Resolution of Key Issues by Government can Zoom Indian Consumer Broadband Market
by USD 6 Billion by 2016
1. Right To Broadband (RTB) Act. NTP 2012 envisages broadband for
all. In order to deliver the key objective of broadband for all to the citizens,
Right To Broadband (RTB) Act must be enacted on similar lines of Right To Education
(RTE) Act.
2. Broadband as a Critical National Infrastructure for Growth and Governance.
The nation recognizes basic infrastructure like roads, rail, ports, airports, power,
education, health care, agriculture, transportation, housing etc in its national
plan document and earmarks a suitable financial outlay. Broadband as per the “Broadband
Commission of the UN” has been already declared as an essential infrastructure
to accelerate growth and governance in all countries. Every 10 % broadband penetration
adds 1.38 % to the GDP of a country and paves the way for the delivery of much improved
government services to its citizens. Top 40 developed countries have already demonstrated
excellent growth and governance year after year. India needs to declare broadband
as a critical national infrastructure. The benefits extended to other infrastructure
projects also need to be extended to all types of infrastructure based upon wireless,
wire line, cable, satellite and fiber used for providing Broadband services.
3. Right Of Way (ROW). The greatest impediment to the creation
of the national critical broadband infrastructure is the ROW policy. Fortunately,
government has successfully streamlined ROW for NOFN as BBNL has signed the ROW
agreement with states and UTs. The provisions of the ROW agreement between BBNL
and states/UTs should also be extended to telcos and other companies building the
broadband infrastructure to give them a level playing field so that broadband infrastructure
proliferates quickly.
4. Open Access Infrastructure. There is a need to declare that
all broadband infrastructure, whether wire line or wireless, should be open access
so that costly access infrastructure is shared by all service providers to bring
down the total cost of generating and operating the broadband service which can
then be priced also cheap directly benefiting the end customer.
5. Nation wide Creation of Broadband Access Infrastructure. As
BBNL has been entrusted to create broadband infrastructure up to each Gram Panchayat
(GP), there is a need to create common passive access infrastructure like trenching,
ducting and fiber under the aegis of the states. The states invest in this and the
access service provider licensees lease the fiber from the states in accordance
with a uniform policy of tariffs laid down by the central government. Based upon
their demand perception, the access service provider licensees light up the fiber
and create the necessary access band width which is urgently needed to deliver broadband
service.
6. Last Mile Broadband Infrastructure. This should be made mandatory
for all real estate developers for all new housing projects just like water, electricity,
sewerage, colony roads, storm water drains etc. The builder charges onetime cost
from the owners and RWAs then take over the maintenance and organize the same through
the access service provider licensees just like they organize the maintenance of
infrastructure of water, electricity, sewerage etc through the civic bodies. Provision
of last mile broadband infrastructure is a must and no completion certificate is
issued to the builders without this.
7. CATV Industry (MSOs and LCOs). India has at least 100 million
homes already wired up for CATV. With world ’ s largest CATV digitization
exercise going on in the country, there is a need to ensure that this also enables
the carriage of non TV services apart from entertainment centric TV services. MSOs
can act as the whole sellers who appoint the LCOs as the retailers. A very viable
broadband infrastructure gets created by the interconnection of Telco’s carrier
grade core and edge network, MSOs access network and LCOs last mile network, all
of this in accordance with very practical interconnection regulation covering all
techno-commercial aspects. For 100 million digitized CATV homes, this paves the
way to serve true broadband to more than 420 million people assuming that there
are 4.2 members in a family as declared by the Chief Statistical Organization (CSO).
Such an arrangement would require a structural separation of carriage and content,
therefore, CATV industry of MSOs and LCOs for networks can be governed by the MICT
and for the content, and they are governed by the MIB.
8. Planning of Utility Ducts. To avoid repeated diggings and damages
to broadband/telecom infrastructure, all roads should be planned to provide for
trenching and ducting/piping/cabling of all utilities including broadband/telecom
lines.
9. Indian Consumer Broadband Market in 2016. If the government
addresses the above issues, India would have at least 100 million additional broadband
subs served by BWA, DSL and CATV by 2016. At a measly ARPU of USD 5, the Indian
consumer broadband market grows by additional USD 6 Billion.