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Tuesday, March 13, 2012

India Telecom Policy: TRAI sends revised draft document to DoT


JS Sarma, Chairman, TRAI

Telecom Lead India: Telecom Regulatory Authority of India (TRAI) has sent a revised draft document on National Telecom Policy 2012 to the Department of Telecommunications (DoT) on March 2.

"We have revised the draft document. We have not included the TRIAD of policies in the NTP 2012 because it was felt that, along with the preamble, it made a very long reading and detracted from the focus on NTP itself," said JS Sarma, chairman, TRAI, in his to letter to DoT.

TRAI has also expressed happiness since the telecom department included several recommendation of the telecom regulator.

In the new draft, TRAI did not include activities and targets as part of the policy since it was felt that these would be better captured in an action plan that can be drawn up by the DoT separately. TRAI has tried to capture most of the objectives and strategies, with certain modifications.

Highlight of the new draft document

TRAI VISION:
TELECOMMUNICATIONS FOR AN EMPOWERED AND INCLUSIVE
KNOWLEDGE BASED SOCIETY.

MISSION

I. Establish a ubiquitous, robust, reliable, secure, affordable and efficient Converged telecommunication network capable of providing high speed broadband and seamless converged communication services, with special focus on rural and remote areas;

II. Reposition the telecommunication services as an instrument of socio economic empowerment of citizens, both in the rural and urban areas;

III. Achieve self-sufficiency in telecom equipment manufacturing through promotion of Research and Development (R&D) and indigenous production;

IV. Strengthen institutional framework to meet the requirements of growth of the sector;

V. Attract investments in telecom sector.

MISSION  - I

Establish a ubiquitous, robust, reliable, secure, affordable and efficient Converged telecommunication network capable of providing high speed broadband and seamless converged communication services, with special focus on rural and remote areas.

Objective IA: Licensing framework

To establish an appropriate licensing framework for facilitating converged network and services, facilitating easy movement of customers across networks.

Strategies

I.A.1. Move towards Unified Licence regime enabling offer of converged services;

I.A.2. Create a path for existing licensees to migrate to the Unified Licence Regime;

I.A.3. Promote economies of scale in the telecom sector, while maintaining adequate competition, through appropriate M & A policy to be evolved from time to time on consideration of TRAI recommendations;

I.A.4. Move eventually towards achieving One Nation - One License by providing for full Mobile Number Portability and removal of roaming charges, decision on both of which will be taken by TRAI;

I.A.5. TRAI to consider minimising inter operator costs in fixing tariff so as to facilitate affordability of tariff to the consumers.

Objective IB: Convergent Networks

To facilitate the speedy establishment of converged networks

Strategies

I.B.1. Orient, review and harmonize the existing licensing framework in a time bound manner to enable seamless delivery of converged services;

I.B.2. To enable and enforce the VOIP facility including mandating interconnection between ISP and access providers, so as to enhance affordability to the consumers;

I.B.3. Migrate towards Internet Protocol IPv6 in a phased and time bound manner by 2017;

I.B.4. Encourage new and innovative IPv6 based applications in different sectors of the economy by enabling participatory approach of all stake holders;

I.B.5. Facilitate and encourage the establishment of Next Generation Networks.

Objective IC: Spectrum Management

To ensure efficient and optimal use of available spectrum.

Strategies

I.C.1. Ensure adequate availability of globally harmonized spectrum including through Audit and refarming;

I.C.2. Make available additional 500 MHz spectrum for telecommunications services by the year 2017 and another 300 MHz by 2020;

I.C.3. Ensure availability of adequate spectrum to meet current and future demand for microwave access/backhaul, in appropriate frequency bands;

I.C.4. Move existing users of spectrum i.e. Government departments, public sector, private sector and telecom service providers to alternate frequency bands or media, so as to make spectrum available for commercial telecom services;

I.C.5. Delink spectrum from license in respect of all future licences;

I.C.6. Allocate spectrum to holders of Unified Licence, based on recommendations of TRAI, in a transparent manner through market related processes, keeping in view the objectives of efficiency revenue and affordability;

I.C.7. TRAI to conduct periodic Audit of spectrum utilization to ensure its efficient use and to issue necessary Regulations / Directions from time to time;

I.C.8. De-license additional frequency bands for public use and operation of low power devices;

I.C.9. Promote use of unlicensed band and white spaces without causing harmful interference to the licensed applications;

I.C.10. TRAI to evolve guidelines to deal with all issues connected with wireless (spectrum) licences and their terms and conditions including re-farming/ withdrawal of allotted spectrum, spectrum pricing, cancellation or revocation of spectrum licence, exemptions on use of spectrum, spectrum sharing, spectrum trading etc;

I.C.11. Permit spectrum pooling, sharing and later, trading for optimal utilization of spectrum based on recommendations of TRAI;

I.C.12. Introduce Mobile Virtual Network Operators (MVNO) in the country;

I.C.13. Actively encourage establishment and use of landlines based on optical fiber network and cable networks, so as to promote Fixed-Mobile Convergence.

Objective ID: Broadband

To recognize broadband as a basic necessity and to provide ubiquitous and efficient networks capable of increasingly higher speeds so as to eventually move towards a level where Broadband can be a Right for all citizens.

Strategies

I.D.1. Provide reliable and affordable broadband access in the country including in rural and remote areas by appropriate combination of optical fiber, wireless and other technologies;

I.D.2. TRAI to periodically fix the minimum broadband download speeds of broadband;

I.D.3. To facilitate availability of broadband progressively at speeds higher than the laid down minimum;

I.D.4. Optical fibre network to be laid by an independent agency, initially up to the village Panchayat level and to be extended progressively in a time bound manner, to all villages and habitations having a population of more than 500 persons. Access to this Optical Fiber Network will be open, nondiscriminatory and technology neutral;

I.D.5. Incorporate enabling provisions in the current regulatory framework in order to facilitate utilization of existing infrastructure including cable TV networks for extending high quality broadband services including in rural areas;

I.D.6. Develop an eco-system for broadband in close coordination with all stakeholders, including Ministries/ Government Departments/ Agencies;

I.D.7. Ensure that all servers on which sensitive data are hosted are located
within the country;

I.D.8. Ensure that all local content is hosted on servers located within the country;

I.D.9. Rationalize the duties levied on inputs and finished products and provide requisites incentives to ensure affordability of Customer premises equipment including modem;

I.D.10. Provide appropriate Tax benefits to Telecom infrastructure provider companies;

I.D.11. Formulate appropriate policies in the area of enterprise and data services to fuel further growth of India's ICTE sector.

Objective IE: Cloud Services

To setup an efficient cloud computing environment.

Strategies

I.E.1. Adopt best practices to address the issues related to cloud services;

I.E.2. Create a secure network for cloud computing covering encryption and privacy;

I.E.3. Create a legal and security frame work covering network security, law enforcement assistance and preservation of cross-border data flows for deployment of Cloud Services;

I.E.4. TRAI to devise appropriate mechanisms to provide interoperability among cloud computing service providers.

Objective IF: deployment of telecom infrastructure

To facilitate deployment of telecom infrastructure in a cost effective and timely manner.

Strategies

I.F.1. Declare telecom infrastructure to be an essential infrastructure and provide requisite tax benefits;

I.F.2. Bring the telecom Infrastructure providers under unified Licensing regime;

I.F.3. Authorize the unified license holders the Right of way to install the telecom Infrastructure;

I.F.4. Prescribe, in consultation with ministry of Urban development, uniform road reinstatement charges across the country;

I.F.5. Review and simplify the policy for Right of Way for telecom infrastructure;

I.F.6. Coordinate with State Governments and Local bodies to enable the growth of telecom infrastructure;

I.F.7. Coordinate with State Governments to ensure efficient power supply to tower based and other telecom equipments in rural areas on priority basis;

I.F.8. Do away with the requirement of land conversion for setting up of telecom towers in rural areas;

I.F.9. TRAI to mandate standards for all types of towers used in telecommunications;

I.F.10. Promote sharing of both passive and active infrastructure, based on the recommendations of TRAI;

I.F.11. Introduce Mobile Virtual Network Operators (MVNO) in the country, based on recommendations of TRAI;

I.F.12. Create end to end IPv6 test beds for testing IPv6 networks and
applications.

Objective IG: Rural Telephony and Universal Service

To obliterate the digital divide between the rural and urban areas;

Strategies

I.F.
I.G.1. Impose rural roll out obligations in all licenses where spectrum is being provided such that all Habitations with a population of 500 persons and above are covered by the service providers;

I.G.2. To enforce rural rollout obligations through appropriate disincentives against non-performance of the obligations and appropriate incentives for performance;

I.G.3. Make Use of the USOF component of the licence fee and spectrum charges to provide appropriate incentives and disincentives;

I.G.4. Ensure quick and time bound roll out of the Optic Fiber network in all Habitations with a population of 500 persons and above;

I.G.5. Ensure, through coordination with Ministry of I & B, time bound digitisation of the TV Cable industry in all the rural areas;

I.G.6. Provide support from USO fund for provision of converged communication services in villages / habitations with population of less than 500;

I.G.7. Facilitate the setting up of VSAT in remote areas;

I.G.8. Endeavour to make available Global Mobile Personal Communication by Satellite (GMPCS), compliant with security requirements, for all remote areas.

Objective IH: Security

To ensure security of the information in the telecom network and monitoring of the information, compliant with the objectives of national security.

Strategies

I.H.1. Keeping in view individual privacy and in line with international practices, develop and deploy a state of the art system for providing assistance to Law Enforcement Agencies (LEAs);

I.H.2. Mandate and enforce that the Telecom Service Providers take adequate measures to ensure the security of communication in/through their networks by adopting contemporary information security standards;

I.H.3. Create an institutional framework through regulatory measures to ensure that safe-to-connect devices are inducted into the Telecom Networks;

I.H.4. Build national capacity in all areas that impinge on Telecom network security and communication assistance for law enforcement, such as security standards, security testing, interception and monitoring capabilities and manufacturing of critical telecom equipment;

I.H.5. Ensure that all equipments supplied to the telecom service providers are in conformity with the laid down security and safety standards;

I.H.6. Mandate, on consideration of recommendations from TRAI, standards in the areas of functional requirements, safety and security and in all possible building blocks of the communication network i.e. devices, elements, components, physical infrastructure like towers, buildings etc;

I.H.7. Develop a rational criterion for sharing of costs beyond a threshold limit between Government and the service providers in implementing security measures.

Objective IJ: Quality of Service

To ensure better quality of experience for telecom consumers.

Strategies

I.J.1. Quality of Service and consumer interests being under TRAI's domain, TRAI will appropriately lay down the end-to-end system performance standards, Quality of Service parameters, and measures to Protect consumer interest; (covers all issues of QoS listed in the draft NTP)

I.J.2. TRAI to be given necessary powers including the power to enforce including penalty provisions, to enforce the observance by the service provides of the laid down standards /parameters;

I.J.3. Undertake legislative measures to bring disputes between telecom consumers and service providers within the jurisdiction of Consumer Forums established under Consumer Protection Act.

Objective IK: Emergency Response Services

To enable access to telecommunication services in times of emergency and disasters.

Strategies

I.K.1. Entrust TRAI, under clause 11 (1) (b) of TRAI Act, with the development of nationwide Unified Emergency Response Mechanism by providing nationwide single access number for emergency services;

I.K.2. To ensure availability of communication to agencies connected with law and order, security and disaster management during calamities and emergencies.

Objective IL: Environment and Health

Address health and environmental concerns related to the telecom sector.

Strategies

I.L.1. Strengthen the framework to address environmental and health related concerns including e-waste management;

I.L.2. Encourage adoption of green policy by promoting the use of energy efficient equipment, active infrastructure sharing, incentivizing service providers deploying green technologies for the reduction of carbon footprint in the telecom sector;

I.L.3. Facilitate increased use of alternative sources (Renewable Energy Technologies) of energy for powering telecom networks;

I.L.4. Promote use of In-Building Solution (IBS) and Distributed Antenna System (DAS) and its deployment in coordination with Ministry of Urban Development by aligning the National Building Code as well as embedding these critical requirements in the process of developmental planning and finalization of master plans for rural and urban areas in consultation with the State Governments;

I.L.5. Promote mobile phones which do not contain brominates and chlorinated compounds and antimony trioxide and ensure proper disposal of telecom wastes in accordance with e-Waste Rules 2010;

I.L.6. Mandate testing and certification of all telecom products for conformance, to health, safety, security, EMF/EMI/EMC standards;

I.L.7. Entrust TRAI under clause 11 (1) (b) of TRAI Act with the function of developing and monitoring EMF standards.

MISSION-II

Reposition the telecommunication service as an instrument of socio economic empowerment of citizens, both in the rural and urban areas.

Objective IIA: Development of e-applications

To facilitate the development of e-applications, particularly in Education, Health, Agriculture, Skill development, Small and Medium Enterprises, e-Governance, e-Commerce, e-banking.

Strategies

II.A.1. Promote an ecosystem for participants in VAS industry value chain to develop applications, particularly to meet the needs of the rural citizens;

II.A.2. Incentivise companies involved largely with the development of eapplications for rural areas and in regional languages;

II.A.3. Put in place an appropriate regulatory framework for delivery of VAS at affordable price so as to fuel growth in entrepreneurship, innovation and provision of region specific content in regional languages;

II.A.4. Encourage development of mobile phones based on open platform standards and leverage the mobile device for enabling secure transactional services including online authentication of identity;

II.A.5. Work with handset manufacturers and international standards bodies to make e-applications interoperable in Indian languages;

II.A.6. Incentivise application developers to provide customized applications suitable for local needs;

Objective IIB: Enabling delivery of e-services to rural areas

To deliver e-services provided by various government agencies to the citizens.

Strategies

II.B.1. Promote synergies between roll-out of broadband and various Government programs viz. e-governance, e-Panchayat, NMEICT, MNREGA, NKN, AADHAR, AAKASH tablet etc.;

II.B.2. Digitize the content available in the government departments;

II.B.3. Coordinate with State Governments and different Ministries in Government of India such that all procedures are amended, to ensure digital delivery of services, in a definite timeframe;

II.B.4. Coordinate with State Governments and different Ministries in Government of India such that all personnel are trained in a definite timeframe to achieve the desired degree of competence in understanding of the revised procedures and delivery of services;

II.B.5. Equip all the Panchayats and Villages Centres with the requisite Hardware and train the personnel;

II.B.6. Stimulate the demand for e- applications and services by working closely with Department of IT in the promotion of local content creation particularly in regional languages.

Objective IIC: Empowering urban citizens

To empower citizens in the Urban areas through establishment of Fiber networks and deployment of applications required for smart cities and towns.

Strategies

II.C.1. Provide fiber to home/kerb as an integrated access to meet ICT requirements of urban citizens;

II.C.2. Coordinate with the Ministry of Urban Development to ensure that National Building Code is aligned to facilitate deployment of fiber in the buildings as well as embedding the requirement of fiber in the developmental planning and finalization of master plans for urban areas;

II.C.3. Make regulatory changes to unbundle fiber infrastructure;

II.C.4. Encourage Fiber to Home/Kerb (FTTH/FTTC) by Infrastructure Providers (IPs) with enabling guidelines and policies;

II.C.5. Coordinate with State Governments and different Ministries in Government of India such that all procedures for services in urban areas are amended in a definite timeframe to ensure digital delivery of services;

II.C.6. Coordinate with State Governments and different Ministries in Government of India such that all personnel are trained in a definite timeframe to achieve the desired degree of competence in understanding of the revised procedures and delivery of services;

II.C.7. Use Information and Communications Technologies (ICT) for converting, as per a definite time program, the urban areas into smart cities/ smart towns, by way of appropriate applications for managing all urban services particularly road infrastructure, water and sewerage
management, electricity, security and transport systems;

II.C.8. Digitize the content and data available in the government departments, in a definite timeframe;

II.C.9. Provide policy support including standards implementation, for secure communication of information within and between different sectors;

II.C.10. Develop a regulatory framework for Machine to Machine communications;

II.C.11. Provide financial support for research and smart infrastructure pilot projects in few major cities.

MISSION-III
III.
Achieve self-sufficiency in telecom equipment manufacturing through promotion of Research and Development (R&D) and indigenous production.
IV.
Objective IIIA: Innovation and IPR creation
To promote entrepreneurship, innovation and IPR creation for indigenous product development and its commercialisation.

Strategies

III.A.1. Develop detailed guidelines for promotion of innovation and IPR creation;

III.A.2. Promote Indian products viz., products having Indian IPR, by stipulating a mandatory market share;

III.A.3. Create a Telecom Research and Development Corporation (TRDC) for setting up of an R&D fund and establishing a Research and Development Park;

III.A.4. Establish a Telecom Research and Development Park for facilitating research, IPR creation and commercialization;

III.A.5. Facilitate access to financial resources on favorable terms and provide fiscal incentives to relevant R&D institutions;

III.A.6. Assist researchers to obtain IPRs for their innovation;

III.A.7. Set up an autonomous Telecommunications Standard Development Organization (TSDO) to develop standards to meet national requirements, to generate IPRs and to participate in international standardization bodies to contribute in formulation of global standards;

III.A.8. Create suitable testing infrastructure to aid in development of new products and services;

III.A.9. Encourage the entrepreneurs to develop and commercialize Indian products by making available requisite funding (pre-venture and venture capital), management and mentoring support.

Objective IIIB: Self reliance in telecom equipment manufacturing

To achieve a high degree of self reliance in telecom equipment manufacturing to meet the indigenous demands.

Strategies

III.B.1. Develop detailed telecom equipment manufacturing policy, providing, inter alia, for

* a minimum extent of 60 percent and 80 percent of domestic manufacturing,

* a minimum value addition of 45 percent and 65 percent,

* Indian products (products with Indian IPR) at 35 percent and 50 percent by the year 2017 and 2020 respectively;

III.B.2. Set up a Telecom Equipment Manufacturing Organisation (TEMO) to coordinate between manufacturers and service providers for proper implementation of the telecom equipment manufacturing policy;

III.B.3. Create designing and manufacturing Clusters for design, development and manufacture of telecommunication equipment;

III.B.4. Facilitate access to the financial resources on favorable terms and fiscal incentives required by indigenous manufacturers of telecom products and R&D institutions;

III.B.5. Facilitate provision of fiscal incentives through a Modified Special Incentive Package Scheme (M-SIPS) to eliminate the disability costs in manufacturing of telecom equipment on account of infrastructure gaps relating to power, transportation etc. and to mitigate relatively high cost of finance;

III.B.6. Restructure taxes and duties such that indigenous manufacturers are not disadvantaged vis-à-vis imported products and components and put in place a stable tax regime and provide income tax holiday for 10 years to domestic telecom manufacturing;

III.B.7. Create a Telecom Manufacturing Fund (TMF) for providing venture capital to indigenous manufacturing;

III.B.8. Set up a cutting edge technology fab facility with government funding support in the form of equity, grants and soft loans;

III.B.9. Set up an International Standard Testing and Certification Agency, by converting TEC into an autonomous agency, for carrying out conformance testing, certification and to aid in development of new products and services;

III.B.10. Provide preferential market access for domestically manufactured telecommunication products to address strategic and security concerns of the nation, consistent with international commitments;

III.B.11. Encourage the service providers to use Indian and Indian manufactured products, through measures including appropriate incentives;

III.B.12. Leverage synergies among the various telecom players (manufacturers, service providers and project integrators) to provide integrated span style

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