The Telecom Regulatory Authority of India (TRAI) has released its recommendations on ?Improving Telecom Services in the North Eastern States: An Investment Plan?. The objective is to devise a comprehensive framework for improving telecom services in the Northeast. TRAI envisages an overall investment of about Rs 29.18 billion to implement these guidelines.

The government has taken several initiatives to enhance telecom connectivity in the region. Currently, two projects ? the intra-district optic fibre cable (OFC) project and the National Optical Fibre Network (NOFN) project ? are in progress. These are being funded by the Universal Services Obligation (USO) Fund.

 Intra-district OFC project

Under this project, the USO Fund is looking to fill the gaps in OFC connectivity between block and district headquarters in the north-eastern region. To this end, it has signed an agreement with Bharat Sanchar Nigam Limited (BSNL), wherein the latter will deploy and manage an intra-district OFC network for the transportation of rural or remote area traffic on a bandwidth-sharing basis in Assam. This OFC scheme has been undertaken on a build-operate-own basis.

All points of presence (PoPs) will be connected on physical OFC ring routes with the district headquarter node, thereby ensuring diversity in the cable route. At least 70 per cent of the subsidised bandwidth capacity under this scheme will be shared with telecom operators in Assam at a rate of not more that 26.22 per cent of the current ceiling tariffs prescribed by TRAI. The project is at an advanced stage of completion and 329 of the planned 354 PoPs have been connected. Of the remaining 25 PoPs, six are located in non-feasible areas, while work on the rest is delayed owing to unfavourable terrain, and law and order problems.

Meanwhile, the USO Fund has signed a similar agreement with RailTel Corporation of India Limited for Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland and Tripura, wherein RailTel will lay an OFC network for deploying 595 additional PoPs in the six states. However, negligible progress has been made on the project so far. The service provider has started laying an OFC network in Tripura, which has only 55 PoPs or less than 10 per cent of the total project scope. Also, the tenders for Manipur, Nagaland and Arunachal Pradesh are yet to be finalised.

NOFN

The other project currently under way in the north-eastern region is the NOFN. The project is aimed at connecting the block headquarters to the gram panchayats in the region. It is being implemented by Bharat Broadband Nigam Limited (BBNL), a special purpose vehicle floated by BSNL, RailTel and Powergrid Corporation of India Limited (Powergrid). Currently, survey work for the project is being carried out in a few states.

However, both projects have been unable to adhere to their prescribed timelines. Thus, as of May 2013, teledensity in five of the eight states in the region is below the national average wireless teledensity of 70 per cent. Also, in Arunachal Pradesh, Manipur, Meghalaya and Mizoram, the percentage of villages without mobile connectivity ranges from 24.3 per cent to 55.9 per cent. In comparison, the percentage of uncovered villages in other states is less than 10 per cent.

Consequently, the Department of Telecommunications (DoT) requested TRAI for its recommendations on improving telecom facilities in the north-eastern region. Thereafter, several rounds of consultation were held with the USO Fund, telecom service providers operating in the region, BSNL, RailTel and Powergrid. TRAI framed the guidelines based on the gap analysis, individual plans for each state in the region and the estimated investment required. As per the regulator, in the context of this region, the term gap refers to the optimal and the existing transmission bandwidth in the state capitals and district headquarters; the minimum and existing infrastructure to support 2G mobile coverage; the required and existing infrastructure for data connectivity; and the required and existing connectivity across national highways passing through the states.

The key highlights of TRAI?s guidelines are as follows:

?   The USO Fund ought to ensure compliance with stringent timelines and introduce inbuilt penalty clauses for projects. With regard to the NOFN project, the USO Fund and BBNL must incorporate penalty clauses for delays in the agreements signed with implementing agencies. At the same time, they should offer incentives to these agencies if the work is completed before the stipulated time. The USO Fund and BBNL must assess whether RailTel can carry out the required tasks and review their decision on this issue.

?   2G mobile connectivity should be extended to all the remaining block headquarters, and towns and villages in the region with a population of more than 250. Thereafter, the actual number of uncovered villages should be assessed and targeted.

?   In case a service provider covers at least 80 per cent of habitations with a population of above 250 (as per Census 2011) in Assam and the Northeast, a 2 per cent waiver ought to be applicable on the adjusted gross revenue in the licence fee payable by it.

?   Powergrid and BSNL must lease their dark fibre in the region to other operators. These companies should be able to lease the requested bandwidth or fibre within two months. Powergrid should reduce its bandwidth leasing charges in the region to make them comparable to those in other parts of the country.

?   The bandwidth charges for providing satellite connectivity to operators in the region should be subsidised through the USO Fund. The subsidy amount should be restricted to 75 per cent of the total bandwidth cost and the remaining 25 per cent must be borne by the operators.

?   The issues pertaining to the allocation of spot frequencies for microwave backhaul and clearances for establishing VSAT connectivity and base transceiver stations (BTSs) must be addressed on a priority basis by the Wireless Planning and Coordination Wing for the region. Moreover, reasonable time frames (not exceeding two months) should be fixed for the allocation of frequencies and providing spectrum-related clearances. To establish connectivity within their respective service areas, telecom operators in this region can install microwave repeaters in Assam. This will, however, be subject to non-interference from the other point-to-point links.

?  Operators holding spectrum in the region should sign inter and intra-circle roaming agreements amongst themselves within six months for all BTSs located along the national highways that pass through the region.

?   The agencies involved in the construction of national and state highways must be mandated to establish infrastructure utility ducts along the highways, which can be used by telecom and power sector companies for laying cables.

?   DoT should discuss the issue of providing subsidies for the installation of solar power units at telecom towers sites with the Ministry of New and Renewable Energy.

?   DoT should also hold discussions with the Ministry of Home Affairs (MHA) and the Ministry of Development of North Eastern Region on obtaining exemption for the movement of telecom equipment and personnel by providing no-objection certificates (NOCs) and road permits. Alternatively, a single common permit or NOC can be issued for the entire region. Further, the MHA can launch a centralised system, where operators can obtain clearances from the concerned state governments.

?   State governments should:

?   Address operators? issues on a priority basis to facilitate faster roll-out of services in the region.

?    Provide land for erecting ground-based towers and government buildings for setting up rooftop towers.

?   Ensure the availability of commercial power for BTSs; facilitate the availability of sufficient diesel supply to operators; and ensure round-the-clock operations for diesel-powered BTSs.

?   Set up a single-window system for all telecom-related clearances and NOCs.

?   Remove taxes/charges on the use of diesel generator sets by operators.

?   Facilitate the laying of an OFC network in their state by installing cables on transmission towers and poles belonging to the state electricity boards.

?  Nominate a senior officer to coordinate with operators to resolve issues.