Broadband can prove to be a veritable game changer for a country like India and help it bridge the digital divide. While the progress on BharatNet in recent years has been commendable, there is an urgent need to develop relevant use cases for rural users and bring in more awareness regarding the benefits of data services. On the urban side, issues like right of way (RoW) must be resolved. The National Telecom Policy (NTP), 2018 should have broadband growth and proliferation as its key thrust area. In an interview with tele.net, M.F. Farooqui, chairman, Broadband India Forum, shares his views on the evolving broadband space, the growth drivers, key challenges, expectations from the NTP, 2018 and the outlook for the segment. Excerpts…
What are your views regarding the evolving broadband space in India?
Telecom is probably one of the most admired success stories in the country. Although connectivity has improved significantly in the past two years, a lot remains to be done. Still, there is a sharp dichotomy in the sector in terms of service penetration and quality of delivery. On the one hand, the industry is gearing up to deliver advanced technologies such as internet of things (IoT), artificial intelligence, autonomous vehicles to tech-savvy urban users, but on the other hand, a large number of rural population needs to be brought under the digital net.
Second, the technology in the sector is evolving very fast. We can say that operators are standing on the shifting sands of technology. While 4G has been introduced in the country only recently, we are already talking about moving to 5G.
What are your views on the progress of BharatNet?
The progress of BharatNet, erstwhile National Optical Fibre Network (NOFN) project, has not been as expected originally. However, we have to acknowledge that the targets set initially were too ambitious. For example, South Korea, the global leader in the broadband space, kept a nine-year time frame for its broadband programme. In contrast, the NOFN was sanctioned with an unrealistic timeline of just one year. That said, the project is highly significant. Currently, a little over 100,000 gram panchayats out of the total of 250,000 gram panchayats have been covered, which is itself a very big deal.
“In a market like India, consolidation was inevitable. A reduction in the number of operators was something that was bound to happen and is probably good for the industry. However, consolidation should not end up in a complete absence of competition.”
What about last-mile broadband connectivity under the project?
For rural areas, we need to have a multiplicity of approaches. We cannot expect that fibre will reach every village and hamlet of a Gram Panchayat. Therefore, while BharatNet is playing a critical role in the rural broadband space, we need to have alternative approaches in place as well. For example, the existing cable network, with slight retrofitting/technical upgradation can carry broadband to the end consumer. Some policy and regulatory issues will have to be addressed because at present the cable operator is not a licensee under the Telegraph Act.
Besides, fixed line connectivity would have to be complemented by wireless coverage. While spectrum is finite, its applications are infinite. For instance, what could be provided over 5 MHz of spectrum 20 years ago is nothing compared to what can be achieved today. White spaces are now being used for broadband provisioning.
Further, in terms of last-mile connectivity, more attention should be given to local entrepreneurs. For example, if you look at common service centres, they hardly garnered any traffic 15 years ago. However, they now attract a significant amount of business.
What are the key broadband use cases relevant for rural users?
The aspirations of villages are increasing but quality education is not readily available. Moreover, education which is beyond the classroom is even harder to get. In my opinion, one of the key drivers in rural areas will be agricultural education. For example, productivity for some crops in the country is less than half of the world’s average. The government talks of doubling the income of farmers by 2022. Since productivity cannot be doubled, the bulk of it will come from better marketing and post-harvest management, which can be imparted through TV/video programmes on relevant topics. Second, health is very often talked of as a possible use case. Many people who cannot go to the doctor and need some advice can actually use telemedicine and m-health. Entertainment will also be a major end use.
RoW remains one of the biggest issues despite the notification of norms recently. What are your thoughts in this regard?
In my opinion, we have credited the Telegraph Act for way too long. This can be partially attributed to the lack of imagination on our part. We need to relook and, if necessary, recast the Telegraph Act. The act was written when there was a monopoly in the telecom sector. At that time, nobody would have imagined the level of competition that is there today. In my opinion, we need to amend the law and create a just system because land is a state subject. We need to recognise that the current laws have outlived their life cycle. The future will comprise autonomous cars, drones, machine-to-machine communication, IoT, etc. The changes in existing laws should not merely play catch-up but should actually be more futuristic in nature. The new National Telecom Policy (NTP) should have a full section on right of way (RoW) that should clearly spell out which authority would determine if the RoW sought is justifiable or not. The same authority should also fix the price/ rental as well.
“Technology in the sector is evolving very fast. We can say that operators are standing on the shifting sands of technology. While 4G has been introduced in the country only recently, we are already talking about moving to 5G.”
What are your expectations from the NTP, particularly in the broadband space?
While the government is coming out with the new NTP, it should focus on broadband in a significant way. This is because telecom today is more about visual and various other services and very little about voice or one-to-one communication. The policy must look at the multiplicity of approaches in terms of broadband delivery such as the BharatNet, cable operators, and very small aperture terminals to ensure ubiquitous broadband services. The government must relook at and consider changing its existing regulatory framework. Further, there should be concerted effort on how to make use of new possibilities like white spaces, E- and V-bands, and satellite communication, etc. If all of this is combined and included in the new telecom policy, the country’s broadband scenario can improve substantially. However, in future we should have a separate broadband-centric policy.
What are your views on the ongoing consolidation in the industry?
In a market like India, consolidation was inevitable. It is pertinent to note that this sector is not a cash cow.It is a resource hungry sector with long gestation period. Second, it is a customer-facing business with huge sensitivity to quality. Third, the technology in this sector will keep on evolving. The demand for new technologies will keep on changing, which will require new investment. Therefore, the policymakers and the regulator must keep in mind that if you milk this sector dry, what you will get is sub standard services. That said, a reduction in the number of operators was something that was bound to happen and is probably good for the industry. Going forward, the sector cannot be seen just as a source of revenue for the government. Else, its real value in terms of economic growth will be compromised. At the same time, consolidation should also not end up in a complete absence of competition.
What are your views on the recently approved relief measures for the sector?
This is certainly helpful for the industry but in a small way. The sector must be looked at as an enabler for the country’s economic growth.
When do you expect the commercial 5G roll-out in India? How will it impact 4G adoption?
There is so much diversity in our country that operators will have to operate at several levels. Interestingly, trends wherein one technology replaces another completely do not apply to India as they apply to some other countries with smaller and richer populations. Therefore, I do not think that 5G will replace 4G or make it redundant in near future. The two will coexist. Even today, we do not have 4G everywhere it coexists with 3G. Similarly, 5G too will happen in a few places by 2020 but it will not be ubiquitous.
