ENGAGING WITH THE CHANGING GLOBAL ECONOMY AND ROLE OF CMAS – INDIAN TELECOM SECTOR

1. ENGAGING WITH THE CHANGING GLOBAL ECONOMY AND ROLE OF CMAS – INDIAN TELECOM SECTOR

2. Presentation Path 1.Indian Telecom Sector- An Overview 2. Key Performance Indicators of Telecom Service Sector in India 3. Role of Telecom Regulator ( TRAI) 4. Government Policy Overview 5. Role of CMAs in Telecom Sector

3. Indian Telecom Sector - An Overview

4. Indian Telecom Sector- An Overview • National Telecom Policy 1994 (NTP 1994), the first phase of liberalization in mobile telephone service started with issue of 8 licenses for CMTS in the 4 metro cities of Delhi, Mumbai, Calcutta and Chennai to 8 private companies in November 1994. The spectrum was bundled with the licence. • In 1995, further 34 CMTS licences were awarded in 18 Licensed Service Areas (LSAs). During this period a maximum of two licenses were granted for CMTS in each service area and these licensees were called 1st & 2nd cellular licensees. • In 1997, MTNL was given licences for Delhi and Mumbai and in 2000 BSNL was given licences for the rest of the country as 3rd licensee.

5. Indian Telecom Sector- An Overview(Cont’d…) • In 2001, entry of a fourth cellular operator in a service area was introduced. • In 2001, Basic Service Operators were permitted to provide mobility, using WLL technology, to their subscribers with wireless access systems limited within the local area. • In 2003, the Government introduced the Unified Access Service (UAS) licensing regime and permitted an access service provider to offer both fixed / mobile services under same licence and CPP regime introduced. • In 2010, first time spectrum was given through auction: for 2100 MHz (3G) and 2300 MHz (BWA) bands. • In 2012, National Telecom Policy, 2012 introduced Unified Licensing Regime. The spectrum delinked from the licence. • Auctions for spectrum in different spectrum bands (e.g. 800 / 900 / 1800 / 2100 / 2300 / 2500 MHz) - November 2012 to October 2016.

6. Indian Telecom Sector- An Overview(Cont’d…) • The National Digital Communications Policy, 2018 seeks to unlock the transformative power of digital communications networks - to achieve the goal of digital empowerment and improved well-being of the people of India. • The NDCP aims to accomplish the following Strategic Objectives by 2022: • Provisioning of Broadband for All • Creating jobs in the Digital Communications sector • Enhancing the contribution of the Digital Communications sector to India’s GDP • Propelling India to the Top Nations in the ICT Development Index of ITU. • Ensuring Digital Sovereignty • ICT(Information and communications technology)

7. Telecom Licensing • Unified Licence (UL): Authorisation under UL comprises for any one or more services listed below: • Access Service • Internet Service • National Long Distance (NLD) Service • International Long Distance (ILD) Service • Global Mobile Personal Communication by Satellite (GMPCS) Service • Public Mobile Radio Trunking Service (PMRTS) Service • Very Small Aperture Terminal (VSAT) Closed User Group (CUG) Service • INSAT MSS-Reporting (MSS-R) Service • Resale of International private Leased Circuit (IPLC) Service • Service specific telecom licenses granted prior to UL regime to continue. Government as a policy encourages service providers to migrate to UL. • UL (with authorizations) are granted for a period of 20 years.

8. Various Regulatory / Monitoring Agencies • Licensor (DoT) • Spectrum Management Authority (WPC, SACFA) • Technical Regulation (TEC) • Regulator (TRAI) • Dispute Settlement Tribunal (TDSAT) • Security Agencies (MHA) • Competition Commission (CCI)

9. Role of Regulator

10. Telecom Regulatory Authority of India (TRAI) • TRAI is an autonomous statutory body established under Telecom Regulatory Authority of India Act, 1997 to regulate telecom services, including fixation/revision of tariffs, interconnection and quality of service etc, of telecom services in India which were earlier vested in the Central Government. • Mission of TRAI is to create and nurture conditions for growth of telecommunications in the country in a manner and at a pace which will enable India to play a leading role in emerging global information society.  • Provide a fair and transparent policy environment which promotes a level playing field and facilitates fair competition. • TRAI issues Directions, Orders and Regulations to achieve its objectives and carry out its functions assigned under Section 11 of TRAI Act, 1997.

11. Functions of TRAI (a) Make Recommendations- either suomotuor on a request from the licensor, on • Need and timing for introduction of new service provider;  • Terms and conditions of licence to a service provider;  • Revocation of license for non-compliance of terms and conditions of license:  • Measures to facilitate competition and promote efficiency in the operation of telecommunication services so as to facilitate growth in such services.  • Technological improvements in the services provided by the service Providers.  • Type of equipment to be used by the service providers • Measures for the development of telecommunication technology and any other matter relatable to telecommunication industry in general;  • Efficient management of available spectrum; 

12. Functions of TRAI(Cont’d…) (b) Discharge the following functions: • Ensure compliance of terms and conditions of license;  • Fix the terms and conditions of inter-connectivity between the service providers;  • Ensure technical compatibility and effective inter-connection between different service providers.  • Regulate arrangement amongst service providers of sharing their revenue derived from providing telecommunication services;  • Lay down the standards of quality of service to be provided by the service providers and ensure the quality of service and conduct the periodical survey of such service provided by the service providers so as to protect interest of the consumers of telecommunication services; 

13. Functions of TRAI(Cont’d…) • Lay down and ensure the time period for providing local and long distance circuits of telecommunication between different service providers;  • Maintain register of interconnect agreements and of all such other matters as may be provided in the regulations;  • Keep register maintained under clause (viii) open for inspection to any member of public on payment of such fee and compliance of such other requirement as may be provided in the regulations;  • Ensure effective compliance of universal service obligations:  Any other functions including such administrative and financial functions as may be entrusted to it by the Central Government or as may be necessary to carry out the provisions of this Act: 

14. Key Performance Indicators of Telecom Service Sector in India

19. Wireless Subscriber Market Share As on 31.3.2018 Gross Revenue Market Share for FY 2017-18 data

22. Government Policy Overview

23. National Digital Communications Policy, 2018 • The objective of NDCP 2018 is to unlock the transformative power of digital communications networks - to achieve the goal of digital empowerment and improved well-being of the people of India. • The NDCP aims to accomplish the following Strategic Objectives by 2022: • Provisioning of Broadband for all • Creating 4 Million additional jobs in Digital Communications sector • Enhancing the contribution of the Digital Communications sector to 8% of India’s GDP from ~ 6% in 2017 • Propelling India to the Top 50 Nations in the ICT Development Index of ITU from 134 in 2017 • Enhancing India’s contribution to Global Value Chains • Ensuring Digital Sovereignty 23

24. NDCP 2018 - Missions • NDCP 2018 envisages three Missions: • Connect India: Creating Robust Digital Communications Infrastructure To promote Broadband for All as a tool for socio-economic development, ensuring service quality and environmental sustainability. • Propel India: Enabling Next Generation Technologies and Services through Investments, Innovation and IPR generation To harness the power of emerging digital technologies, including 5G, AI, IoT, Cloud and Big Data to enable provision of future ready products and services; and to catalyse the fourth industrial revolution (Industry 4.0) by promoting Investments, Innovation and IPR. • Secure India: Ensuring Sovereignty, Safety and Security of Digital Communications To secure the interests of citizens and safeguard the digital sovereignty of India with a focus on ensuring individual autonomy and choice, data ownership, privacy and security; while recognizing data as a crucial economic resource. 24

25. Connect India (Creation of Robust Digital Communication Infrastructure 25 • Universal broadband connectivity at 50 Mbps to every citizen • Provide 1 Gbps connectivity to all Gram Panchayats of India by 2020 and 10 Gbps by 2022 • 100 Mbps Broadband on demand to all key development institutions; including all educational institutions • Fixed line broadband access to 50% of households • Achieve ‘mobile subscriber density’ of 55 by 2020 and 65 by 2022 • Deployment of public Wi-Fi Hotspots; to reach 5 million by 2020 and 10 million by 2022 • Connectivity to all uncovered Remote & Hilly Areas

26. Strategies • Establishing a ‘National Broadband Mission – Rashtriya Broadband Abhiyan’ to secure universal broadband access (a) Implementation of the following broadband initiatives, to be funded through USOF and Public Private Partnerships: • BharatNet – Providing 1 Gbps to Gram Panchayats upgradeable to 10 Gbps • GramNet – Connecting all key rural development institutions with 10 Mbps upgradeable to 100 Mbps • NagarNet– 1 Million public Wi-Fi Hotspots in urban areas • Jan WiFi – Establishing 2 Million Wi-Fi Hotspots in rural areas (b) Implementing a ‘Fibre First Initiative’ to take fibre to the home, to enterprises and to key development institutions in Tier I, II and III towns. (c) Establishment of a National Digital Grid (d) Facilitate the establishment of Mobile Tower Infrastructure

27. Strategies (Cont’d..) (e) Improve international connectivity and reduce the cost of international bandwidth by facilitating setting up of International Cable Landing Stations. (f) Encourage sharing of active infrastructure by enhancing the scope of Infrastructure Providers (IP) and promoting and incentivizing deployment of common sharable, passive as well as active, infrastructure. (g) Creating a Broadband Readiness Index for States/ UTs to attract investments and address RoW challenges. (h) Encouraging investment in broadband infrastructure through fiscal incentives ( accelerated depreciation and tax incentives). (i) By encouraging innovative approaches to infrastructure creation and access including through resale and Virtual Network Operators (VNO) (j) Promoting broadband connectivity through innovative and alternative technologies.

28. Strategies (Cont’d..) 2 Recognizing Spectrum as a key natural resource for public benefit to achieve India’s Socio-economic goals by: (a) Developing a transparent, normative and fair policy for spectrum assignments and allocations (b) Making adequate spectrum for the new broadband era: I. Identifying new Spectrum bands for Access and Backhaul segments for new networks (5G). II. Making available harmonized and contiguous spectrum for deployment of next generation access technologies. III. Liberalizing the spectrum sharing, Leasing and Trading. IV. Coordinating with Government departments for freeing underutilized / substitutable spectrum. V. Optimal Pricing of Spectrum to ensure sustainable and affordable access to Digital Communications. VI. Simplifying the process of permissions from various agencies(WPC and SACFA) in order to promote efficiency.

29. Strategies (Cont’d..) vii. Enabling Light Touch licensing/ de-licensing of spectrum for broadband proliferation viii. Promoting the co-use/ secondary use of spectrum ix. Constituting a Spectrum Advisory Team (SAT) consisting of experts, industry and academia to facilitate the identification of new bands, applications and efficiency measures to catalyse innovation and efficient spectrum management 3. Strengthening Satellite Communication Technologies in India (a) Review the regulatory regime for satellite communication technologies, including: Revising licensing and regulatory conditions that limit the use of satellite communications, such as speed barriers, band allocation, etc. i. Simplifying compliance requirements for VSAT operators to ensure faster roll out. ii. Expanding scope of permissible services for the effective utilisation of High Throughput Satellite systems through appropriate licensing mechanism.

30. Strategies (Cont’d..) 4. Strengthening Satellite Communication Technologies in India (A)Establishing effective institutional mechanisms to protect consumers’ interests including: (i) Telecom Ombudsman. (ii) A centralized web based Complaint Redressal System, (B) Focusing on public health and safety standards to promote the well- being of citizens: (i) Generating awareness around Electro Magnetic Fields Emissions based on international experience and global best practices. (II) Generating awareness on hazards of e-waste and encouraging proper disposal management of equipment used.

31. Strategies (Cont’d..) 5 Propel India: Enabling Next Generation Technologies and Services through Investments, Innovation, Indigenous Manufacturing and IPR Generation : Attract investments of USD 100 Billion in the Digital Communications Sector . Increase India’s contribution to Global Value Chains . Creation of innovation led Start-ups in Digital Communications sector. Creation of Globally recognized IPRs in India. Development of Standard Essential Patents (SEPs) in the field of digital communication technologies. Train/ Re-skill 1 Million manpower for building New Age Skills. Expand IoT ecosystem to 5 Billion connected devices

32. Strategies (Cont’d..) 6. Secure India: Ensuring Digital Sovereignty, Safety and Security of Digital Communications - 2022 Goals: a. Establish a comprehensive data protection regime for digital communications that safeguards the privacy, autonomy and choice of individuals and facilitates India’s effective participation in the global digital economy b. Ensure that net neutrality principles are upheld and aligned with service requirements, bandwidth availability and network capabilities including next generation access technologies c. Develop and deploy robust digital communication network security frameworks d. Build capacity for security testing and establish appropriate security standards e. Address security issues relating to encryption and security clearances f. Enforce accountability through appropriate institutional mechanisms to assure citizens of safe and secure digital communications infrastructure and services

33. Expectations National Digital Communications Policy, 2018 will facilitate the unleashing of the creative energies of Citizens, Enterprises and Institutions in India; and play a seminal role in fulfilling the aspirations of all Indians for a better quality of life.

34. Role of CMAs in Telecom Service Sector

35. Role of CMAs In Telecom Sector • Valuation and Pricing of Spectrum for Wireless Services • Determination of Interconnection Usage/ Termination Charges • Preparation of Accounting Separation Reports • Audit of Metering and Billing System under TRAI’s Quality of Service (Code of Practice for Metering and Billing Accuracy) Regulations • Cost audit of Telecom Service Sector Companies • Analysis of Predatory Pricing ( Computation of AVC) • Spectrum Audit

37. Anil Kumar Dhingra Joint Advisor (F&EA) Telecom Regulatory Authority of India THANK YOU