India   ICT Development scenario Country Paper

India ICT Development scenario Country Paper PowerPoint PPT Presentation


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India ICT Development scenario Country Paper

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1. India – ICT Development scenario (Country Paper) S. K. Hajela Follow up to WSIS and ICT4D UNESCAP/ICSTD Experts’ Group Meeting Bangkok, 30 November-1 December 2006 [Note: The presentation is based on the information publicly available from the Ministry of IT & C, Government of India. However, the views expressed do not necessarily reflect the opinions of the Government of India, UNESCAP or ITU.]

3. India’s Science and Technology Culture Post Independence, modern India has ardently followed the Nehruvian philosophy of promoting and maintaining scientific temper in the country. Accordingly, it has strived to embrace emerging technologies so as to bridge the gap caused by its having remained for long an agricultural economy untouched by the industrial revolution. Information and communication technologies have provided it an opportunity to close the gap with the developed world. The role of Computers, which were used on a large scale for the first time during World War II for military data processing, was recognized by India for non-military use in the post-war period. It was one of the first countries to utilize the capability of computers in Education, R&D, and Planning beginning with the installation in 1950 of the first (analogue) computer at the Indian Statistical Institute (ISI). By 1974 India had 217 Main Frame computers of several brands installed in IITs, R&D Labs., Planning Commission and the Cabinet Secretariat.

4. 1991 – Mobile sector opened to private participation (Metros) 1994 – Mobile (Circles) and Basic services opened up 1997 – Independent Regulator - TRAI established 1999 – Migration to revenue share 2000 – Formation of BSNL; NLD sector opened up 2002 - BSNL launches nation-wide Cellular services; ILD Sector opened up 2003 - Calling Party Pays regime introduced in mobile services - 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 2006 - ‘One India’ tariff plan introduced; ADC regime revised

5.

7. IMPACT OF POLICY INITIATIVES ON GROWTH

8. 170 million telephone subscribers at present; Subscriber number doubled in 2 years; 75 million new subscribers added in the last two years; More than 5 million mobile subscribers being added every month; Highest growth rate in the world, for the first time surpassing China; This growth has facilitated the expansion of BPO industry which employs 0.5 million people - 400 employees added per day. Forecast: 250 million connections by the year 2007 & 500 million connections by the year 2010.

9. Formulation of a comprehensive Spectrum Policy is in process taking into account: Efficient and optimal utilization of spectrum Allocation procedure Spectrum pricing Emerging technologies GSM Spectrum between 15 MHz and 37 MHz allotted in different service areas CDMA spectrum between 2.5 MHz and 15 MHz allotted in different service areas Efforts are continuing to coordinate & vacate additional GSM spectrum from other existing users. Band 2.4 – 2.4835 GHz de-licensed For indoor use bands 5.150 – 5.350 GHz and 5.725 – 5.875 GHz de-licensed De-licensing certain part of spectrum in 5.7 GHz under consideration

10. Spectrum allotment – WiMAX & 3G WiMAX 2.5 GHz and 3.5 GHz band – Discussions on between Dept. of Telecom, Dept. of Space and other users for release of spectrum 2.3 – 2.4 GHz band – Existing users of point to point links are to migrate or shift to OFC 700 MHz – No standards. Other users like digital TV 3 G TRAI Recommendations 2 x 25 MHz in 2.1 GHz band 2 x 2.5 MHz in 800 MHz band and 2 x 5 MHz in 450 MHz band Total of 32.5 MHz in three bands

11. Broadband - Present Status & future projections Broadband policy announced in October 2004. Broadband has been defined as ‘Always on’ data connection with minimum download speed of 256 kbps By end of August 2006, 1.75 million Broadband connections provided 9 million Broadband connections by 2007 20 million connections by the year 2010 About 50-60% connections envisaged from Public sector companies BSNL/MTNL Balance to come from private sector service providers

12. 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 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

13. Untapped Rural Potential 600,000 villages with 700 million people 530,000 villages connected >50% of total GDP from rural India Nearly 50% of Very rich + Well off households in rural India

14. Provide Individual Access: Market Forces for viable areas USO Fund for Non Viable areas Provide Public Access : USO Fund Village Public Telephones Rural Community Phones VPT: Village Public Telephone. RCP: Rural Community Phone No of total villages in county above 2,000 population: 76,253 (1991 census), 98,000 (2001 census) No of eligible villages for RCPs for help from USO (where there is no PCO facility other than VPT): 46,253 (1991 census) HPTICs: Public Tele-info centres: Providing voice and high speed data (128 kbps)VPT: Village Public Telephone. RCP: Rural Community Phone No of total villages in county above 2,000 population: 76,253 (1991 census), 98,000 (2001 census) No of eligible villages for RCPs for help from USO (where there is no PCO facility other than VPT): 46,253 (1991 census) HPTICs: Public Tele-info centres: Providing voice and high speed data (128 kbps)

15. Total No. of villages : 6,07,491 Villages Covered with VPTs ( March, 2006) : 5,47,111 To be covered by 2007 : 66,822 (Through USOF, including 14,183 Satellite based VPTs ) Rural Community Phone (RCP) as second VPT to be provided in 46,253 villages with population more than 2000, and with no existing PCO Target Sept 2007 (BSNL: 24,794, RIL: 21,459) 27,047 RCPs installed by April, 06; 16,834-BSNL & 10,213-RIL One phone per three rural households by the year 2007 (about 50 million rural connections); One phone per two rural households by 2010 (about 80 million rural connections) No. of VPTs (5,27,000) includes Multi Access Radio Relay (MARR) VPTs & 9,171 VPTs by Pvt. Basic Service Operators prior to migration) MARR: 2,00,751 Original Converted to VPT: 1,15,000 (Nov 30, 04) Balance: 85,000 To be replaced by June 06 BSO: Basic Service Operator Financial support is also being provided from USO Fund for Operation and Maintenance of about 5, 27,000 Village Public Telephones across the country. OPEX Rs. 4,500~5,400 per existing VPT per annum for maintenance The benchmark values for the front loaded subsidy for satellite based VPT were Rs. one lakh whereas the equated annual subsidy for a period of five years was in the range of Rs. 11,300 - 14,700 per VPT per annum. The corresponding benchmark values for the VPTs on any other technology were Rs. 25,000 and Rs. 2100 – Rs. 5500. For unpopulated villages etc., data has been prepared by BSNL on the basis of situation in the field.No. of VPTs (5,27,000) includes Multi Access Radio Relay (MARR) VPTs & 9,171 VPTs by Pvt. Basic Service Operators prior to migration) MARR: 2,00,751 Original Converted to VPT: 1,15,000 (Nov 30, 04) Balance: 85,000 To be replaced by June 06 BSO: Basic Service Operator Financial support is also being provided from USO Fund for Operation and Maintenance of about 5, 27,000 Village Public Telephones across the country. OPEX Rs. 4,500~5,400 per existing VPT per annum for maintenance The benchmark values for the front loaded subsidy for satellite based VPT were Rs. one lakh whereas the equated annual subsidy for a period of five years was in the range of Rs. 11,300 - 14,700 per VPT per annum. The corresponding benchmark values for the VPTs on any other technology were Rs. 25,000 and Rs. 2100 – Rs. 5500. For unpopulated villages etc., data has been prepared by BSNL on the basis of situation in the field.

16. 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. The projection for the proposed infrastructure activity is of the order of US$ 350 million for 2006-07 in addition to US$ 300 million provided for the ongoing USO activities. Bill to enable such support has been introduced in parliament.

17. Shared Infrastructure – Salient Points Subsidy for shareable and non-shareable components 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 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

18. 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.

20. India: Moving towards Global Information Society

21. Role of UNESCAP (1) UNESCAP is to play a substantive role in the promotion of ICTs for development by participation of all stakeholders, creation of an enabling environment to accelerate ICT growth and its applications, and foster international and regional cooperation. The areas where UNESCAP could focus attention are: Policy and regulatory regime to encourage investment, accelerate growth of network infrastructure and services, and establishment of an open market competitive environment; Development of e-strategies and encourage their implementation through collaboration and participation of all stakeholders; Publicity of success stories of mainstreaming of ICTs; Encourage establishment of regional broadband network, setting up regional Internet exchanges, and efficient integration in the global Information network; Capacity building;

22. Role of UNESCAP (2) Special programme of assistance to LDCs, LLDCs, SICs, etc. – conduct pilot projects, including ICT based education and training; Increasing the capacity of countries to participate effectively in Internet Governance; Encourage ICT applications for the benefit of all, particularly in public administration, business, education, health, employment, environment, agriculture and science; Disaster warning and management system; Networking of R&D organizations and Centres of Excellence to support ICT development in the region; Encouraging other international and regional organizations including financial and development institutions to mainstream ICTs in their work programmes with a view to assisting developing countries to achieve WSIS goals.

23. Thank You

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