Saturday, November 5, 2011

DRAFT NATIONAL TELECOM POLICY – 2011

Draft aims to achieve 175/600 million broadband subscribers by 2017/2020
The draft National Telecom Policy announced is a ten year roadmap. The government intends to make this policy effective from December 2011.


CONSUMERS
      
   Ø  Broadband speeds of at least 512Kbps and 2Mbps by 2015. 256 Kbps will be  
        history.
   Ø  MNP now in inter circles.
·         For example a user currently in Airtel’s Delhi circle can shift to Mumbai’s Vodafone circle and retain the original number.
   Ø  No roaming charges. So free incoming even while roaming.
·         Operators may look to change this as around 10% of revenues are earned through roaming charges.
·         May increase the local charges.
·         The operators can also gain now through increased usage.
   Ø  Net Telephony to be opened up à cheaper calls over internet.
    
     OPERATORS
     
          Ø  Infrastructure status to Telecom.
·         Tax benefits
    Ø  Taxes and levies to be streamlined.
·         Aid in network expansion à improved connectivity affordable telecom services
    Ø  Exit policy for those who want to surrender licence.
    Ø  Spectrum pooling, trading and sharing to be allowed.
·         Revenue options
·         Increased spectrum utilization
    Ø  Telecom Finance corporation to mobilize funding.
     
     SPECTRUM

    Ø  Additional 300 MHz spectrum by 2017 and 200 MHz by 2020.
·         Greater supply of spectrum à rational/reduced spectrum prices due to demand-supply forces.
       ØFuture allocations based on market-linked pricing.

     MANUFACTURES

    Ø  Promotion of indigenous R&D, IPR creation.
    Ø  80% of procurement by telecom companies by domestic manufactures by 2020.
       Ø Small chunks of spectrum for locally developed technology.


LICENCING & REGULATORY

    Ø  Single unified licence across services and service areas.
    Ø  Separate licences for services and network infrastructure.
    Ø  Spectrum to be delinked from licence.
    Ø  More powers to TRAI and WPC.
    Ø  Convergence bill to be revived in a new format.
·         Optimize transmission of services to consumers irrespective of their devices or locations by Fixed-Mobile Convergence thus making available valuable spectrum for other wireless services.
·         Convergence of services will cover voice, data, video, Internet, VAS
    Ø  Spectrum regulation act.
    Ø  The technology neutral Unified Licenses are envisaged to be in two separate        
           categories.
·         Network Service Operator (NSO)/ Communication Network Service Operator (CNSO)
              ·    Service Delivery Operator (SDO)/ Communication Service Delivery Operator (CSDO)


BROADBAND POLICY

    Ø  “Broadband on Demand” by 2015.
    Ø  175 million broadband connections by 2017 and 600 million by 2020.
    Ø  Connect all villages by optical fibre cable by 2014.
·         Telecom Commission has already earmarked Rs 20,000 Crores for this proposal à National Fibre Optical Network (NFON)
       
Ø
 Increase rural tele density from 35 to 60 by 2017 & 100 by 2020.




àNo details on when and how the proposals will be implemented.



CHRONOLOGY OF TELECOM POLICY MAKING
NTP 1994
OBJECTIVE:

Aimed at opening up telecom services segment for private players. Tele-Density was just 0.8% and hence it sought to provide telephone on demand by 1997.

RESULTS:

Faulty bidding processes for licences strangled progress. Target of covering all villages by 1997 is still unmet.
NTP 1999
OBJECTIVE:

Aimed at making telecom sector more investment friendly. Offered a migration path to operators from fixed licence fee to revenue share
RESULTS:

Huge success as it laid down the foundation for explosive growth in the mobile sector. Overall tele density moved to 74.5. Lack of clarity on spectrum allocation led chaotic decision making. Broadband and rural telephony yet to pick up.
NTP 2011
AIM:

Build upon NTP 1999 to address issues linked to emergence of new technologies, broadband penetration and spectrum management.

RESULTS:


L.KISHAN CHAND
Class of 2013

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