Académique Documents
Professionnel Documents
Culture Documents
Contents
FICCI foreword
EY foreword
Industry associations
Prominent contributors
Executive summary
12
14
15
16
19
2. Telecom services
2.1 Telecom growth and current market landscape
2.1.1 Market landscape
25
27
28
30
30
37
3. Telecom infrastructure
3.1 Telecom towers
44
45
3.1.1 Introduction
45
46
51
52
52
24
56
57
57
58
60
60
61
66
68
70
71
71
71
72
77
77
79
80
5.3.1 Introduction
80
81
83
88
89
6.1.1 Introduction
89
90
90
91
94
94
6.2.2 M2M: challenges in the current scenario and the way forward
97
Summary of recommendations
102
Glossary
111
Foreword
FICCI
The Federation of Indian Chambers of Commerce and Industry (FICCI), in association with knowledge partners EY, is
proud to present the report Speeding ahead on the telecom and digital economy highway. The report aims to identify
opportunities and lay down the impediments affecting the growth of the telecom sector, with a view to aid policy
makers in ironing out these challenges.
Over the last decade, the growth of the entire telecom ecosystem has significantly propelled the growth of digital
quotient in the country, and, in turn, positively affected the lives of a vast majority of Indias population. With more
than 960 million subscribers, telecom services have reached some of the remotest areas in the country acting as an
enabler for the masses.
The digital revolution now stands at the cusp of a transformation, with the new government laying out its vision of
a digitally enabled India. The multi-faceted Digital India program aims to transform the country into a knowledge
economy using technology for delivery of various government services and initiatives. The success of this program is
likely to ride on the back of strong telecom ecosystem and its allied industries in the value-chain.
However, impeding issues on the policy and regulatory front, have the potential to decelerate the growth of the entire
digital value chain. With a view to enable the next stage of digital revolution, this report outlines a roadmap for the
resurgence of the telecom sector and lays out some pertinent, specific, and actionable recommendations. It highlights
the role of each contributor in the ecosystem and the challenges faced by them. We hope this report will help in
advancing government and industry cooperation to drive the next wave of telecommunications and internet growth.
We thank the contributors from FICCI Communications and Digital Economy Committee and participants from the
industry for their valuable contributions and for sharing their perspectives.
EY
EY, in association with the Federation of Indian Chambers of Commerce and
Industry (FICCI), is pleased to present the report - Speeding ahead on the telecom
and digital economy highway. The report delves into the challenges faced by
Indias telecom industry and its associated sectors set against the backdrop of the
Governments push to propel India toward a digitally empowered future. The report
aims to highlight key focus areas to give an impetus to the industry, and makes
actionable recommendations to realize the dream of a Digital India.
The rising digital quotient of the country has transformed the way we live and
communicate, and further advancement in the telecom industry is expected to
drive the next phase of economic growth in India. The role of telecom and allied
services in the country has expanded significantly from it being a provider of vanilla connectivity to becoming an
instrument of socio-economic transformation. The resultant benefits transcend sectors.
In the past year Government has initiated measures to advance communication infrastructure, enhance connectivity
and drive the adoption of internet. The launch of Digital India program an ambitious and robust blue-print for
transforming the digital identity of the country and the thrust on smart cites are expected to be game changers.
Likewise, Governments flagship Make in India initiative to boost the manufacturing ecosystem in the country is
expected to aid the telecom and IT equipment-manufacturing in the country.
However, challenges continue to exist. Prevailing uncertainties in the regulatory landscape, delays in resolution
of pertinent issues, non-availability of adequate spectrum for the launch of next-gen services, and the structural
imbalances in taxes and levies imposed have the potential to dampen the growth momentum of the sector.
Furthermore, the advent of new service delivery models, and their impact on the industry and the ecosystem need
deliberation.
Looking ahead, timely resolution of issues, as well as continuous investment in communication infrastructure and its
upgrade is vital for promotion of sustainable and inclusive growth in the country. A favorable and stable regulatory
environment, coupled with increased transparency, is critical for attracting investments to the sector. An empathetic
perspective of challenges faced by service providers is also important for restoring its vitality.
This report highlights some of the key impediments faced by the industry and elaborates on the evolution of policies
required to address these issues. It aims to capture inputs from a wide range of stakeholders encompassing telecom
service providers, infrastructure providers, social media and internet players, handset manufacturers, and industry
associations and practitioners.
I take this opportunity to express my gratitude to industry members who debated the issues and helped us formulate
actionable recommendations. I would also like to thank FICCI Communications & Digital Economy Committee for its
involvement and support, especially for facilitating interactions with its members, which helped us significantly in
gathering valuable insights and framing a point of view.
I hope you find this report interesting and informative.
Prashant Singhal
Global Telecommunications Leader
EY
Methodology
While preparing this report, EY collaborated with the FICCI
Communications and Digital Economy Committee and
conducted comprehensive meetings and interviews with
senior executives of Indias Information and Communications
Technology (ICT) sector. The interviews provided a first-hand
perspective of challenges faced by various stakeholders in
the sector. The findings have been combined with extensive
secondary research, analysis and insights provided by EY.
The recommendations have emerged from input provided by
senior executives across the entire telecom and digital economy
Acknowledgement
EY report development team:
Gaurav Kapoor, Gunpreet Singh, Kanika Kakar, Mayur Sachdeva, Pragya Joshi, Runa Dasgupta, Swapnil Srivastava,
Swati Mahajan, Yukti Mittal
Industry associations
Federation of Indian Chambers of Commerce and Industry
(FICCI): Established in 1927, FICCI is the oldest and largest
apex business organization in India. Its history is closely
interwoven with the countrys struggle for independence and
its subsequent emergence as one of the most rapidly growing
economies in the world. FICCI plays a leading role in policy
debates that are at the forefront of social, economic and
political change. Its stand on policy issues is sought by think
tanks, governments and academia and its publications are
widely read for their in-depth research and policy prescriptions.
FICCIs direct members are from the private and public
sectors, including from SMEs and MNCs, and it has an indirect
membership of more than 250,000 companies from regional
chambers of commerce.
Cellular Operators Association of India (COAI): Established
in 1995, COAI is a registered, non-profit, non-governmental
society dedicated to advancement of modern communication
through the establishment of a world-class cellular
infrastructure. Over the years, COAI has emerged as the official
voice of the Indian GSM Industry and interacts directly with
ministries, policy-makers, regulators, financial institutions
and technical bodies. It provides a forum for discussion and
exchange of ideas between these bodies and service providers,
who share a common interest in development of cellular mobile
telephony.
Association of Unified Telecom Service Providers of India
(AUSPI): Constituted in 1997, AUSPI is a registered society
that works as a non-profit organization with the aim of
delivering improved access to, coverage of and teledensity in
India. It is the representative industry body of unified access
service licensees providing CDMA and GSM mobile, fixed line
and value-added services across the country.
Prominent contributors
Virat Bhatia
Rajat Mukarji
Chairman
Communications & Digital Economy Committee
FICCI
Co-Chairman
Communications & Digital Economy Committee
FICCI
Ankhi Das
Sandeep Bhargava
Ashok Sud
T R Dua
Naveen Tandon
Vijay Madan
Pankaj Mohindroo
Vikram Tiwathia
Rajan Mathews
Vivek Vasishtha
Director India Corporate Affairs, Nokia and Cochair of FICCI subcommittee on Handset, Equipment
& Solutions
We are grateful for the contribution of the above listed members as well as a broad array of industry experts whose insights and
perspectives were highly valuable in drafting the report.
Speeding ahead on the telecom and digital economy highway |
Make in India
e-governance
BharatNet
Digital India
Internet governance
Cyber security
Internet of things
Fiber roll-out
Spectrum roadmap
Executive summary
Summary of recommendations:
Financing needs
Spectrum availability
Local manufacturing
Source: DeitY
US
40,000
Russia
Brazil
20,000
China
India
0
0
20
40
60
ICT Development Index Rank
80
100
120
140
Effect of investment in
ICT infrastructure
Spillover effect of job opportunity creation and increased efciency in other industries
Creation of high skill-sets and high-paying jobs and strengthening of small and medium enterprise segment
Development of ICT workforce with knowledge and skills to export technology to trade partners
Improvement of national and global commerce through easier and faster creation, distribution
and consumption of information
Improved international competievness
Source: EY analysis
ce
n
a
H
ealthcare worker education
H
ealth record maintenance
R
educe default for medicines
Go
ve
ce
an
rn
Go
ve
rn
ICT in education
ICT in agriculture
nline courses/self-learning
O
solutions
D
istance learning programs
O
nline vocational trainings
T
eaching aids
T
eacher re-training
ICT
L
ive market rates and information
B
est practices and farmer education
W
eather forecast update
R
educe supply chain inefficiencies
M
icro-insurance for crops
R
emote irrigation
ICT in finance
H
eightened financial access
G
overnment subsidy schemes
m
-payment/m- transactions
R
emittances
M
icro insurance
S
mall scale savings account
G
Source: EY analysis
G
o
ve
r
n
an
nce
a
rn
e
ov
ce
Universal access to
mobile connectivity
Pillar 1
eKranti electronic
delivery of services
Pillar 5
Public internet
access program
Pillar 2
Pillar 6
E-governance:
reforming
government through
technology
Pillar 3
Electronics
manufacturingtarget net zero
imports
Pillar 7
Pillar 4
IT for jobs
Pillar 8
Early harvest
programs
Pillar 9
Source: DeitY
Broadband in 250,000
villages, universal phone
connectivity
400,000 public internet access points
Wi-Fi in 250,000 schools, all
universities; public Wi-Fi
hotspots for citizens
Source: DeitY
Source: Note1: CIA World Factbook, July 2014 estimate; Note2: ITU, 2013; Note3: per 100 inhabitants, ITU, 2013; Note4: by population, Ovum, 2013; Note5: by
population, Ovum, 2013; KPCB internet trends 2014; Factiva; Smart City Index & Development, Institute for Information Industry - Taiwan, 2010; EY analysis
22 | Speeding ahead on the telecom and digital economy highway
2. Telecom services
Teledensity (%)
1,200
78.7%
621.3
80%
846.3
951.3
898.0
933.0
987.3
40%
20%
429.7
FY09
100%
60%
37.0%
400
78.7%
52.7%
800
200
75.2%
70.9%
1,000
600
73.3%
FY10
FY11
Subscribers
FY12
FY13
FY14
Feb-15
0%
Teledensity
Source: TRAI
41.4%
58.6%
Urban
Rural
Source: TRAI
INR billion
2,500
2,000
18.0%
1,523.6
1,500
1,000
1,579.8
1,716.6
8.7%
1,954.4
2,125.9
2,338.2
20%
15%
13.9%
8.8%
10.0%
1,253.7
3.7%
5%
500
0
FY09
FY10
10%
FY11
FY12
FY13
FY14
Source: TRAI
*till September 2014
FY15*
0%
1,200
100%
1,000
68.0%
800
600
70.9%
72.9%
76.6%
49.6%
391.8
FY09
584.3
FY10
80%
60%
33.7%
400
200
76.0%
811.6
919.2
867.8
904.5
960.6
40%
20%
FY11
Subscribers
FY12
FY13
FY14
Feb-15
0%
Wireless teledensity
Source: TRAI
Wireline
Indias wireline market has been reporting a constant decline
for more than a decade now. The growth in the demand for
wireless services, coupled with low-cost access to wireless
devices and affordable tariffs, have significantly reduced the
attractiveness of wireline services for consumers. Wireline
teledensity stood at a low 2.1% at the end of February 2015.8
However, demand for wireline services has witnessed renewal
of some interest in the recent past given its importance in
broadband delivery. Some of the private players have reported
healthy addition of wireline subscribers, along with an uptick in
APRU, led by a demand for high speed broadband.
Ibid
Telecom Regulatory Authority of India
7
8
Subscribers (million)
50
40
20%
38.0
37.0
34.7
15%
32.1
30.2
30
20
-3.6%
-2.6%
-6.2%
28.5
Source: TRAI
5%
-5%
10
0
10%
0%
-5.7%
-5.9%
-7.5%
26.7
-10%
FY09
FY10
FY11
Wireline Subscriber
FY12
FY13
Growth Rate
FY14
Feb-15
-15%
210.4
198.4
188.2
176.5
164.8
143.2
Mar-13
Jun-13
Sep-13
259.1
254.4
251.6
238.7
240.6
235.7
233.1
220.4
Dec-13
Jun-14
Sep-14
Source: TRAI
Mar-14
Supply side
constraints
Availability of
services
Speed of
service
Non-availability
of adequate
spectrum and
backhaul carriers
Demand side
constraints
Awareness
Affordability
Attractiveness
Lack of
compelling
and relevant
content
Lack of backhaul
transmission
facilities
Source: EY analysis
15.9%
84.1%
Wired broadband
Wireless broadband
Source: TRAI
13
14
3G and 4G
The Government of India has recognized the importance of
wireless broadband and the 3G/BWA auction in 2010 was a
significant step for the Indian telecom sector. 3G services,
which were launched in 2010, were slow to gain traction in
initial years. However, the past two years have seen strong
upswing in demand for 3G, with all operators reporting strong
growth both in terms of subscriber addition and data usage.
Given the demand, the Government had taken the decision
of releasing additional spectrum in the 2100MHz band in
the recently concluded auction (March 2015). Moreover, the
spectrum swap agreement signed between Department of
Telecom and the Ministry of Defence, which will bring 15MHz
of additional 2100MHz spectrum into commercial use is a
noteworthy achievement. Furthermore, operators have started
evaluating the use of their liberalized spectrum holdings in the
900MHz band for the launch of 3G services. 900MHz band can
be instrumental in expanding the 3G services to the hinterland,
given its superior propagation characteristics.
4G services in India were launched in 2012, and the current
year is likely to witness large scale 4G roll-out from some key
players, with the momentum expected to build in the coming
years. Earlier, only operators that won spectrum in 2300MHz
in 2010 could launch 4G services. However, the auction of
technology neutral spectrum in February 2014 and March
2015 is likely to change the landscape of 4G in India. These
auctions saw operators winning spectrum in 800MHz and
1800MHz bands, two amongst the most developed bands for
launch of long-term evolution (LTE) services.
Furthermore, the auction of 700MHz digital dividend band
in the next couple of years will also boost availability of 4G
services in the market. However, the ability of 4G services to
disrupt the existing market dynamics will hinge on several
factors including price sensitivity of services, strength of
the supporting ecosystem and the capability to deliver voice
services.
On the demand side, affordability of services and availability
of relevant local content are expected to generate a significant
pull. India, with its young and increasingly urban population
base, has huge potential for growth. Moreover, growing usage
of smartphones, especially in urban areas, is driving usage of
internet on hand-held devices.
1.5
1
0.98
1.25
1.26
0.26
0.29
FY13
FY14
0.93
0.69
0.5
0.11
0
FY11
Public sector
0.17
FY12
Private sector
16
Total
Source: TRAI
Telecom industry cracking under financial pressure, The Hindu, 11 July 2013; Telecom Regulatory Authority of India; EY Analysis
Cellular Operators Association of India
15
1.74
License fees
Spectrum
fees
Total license
and spectrum
fee pay-outs
AGR
License and
spectrum
fees as a
percentage of
AGR (%)
201112
201213
201314
117.9
114.6
146.3
51.9
56.8
68.1
169.8
171.4
214.4
1,345.90
1,407.80
1580.4
12.6
12.2
13.6
*Anticipated
Source: DoT, TRAI
Key recommendations
Key recommendations
Although the USOF was created with the aim of promoting rural
telephony, the funds rules are too cumbersome and lack focus.
They do not reflect the fact that USOF subsidies are perhaps
most urgently required to defray the cost of infrastructure
creation in rural areas. Moreover, the high levy of 5% (one of
the highest among Indias peers) continues to be imposed in
the country, even though the fund contains INR356.1 billion of
unutilized accumulated funds.24
USOF funds contribution for select Asian countries
Country
India
Nepal
Pakistan
Bangladesh
Afghanistan
Source: GSMA
12.9
61.1
57.8
55.2
54.1
16.0
37.0
31.0
24.0
16.9
0
FY08
FY09
FY10
FY11
Funds collected
*till 31 December 2014
Source: USOF website
32 | Speeding ahead on the telecom and digital economy highway
79.0
67.4
67.2
FY12
Funds disbursed
21.6
6.3
FY13
FY14
17.8
FY15*
Country
Comments
Consultation with
stakeholders
Ghana
Board of trustees for fund includes a representative from each major telecom
operator.
Canada
Operators have representation in and their input is sought by the fund oversight
committee.
Detailed public consultations are conducted.
Autonomous/
Independent fund
structure
Nigeria
Columbia
The country has in place a four-year plan with detailed project descriptions,
targets and associated costs.
Peru
Columbia
Nigeria
Source: GSMA
Key recommendations
U
SOF needs to be eliminated or reduced to 1%3%.
unds collected under USOF need to be utilized
F
efficiently.
nilateral application of additional requirement of BHQ
U
coverage needs to be revisited.
23
24
Key recommendations
Recommendations on components of adjusted gross revenue (AGR), TRAI, September 2006, page 1.
Twelfth Five Year Plan, Planning Commission, 2012.
27
Ibid.
25
26
Figure 19: Twelfth Five Year Plan projections on investment in the telecom sector
Twelfth Plan projections (INR billion)
Total
Eleventh
Plan
201213
201314
2014-15
201516
201617 Total
Twelfth Plan
1.5
1.4
1.4
1.4
1.3
Centre
8.6
Private
29.8
12.1
16.2
21.6
28.1
87
Total
Telecommunications
38.4
10.5
13.5
17.6
23
29.4
94
2,558
2,832
2,554
2,500
1,997
2,000
1,500
1,665
9.3%
9.8%
1,000
1,307
8.6%
FY10
FY11
FY12
10%
304
1.3%
FY09
15%
5%
5.3%
5.4%
500
11.1%
FY13
FY14
FY15*
0%
%
CAGR: 13
5,000
5645.6
5625.2
FY13
FY14
4164.2
4,000
3,000
4792.7
5255.6
3377.0
2400.0
2750.0
2,000
1,000
0
FY07
FY08
FY09
FY10
FY11
FY12
Source: TRAI
Key recommendations
Key recommendations
Spectrum at a
reasonable price
to maximize
participation and
set fair market
price
Auction of all
available
spectrum
Charges for
nominal
spectrum usage
Harmonized
band plans
Efcient delivery of
affordable and high-quality
services
Auctions: 2100MHz
May 2010
November
2012
Pan-India reserve price (per MHz): 800MHz INR36.4b, 1800MHz INR28 billion
Auction highlights: High reserve price; limited participation driven by need to ensure business continuity
Auction result: Unsuccessful outcome with no bids in 800MHz and only 47.2% spectrum sold in 1800MHz
March 2013
Pan-India reserve price (per MHz): 800MHz INR18.2b, 900MHz* (Delhi (INR7.8 billion), Mumbai (INR7.6
billion), Kolkata (INR1.8 billion)), 1800MHz INR23.6 billion
Auction highlights: Participation from just one operator (despite cut in reserve price); no bidding in 900MHz
and 1800MHz bands
Auction result: Second successive failed auction: 800MHz 31.6%, 900MHz No bids, 1800MHz No bids
February
2014
Pan India reserve price (per MHz): 900MHz* (Delhi (INR3.6 billion), Mumbai (INR3.3 billion), Kolkata (INR1.3
billion)), 1800MHz INR17.6 billion
Auction highlights: Rationalization of prices; strong biding in Delhi, Mumbai and Kolkata; focus on future
proong investments
Auction result: Bulk of spectrum sold 100% in 900MHz and 79.8% in 1800MHz
March
2015
Pan India reserve price (per MHz): 800MHz (20 circles) INR34.2 billion, 900MHz (17 circles) INR34 billion,
1800MHz (15 circles) INR14.3 billion, 2100MHz (17 circles) INR35.1 billion
Auction highlights: Operator focus on safeguarding business continuity resulting in excessive bidding in 900MHz
band; muted participation in 2100MHz; bidding in 800MHz led by superior LTE ecosystem in the band
Auction result: Bulk of spectrum sold 83.1% in 800MHz, 94.5% in 900MHz, 94.6% in 1800MHz, 82.3% in
2100MHz
Department of Telecommunications
28
Key recommendations
Figure 24: International comparison quantum of spectrum distributed within bands (MHz)
800MHz
900MHz
Australia
2 x 45MHz
Germany
2 x 30MHz
2 x 34.8MHz
Malaysia
2 x 35MHz#
Singapore
2 x 30MHz#
1800MHz
2100MHz
2 x 60MHz
2 x 60MHz, 20MHz
unpaired
2 x 70.2MHz
2 x 59.4MHz, 34.2MHz
unpaired
2 x 75MHz
2 x 60MHz, 20MHz
unpaired
2 x 75MHz
2 x 59.4MHz, 15.1MHz
unpaired
UK
2 x 30MHz
2 x 34.8MHz
2 x 71.6MHz
2 x 60MHz, 20MHz
unpaired
India*
2 x 12.5MHz
2 x 22.2MHz
2 x 40MHz
2 x 20MHz
* The spectrum holding for Delhi circle have been considered as on 31st January 2015
#
E-GSM has been deployed
Source: Wireless Planning Commission, EY analysis
65
50
49
39
28
18
Oceania
Source: TRAI
Europe
Global
average
Asia
Americas Africa
India
Delhi
95
41
54
Mumbai
95
52
43
Kolkata
95
41
54
Maharashtra
95
43
52
Gujarat
95
41
54
A.P.
95
39
56
Karnataka
95
41
54
Tamil Nadu
95
41
54
Kerala
95
35
60
10
Punjab
95
36
59
11
Haryana
95
33
62
12
UP (West)
95
37
58
13
UP (East)
95
37
58
14
Rajasthan
95
37
58
15
Madhya Pradesh
95
31
64
16
West Bengal
95
30
65
17
Himachal Pradesh
95
34
61
18
Bihar
95
36
59
19
Orissa
95
30
65
20
Assam
95
32
63
21
North East
95
32
63
22
J&K
95
31
64
2090
810
1280
Key recommendations
Balance
available
carriers
Total
Total
allotted
number
of carriers carriers
available
Total
Source: TRAI
Key recommendations
Key recommendations
Key recommendations
TE uses an Orthogonal Frequency Division Multiple Access (OFDMA) radio interface that requires large and contiguous
L
blocks of spectrum to operate efficiently.
FDMA technology leverages wider bandwidths to enable high data rates and thereby provide an excellent user experience.
O
A bandwidth of 10MHz or more is best suited for deployment of LTE services.
wide channel allows licensees to take full advantage of future enhancements to LTE, while increasing their spectral
A
efficiency.
he cost of deploying LTE services increases with the declining block size of contiguous spectrum. For instance, LTE
T
networks in 2x10MHz spectrum channels cost twice as much to deploy as services in 2x20MHz channels.
2x20MHz
$1X
2x15MHz
$1.3X
2x10MHz
$2X
2x5MHz
$4X
3. Telecom infrastructure
Focus on
optimization
of energy
FY09
407
411
421
328
364
1.70
1.70
1.85
1.91
1.90
FY10
FY11
FY12
FY13
FY14
Number of towers
Source: TAIPA
Refarming of spectrum
Ratio
1.30
Focus on
operational
improvements
280
Continued
sharing
of passive
infrastructure
Growth drivers
500
400
300 250
200
100 0.90
0
FY08
Shift to xed
energy
models
Tenancy ratio
3
2
1
0
34
35
36
Key recommendations
Source: TAIPA
Currently, high RET targets have been set for the industry,
which require considerable investments. Given that the
industry is already under significant debt, arranging
finance for RET is extremely difficult. According to
the DoT's estimates, the total investment required for
implementation of RET in three years (20132015) is
around INR337.5 billion, and in eight years (20132020)
is around INR576.0 billion.39 To achieve this, the industry
will need financing and funding options through various
sources.
Accelerated depreciation
Key recommendations
0.3 million towers to be powered by RET by 2020 (totaling to approximately 3GW capacity)
RET
CO2
This is thrice the current installed solar power in India; current installed solar capacity is 1GW.
This is more than Indias cumulative off grid solar application target under the Jawaharlal Nehru
National Solar Mission (which is of 2GW).
Monthly run rate to achieve a target of 0.2 million towers powered by RET by December 2015 will require
thousands of RET installations per month.
Carbon footprint reduction targets
50% in rural areas and 34% in urban areas by 2020 (through carbon credit policy)
Source: TAIPA
43
44
Key recommendations
12.7%
8.9%
4.0%
With NBP
Without NBP
Average level of xed broadband penetration
Average level of mobile broadband penetration
Source: ITU
Revival plan:
Customer Service - Frequently Asked Questions, BBNL website, http://www.bbnl.nic.in/content/faq.php, accessed 27 April 2015.
Ibid.
50
Ibid.
51
NOFN: The calculation that went wrong, Business Standard, http://www.business-standard.com/article/economy-policy/nofn-the-calculation-that-wentworng-113120700742_1.html, accessed 4 March 2014.
52 | Speeding ahead on the telecom and digital economy highway
48
49
Primary investment models used for an infrastructure deployment project include the ownership model (highest level of government
involvement), PPP model (government partnering with private players) and financial incentive model (government mainly acting as a
facilitator by providing incentives to public and private sector companies to deploy infrastructure).
Means of nancing broadband plans globally (2012)
48%
PPP
33%
Others
Source: ITU
25%
25%
19%
Universal
service fund
Government grants
of other direct
nancial subsidies
Dedicated
broadband
development fund
According to industry studies, a strong partnership between the Government, industry and other stakeholders is likely to significantly
facilitate deployment of broadband. Although governments must lead the way in developing national plans, success also depends
on the active support of a broad ecosystem of public and private entities such as telecom service providers, banks and financial
institutions, business organizations, and ICT equipment and infrastructure providers. Policy-makers should involve these stakeholders
in a consultative and participatory approach.
Examples of PPP for broadband development in Latin America
Country
Partners
Area of collaboration
Colombia
Brazil
Chile
PPPs can be utilized as a mutually beneficial model to deliver NBP goals and objectives
Sources: DoT; ITU; National Broadband Plans Show a Diversity of Methods but a Unity of Purpose, Pyramid Research, December
2011.
Key recommendations
4.1. Introduction
Mobile handsets have played an integral part in the overall
evolution of the mobile ecosystem in the country and have
become agents of socio-economic transformation. Reduction
of handset prices and increased affordability of services can be
deemed critical success factors for the bourgeoning growth of
wireless telephony. Currently, mobile handsets have evolved
from communication-centric devices to all-encompassing
communication devices that are no longer considered a luxury.
In future, mobile handsets and mobile tablets are expected
to play a significant role in bridging the digital divide and
connecting the country. Apart from being the primary
communication medium for people, mobile devices are finding
numerous uses across various domains. They are being used for
banking transactions, making payments, as an educational and
multi-media tool and for spreading governance. In addition, a
mobile device is also an information dispersal platform across
verticals such as agriculture and health care.
2,409
2,315
2,300
2,122
2,305
2,327
2008
2009
2010
2011
2012
2013
3,279
2,778
2014F
2015F
265
301
345
2008
2009
2010
382
2011
461
2012
570
2013
2014F 2015F
110
2008
130
2009
180
150
2010
2011
200
2012
245
2013
270
305
2014F 2015F
Value (billion)
1500
200
1200
150
900
100
600
50
300
2011
2012
2013
2014F
2015F
2016F
2017F
2018F
2019F
2020F
Demand for data and 3G/4G services: The demand for mobile
data has grown exponentially, with ~92.6% of the total 254.4
million internet subscribers in the country accessing data from
mobile devices.52 Moreover, with the countrys large population
becoming keypad literate, and demand for internet becoming
ubiquitous, the appetite for internet-enabled handsets and
tablets is expected to improve further.
Adoption of 3G services is expected to be another driver of the
demand for handsets. Although current 3G penetration remains
low, the demand for the service has gained pace, and the prices
of the service have come down sharply. All these are expected
to drive adoption of the service. Additionally, operators are
making considerable investments to roll out 3G sites and are
aggressively promoting the service to monetize it. India is also
expected to witness large scale rollout of 4G services this year.
Changing consumer preferences: The Indian market has seen
a marked shift in consumers preferences. Consumers are
willing to spend more than earlier to buy mobile devices, and
are demanding fully loaded feature-phones and smartphones.
Indias handset market has also evolved in terms of consumer
behavior. The frequency with which users change their devices
has increased significantly. Going forward, the replacement
market is expected to account for the bulk of handset sales in
the country. In 2013, the handset replacement market was
estimated to be around 80% of the total market.53
Innovative sales strategies: Innovative sales strategies
such as EMI schemes and exchange offers have increased the
affordability of high-end smartphones for consumers. There is
also an increasing trend of handset manufacturers partnering
with online retail platforms to help increase sales and reduce
time to market.
Rate as on 1 Apr15
State
NIL
Kerala
Rate as on 1 Apr15
5.00%
Andhra Pradesh
5.00%
Lakshadweep (UT)
NIL
Arunachal Pradesh
4.00%
Madhya Pradesh
13.00%
5.00%
Maharashtra
12.50%
14.50%
Manipur
5.00%
Bihar
5.00%
Meghalaya
5.00%
Chandigarh (UT)
5.00%
Mizoram
5.00%
5.00%
Nagaland
5.00%
14.00%
4.00%
4.00%
13.50%
4.00%
Puducherry (UT)
5.00%
5.00%
Punjab
9.35%
12.50%
Rajasthan
8.00%
Sikkim
4.00%
Tamil Nadu
5.00%
Goa
Gujarat
5.00%
15.00%
5.25%
Tripura
5.00%
8.00%
5.00%
Himachal Pradesh
5.00%
14.00%
5.00%
Uttarakhand
4.50%
Jharkhand
5.00%
5.00%
Karnataka
5.50%
14.50%
54
Key recommendations
Budget 2008 2009, India Budget website, http://indiabudget.nic.in/ub2008-09/bs/speecha.htm, accessed 20 March 2014.
Indian Cellular Association
57
Government sets up task force to revive domestic mobile manufacturing, India in Business website, http://indiainbusiness.nic.in/newdesign/index.
php?param=newsdetail/10473, accessed on 24 April, 2015.
58
Ibid.
55
56
188
50 55
70 68
130
130
105
90 80
85.0
225
585.5
258
73
14
2008
2009
2010
2011
Import
2012
2013
2014F
757.5
259
0
2015F
2008
2009
252
153
2010
120
2011
120
2012
Import value
Export
422
346
118.5
2013
24.5
2014F 2015F
Export value
Make in India
While the service sector in India has evolved at a frantic
pace, the manufacturing sector has failed to keep pace.
Development of manufacturing ecosystem has been hampered
by lack of investor friendly policies, flux in taxation policies,
and the lack of effective labor reforms. To overcome these
challenges and to encourage companies to manufacture in
India, Government of India launched a flagship program
Make in India.
The program, launched in September 2014, aims to
strengthen the manufacturing ecosystem in the country by
promoting investment, fostering innovation and enhancing
skill development. Under the initiative, 25 priority sectors
have been identified, which will receive special focus from the
Government.
Identified sectors:
Automobiles
IT and BPM
Automobile component
Leather
Aviation
Mining
Biotechnology
Chemicals
Pharmaceuticals
Construction
Ports
Defence manufacturing
Railways
Electrical machinery
Renewable energy
Electronics systems
Food processing
Space
Wellness
Thermal power
59
Ibid.
Ibid.
62
Indian Cellular Association
63
Ibid.
60
61
64
Key recommendations
Value (billion)
200
60
150
40
100
20
0
50
2008
2009
2010
2011
2012
2013
2014F
2015F
Total Loss
56.6
Key recommendations
67
65
66
FICCI CASCADE
In 2011, FICCI established FICCI Committee Against
Smuggling and Counterfeiting Activities (FICCI CASCADE),
a dedicated forum to address the industrys concerns of
counterfeit products.
Aims of FICCI CASCADE
Key recommendations
5. Governance of internet
and communications
For the internet to realize its due potential and deliver the
promised benefit of a better future, a secure computing
framework needs to be established, which not only instills
adequate trust and confidence in users, but also addresses
their concerns of privacy. The growing number of cyberspacerelated issues and concerns, and their dynamic nature calls for
a concerted strategy with clear guidelines and mandates on
how these threats need to be managed. There is an immediate
requirement of adopting a legitimate framework of internet
governance, which encompasses broad-based opinions through
an inclusive process.
67
UNESCO and WSIS, UNESCO website, http://www.unesco.org/new/
en/communication-and-information/flagship-project-activities/unescoand-wsis/about/, accessed 6 March 2014.
WGIG
Naming and
addressing
for policy
development
Local, national,
regional, and global
policy development
Open standards
development
Governments
Government regional
organizations
Multilateral institutions
Internet Society
Internet
ecosystem
Root servers
Network operators
gTLDs, ccTLDs
Shared global
services and
operations
Education and
capacity building
Users
Governments
Internet Society
Individuals, businesses,
governments, organizations
Machines/devices
Pluralism
Participation
Multistakeholder
governance
Cooperation
Source: The Internet Society
74 | Speeding ahead on the telecom and digital economy highway
6%
3%
8%
32%
17%
31%
Western Europe and others
Asia Pacic
Latin America and Caribbean
Host country
Africa
Eastern Europe
32%
24%
24%
Civil society
Private sector
Government
Technical community
Media
Inter-governmental organization
Key recommendations
Key recommendations
Key recommendations
Key recommendations
Key recommendations
There is a need to incentivize the creation and
dissemination of multilingual content, including
software and mobile applications.
76
India is now worlds third largest Internet user after U.S., China, The Hindu website, http://
www.thehindu.com/sci-tech/technology/internet/india-is-now-worlds-third-largest-internet-userafter-us-china/article5053115.ece, accessed 14 February 2014.
Key recommendations
Applications
Application ecosystem offers users flexibility and convenience;
however, this evolution brings forth several security risks. Users
credit card details, bank logins and passwords face potential
exposure.
Service providers
Paradigm of cyber security is new to access providers and they are
struggling to cope with the ever evolving space. Access providers
are not rightly equipped to manage the challenge alone.
Energy
Banking
and
nance
Air/Rail
transport
Threat
identication
Review and
feedback
Compliance
Vulnerability
identication
Mission
critical
sectors
Law
enforcement
Risk evaluation
Telecoms
Risk prevention
and recovery
Qualitative and
quantitative analysis
Analysis of
implications
Source: NCIIPC
Defence
Space
Source: NCIIPC
Role
Responsible for the maintenance of overall internal security and domestic policy of the
country
Responsible for formulation and administration of the rules and regulations and laws
relating to information and broadcasting
Responsible for the country's political, economic, energy and strategic security concerns
Department of Telecommunications
(DoT)
DeitY
Proposed body to carry out real-time assessment and provide actionable alerts to
government departments in cases of perceived security threat
Key recommendations
Key recommendations
Key recommendations
Key recommendations
Challenges
Initiated a pilot equipment testing lab and approved setting up of a Telecom Testing and
Security Certification Centre (TTSC) to test imported equipment more than three years ago.
Standards
Testing
Security
Source: EY analysis
86 | Speeding ahead on the telecom and digital economy highway
Key recommendations
6. Emerging opportunities:
Cloud and M2M
Channel Startegy
Workforce Innovation
(maximize productivity)
Source: EY analysis
Communication
equipment manufacturer
4.5
2011
3.4
4.8
13.3
5.7
13.6
5.1
4.4
14.3
5.5
Retail
17.6
5.7
Transport
Pharmaceuticals
18.0
6.8
Consumer product
manufacturing
19.4
6.2
Telecom services
Source: EY analysis
13.2
12.4
10.9
10.8
9.3
2014
Network-as-a-Service (NaaS) is a category where cloudbased service users are provided network connectivity
services on a pay-as-you-use model. In this, the mobile
network, billing and informational assets are bundled
together.78
Key recommendations
Key recommendations
Key recommendations
Key recommendations
6.1.5.5. Reliability
Typically, in a competitive market such as cloud computing,
competition will deliver a range of service level agreements
(SLAs) at various price points. This will deliver extra-high SLAs
for mission critical cloud applications to businesses that will
pay a premium. Furthermore, it will deliver services with low
ensured SLA for cloud applications where a customer wants
a value service and is willing to experience some service
quality trade off. The Government could set some indicative
benchmarks, but in a competitive market, it should also
consider its role as a facilitator and not stifle business model
innovation by imposing rigid SLA requirements.
Key recommendations
Key recommendations
Key recommendations
Automotive
Applications
(examples)
Potential industry
alliances
(examples)
Infotainment
and positioning
services
Active security
Post-crash
systems
Pay-as-thedrive solutions
Remote
diagnostics
Traffic control
systems
Automotive
Diversified
industrial
products
Safety
Media and
entertainment
Insurance
Monitoring/
automation
Logistics
planning and
optimization
Fleet vehicle
management
Navigation
Fuel
Management
Sensors
Carbon
footprint
Transportation
Construction
Diversified
industrial
products
Car leasing
companies
Source: EY analysis
94 | Speeding ahead on the telecom and digital economy highway
Smart
metering
Smart grid
Field
equipment
management
Facility
management
Public
surveillance
and safety
Utilities
Real estate
Chemicals
Oil and Gas
Retail
Government
and public
sector
Security/
surveillance
Remote sales
management
Remote
credit card
applications
Mobile point
of sales,
e.g., taxis
and vending
machines
E-commerce
Retail
Banking
Health care
Cameras
Alarms and
surveillance
systems
Security
Government
and public
sector
Telemedicine
Remote
monitoring
Heath care
providers
Life sciences
Insurance
M2M adoption by
operators
As of January 2014, 428 mobile operators offered M2M services across 187 countries; equivalent to 40% of world's
mobile operators.
Growth is stronger in developing markets over the last three years six out of ten operators offering M2M are located in
developing countries.
Source: GSMA
98.4
CAGR
33.8%
22.9
2011
2016F
Source: 6Wresearch
Finding Success in the New IoT Ecosystem: Market to Reach $3.04 Trillion and 30 Billion Connected Things in 2020, IDC Says, IDC, 7 November 2014.
Finding Success in the New IoT Ecosystem: Market to Reach $3.04 Trillion and 30 Billion Connected Things in 2020, IDC Says, IDC, 7 November 2014.
81
The Global M2M Market in 2013, Machina Research white paper, January 2013.
82
Ibid.
83
Ibid.
79
80
Key drivers of
M2M services
Environmental sustainability
Cloud-based offerings
New revenue streams and
differentiated service
offerings
Source: EY analysis
O
verview of M2M, applications, opportunities and
future of M2M
C
ommunication technologies and infrastructure for
the last mile
G
lobal scenario for M2M standards and regulations
D
oT activities towards policy formulation and
development of standards
M
2M adoption supporting Make in India
M
2Ms influence on various sectors such as smart
Need for synergy between DeitYs draft IoT policy and DoTs M2M roadmap
Source: DeitY, DoT.
Key recommendations
Source: Ovum
84
Note: ITU-T E.164 provides for the international public telecommunication
numbering plan; Recommendation E.164, ITU, http://www.itu.int/rec/TREC-E.164/en, accessed 2 May 2014.
85
Note: ITU-T E.164 provides for the international identification plan for public
networks and subscriptions; Recommendation E.212, ITU, https://www.itu.int/
rec/T-REC-E.212/en, accessed 2 May 2014.
86
Cisco6lab, http://6lab.cisco.com/stats/index.php, accessed 19 March 2014.
Key recommendations
Key recommendations
H
ave IPv4/IPv6 mandatory in transport network
Key recommendations
Key recommendations
Numbering policy
The telecoms regulator encourages adoption of 13-digit M2M numbering address scheme;
has proposed for a five-digit access code format for M2M.
Spectrum allocation and management
Positive regulatory
regime to boost
development of
M2M market
Though separate spectrum has not been awarded for M2M; but the regulator
has deliberated on use of white spaces since 2009. Trails have been launched in
collaboration with private companies.
Source: Infocomm Development Authority of Singapore; Ovum
Key recommendations
Case study: Brazilian Governments regulatory support to drive uptake of M2M services
Brazil has significant demand for M2M services in security application and industry sectors. There were a total 9.9 million M2M
connections by December 2014, with significant future growth potential.
Regulatory support to push uptake of M2M services:
Tax cuts
Reduced installation inspection fee paid by operator for each active terminal as part of
telecommunications fund from BRL26.7 to BRL5.6. Also, reduced operation inspection fee from
BRL8.9 to BRL1.9, which is charged to carriers annually for each active telecommunications chip.
Regulatory
support
Impact:
With the regulatory changes, the number of M2M connections is expected to be 35 million in 2018, growing at a CAGR of
32% from 2012 to 2018.
Telematics and fleet management sector in Brazil is expected to grow from BRL2.2b in 2014 to BRL4.2b in 2019, at a
14.5% CAGR. The sector is expected to account for 49% of total M2M revenue by 2019.
Source: Analysys Mason, Pyramid Research, M2M World News, Teleco website, Factiva
Summary of
recommendations
Recommendations on Telecom services
Challenges
Recommendations
Taxes and levies should be rationalized to ensure the overall growth and financial viability
of the sector.
License fee
SUC
SUC should be revised and reduced to 1%, given that spectrum is allocated at marketdetermined prices.
Retrospective
taxation
Retrospective taxation issues need to be resolved, since they hurt investors confidence.
USOF
AGR should only include revenues from services under license for respective service
areas.
Telecom should be considered a critical infrastructure sector and its financing needs
should be addressed accordingly.
A Telecom Finance Corporation should be set up on the same principle as that of the
Power Finance Corporation.
OTT services
Pricing of spectrum
Reasonable spectrum reserve prices should be set that take into account the broader
benefits accruing to society and the country due to expanding mobile services at
affordable rates.
Availability of
spectrum
All spectrum currently lying unutilized with various government agencies should be made
available on priority in conformity with globally harmonized bands.
Backhaul spectrum
Additional spectrum in increased bands should be available for the backhaul network, with
a light licensing approach and nominal charges.
Spectrum trading
and sharing
Spectrum trading and sharing should be allowed at the earliest to encourage its efficient
use.
Contiguous
spectrum bands
Provide regulatory
clarity
KYC norms
Revision of AGR
definition
Telecom financing
Concerned Ministries
Ministry of Communications
and Information
Technology, Ministry of
Finance, Ministry of Home
Affairs
Challenges
Recommendations
Concerned Ministries
Telecom towers
RoW and other
impediments to
telecom tower
installation
The DoT guidelines should be incorporated in the statutory framework and rules in line
with the 53rd parliamentary committee report. State governments should be mandated to
follow the guidelines through suitable legislation or direction.
Adopt uniform RoW across all states at a uniform and reasonable cost.
Adopt single window mechanism on priority basis for granting RoW permission.
Levy only admissible charges for reinstatement or restoration; take up the matter with
state governments on priority to align these with the DoTs uniform tower installation
guidelines across states.
Provide fiscal incentives to players for laying optical fiber cables in smart cities.
Ensure availability of sufficient access and microwave spectrum.
Frame strong laws including compensation for cable cut or damages due to digging.
Lack of extension
of infrastructure
benefits
The Government should provide electricity connections to towers on priority and at the
lowest tariffs wherever possible. Ministry of Power to be approached for uninterrupted
power consumer status and a preferential uniform tariff to telecom tower installations in
consultation with DoT.
The Governments communication on green telecom may be referred back to TRAI for a
review. During the process, the DoTs communication on its green telecom directive may
be kept in abeyance.
RET targets may be adjusted taking into account current status of RET deployment and
learnings and significant technological changes in other energy solutions.
Ministry of Communications
and Information
Technology, State
ministries, Ministry of
Finance, Ministry of Power
Summary of
recommendations
Recommendations on Telecom infrastructure
Lack of clarity on
participation of
service providers
RoW permission should be granted on priority within stipulated time frame along with
accountability for clearances.
RoW rates and issuance procedures should be standardized all state governments
should extend the facility of RoW for laying underground telecom cables to all licensees
without payment of any compensatory charges, levy, lease rentals, license fee, revenue
share or cashless equity. Admissible charges should include only reinstatement charges or
charges directly linked to the restoration work.
In real estate, building and town planning, make it mandatory to place ducts or optical
fiber, with well-defined access mechanisms, on all new road constructions along national
highways, inter and intra city roads as well as buildings.
All buildings and towers should be provisioned with vertical conduits for carrying out last
mile building wiring for FTTH services.
Mark area for underground cables away from roads to avoid disruption during expansion.
Buildings should have properly demarcated sections both within buildings and on rooftops
for broadband infrastructure; development authorities should give mandate to developers
and builders.
There should be a tower and a common transmission or equipment room in every village
panchayat, funded by the panchayat running through USOF along with fiber.
Trenching activities of USOF should be supported through Mahatma Gandhi National Rural
Employment Guarantee Scheme.
Provide details on participation of service providers in the NOFN plan. Also provide fiscal
and regulatory incentives for them to become a part of the project.
Ministry of Communications
and Information
Technology, State Ministries
Recommendations
Concerned Ministries
Make VAT rates uniform for mobile handset and mobile accessories across states.
Bring handsets under provisions of Goods of Special Importance under the Central
Excise Tax Act, 1956; therefore, capping the maximum VAT that can be levied by states
at 5%.
Retrospective
amendments to
laws
Removal of 1%
National Calamity
Contingent Duty
(NCCD)
Shift NCCD of 1% from mobile phones to other goods, to share levies equitably among
industries.
Do away with imposition of a fee for allocation of IMEI numbers, since such as practice is
not followed by other countries.
Ten-year tax holiday on a block of 15 years on all profits and gains from manufacturing or
rendering of services in or in relation to the mobile phone industry.
Interest subsidy
on fixed capital
investment
Minimum interest subsidy of 5% on all fixed capital investments for the entire ESDM sector
on the lines of benefits given under TUFS.
Deemed export
benefit for locally
manufactured
handsets
Benefits under
the Focus Product
Scheme (FPS)
The Government should consider extending the 5% FPS benefit accorded to push button
mobile phones, to touch phones, smartphones and tablets as well.
There is a need to increase FPS benefits for handset parts and accessories (memory/
external memory, camera, battery, charger etc.) from 2% to 5%.
Reformulation of
the Export Incentive
Policy
Incentive available to exports should also be extended to SEZs, EOUs and EHDPs.
Income Tax
exemption on
mobile phone
exports/sales to
DTA
EHTP/SEZ schemes should have a special chapter for ITA goods with the following
benefits:
Income tax holiday on export from SEZ should continue as envisaged in the SEZ Act 2005
and subsequent amendments, which detract from the tax holiday, need to be done away
with.
The same regime needs to be put in place for EHTP scheme and export from DTA.
Local manufacturing
Promotion of ESDM
manufacturing at
the state level
Summary of
recommendations
Recommendations on Handheld devices and
handsets
Grey market
Grey market
Inclusion of mobile handsets, mobile adaptors and mobile phone batteries in the list of
products under DeitYs compulsory registration scheme for electronic products. Currently,
15 items including mobile tablets are a part of this list.
A Bureau of Energy Efficiency (BEE) rating for mobile device chargers needs to be
adopted. This will not only help consumers identify energy-efficient chargers but also help
conserve energy in the long run.
Standards and labs for testing and compliance of IPv6 need to be established.
Ministry of Communications
and Information
Technology, Ministry of
Commerce and Industry,
Ministry of Power
IPv6
IPv6 compliance
Ministry of Communications
and Information Technology
Recommendations
Concerned Ministries
Internet governance
The MAG under the chairmanship of Secretary, DeitY, should ensure a democratic,
pluralistic and citizen oriented dialogue on issues of internet governance, by engaging
multi-stakeholder groups in their respective roles, as defined under the Tunis Agenda.
The MAG be encouraged to organize India IGF by inviting wide participation from various
stakeholders, with a focus on important issues such as access, critical internet resources,
security, openness, and net neutrality, etc.
A right balance between privacy and security is critical for the safe future and growth of
internet. A distinction must be made between internet governance issues and cybercrime related challenges, which are equally significant part of the overall cyber security
regime. Information Technology (Intermediaries guidelines) Rules need re-evaluation to be
relevant in current times.
Laws imposing intermediary liability in relation to third party content should be in line with
global best practices.
The law must allow for expression of free speech within constitutionally permissible limits,
while ensuring intermediaries do not face undue censorship.
Critical internet
infrastructure
Government needs to incentivize the private sector to provide last mile connectivity in
rural areas.
Multilingual content
Multi-stakeholder
approach
Surveillance
Intermediary laws
Ministry of Communications
and Information
Technology, Ministry
of Information and
Broadcasting, Ministry of
Home Affairs, Ministry
of Human Resource
Development
Internal consultation with all concerned stakeholders should be carried out before
projecting a national view point at international forums.
Ministry of Communications
and Information
Technology, Ministry of
Information & Broadcasting,
Ministry of Home Affairs
Summary of
recommendations
Recommendations on Governance of internet
and communications
Cyber security
Collaborative
efforts
There is a need for an overarching multi-stakeholder oversight body, which deals with all
matters relating to cyber security and amalgamates the work done by different agencies.
There is a need to establish a formal process of bringing together all agencies to discuss
and deliberate matters relating to cyber security and formulate a consensual way forward.
Holistic and harmonized compendium on dealing with cyber security removing conflicts
between IT Act, Telegraph Act regulation for privacy, data protection and lawful
protection needs to be developed.
There is a need for increased coordination among all CERTs including sharing of global
threat perceptions, knowledge, and best practices
Run initiatives aimed at increasing cyber security awareness among the customers
Other measures
Funding mechanism
Capacity building
Holistic and harmonized compendium on dealing with cyber security removing conflicts
between IT Act, Telegraph Act regulation for privacy, data protection and lawful
protection needs to be developed.
Need for increased coordination among all CERTs including sharing of global threat
perceptions, knowledge, and best practices.
Run initiatives aimed at increasing cyber security awareness among the customers.
Dedicated allocation should be made towards cyber security in the Union Budget.
Consider alternatives such as PPP to set up testing and standards setting facilities
Undertake initiatives aimed at increasing cyber security awareness among the customers
Global best
practices
India needs to adapt global best practices on detection and management of threats.
There is need for enhanced cooperation with global peers on matters relating to cyber
security, and sharing of information on threats and ways to manage them.
Equipment testing
standards
Indian testing and inspection regime should conform to established global standards, such
as the Common Criteria and 3GPP
Enhance cooperation with companies through a Telecom Security Council of India and
with other governments
Lay down clear rules relating to security standards to help reduce uncertainty for
equipment providers, and service providers
Ministry of Communications
and Information
Technology, Ministry
of Information and
Broadcasting, Ministry of
Home Affairs, Ministry
of Defence, Ministry of
Finance, Ministry of Human
Resource Development,
Ministry of Defence
Challenge
Recommendation
Concerned Ministries
Cloud services
It is suggested that the Government could frame policies to expand the scope of a
narrowly tailored view of mission-critical government data or national security-related
data that is recommended for storage within Indian boundaries.
The default position should be that cloud computing services utilize data centers either in
India or outside India. The Government could contemplate formulating a single nationwide policy avoiding regional/state-wise difference in regulations.
Government policy should adopt strengthened encryption standards rather than continue
with 40-bit encryption.
The Government should identify best practices such as ISO 27001 and SAS 70 for the
audit process of a cloud-based service provider to provide assurance to its customers.
Bring cloud-based service providers under the purview of the Information Technology Act
of 2000.
The Government needs to spread awareness among consumers, especially its own
departments, by educating them on data privacy legislations that apply to cloud-based
service providers.
Light touch
regulations
As part of the light-touch philosophy in the competitive cloud services market, all service
providers should be treated at a level playing field for equivalent services. This will
facilitate the provisioning and in turn boost the uptake of cloud based services.
Interoperability
The Government may work in collaboration with the MCIT and the industry to promote
open standards-based cloud infrastructure and documented interfaces. These standards
are expected to help increase software and data interoperability.
Reliability
The Government may work with the industry to set benchmark standards for SLAs,
defining minimum commitment levels for critical service parameters such as uptime,
response times and bandwidth. Furthermore, it should also consider its role as a facilitator
and not stifle business model innovation by imposing rigid SLA requirements.
Cross-border flow
of data
The Government should try to ensure that the necessary legal regulation of the country
in which data originates is applicable to data controllers and data processors. There is a
need to encourage accountability rules governing data flow and ensuring that consumers
do not lose protection when their data is stored or processed in any remote computing
environment outside the country.
Credibility
Security
Privacy
Ministry of Communications
and Information
Technology, Ministry of
Home Affairs
Summary of
recommendations
Recommendations on Cloud and M2M
Machine-to-machine (M2M)
Standardization and
interoperability
Numbering scheme
While framing its policy for numbering scheme for M2M services, the Government should
consider the following:
Formulate an M2M policy enabling the use of global numbering resources. In this respect,
global use of IMSIs and E.164 numbers should be facilitated.
Mandatory IP/
IPv6 in transport
network
SIM related
issues and KYC
requirements
No new KYC requirements are needed for M2M services; norms, which limit SIM transfers,
necessitate tele-verification of the user and require the maintenance of a list of user
identities should be discouraged.
Roaming aspects
Define security features (for instance, multiple independent levels of security; safety for
embedded sensors).
Ministry of Communications
and Information
Technology, Ministry of
Home Affairs
Glossary
ACTO
EOU
ADC
ERM
AGR
ESDM
APAC
Asia Pacific
FDI
APT
FICCI
ARPU
AUSPI
FICCI
CASCADE
BBNL
FOB
Free on board
BCD
FPS
BEE
FTP
BIS
FTTX
Fibre to the x
BSC
FY
Financial Year
BTS
G-cloud
Government-cloud
BWA
GPs
Gram Panchayats
BYOD
GSMA
GSM Association
CaaS
Communication-as-a-Service
GST
CAGR
gTLDs
ccTLDs
IaaS
Infrastructure-as-a-Service
CDMA
IANA
C-DOT
ICA
CERT
ICANN
CISO
CMS
ICT
COAI
IETF
COE
Centre of Excellence
IGF
CRM
IIGC
CST
ILD
CSTD
IMEI
IMSI
DeitY
IoT
Internet of things
IP-1
Infrastructure Provider-I
DoT
Department of Telecommunications
IPR
DNS
IPv4
DTA
IPv6
ECB
IRTF
EHTP
ISP
Glossary
IT
Information Technology
PaaS
Platform-as-a-Service
ITA
PKI
ITAA
PPP
ITeS
IT-enabled Services
PSU
ITU
R&D
KYC
RBI
LTE
RESCO
M2M
Machine-to-machine
RET
MAG
RF
Radio frequency
MAT
RIRs
MHA
RoHS
MNRE
RoW
Right of way
MoU
Minutes of usage
SaaS
Software-as-a-Service
MQTT
SACFA
MSAI
MSC
SAR
MSISDN
SEZ
SI
System integrator
MSTF
SII
NaaS
Network-as-a-Service
SIM
NBP
SLAs
NCCC
SMS
NCCD
SUC
NCCIC
TAIPA
TDB
NCEF
TDMA
NCIIPC
TDSAT
NCSP
TEC
NLD
TEMA
NOFN
TERM
NTP
TRAI
NTRO
TTSC
OASIS
USFs
ODMs
USOF
OFDMA
VAT
VGF
Glossary
WCO
WGEC
WGIG
WHO
WPC
WSIS
2G
Second Generation
3G
Third Generation
4G
Fourth Generation
EY offices
Ahmedabad
2nd floor, Shivalik Ishaan
Near C.N. Vidhyalaya
Ambawadi
Ahmedabad - 380 015
Tel: + 91 79 6608 3800
Fax: + 91 79 6608 3900
Bengaluru
6th, 12th & 13th floor
UB City, Canberra Block
No.24 Vittal Mallya Road
Bengaluru - 560 001
Tel: + 91 80 4027 5000
+ 91 80 6727 5000
Fax: + 91 80 2210 6000 (12th floor)
Fax: + 91 80 2224 0695 (13th floor)
1st Floor, Prestige Emerald
No. 4, Madras Bank Road
Lavelle Road Junction
Bengaluru - 560 001
Tel: + 91 80 6727 5000
Fax: + 91 80 2222 4112
Chandigarh
1st Floor, SCO: 166-167
Sector 9-C, Madhya Marg
Chandigarh - 160 009
Tel: + 91 172 671 7800
Fax: + 91 172 671 7888
Chennai
Tidel Park, 6th & 7th Floor
A Block (Module 601,701-702)
No.4, Rajiv Gandhi Salai, Taramani Chennai - 600113
Tel: + 91 44 6654 8100
Fax: + 91 44 2254 0120
Hyderabad
Oval Office, 18, iLabs Centre
Hitech City, Madhapur
Hyderabad - 500081
Tel: + 91 40 6736 2000
Fax: + 91 40 6736 2200
Kochi
9th Floor, ABAD Nucleus
NH-49, Maradu PO
Kochi - 682304
Tel: + 91 484 304 4000
Fax: + 91 484 270 5393
Kolkata
22 Camac Street
3rd floor, Block C
Kolkata - 700 016
Tel: + 91 33 6615 3400
Fax: + 91 33 2281 7750
Mumbai
14th Floor, The Ruby
29 Senapati Bapat Marg
Dadar (W), Mumbai - 400028
Tel: +91 22 6192 0000
Fax: +91 22 6192 1000
5th Floor, Block B-2
Nirlon Knowledge Park
Off. Western Express Highway
Goregaon (E)
Mumbai - 400 063
Tel: + 91 22 6192 0000
Fax: + 91 22 6192 3000
NCR
Golf View Corporate Tower B
Near DLF Golf Course
Sector 42
Gurgaon - 122002
Tel: + 91 124 464 4000
Fax: + 91 124 464 4050
10th Floor, Tower D&E
Cyber Green, DLF Phase-3,
Gurgaon 12202 Haryana
Tel: + 91 124 671 4400
6thfloor, HT House
18-20 Kasturba Gandhi Marg
New Delhi - 110 001
Tel: + 91 11 4363 3000
Fax: + 91 11 4363 3200
4th & 5th Floor, Plot No 2B, Tower 2, Sector 126,
NOIDA 201 304
Gautam Budh Nagar, U.P. India
Tel: + 91 120 671 7000
Fax: + 91 120 671 7171
Pune
C-401, 4th floor
Panchshil Tech Park
Yerwada
(Near Don Bosco School)
Pune - 411 006
Tel: + 91 20 6603 6000
Fax: + 91 20 6601 5900