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

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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


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Status of WSIS Goals & Action Plan Implementation: India ICT sector 2009

Shailendra K. Hajela India

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SKH/ESCAP/EG-Mtg. 2009 2

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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.
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  • 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

Government Functions

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SKH/ESCAP/EG-Mtg. 2009 4

India: Key Factors for Growth

Foundation for Development Science & Technology Culture Economic Reforms:

  • Liberalization
  • Transparency
  • Accountability

Government Policy Initiatives Telecom Sector Restructuring

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SKH/ESCAP/EG-Mtg. 2009 5

Telecom Sector Constituents

Government / Regulator

 Strong, independent and

active regulator in place

 Successful implementation

  • f regulatory changes

 Stable foreign investment

policy Equipment Vendors

 State of the art

technologies at reasonable prices. Operators

 Significant investment  Providing high quality

services at an affordable price Customers

 Embracing new

services in large numbers

 Huge & growing

market

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SKH/ESCAP/EG-Mtg. 2009 6

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

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SKH/ESCAP/EG-Mtg. 2009 7

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

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SKH/ESCAP/EG-Mtg. 2009 8

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

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SKH/ESCAP/EG-Mtg. 2009 9

INI TI AT IV ES O N G R O W TH

31 13 7.9 3.5 0.4 4.4 31 0.44

13.1 26.2 41 69.2 1.2 1.9 3.6 5.6 5 10 15 20 25 30 35 1999 2000 2001 2002 2003 2004 2005 2006

Year Ended March Effective Charge (US Cents/ min)

10 20 30 40 50 60 70 80

Subscribers in Million Effective Charge (US Cents/min) Subs NTP-99 3rd & 4th Cellular Operator CPP Introduced Lowering of ADC Revenue Share ADC Regime FDI Increased

Source : TRAI

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SKH/ESCAP/EG-Mtg. 2009 10

  • 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%)

Indian Telecom Sector

Snapshot: March 2009

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SKH/ESCAP/EG-Mtg. 2009 11

Indian Telecom Sector Snapshot: 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)

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SKH/ESCAP/EG-Mtg. 2009 12

India Wire-line and Wireless Growth

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SKH/ESCAP/EG-Mtg. 2009 13

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.

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SKH/ESCAP/EG-Mtg. 2009 14

  • Number of agencies are

making surveys on Broadband and Internet parameters

  • Users are adopting more

and more online applications on Internet

  • Recent survey suggests

that Email is the most popular of all applications followed by searching, gaming etc.

E-mail 91% General Information search 76% Educational Information search 49% Text Chart 46% Online Gaming 41% Online Jobsites 37% Music/ Video on the Internet 32% Financial Information search 21% Book Railway ticket on Internet 21% Online banking 20% Online News 13% Internet Telephony/ Video Chat/ Voice Chat 13%

Broadband and Internet Statistics

Source:IAMAI/ IMRB

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SKH/ESCAP/EG-Mtg. 2009 15

Use in Rural areas - Broadband and Internet Statistics

TRAI 2009

Source : IMRB

For rural users also according to the survey, Email is the most popular service

Informational services, web browsing like job portals, news , government services (i.e. Passport information, filing Income tax returns, etc.) are also increasingly becoming popular

4 12 17 Access government services like Passport Enquiry, IT Returns etc 9 6 36 Accessing matrimonial website or sending resume to others 16 15 41 Accessing job websites 31 31 53 Access information (general info, news etc) Informational Services 5 6 33 Making telephone calls through Internet /Voice Chat 27 35 57 Text Chat/ Instant Messenger 70 75 94 Email Communication Likely to use Usage Aware (All data in percent)

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Source:IAMAI/ IMRB

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Broadband and Internet Statistics

Source : IMRB 8 5 26 Invest in shares and stocks 4 3 33 Buy online products 8 4 40 Accessing online bank accounts 7 1 30 Online Bill Payment (electricity etc) 5 2 36 Booking Airline ticket 20 13 57 Booking railway ticket E-Commerce 16 18 42 Watch Movie Clips/music /cricket highlight 20 22 52 Play Video Games Entertainment Likely to use Usage Aware (All data in percent)

E-commerce segment is also a major internet driver where user prefers

 Railway ticket

booking

 Airline booking  Online utility bill

payment

 E Banking  Share trading 

Video content related to online gaming, music on Internet is more demanding

Source: IAMAI/ IMRB

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SKH/ESCAP/EG-Mtg. 2009 17

Internet and Broadband Growth

3.76 4.14 5.45 6.7 8.58 10.36 12.85 0.04 0.9 2.05 3.13 5.52 2 4 6 8 10 12 14 Dec. 2002 Dec. 2003 Dec. 2004 Dec. 2005 Dec. 2006 Dec. 2007 Dec. 2008

  • Sub. Nos. (in Millions)

Internet and Broadband Growth

Internet Broadband

Source TRAI

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SKH/ESCAP/EG-Mtg. 2009 18

  • 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

Broadband Policy Goals

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SKH/ESCAP/EG-Mtg. 2009 19

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

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SKH/ESCAP/EG-Mtg. 2009 20

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

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SKH/ESCAP/EG-Mtg. 2009 21

Rural Thrust: Shared Infrastructure – Salient Points

  • Subsidy for shareable and non-shareable

components from accumulated USO Fund (Rs. 20,404 Cr.)

– Shareable - land, tower, boundary wall, security cabin, electrical load, power back up – Non-shareable - outdoor BTS equipment with antennas and portion of backhaul.

  • Tower height shall be 40 meters to

accommodate 3 operators

  • Towers to be in areas where there is no

wireless coverage

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SKH/ESCAP/EG-Mtg. 2009 22

Rural thrust: Shared Infrastructure – Salient Points (Contd..)

  • Infrastructure Providers can bid for

shareable components only

  • Access Service providers can bid for

shareable and non-shareable components

  • Bids to be invited district wise
  • Equated annual subsidy for 5 years
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SKH/ESCAP/EG-Mtg. 2009 23

  • After success of the IT software industry, the

IT strategy to make India a hub for ICT manufacturing by facilitating ICT specific SEZs

  • Telecom Export Promotion Council has been

set up

  • Mobile handset to be produced at about US$

20; China is aiming at less.

Manufacturing Manufacturing

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SKH/ESCAP/EG-Mtg. 2009 24

Benefits of ICTs

ICT- related innovations

  • New form of

comparative advantage and international division of labor in the global economy.

  • Comparative

advantages arise from production functions due to innovations. Fragmentation of production processes enabled by ICTs allows:

  • utilization of core

competencies and specialization of countries and regions

  • Resulting

Efficiencies in the supply chain Integration of Markets and cyberspace:

  • Renders geographic

location as a basis of effective economic governance superfluous.

  • Workflow program

(software) allows individuals and teams far apart to work

  • n different components of

a product by working in parallel for realizing the final product (Boeing and Dell –

  • ft quoted examples)

Gaining comparative advantage through effective use of ICTs is an

  • pportunity that India has

grasped.

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SKH/ESCAP/EG-Mtg. 2009 25

Opportunities WSIS - Action Lines

  • Cooperation and partnerships among all

stakeholders;

  • Infrastructure essential foundation;
  • Access to Information and knowledge;
  • Capacity Building;
  • Building confidence and security in the

use of ICTs

  • Enabling environment
  • ICT Applications for the benefit of all: E-

services;

  • Cultural and linguistic diversity;
  • Media;
  • Ethical dimensions;
  • International and regional cooperation

WSIS – Goals

  • Connectivity with ICTs for villages,

universities, colleges, secondary schools and primary schools, scientific and research centres, public libraries, cultural centres, museums, post offices and archives, health centres and hospitals, community access points;

  • Connect all local and central government

departments and establish websites and email addresses

  • Adapt all primary and secondary school

curricula to meet the challenges of the Information Society taking into account national circumstances

  • Ensure that all of the world’s population have

access to television and radio services

  • Ensure that more than half the world’s

inhabitants have access to ICTs within their reach

  • Encourage the development of content and

put in place technical conditions in order to facilitate use of all world languages on the Internet

India’s Position

  • Enabling policy and regulatory regime,

private investment, open market competition, and wireless technologies have been the key drivers for growth of telecommunication network and services in urban areas

  • IT software and ITeS continue to

dominate.

  • Content in regional languages is

available.

  • Government has taken lead in E-services

(SWAN project implementation with PPP).

  • WSIS goals likely to be met far ahead of
  • time. Telcos are planning migration to Next

Generation Networks

  • Telecom demand projections to 2015: Teledensity (M) 70%, Est. Investment US$ 40

billion

  • Mobile services, Broadband access, Rural communication, IT Software and IT Hardware

production to be the growth areas.

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SKH/ESCAP/EG-Mtg. 2009 26

e-Governance Infrastructure “SWAN”

  • The Government of India has planned a national level

initiative- National e-Governance Plan, (NeGP) for increased transparency, efficiency and effectiveness for delivery of citizen services. Total outlay is expected to be $3.2 Billion.

  • An important component of the NeGP is SWAN; which

has now been identified as an element of core infrastructure for supporting e-Governance initiatives DIT, GOI has also earmarked a significant outlay for supporting this activity. Under NeGP SWAN policy it is the State capitals will be connected with all its Districts Head Quarters (DHQ) and DHQs will further on be connected with Sub-divisional Head Quarters/Blocks (SDHQ/Block).

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e-Governance Infrastructure “SWAN”

In order to bring about transparency and efficiency in service delivery to the citizens, Government for its functions is relying on ICTs for e- Governance. e-Governance would result in – Eliminating wasteful government spending; – Improving government response time to citizens; – Reducing government bureaucratic paperwork burden on citizens and businesses; – Providing information such as rules and regulations, forms, etc.; – Fast and reliable information flow Government to Government (G2G) Government to Citizen (G2C) Citizen to Government (C2G) Government to Business (G2B)

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e-Governance Infrastructure “SWAN”

(source: TCIL) Manual Parallel Electronic Single location Multiple locations Statewide Countrywide Over-the-counter Functions Services Departments Information Communication Transaction Integrated

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Progress of SWAN

(Source: DIT)

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