Status of WSIS Goals & Action Plan Implementation: India ICT - PowerPoint PPT Presentation

Status of WSIS Goals & Action Plan Implementation: India ICT sector 2009 Shailendra K. Hajela India

Indian Telecom Sector Early Challenges • Under State monopoly, PSTN growth was very low with large waiting lists, mainly due to financial constraints. Major challenge was to accelerate the rate of growth in telecom sector – Teledensity < 2% – Wire line subscribers base : 14.54 million (DoT & MTNL) – Limited Value Added Services. • Indian Economy liberalized in early 1992 • Telecom sector reform allowing private sector entry kick started with cellular Mobile services. Gainful Impact of reforms became visible in late 90s. • Independent Regulatory Authority established in 1997. SKH/ESCAP/EG-Mtg. 2009 2 2

Government Functions  Telecom Policy formulation  Telecom Licensing  Wireless Spectrum Management  Universal Service Obligation  Standardization, R & D  Administration of : – Indian Telegraph Act – Indian Wireless Telegraphy Act – Telecom Regulatory Authority of India Act

India: Key Factors for Growth Economic Reforms: Government •Liberalization Policy Initiatives •Transparency •Accountability Foundation for Development Science & Telecom Technology Sector Culture Restructuring SKH/ESCAP/EG-Mtg. 2009 4

Telecom Sector Constituents Government / Regulator  Strong, independent and Equipment Vendors active regulator in place  State of the art  Successful implementation technologies at of regulatory changes reasonable  Stable foreign investment prices. policy Customers  Embracing new services in large numbers Operators  Huge & growing  Significant investment market  Providing high quality services at an affordable price SKH/ESCAP/EG-Mtg. 2009 5

Reforms: Major Milestones • 1991 Mobile services opened to private participation (Metros) • 1994 Mobile services opened up in all Telecom Circles (States) of India • 1997 TRAI established • 1999 Migration to revenue share • 2000 Formation of BSNL NLD sector opened up SKH/ESCAP/EG-Mtg. 2009 6

Reforms: Major Milestones • 2002 BSNL launches nation-wide Cellular services; ILD Sector opened up • 2003 Calling Party Pays introduced Unified access license introduced • 2004 Rationalization and further reduction of license fees Broadband policy announced • 2005 FDI limit increased to 74% ILD / NLD regime liberalized SKH/ESCAP/EG-Mtg. 2009 7

Reforms : Major Milestones 2006 • ‘One India’ uniform STD charge introduced • ADC regime changed to revenue sharing 2007 - 2008 • Competition enhanced by allowing entry of more Operators in mobile services SKH/ESCAP/EG-Mtg. 2009 8

INI TI Revenue Share AT ADC Regime 3 rd & 4 th CPP Introduced FDI Increased IV Cellular Operator 35 80 31 ES Lowering of 31 70 69.2 ADC 30 Effective Charge (US Cents/ min) 60 NTP-99 O 25 Subscribers in Million 50 20 N 41 40 15 G 30 13 26.2 10 20 7.9 R 13.1 5 10 4.4 3.5 3.6 1.9 0.44 1.2 5.6 O 0.4 0 0 1999 2000 2001 2002 2003 2004 2005 2006 Year Ended March W Effective Charge (US Cents/min) Subs Source : TRAI TH SKH/ESCAP/EG-Mtg. 2009 9

Indian Telecom Sector Snapshot: March 2009 • Population 1137 Million • Geographical area 3,287,000 Sq. Kms. • Total Subscribers (wire-line + wireless) 429.72 Million • % Growth during the quarter 11.68% • Urban Subscribers 309.43 Million (72%) • Rural Subscribers 120.29 Million (28%) • Overall Teledensity 36.98 • Urban Teledensity 88.66 • Rural Teledensity 14.80 • Total wire-line subscribers 37.96 Million • % Growth during quarter 0.15% • Urban wire-line subs. 27.38 Million (72.13%) • Rural wire-line subs. 10.58 Million (27.87%) SKH/ESCAP/EG-Mtg. 2009 10

Indian Telecom Sector S napshot: March 2009 (contd.) • Village Public Telephones (VPT) 5.61 Million • Public Call Offices (PCO) 6.20 Million • Total Wireless Subscribers 391.76 Million • % Growth during the Quarter 12.93% • Urban wireless subscribers 282.05 (72%) • Rural wireless subs. 109.71 Million • GSM/CDMA 75.88% / 24.12% • Total Internet Sub. Including B/band 13.54 Million • % Growth during the Quarter 5.30% • Wireless Internet Sub 117.82 Million • Broadband Sub. 6.22 Million • PC Base 35 Million • Cable TV Homes ~71 Million. • English literate Persons ~110 Million • Optical Fibre ~0.77 Million Cable Km (average 36 pairs) SKH/ESCAP/EG-Mtg. 2009 11

India Wire-line and Wireless Growth SKH/ESCAP/EG-Mtg. 2009 12

Mobile Services thrust in Rural Areas  Objective: To provide Mobile Services in rural and remote areas having no mobile coverage.  Proposal to provide USOF assistance for shareable and non-shareable components.  Infrastructure to be shared amongst 3 service providers. SKH/ESCAP/EG-Mtg. 2009 13

Broadband and Internet Statistics E-mail 91% • Number of agencies are making surveys on General Information search 76% Broadband and Internet Educational Information search 49% parameters Text Chart 46% • Users are adopting more and more online Online Gaming 41% applications on Internet Online Jobsites 37% • Recent survey suggests Music/ Video on the Internet 32% that Email is the most Financial Information search 21% popular of all applications Book Railway ticket on Internet 21% followed by searching, Online banking 20% gaming etc. Online News 13% Internet Telephony/ Video Chat/ 13% Voice Chat Source:IAMAI/ IMRB SKH/ESCAP/EG-Mtg. 2009 14

Use in Rural areas - Broadband and Internet Statistics (All data in percent) Aware Usage Likely For rural users  to also according to use the survey, Email is Communication the most popular Email 94 75 70 service Informational Text Chat/ Instant Messenger 57 35 27  services, web Making telephone calls through 33 6 5 browsing like job Internet /Voice Chat portals, news , Informational Services government Access information (general info, 53 31 31 services (i.e. news etc) Passport Accessing job websites 41 15 16 information, filing Accessing matrimonial website or 36 6 9 Income tax returns, sending resume to others etc.) are also Source : IMRB increasingly Access government services like 17 12 4 Passport Enquiry, IT Returns etc becoming popular SKH/ESCAP/EG-Mtg. 2009 15 TRAI 2009 Source:IAMAI/ IMRB 15

Broadband and Internet Statistics E-commerce segment  (All data in percent) Aware Usage Likely is also a major internet to driver where user use prefers Entertainment  Railway ticket Play Video Games 52 22 20 booking Watch Movie Clips/music /cricket 42 18 16  Airline booking highlight  Online utility bill E-Commerce payment Booking railway ticket 57 13 20  E Banking Booking Airline ticket 36 2 5  Share trading Online Bill Payment (electricity 30 1 7 Video content related  etc) to online gaming, music on Internet is Accessing online bank accounts 40 4 8 more demanding Buy online products 33 3 4 Source : IMRB Invest in shares and stocks 26 5 8 SKH/ESCAP/EG-Mtg. 2009 16 Source: IAMAI/ IMRB 16

Internet and Broadband Growth Internet and Broadband Growth 14 12.85 Sub. Nos. (in Millions) 12 10.36 10 8.58 8 6.7 6 Internet 5.52 5.45 4.14 4 Broadband 3.76 3.13 2 2.05 0.9 0 0.04 Dec. Dec. Dec. Dec. Dec. Dec. Dec. 2002 2003 2004 2005 2006 2007 2008 Source TRAI SKH/ESCAP/EG-Mtg. 2009 17

Broadband Policy Goals • 9 million Broadband connections by 2007 - eluded • 20 million connections by the year 2010 – concerted efforts needed; Affordability, speed and robust connection needed. 3G delayed. • About 50-60% connections envisaged from Public sector companies BSNL/MTNL • Balance to come from private sector service providers SKH/ESCAP/EG-Mtg. 2009 18

Focus in rural areas • Broadband coverage for all secondary and higher secondary schools by the year 2007 • Broadband coverage of all public health care centers by the year 2007 • Broadband coverage for all Village Panchayats by the year 2008 SKH/ESCAP/EG-Mtg. 2009 19

Tele-education • About 150,000 Higher Secondary schools in the country • About 70% in rural areas • Broadband planned for all these schools on priority • Will be used for interactive distance learning • Infrastructure by service providers & USOF • Cost of CPEs and rentals to be borne by schools SKH/ESCAP/EG-Mtg. 2009 20