of human resources, specialised skills, special competencies, and availability of connectivity within the villages to the markets and cities.

Conclusion
India is a country of a billion-plus people, with problems like non-availability of clean drinking water, sanitation, basic health care, primary and higher education, housing, roads, and banking facilities. Technology that cuts across all sections and strata of society is a great enabler of growth. India has the opportunity to take its growth story to the next level and achieve long-term sustainability by leveraging telecom technology to the fullest.