Service Providers Operations in India ( Internet & Mobile)

1. Service Providers Operations in India ( Internet & Mobile)

2. Agenda • Policy Initiatives • Current Telecom Scenario • Security related provisions in Licenses • Internet Interception capability • Trends • Issues

3. Policy initiatives • 1985, the Department of Telecommunications was separated from Postal Department. • 1986, Videsh Sanchar Nigam Limited & Mahanagar Telephone Nigam Limited was created. • 1991 – Mobile sector opened for private participation (in Metros) • 1994 – Mobile (Circles) and Basic Services opened up • 1997 – Telecom Regulatory Authority of India created. • 1998 - Private Internet Service Providers at nominal license fees • 1999 – Migration to revenue share • 2000 – TDSAT Created NLD sector opened up Formation of BSNL • 2002 - BSNL launches nation-wide Cellular service. ILD Sector opened up, Internet Telephony allowed

4. Policy initiatives contd • 2003 - Unified Access Services License introduced • 2004 - Rationalization and further reduction of license fees Broadband policy announced • 2005 - FDI limit (Direct + Indirect) increased to 74% ILD / NLD regime liberalized • 2006 - One India Plan offering calls @Re 1/min introduced Scope of USO Fund was extended to Cellular Services • 2008 - New UAS providers introduced in each SA, • 2009 - 3G services a reality

5. Transformation From To • Monopoly service provider • Competitive regime with multiple players • STD tariff Rs.30/minute (1999) • Peak cellular tariff Rs.16/minute • Rs. 1.20 to Rs 2.40 per minute • Rs.1 to Rs 2 per minute • One India Re 1 per minute • Sub 1 Rs tariff also • 18 million fixed lines in March 1998 • Less than 0.1 million cellular in March 1998 • >37 million fixed lines (Jan 09) • >362 million mobile connections (Jan 09)

6. Current Telecom Scenario • 23 Licensed Service area • six mobile Service Providers • six more to become operational within next one year • proposal under active consideration to have five 3G service provider in addition to the 2G service provider • 37.75 million wire line subscriber (Jan 09, TRAI) • 362.30 million wireless subscriber(Jan 09 TRAI) • ISP • 5.64 million broadband customers, 12.24 million internet customers and 88.27 million wireless data customers

7. Security Provisions – CMTS/Internet • Right to modify - in public interest or in the interest of the security of the State or for the proper conduct of the service. • Right to Inspect • Requirement to furnish information • Providing facilities to counteract espionage, subversive acts, sabotage or any unlawful activity etc. • Right to monitor the traffic

8. Security Provisions – CMTS/Internetcontd • Availability of the subscribers list on password protected web site • Submission of the subscriber’s list at regular intervals • Services for proper and bonafide personal usage of the customer and photo verification of the customer must prior to provisioning of services • No tampering of CLI

9. Security Provisions – CMTS/Internetcontd • Approval for Remote Access • No RA to LIS/LIM, call content of the traffic or sector/data which may be notified by Licensor from time to time

10. CMTS/UAS – subscriber growth with security • One key factor in the exponential growth of mobile has been the creation of an extremely broad based retail distribution chain • It is estimated that there are over 7 lakh retailers/ points of sale from which mobile connections are being sold and this number is rising steadily • Ubiquitous availability of mobile connections is easily evident in cities & towns as panwallahs, small grocery shops, multi-purpose telecom centres, etc are all selling mobile connections across the counter • While easy availability of service has played an important role in its proliferation, it has also brought with it concerns on how that distribution chain is to be managed and controlled

11. CMTS/UAS – subscriber growth with security contd • Instructions regarding traceable identity, verification at subscription • The verification as per the instructions to be completed by March 2007 • TERM Cells have been asked to carry out the CAF audit • Results

12. CMTS/UAS – subscriber growth with security contd • Graded Financial penalty • Above 95% - Rs 1000/- • 90% to 95% - Rs 5000/- • 85% to 90% - Rs 10000/- • 80% to 85% - Rs 20000/- • Below 80% - Rs 50000/-

13. Internet Interception • Indigenously developed system • Implemented in phases • Intercepts traffic upto 1Gbps • Data/VoIP/Chat based on filtering criteria • 256 bit encryption between the client and server

14. Internet Interception-Filtering criteria • Data • Keywords/email IDs and/or IP Addresses • Segregation of intercepts into • Mail (SMTP and POP) , Web Pages , Web mail • Search within .doc, .pdf , .zip, .rar • Tools for displaying the intercepts in appropriate forms • Webmime • Mailreader

15. Internet Interception-Filtering criteria • VoIP • Caller/Called IDs/Phone Number and/or IP address • SIP and RTP ( H.323 under implementation) • With single click, Selected intercept is decoded, converted to .wav format and played back • Dual direction voice can be played differently or as a single conversation • Supports G.713, G.723, G.728, G.729, iLBC

16. Internet Interception-Filtering criteria • Chat • User IDs and/or IP Addresses • Yahoo, MSN/hotmail and rediff • Tools available for viewing the intercepted chat in conversation format

17. Telecom Trends • M N P • NGN • 3G services – video telephony • MVoIP

18. Issues • Outgoing calls in case of out-roamers may not be possible to be intercepted • IMEIs no longer hardwired • Verification of Identity( not 100%) • CLI not made available across the globe • International SIM Cards Renting/Selling • Private IP Addresses for the GPRS based services • Non availability of NIR • Time synchronisation

19. Key Takeaway • License provisions to take care of security • Existence of TERM Cells of DoT • Responsive to the Telecom trends • Scope for growth with security

20. Questions?

21. Thank you