Centre for Internet and Society

National Telecom Policy, 1994

snehashish — 2013-03-15T05:51:52Z

The National Telecom Policy, 1994 was formulated for the purpose of opening up the Indian markets for foreign direct investment as well as domestic investment in the telecom sector. The Policy also aimed at providing ‘world class’ quality telecom services and development of telecom services in India. One of the main goals of the 1994 Policy was to increase accessibility to telecom services.

Objectives of the National Telecom Policy, 1994

The main objectives of the 1994 Policy[1]were:

Telecommunication to be accessible to all (telephone on demand)
Universal service (access to basic telecom services for all at a reasonable and affordable price)
‘world standard’ quality of service
Better customer services through efficient complaint redressal systems and dispute resolution mechanisms.
Growth in manufacturing and export of telecom equipment.
Protect the defence and security interest of India.

The target of the National Telecom Policy, 1994 was further revised due to rapid economic growth. The revised targets were:

Telephone to be available on demand by 1997.
All villages in India should have access to basic telephone services by 1997.
In urban area, a PCO should be provided for every 500 persons by 1997.
To make available value added services and to raise telecom services in India to international standard within the 8th Five year Plan (1992-1997), preferably by 1996.

The Status of Telecom Services Prior to Implementation of the National Telecom Policy, 1994

Before the implementation of the policy the telephone density in India was about 0.8 per hundred persons compared to world average of 10 per hundred persons. The telephone density in India was lower than that of other developing countries such as China, Pakistan and Malaysia.

Value Added Services

The sub-sector of value added services was opened for private investment in July, 1992 for the following services:

electronic mail,
voice mail,
data services,
audio text services,
video text services,
video conferencing,
radio paging and
cellular mobile telephone.

In case of services from (i) to (vi), companies registered in India were allowed to operate under a non-exclusive licence. Under the policy, limited number of companies may be granted licence for radio paging and cellular mobile telephone services. Selection of such companies shall be on the basis of a policy and a system of tendering. There were criteria which were applied for selection of companies for grant of licence. The criteria were:

Track record of the company.
Compatibility of the technology.
Usefulness of technology being offered for future development.
Protection of national security interests.
Ability to give best service to the customer at the most competitive cost.
Attractiveness of the commercial terms to the Department of Telecommunication.[2]

Hardware and Technological Aspects

India had already developed that capacity to manufacture necessary telecom equipment. For example, capacity for manufacture of switching equipment had exceeded 1.7 million lines per year in 1993 and was projected to exceed 3 million and the capacity was projected to exceed 3 million lines per year by 1997. The capacity to manufacture telephone instruments was claimed to be more than the requirement. Manufacturing units were also established to build capacity around production of wireless terminal equipment, Multi Access Radio Relay (MARR) for rural communication, optical fibre cables, underground cables, etc.

The Policy also advocated that there should be substantial investment in development of technology related to telecommunication.

Basic Services

The private companies registered in India may also assist the Department of Telecommunication in expanding the telecommunication by providing basic telephone services in rural areas. The Policy stated that such companies have to maintain a balance between urban and rural services and also confirm with the agreed revenue sharing and tariff arrangements.

Method of Implementation under the National Telecom Policy, 1994

The Policy laid down that it has to be implemented with keeping in mind interests of the consumers and there should be suitable arrangements to ensure fair competition.

Outcomes of the National Telecom Policy

In order to implement the NTP, 1994, licences were granted to eight Cellular Mobile Telephone Service (CMTS) operators. Two licences were granted in each of the metropolitan cities. In the second phase of implementation of the policy in December 1995 through a competitive bidding process and more than 14 CMTS licences were issued in 18 state circles and 6 Basic Telephone Service licences were issued in 27 cities and 18 state circles.

The Policy did not produce intended results because the revenue recovered by the cellular and basic operators was less than the expected return. Moreover, the operators were not able to arrange finance to fund their projects.

[1].National Telecom Policy, 1994, available at http://bit.ly/N4dlEk
[2].Para 9, National Telecom Policy, 1994 available at http://bit.ly/N4dlEk

For more details visit https://cis-india.org/telecom/resources/national-telecom-policy-1994

Cable Television Networks (Regulation) Act, 1995

snehashish — 2013-03-15T06:10:46Z

In this module, Snehashish examines the purpose of the legislation, the persons affected by it, the administrative bodies which come under the Act, the penalties (including the consequences in case of non-compliance), appeal process and the debates surrounding the legislation.

Before the introduction of cable television in India, broadcasting was solely under the control of the State. The Government of India was caught unprepared with the emergence of cable networks and broadcasting through satellites in the early 1990s. The Government was not able to put a check on transmission and broadcast of television through foreign satellites.

The necessity of procuring licence for operating cable networks was first mentioned by the Rajasthan High Court in the case of Shiv Cable TV System v. State of Rajasthan.[1] In this case, the district magistrate ordered a ban on cable networks as they were being operated without licence. Subsequently the order of the district magistrate was challenged in the Rajasthan High Court on the ground that the order was in violation of fundamental right to freedom trade and profession. The high court held that there was no violation of the right to freedom of trade because cable networks fall within the definition of “wireless telegraph apparatus” under the Indian Wireless Telegraphy Act and therefore it necessary to have licence to operate such network. This highlighted the need for having a framework for the regulation of cable networks in India which led to the enactment of the Cable Television Networks (Regulation) Act, 1995.

Object of the Act

The object of the Act was to regulate the ‘haphazard mushrooming of cable television networks’. Due to the lack of licensing mechanism for cable operators; this resulted in large number of cable operators, broadcasting programmes without any regulation. The Act aimed at regulating content and operation of cable networks. This was due to the availability of signals from foreign television networks via satellite communication. The access to foreign television networks was considered to be a “cultural invasion” as these channels portrayed western culture. It also wanted to lay down the "responsibilities and obligations in respect of the quality of service both technically as well content wise, use of materials protected under the copyright law, exhibition of uncertified films, and protection of subscribers from anti-national broadcasts from sources inimical to national interests".

There were three amendments made to the Act.

The Act is divided into five chapters. The first chapter discusses the scope and extent of the Act and meaning of the terms used in the Act. The second chapter deals with "Regulation of Cable Television Network". The third chapter relates to "Seizure and Confiscation of certain Equipments". The fourth chapter focuses on "Offences and Penalties". The fifth chapter covers other miscellaneous provisions.

Regulation of Cable Television Network

The regulation of cable television network under the Act is ensured through a two step process. In order to keep track of cable operators, it has mandate a compulsory registration for cable operators. It also lays down provisions to regulate content to be broadcasted by the cable operator.

Registration of Cable Operators

In order to regulate cable television networks, it was made mandatory for cable television network operators to be registered.[2] Procedure for registration is laid down is section 5 of the Act. Any person who is operating or desires to operate a cable network may apply for registration to the registering authority.

An application for registration of cable operator has to be made under Form 1 along with the payment of fees of Rs.50 to the head post master within whose territorial jurisdiction the office of cable operator is situated. The registration certificate which is issued by the registering authority after inspection is valid for 12 months and can be renewed.

The registering authority may also refuse the registration of a cable operator. The reason for such refusal has to be recorded in writing and communicated to the applicant.

Section 4A was inserted into the Act by the TRAI (Amendment) Act, 2002. Section 4A deals with "transmission of programmes through addressable system". [Refer to section on “2003- Amendment to the Cable Television Networks (Regulation) Act, 1995 (Amendment Act)"].

Content Regulation

The Central Government, in public interest can put an obligation on every cable operator to transmit or retransmit a programme[3] of any pay channel through addressable system. In public interest the central government may also ‘specify one or more free-to-air channels to be included in the package of channels’ (basic service tier). The Central Government may also, in public interest specify the maximum amount which can be charged by the operator to the subscriber for receiving the programmes transmitted in the basic service tier provided by such cable operators. The cable operators have to publicize to subscribers the subscription rates of each pay channel at regular intervals.

Sections 5 and 6 of the Act deal with advertisement code and programme code. All cable services should be in conformity with the codes. Under section 7, cable operators have to maintain a register as to the content transmitted or retransmitted. All cable operators shall compulsorily re-transmit Doordarshan channels.

Section 9 of the Act mandates ‘use of standard equipment in cable television network’. It is the duty of the cable operator to make sure that the cable television networks do not interfere with authorized telecommunication systems.

Offences and Penalties

Section 11 gives power to the authorized government authority to seize any cable operator’s equipment, if such officer has reason to believe that the cable operator is using the equipment without proper registration.

Sections 16, 17 and 18 of the Act deal with offences under the Act. They lay down punishments for any act which is in contravention with the provisions of the Act.

Section	Ingredients of the Offence	Penalty/ Fine
16	Anyone who is held to be in violation of the provisions of this Act	For the first offence: Imprisonment for a term which may extend to 2 years or with fine which may extend to Rs. 1000 or with both. For every subsequent offence: Imprisonment for a term which may extend to 5 years and with fine which may extend to Rs. 5000.

Section 17 deals with when an offence under this Act is committed by a company; in this case the person in charge will be liable.

The Act also gives power to the authorized officer[4] to prohibit the transmission of certain programmes in public interest under section 19 of the Act.

Under section 20 of the Act, the Central Government in public interest may prohibit the operation cable television network. The Central Government may make such an order in the interest of the (i) sovereignty and integrity of India; or (ii) security of India; or (iii) friendly relations of India with any foreign state; or (iv) public order, decency or morality.

2003- Amendment to the Cable Television Networks (Regulation) Act, 1995 (Amendment Act)

Numerous complaints were received by the Government stating that there has been unreasonable price hike in cable television by the cable operators. Moreover, the cable operator were not paying appropriate revenue by concealing there income and under-reporting their income. The cable operators defended themselves by stating that the broadcasting industry is unregulated and they are forced to increase the price for proving cable television services as the broadcasting companies can increase the charges as per their wish. In order to address these problems, the government appointed a specialized task force.

Special task force in its study noted that the consumers do not have the choice to select the premium channels they wanted to watch rather it is provided to them in a bundle irrespective of the fact they want to subscribe to such channel or not. In order to give choice to the consumer it recommended the introduction of conditional access systems (CAS). This would require the consumers to set up set-top boxes which will allow the consumers to view all the free to air channel and he can choose to watch any of the premier channels for a charge.

This recommendation of the task force was introduced through the 2003 amendment to the Act. The main objective of the Amendment Act was to address to the frequent and arbitrary increase in cable charges. This was introduced section 4A which allowed operators to transmit pay channels through an addressable system[5]apart from basic package of free-to-air channels.

There was a lot controversy with respect to implementation of the CAS. In order to explain the controversy, it is important to understand the structure of the cable market. The cable market is divided into three categories. Broadcasters, who are at the top of the pyramid, the Multi-System Operators are in the middle and the local cable operators are at the bottom of the pyramid.

The 2003 Amendment introduced to CAS was welcomed by the broadcasters and the MSOs. But the consumer and the local cable service providers were unhappy with this decision because the consumers feared that they have to pay special rates for pay channels whereas the local operators were outraged because they believed that CAS would affect their revenue. Due to the adverse reaction from the consumers and the local cable operator, the government delayed the implementation of CAS indefinitely. This finally culminated in a case[6] before the Delhi High Court.

The Delhi High Court decided that implementation of CAS cannot be delayed. Subsequently to this, the government announced in 2004 that Telecom Regulatory Authority of India (TRAI) will be handling the problems regarding CAS and make recommendations on the same. TRAI recommended that CAS should be denotified and it can be re-introduced later when there is adequate regulation to properly implement it.

The government on the recommendation of TRAI withdrew the implementation of CAS. However, this decision was faced with a new challenge[7]and this time the single judge bench of the Delhi High Court held that the Government does not have any ground to suspend the CAS and it has disregarded the previous decision of the Delhi High Court in Jay Polychem case. Finally, the government re-introduced CAS but after issuing rules as to its working and implementation.

[1]. AIR 1993 Raj. 1997
[2]. Section 4 of the Act: "No person shall operate a cable television network unless he is registered a cable operator under this Act..."
[3]. Section 2(g): “programme means any television broadcast and includes –
i exhibition of films, features, dramas, advertisements and serials through video cassette recorders or video cassette player;
ii any audio or visual or audio-visual live performance or presentation and the expression “programming service” shall be construed accordingly
[4]. Section 2(a): authorized officer means within his local limit of jurisdiction
i a District Magistrate, or
ii a Sub Divisional Magistrate, or
iii a Commissioner of Police, and includes any other officer notified in the Official Gazette, by the Central Government or the State Government, to an authorized officer for such local limits of jurisdiction as may be determined by the Government.
[5]. Section 4-A, Explanation (a), Cable Television Networks (Regulation) Act, 1995; Addressable system is defined as, "an electronic device or more than one electronic devices put in an integrated system through which signals of a cable television network can be sent in encrypted or unencrypted form, which can be decoded by the device or devices at the premises of the subscriber within the limits of authorisation made, on the choice and request of such subscriber, by the cable operator to the subscriber."
[6]. Jay Polychem v. Union of India, (2004) IV AD 249 (Del)
[7]. Hathaway Cable Datacom v. Union of India, 128 (2006) DLT 180

For more details visit https://cis-india.org/telecom/resources/cable-television-networks-regulation-act

The Indian Wireless Telegraphy Act, 1933

snehashish — 2013-03-15T06:16:55Z

In this module, Snehashish Ghosh throws light on the main objective of the Act — that of regulating the possession of wireless telegraphy apparatus.

The main objective of the Indian Wireless Telegraphy Act, 1933 is ‘to regulate the possession of wireless telegraphy apparatus’. One of the major sources of revenue for the Indian State Broadcasting Service was revenue from the licence fee from working of wireless apparatus under the Indian Telegraph Act, 1885.

The Indian State Broadcasting Service was losing revenue due to lack of legislation for prosecuting persons using unlicensed wireless apparatus as it was difficult to trace them at the first place and then prove that such instrument has been installed, worked and maintained without licence. Therefore, the current legislation was proposed, in order to prohibit possession of wireless telegraphy apparatus without licence.

Presently the Act is used to prosecute cases, related to illegal possession and transmission via satellite phones. Any person who wishes to use satellite phones for communication purposes has to get licence from the Department of Telecommunications. Recently foreign tourists were charged under this Act for illegal possession of satellite phones.[*]

The extent of the Act, definitions and key concepts are covered under sections 1 and 2 of the Act. Section 3 prohibits any person from possessing a ‘wireless telegraphy apparatus’ without a licence. Under section 2(2) of the Act, ‘wireless telegraphy apparatus’ is defined as:

"any apparatus, appliance, instrument or material used or capable of use in wireless communication, and includes any article determined by rule made under section 10 to be wireless telegraphy apparatus, but does not include any such apparatus, appliance, instrument or material commonly used for other electrical purposes, unless it has been specially designed or adapted for wireless communication or forms part of some apparatus, appliance, instrument or material specially so designed or adapted, nor any article determined by rule made under section 10 not to be wireless telegraphy apparatus."

The key ingredients of the definition are:

The definition covers all types of apparatus, appliance, instrument or material which can be used or utilized for the purpose of wireless communication.
It also covers all articles which are determined to be a wireless apparatus according to the rules made by the government.
The definition excludes any apparatus, appliance, and instrument or materials which are generally used for other electrical purposes. However, if such devices are designed or modified for wireless communication or is used as a part of such wireless communication device.
It also excludes articles determined by the government not to be wireless apparatus. The government may make rules to that effect.

The Central Government under section 4 has the power to make rules to exempt persons from the provision of the Act. Such exemption given by the Central Government may be a general exemption or based on certain conditions. It may exempt certain persons from the application of the Act, for certain wireless telegraphy apparatus only.

Under section 5, the telegraph authority constituted under the Indian Telegraph Act, 1885 shall be the competent authority to issue licences under this Act.

Section 6 deals with offences and penalties under the Act.

Section	Ingredients	Penalty/Fine
6(1)	Whoever possesses any wireless telegraphy apparatus, other than a wireless transmitter, without a licence	In the case of the first offence: Fine which may extend to Rs. 100. In the case of a second or subsequent offence: Fine which may extend to two hundred and fifty rupees.
6(1A)	Whoever possesses any wireless transmitter without a licence	Imprisonment: extend to three years, or with fine which may extend to Rs. 1000 or with both.

In the context of evidentiary value, the court might presume that a person is in possession of a wireless telegraphy apparatus under the circumstances that such apparatus is under his ostensible charge or it is present in a place or premise over which he as effective control.

In a trial of an offence under section 6, if the accused is convicted then the court shall also decide whether the apparatus used or involved in the offence should be confiscated. If the court decides in favour of confiscation then it must also pass an order of confiscation.

Under section 7 the Act, gives power to any officer specially empowered by the Central Government to search any building, vessel or place if he has reason to believe that there is any wireless telegraphy apparatus which has been used to commit offence under section 6 of the Act, is kept or concealed. The office also has the power to confiscate the apparatus.

Under section 8, all wireless telegraphy apparatus which has been confiscated by the Central Government under section 6(3) shall be considered as the property of the Central Government. All wireless telegraphy apparatus which does not have any ostensible owner shall also belong to the Central Government.

Section 9 was repealed by the India Wireless Telegraphy (Amendment) Act, 1940.

Section 10 gives power to the Central Government to make rules through notification in the official gazette with respect to give effect to provisions under the Act. The Act lays down few general subjects on which the Central Government has the power to make rules under the Act. They are:

Rules to determine whether any article or class of article shall fall within the definition of ‘wireless telegraphy apparatus’ under the Act.

Rules regarding licences. (manner, conditions, issue, renewal, suspension and cancellation of licence).

Eligibility for the purpose of being exempted from the application of this Act (Sec.4).

Maintenance of records as to sale, acquisition of wireless telegraphy apparatus by dealers.

Conditions with respect to sale of wireless telegraphy apparatus by dealer and manufactures of such apparatus.

The Central Government may impose a fine of upto hundred rupees in the case of breach of such rules.

Section 11 expressly mentions that no provision under the Act shall authorise any person to do any act which is prohibited under the India Telegraph Act, 1885. It also mentions that any licence under the Act shall not authorise any act in contravention of the Indian Telegraph Act, 1885.

[*].Rajeev Dikshit, DoT nod for use of satellite phones a must, The Times of Inda Jun 27, 2012 available at http://articles.timesofindia.indiatimes.com/2012-06-27/varanasi/32440227_1_satellite-phone-thuraya-dot-nod

For more details visit https://cis-india.org/telecom/resources/indian-wireless-telegraphy-act

The Telecom Regulatory Authority of India Act, 1997

snehashish — 2013-03-15T06:21:43Z

The main objective of the Telecom Regulatory Authority of India Act, 1997 (TRAI Act) was to establish the Telecom Regulatory Authority of India (TRAI) and Telecom Dispute Settlement Appellate Tribunal (TDSAT). The main purpose of these two institutions established under the TRAI Act is to regulate telecommunication services, adjudicate disputes, dispose appeals and protect the interest of the service providers as well as the consumers. The Act also aims at promoting and ensuring orderly growth of the telecom sector.

A bill to establish a non-statutory telecom regulator was proposed in the Parliament by the Government through an amendment to the Indian Telegraph Act, 1985. However, this proposal was dropped by the Parliament because several Members of the Parliament argued for a statutory telecom regulator. TRAI was then constituted under the presidential ordinance[1] issued in 1997, later it was ratified by the Parliament by enacting the TRAI Act. Subsequently, TRAI Act went through major amendments in the year 2000.

Amendment to the TRAI Act

The TRAI Act was amended through the TRAI (Amendment) Act, 2000 (“Amendment Act”). Before the amendment, TRAI exercised both regulatory and dispute resolution functions. The Amendment Act established the Telecom Dispute Settlement Appellate Tribunal to solely deal with relevant disputes. There was ambiguity in the Act as to whether TRAI recommendations are binding upon the Government; this was clarified by the Amendment Act.

Independent Telecom Regulatory Authority

In Delhi Science Forum v. Union of India, the Supreme Court while deciding on the constitutionality of the National Telecom Policy, 1994 observed that it is necessary that the telecom regulator should be an independent body. National Telecom Policy, 1994 allowed for private participation in the telecommunication sector, and in the light of this policy change the Supreme Court also emphasized on the necessity of an independent statutory authority in a deregulated and competitive telecom market.

Government Control over TRAI

TRAI is not a completely independent telecom regulator. The Government exercises certain amount of control over TRAI. Under section 25 of the Act it has the power to issue directions which are binding on TRAI. The TRAI is also funded by the Central Government. Moreover, under section 35 of the TRAI Act, the Central Government has the power to make rules on various subjects and such rules are binding upon TRAI. Therefore, TRAI is not a completely independent telecom regulator as envisioned by the Supreme Court.

Scheme of the TRAI Act

The TRAI Act contains six chapters. Chapter 1 deals with applicability of the Act, key concepts and definitions. Chapter 2 contains provisions for constitution of the TRAI. Chapter 3 deals with the powers and functions of TRAI. Chapter 4 deals with establishment of appellate tribunal, TDSAT and the procedure of the appellate tribunal. Chapter V deals with finance, accounts and audit of the two institutions established under the Act. Chapter 6 consists of miscellaneous provisions for the purpose of smooth functioning of the two institutions created under the Act.

Constitution of TRAI

Telecom Regulatory Authority of India (TRAI) was established as a corporation under Section 3 of the Act. The head office of TRAI is in New Delhi. TRAI constitutes of a chairperson and less than two, full time and part-time members. The chairperson and the members of TRAI are appointed by the Central Government and the duration for which they can hold their office is three years or until they attain the age of 65 years, whichever is earlier. The persons who are appointed should have special knowledge and prior experience in the field of telecommunication, industry, finance, accountancy, law, management or consumer affairs. If someone, who has been in the service of the Government prior to appointment then he should have served the Government in the capacity of a Secretary or Additional Secretary for a period more than three years.

Section 8 deals with procedure to be followed with respect to meetings of TRAI. All questions before TRAI will be decided by a majority vote of the members, present and voting. The person who is presiding the meeting will entitled to a second or casting vote.

The TRAI may also appoint officers and employees in order to carry out its function under this Act. Currently the officers and employees of TRAI are divided into nine divisions. The divisions are:

Mobile network division;
Fixed network division;
Converged network division; (iv) quality of service division;
Broadcast and cable services division;
Economic division (vii) financial analysis and internal finance and accounts division;
Legal division and (ix) administration and personnel division.

Powers and Functions of TRAI

The functions of the TRAI are enumerated under section 11 of the TRAI Act. The function mentioned under the provision has an overriding effect on any provision of the Indian Telegraph Act, 1885.

The 2000 Amendment classified the TRAI’s functions into four broad categories:

Making recommendations on various issues;
General administrative and regulatory functions;
Fixing tariffs and rates for telecom services; and
Any other functions entrusted by the Central Government.

The functions of the TRAI are:

The recommendations made by the TRAI are not binding on the Central Government. However, the Central Government has to mandatorily ask for recommendations from TRAI with respect to need and timing of new service provider and terms and conditions of the licence to be granted to the service provider. TRAI has the obligation to forward the recommendation to the Central Government within 60 days from the date of the request for recommendation. TRAI may also request for relevant information or documents from the Central Government to make such recommendations and the Central Government has to furnish such information within seven days from the date of the request.

The Central Government can issue licence to the service provider, if TRAI fails to give any recommendation within the stipulated period. Where the Central Government is of the opinion that the recommendations made by TRAI cannot be accepted or need modification, then it can send them back to TRAI for reconsideration. TRAI may reply within a period of 15 days from the date of reference.

TRAI also has the power to notify in the official gazette the rates at which telecommunication services are being provided in and outside India. TRAI shall ensure transparency while exercising its powers and discharging its functions.

TRAI under section 12 has the power to call for information and conduct investigation. It also has got powers to issue directions under section 13.

Telecom Disputes Settlement Appellate Tribunal

The Telecom Dispute Settlement Appellate Tribunal (Tribunal) is established under section 14 of the Act. It is the sole dispute resolution body in the communication sector. It can adjudicate upon any dispute between:

Licensor (Central Government) and a licensee.
Two or more service providers.
Between a service provider and a group of consumers.

However, the Tribunal does not have any jurisdiction to try any matter which deals with anti-competitive trade practices or any consumer complaint.

Grounds and Procedures for Appeal to the Tribunal (Section 14A)

The Central Government, State Government, any local authority or any person can approach the Tribunal for adjudication on matters related to dispute between parties mentioned above.

It can make recommendation either on its own accord or on the request of the Government on the following matters:
- Need and timing of new service provider.
- Terms and conditions of the licence which may be granted to the service provider.
- Revocation of licence for not following the term and conditions of the licence.
- Measures to facilitate competition in the market and promote efficiency and growth in the telecom sector.
- Type of equipment to be used by service provider.
- Technological improvements in the services.
- Measure for development of telecommunication technology.
- Spectrum management.
The TRAI also has to discharge certain functions apart from making recommendations to the Government:
- Ensure compliance with the terms and conditions of the licence.
- Fix the terms and conditions of inter-connectivity between service providers.
- Ensure technical compatibility and effective inter-connection between different service providers.
- Regulate any arrangement between service providers for sharing of revenue derived from providing telecommunication services.
- Lay down standards for quality of service and also ensure and conduct periodal survey as to implementation of standards for quality of service.
- Lay down and ensure the time period for implementing local and long distance circuits of telecommunication between different service providers.
- Maintain register of interconnect agreements between service providers and such register should be made available to any member of the public for inspection on payment of a fee.
- Ensure effective compliance with the universal service obligations.
- Levy fees and charges at such rate and for services as determined by regulations.[2]

TRAI under section 12 has the power to call for information and conduct investigation. It also has got powers to issue directions under section 13.

Telecom Disputes Settlement Appellate Tribunal

Licensor (Central Government) and a licensee.
Two or more service providers.
Between a service provider and a group of consumers.

However, the Tribunal does not have any jurisdiction to try any matter which deals with anti-competitive trade practices or any consumer complaint.

Grounds and Procedures for Appeal to the Tribunal (Section 14A)

The Central Government, State Government, any local authority or any person can approach the Tribunal for adjudication on matters related to dispute between parties mentioned above.
An appeal can be referred to the Tribunal in case any party [3] is aggrieved by the decision of TRAI. However, such appeal has to be made to the Tribunal within 30 days from the date on which the party receives a copy of the decision or direction given by TRAI. However, the Telecom Tribunal may condone the delay provided that there is a reasonable ground justifying the delay.[4]
The Tribunal will pass an order after giving an opportunity to be heard, to the parties to the dispute.
The Tribunal is also obligated to send a copy of the order passed by it to TRAI.
In case of appeal from the decision of TRAI, the Tribunal should try to dispose of the case at the earliest and try to give a decision within 90 days from the date of appeal.

Composition of the Tribunal (Section 14B)

The Tribunal consists of a chairperson and two other members, appointed by the Central Government. Selection of chairperson and the two members is done in consultation with Chief Justice of India.

Qualification and term of office of the Chairperson and Members

The minimum qualification for a Chairperson is that he is or has been a judge of the Supreme Court or a Chief Justice of a High Court and the minimum qualification for a member is that he should have been at the post of a secretary to the Central Government or at any equivalent post in the Central Government. A person can also be qualified as a member of the Tribunal if he has held the position of Secretary under the State Government for a period more than two years and has knowledge and experience in technology, telecommunication, industry, commerce or administration.

Term of Office

The Chairperson can hold office till he attains the age of 75 or completes three years, whichever is earlier. The members of the Tribunal can hold office till they attain the age of 65 years or complete three years, whichever is earlier.

Procedure of the Tribunal

Procedure and powers of the Tribunal is laid down under section 16 of the TRAI Act. The Civil Procedure Code, 1908 which lays down the procedure of the conventional courts is not applicable to the Tribunal.

An appeal from the Tribunal’s final order in a matter can be directly referred to the Supreme Court under section 18 of the TRAI Act. However, in the circumstance where the Tribunal has passed an order with the consent of the parties to the dispute, no appeal can be made to any court or tribunal.

Within five years of its creation the Tribunal has already decided 400 cases consisting of complex questions of law.

[1].Presidential ordinance is TRAI Ordinance (No. 11 of 1997).
[2].Regulation means regulations made by the TRAI under this Act.
[3].Any party includes the Central Government, State Government, any local authority or any person.
[4].Bharati Telnet v. Union of India, (2005) 4 SCC 72.

For more details visit https://cis-india.org/telecom/resources/trai-act-1997

Spectrum Management

snehashish — 2013-03-15T07:07:47Z

Snehashish takes us through the entire process of spectrum management — auctioning and allocation process for all kinds of spectrum, the initial process of auctioning, how the bidders are selected, criterion for allocation, time taken to allocate, selection of band, interference issues, spectrum refarming, and spectrum reallocation.

3.5.1. Unit 1: Auctioning and allocating process for all kinds of spectrum
3.5.2. Unit 2: The initial process of auctioning
3.5.3. Unit 3: How are the bidders selected
3.5.4. Unit 4: Criterion for allocation
3.5.5. Unit 5: Time taken to allocate
3.5.6. Unit 6: Selection of band
3.5.7. Unit 7: Interference issues
3.5.8. Unit 8: Spectrum Refarming
3.5.9. Unit 9: Spectrum Reallocation

3.5.1: Auctioning and allocating process for all kinds of spectrum

Auction of spectrums was introduced in the telecommunication market after the failure of the administrative process of allocating spectrum. In auction theory, an auction takes place when there is a seller who wishes to allocate an object to one of ‘n’ buyers.[1] Auctions use a price mechanism to allocate spectrum. Auction of spectrum can be used to increase efficiency and earn maximum revenue. However, auctions of spectrum also have certain drawbacks such as collusion and higher price of telecom services due to high licence fees.

Some of the different types of auction formats are:

First-price sealed bid auction: The highest bidder wins the auction. Such highest bidder pays an amount equal to the bid amount and it is not essential that the bidder with the highest value will place the highest bid. The bid is based on the speculation what other bidders will be bidding.
Second-price sealed bids auction (Vickery auction): This procedure of auction is similar to first price sealed bid auction. The highest bidder wins the auction but he has to pay the price equal to the second highest bid.
Dutch auction: The auctioneer quotes the highest price for the subject matter of the auction and gradually decreases price. The first one to bid for it wins the auction.
English or Japanese auction: In English auction, the auctioneer quotes the minimum price and the buyer bids an amount higher than the minimum price. The bidding is closed when there is no increase in the amount and the highest bidder wins the auction. The other variant of English auction is Japanese auction. In this format, the auctioneer quotes a low price and gradually increases the price which is pre-determined. The bidders should show willingness to buy at the price quoted by the auctioneer. The bidding closes when only one bidder is left, who is willing to buy the object at the price quoted by the auctioneer.

Minimum Reserve Price

The minimum reserve price is generally fixed with the purpose of increasing revenue. Minimum reserve price is the minimum amount which the auctioneer is ready to auction the object for. The computing of minimum reserve price is a complicated affair. The computing of minimum reserve price requires knowledge about the distribution of valuations of bidders.[2]

Beauty Contest

The other mode of allotment of spectrum is through beauty contest. In a beauty contest, generally a committee is constituted which sets a certain standard and requirements which has to be fulfilled for the allocation of the spectrum. Contenders for the spectrum allocation is then evaluated and decided upon an entity which has the best capabilities to carry out functions.

“In the case of spectrum allocation for mobile services, criteria set out beforehand can include general criteria such as financial resources, reliability and investment in research, as well as more specific criteria such as the speed of network rollout, the requirement for geographic and/or population coverage, pricing, quality, technology and competitiveness.”

In case of auction the price mechanism to be implemented is crucial whereas in a beauty contest it is one of the requirements.[3]

3.5.2. & 3.5.3.: The initial process of selection of operators for allocation of spectrum

This selection will explore the changes in the selection process for allocation of spectrum with changes in the policy. This will look at

Auctioning of spectrum under the National Telecom Policy, 1994
Bundling of spectrum with the service licence
Delinking of spectrum from the licence and return to the auction format for allocation of licence

India had an early start in the field of auctioning of spectrum. Initially, under the 1994 policy, spectrum was included within the telecom licence. The licences were auctioned by the Department of Telecommunication, the incumbent regulator, policy maker and enforcer.

The National Telecom Policy, 1994, acknowledged the fact that it was not possible for the Government, alone to achieve targets under the Policy and there was a need for private participation. As a result, in 1995, the Government invited bids for private investment through a competitive process in the field of basic telecom services sector.

For the implementation of the service the country was divided into 20 circles. It was further categorized in A, B and C on the basis of the potential of the region to generate revenue. The Department of Telecom awarded licences to two operators per service area for cellular mobile telephone services and in case of basic telephone services.

The potential service providers in order to be eligible for bidding for licences had to partner up with a foreign company. It was considered that a standalone Indian company will not have the financial capability and technical know-how to provide cellular/basic telecom services at a large scale.

The bidding was a two stage process for all licences. The first stage was to fulfill the criteria, which was based on the financial net worth of the company (in relation to the category of circle) and the experience of the company in providing telecom services. The second stage was with respect to the valuation of bids. The licence was awarded to the telecom service provider, which has fulfilled the pre-requisites and is the highest bidder for the licence. Single stage bidding process was followed in circles. There were separate licences issued for the four metropolitan cities (Kolkata, Chennai, Mumbai, and New Delhi). The licences were awarded through beauty contest in metros.

The technology preferred for cellular services was GSM and for basic telephone service, a combination of fibre optics and wireless in local loop technology was implemented. In 1995, Government auctioned 2*4.4. MHz of startup spectrum for the GSM based mobile services.

Drawbacks in the mechanism of issuing telecom licence

The problem which arose due to the implementation of the above model is that multiple licences were awarded to a single entity. A single company was able to secure licences for nine circles and had a very high bid. This created problems as to the ability of the company to pay the licence amount for all the circles. In figures the annual turnover of the company was $0.06 billion where as the estimated licence fee was $15 billion. There were also concerns with respect to replacing the public monopoly on telecom services with a private one. In order to counter these problems the Government changed its policy and allowed the winning bidder to choose 3 circles out of the nine circles. There was rebidding in 15 circles with the government specifying a reserve price. This was due to the change in policy as the highest bidder was not able to operate in more than 3 circles. The response to this was very poor and it was perceived by the bidders that the reserve price was too steep.

Spectrum Management under New Telecom Policy, 1999

The policy on spectrum management under the NTP, 1999:

With the immense growth in new technologies there has been an increase in demand for telecommunication services. This has led to increase in demand for spectrum and therefore it is necessary that the spectrum should be utilized efficiently, economically, rationally and optimally.
Transparent process of allocation of frequency spectrum.
Revision of the National Frequency Allocation Plan (NFAP) and such a Plan to be made public by the end of year 1999. The NFAP will detail information about allocation of frequency bands.
NFAP is to be reviewed no later than every two years and it should be in tune with regulation under the International Telecommunication Union.
Adequate spectrum should be available, to meet the increase in need of telecommunication services.
Revision of spectrum allocation, in a planned manner in order to make available required frequency bands to the service providers.
Allocation of spectrum of frequency should be in conformity with the ITU guidelines. The following action will be adopted:

Spectrum usage fee shall be charged
Inter-Ministerial Group to be constituted, it will be known as Wireless Planning Coordination Committee. It will be a part of the Ministry of Communication for the purpose of review of spectrum availability.
Computerization of WPC wing

Implementation of the Spectrum Management Policy under NTP, 1999

With the advent of the 1999 Policy, cellular mobile service providers were allowed to provide all kinds of mobile services (voice, non-voice messages, data services and PCOs), which would utilize any type of network equipment that meets the ITU/TEC (International Telecommunication Union/ Telecommunication Engineering Centre) standards. It is also to be noted that the mandate of only using GSM was done away with and the cellular licence was made technology neutral. The New Telecom Policy, 1999 allowed the migration of the licensees from a Fixed Licensee Fee Regime to a Revenue Arrangement Scheme (w.e.f. 1/08/1999). The National Telecom Policy also laid down that the licences will be awarded for a period of 20 years and it can be extended for a period of another 10 years. The Government entered the telecom market as the third mobile operator. It granted licence to MTNL in 1997 for two metros (Delhi and Mumbai). In 2000, cellular mobile operator licence was granted to BSNL, as the third operator for all areas except Mumbai and Delhi. The 900 MHz band was given to the government operator on a pro-bono basis. In 2001, a fourth cellular mobile service operator was allowed in the telecom sector. The licence for the fourth operator was issued through a three stage auction. A start-up spectrum of 2*4.4 MHz in 1800 MHz was allotted to the winner of the auction. The licensees were also required to pay a percentage of annual revenue as spectrum charge. This was collected in addition to the entry fees.[6]

The other licences which were rolled out under the NTP, 1999 are licences for National Long Distance Service operators (without any bar on number of operators), International Long Distance Service and Internet Service Providers.

Unified Access Service Licence

In 2003, TRAI proposed a Unified Licensing Regime which was introduced by the Government in November, 2003. The unified access service licence “permitted an access service provider to offer both fixed and/or mobile services under the same licence, using any technology.” [8] An entry fee was charged, which was based on the bid price paid by the fourth mobile operator.[9]

The TRAI reviewed the spectrum allocation process in the year 2005. It took into account spectrum availability and also considered efficient techniques for the utilization of already allocated spectrum. The consultation paper prepared by the TRAI in 2005 stated that the spectrums allocated by the GSM and CDMA operators are well below the international averages. TRAI recommended that the existing operators should be allocated sufficient spectrum before allocating spectrum to new service providers.

Allocation of 3G and Broadband Wireless Spectrum

Spectrum for 3G and Broadband Wireless Access (BWA) was auctioned using the simultaneous ascending auction process. It involved a two stage process. A clock stage in order to indentify the winner for each circle which was followed by a assignment stage, for identification of specific frequency band. The auction of spectrum for 3G and BWA generated a gross revenue of Rs. 106262 crores for the Department of Telecom, across the 22 telecom circles.

3.5.4 & 3.5.6.: Selection of Band and Criterion for further allocation of spectrum

This section will go into the details of the allocation of specific bandwidth across various frequency bands and also analyze the change in allocation criterion for allocation of spectrum. This will also look at the process of allocation followed by India which has been quite different from the international practices due to hoarding of spectrum by the defense forces. It will also bring out the concern showed by TRAI as to scarcity of spectrum and shortcomings in the allocation of spectrum as compared to the international practices.

Start-up Allocation of Spectrum (1995- 2001)

Before the liberalization of the telecom sector, the bandwidth intended for commercial exploitation was under the control of the Defence forces in India. This consisted of 800 MHz, 1800 MHz and 1900 MHz frequency bands. The commercial exploitation of the spectrum started with the grant of the Cellular Mobile Telephone services in the metro cities.

As discussed in Module 3.5.1(add link), the first round of auction of spectrum was for two CMTS licences in each circles. The DoT auctioned 2*4.4 MHz (paired frequency division duplex spectrum assignment) for GSM technology in the frequency band of 890-915 MHz paired with 935-960 MHz in each circle.

Subsequently, the Government entered the market as the third cellular operator in the 2001. A bandwidth of 2*4.4 was allocated to the start up government cellular operators free of charge in the 900 MHz band. The fourth cellular operator entered the market in 2001 and a start up spectrum of bandwidth 2*4.4 MHz was allocated to the operators in the frequency band 1710-1785 MHz paired with 1805-1880 MHz.

The Department of Telecom also allowed further allocation of spectrum apart from the start up spectrum allocations. This was based on the availability and justification provided by the operator for allocation of more bandwidth. In 2002, the Department of Telecom introduced the Subscriber Based Criterion for the allocation of spectrum. According to this criterion, surplus spectrum would be allocated to the operator, with a certain amount of subscriber base. This was followed by allocation of 2*12.5 MHz bandwidth to each operator within each circle.

However, this method of allocation of spectrum was totally different from the allocation of spectrum in the other countries. A sizeable bandwidth of 2*15 MHz was allocated as start-up spectrum in various countries. This was not the case in India and the Department of Telecom cited that due to non-availability and hoarding of spectrum by defence such a policy had to be adopted.

Table 1: Allocation of Spectrum on the basis of the “Subscriber Based Criterion”, 2002

Quantum of Spectrum Allotted	Minimum Subscriber Base Required (in millions)	Annual Spectrum Charges (per cent of the adjusted gross revenue)
2*4.4 MHz	-	2
2*6.2 MHz	-	3
2*8.0 MHz	0.5	3
2*10 MHz	1.0	4
2*12.5 MHz	1.2	5

*Source: Vardharajan Sridhar, The Telecom Revolution in India: Technology, Policy and Regulation, Oxford University Press, 2012, pp. 112

Post UASL Regime (2003-2005)

After the implementation of the Unified Access Service Licence, the basic telecom service operators were allowed to provide full mobility service for a payment of a entry fee which was equivalent to that paid by the fourth cellular operator. However, such operators migrating to UASL regime were not promised any start up spectrum but it would allocate as and when available.

Review of Spectrum Allocation Process by TRAI and setting up of new Subscriber Base Criterion (2006-2008)

TRAI reviewed the spectrum allocation process in 2005 with the intent to account for unused spectrum and optimum and efficient utilization of scarce resource such as spectrum. The TRAI found that the maximum spectrum allocated to an operator is 2*10 MHz whereas the international average is around 2*20 MHz.

The main problem faced by allocation of spectrum was due to use of spectrum by defence forces and the railways.

Ministry of Defence and Railways uses sizeable portion of the 900 MHz frequency band for navigation and other purposes. It also uses the 1900 MHz band. The Defence Forces utilize 2*20 bandwidth at 1880-1900 MHz paired with 1970-1990 MHz for fixed wireless local loop technology.
The 1900 MHz could not be utilized because the Air Force uses the frequency band.

The TRAI also commented that in the 800 MHz band only a maximum of 2*5 MHz had been allocated to the CDMA operators whereas the world average standards stand at 2*15 MHz for CDMA operations.

The TRAI while observing that the allocation of the spectrum for both GSM and CDMA operators was way below international average spectrum allocation standards recommended that the existing service operators should be provided with more spectrum than before allowing new players to enter the market as there was already a fair amount of competition in the market.

The 2006, TRAI Recommendations on implementation 3G, noted that the Ministry of Defence will vacate 2*20 MHz frequency band in the 1800 MHz band along with 25 MHz in the 2.1 GHz UMTS band. In its recommendation TRAI suggested that the additional spectrum vacated by the defence forces in the 1800 MHz band should be allocated to the operators providing 2G services and it specifically recommended that the Department of Telecom should not treat the allocation of 3G spectrum as a continuation of 2G spectrum allocation.

TRAI recommendations in 2007 suggested that there should not be any limitation on the number of players in the telecom sector. The grant of new licences resulted in a list of license holders who were to be assigned spectrum as and when available. TRAI in its 2007 recommendation noted that the spectrum allocation criteria should be formulated in such a manner so that maximum and efficient utilization of the spectrum can be achieved. This led to the tightening of the Subscriber Base Criterion previously laid down by the DoT (Table 1).

Quantum of Spectrum Allotted	Minimum Subscriber Base Required (in millions)	Annual Spectrum Charges (percentage of the adjusted gross revenue)
For GSM Services
2*4.4 MHz	-	2
2*6.2 MHz	0.5 – 0.8	3
2*7.2 MHz	1.5 – 3.0
2*8.2 MHz	1.8 – 4.1	3
2*9.2 MHz	2.1 – 5.3
2*10.2 MHz	2.6 – 6.8	4
2*11.2 MHz	3.2 – 6.8
2*12.2 MHz	4.0 – 9.0	5
2*14.2 MHz	5.7 – 10.7	5
2*15 MHz	6.5 – 11.6	6
For CDMA Services
2*3.75 MHz	0.15 – 0.40	2
2*5.0 MHz	0.5 – 1.2	2

*Source: Vardharajan Sridhar, The Telecom Revolution in India: Technology, Policy and Regulation, Oxford University Press, 2012, pp. 115

Allocation of 3G Spectrum (2010-Current)

In 2008, the Department of Telecom announced its policy on 3G mobile services. Pursuant to the 2006 TRAI Recommendations on Allocation and pricing of spectrum for 3G and Broadband Wireless Access, the Department of Telecom decided on a simultaneous ascending auction for allocation of spectrum. According to the recommendation, the Department of Telecom would allot 2*5 MHz bandwidth in the 2.1 GHz band.

3.5.5.: Time taken to allocate

This section will look at the issues with respect to time taken by the Department of Telecom to allocate spectrum to the winning bidders. The Department of Telecom on various occasions has delayed the process of assigning specific frequency bands after allocation of spectrum. This has in turn resulted in delay in rolling out of services by the telecom operators.

There has been substantive delay in allocation of spectrum due to various other reasons, which has been listed in the Report on Examination of Appropriateness of Procedures followed by Department of Telecommunications in Issuance of Licences and Allocation of Spectrum during the Period 2001- 2009. However, according to the Report, the main reasons for the delay are:

Deviation from laid down procedures
Inappropriate application of laid down procedures
Violation of underlying principles of laid down procedures[9]

For instance:

Ongoing litigation with respect to allocation of spectrum
During the first instance of allocation of spectrum for the metro cellular licences; the process was marred by litigation which resulted in delay in allocation of spectrum. Subsequently, there was delay in rolling out of service and the operators suffered huge losses and most of the telecom companies were rendered bankrupt.
Lack of availability/co-ordination with the defence for vacation of spectrum
Initial as well as additional spectrum was allocated as per availability. Such delays were sometime more than a year, which amounted in not only loss of profit for the licence holder but also huge losses in revenue for the Department of Telecom.
Delay in processing of application
For example in allocation of additional spectrum for Idea Cellular Limited in the Maharashtra Service Area, there was a delay of four months given that co-ordination with the Defence was done by December 10, 2004. Spectrum was only allocated by April 1, 2005.

3.5.7. Interference issues

This section will deal with the issues regarding interference in the telecommunication sector. Interference can be defined as noise or unwanted signals which are received by a reception device while receiving the wanted signals. Interference causes degradation of quality of service in the telecommunication.

There is no specific policy in India which deals with interference issues. Interference issues in the telecom sector in India, is generally addressed by Wireless Monitoring Organization which functions under the Wireless Planning Coordination Committee. Telecom operator licences also carries covenant which states:

"The licensee shall not cause or allow causing harmful interference to other authorized users of radio spectrum. For elimination of harmful interference to other user, licensee shall abide by all instructions and orders issued by the Government."[10]

Under the Use of low power Equipment in the frequency band 2.4 GHz to 2.4835 GHz (Exemption from Licensing Requirement) Rules, 2005, interference is defined as, "The effect of unwanted energy due to one or a combination of emissions, radiations or induction upon reception in a radio communication system, manifested by any performance degradation, misinterpretation, or loss of information which could be extracted in the absence of such unwanted energy."[11]

A licensee can approach the Wireless Monitoring Organization (WMO) and lodge a complaint if such operator is facing problems due to interference with other radio signals. In such a circumstance the WMO, enquires in to the matter and finds the source of interference addresses the issues accordingly. The WMO also has wireless monitoring stations which look in to and investigates any issue related interference. The WMO has introduced mobile monitoring vans to effectively find out the source of signals causing interference. The wireless monitoring stations intercepts the interfering signal to determine the source of the signal.

3.5.8. & 3.5.9.: Spectrum Refarming and Spectrum Reallocation

This section will look at the process of refarming of spectrum and also analyze the current (2012) debates on spectrum refarming in India.

Refarming of spectrum is defined as a process which is used to bring about any basic change in the use of different frequency band in the radio spectrum. This can be due to

Change in technology
Change in application and used of the frequency band
Change in Government policy on allocation of spectrum.

Refarming of spectrum entails freeing up of spectrum which is in use and reallocation of such spectrum for some other purpose. It can happen due to change in technology which allows more efficient use of spectrum and hence results in vacation of spectrum. The two main instruments which effects spectrum refarming and reallocation are

Market Driven
Policy or Regulation Driven

Market Driven

A need for spectrum refarming may arise due to the changes in the market such a entry of new players in the market. A market driven refarming and reallocation will take in to consideration financial and business related factors. For example a new entrant in the telecom market will always welcome refarming of spectrum in the 800 MHz or 900 MHz because it will bring down the infrastructure costs incurred by the new player in the market.[12]

Policy or Regulation Driven

The policy driven change is an administrative changes. The main aspects which are taken into consideration by the policy maker or regulator are:

Market Structure: The regulator may implement refarming of spectrum to allow refarming and reallocation of spectrum for facilitating competition in the market. The regulator has to take into consideration the costs incurred by the telecom operators or users of the spectrum for relocating to a different frequency band.
Access: The regulator may allow refarming of spectrum in order to implement new technologies which allows for better access and efficient use of spectrum.
Revenue: The regulator may consider refarming and reallocation of spectrum in order to earn revenue and also allow equity in distribution of spectrum. Spectrum being a scarce resource has to be judiciously allocated by the regulator. Spectrum which was previously allocated for almost two decade ago holds more value in the market due to change in technology as well as the market structure. Therefore, in order to earn revenue the government may refarm and reallocate spectrum.

The main challenge with respect to refarming and reallocation of spectrum is that who will bear the cost for such changes in the spectrum usage and allocation and the transition to a different frequency band. Normally, such a change in spectrum usage is compensated by the:

Telecom companies who have to re-buy the spectrum at a higher price
New telecom companies
Government may set up a refarming fund for such reallocation from the spectrum revenue. For example, such a fund exists in France and it is managed by the Agence Nationale Des Fréquences. (National Frequency Agency).

Refarming and Reallocation in India

According to TRAI in its Recommendation Auction of Spectrum, 2012 discusses the concept of spectrum refarming and states:

"Refarming of spectrum involves re-planning and reassigning of spectrum over a period of time for services with higher value. A key motive for refarming of spectrum is to use the refarmed frequency bands for communications services that yield greater economic or social benefit than existing use as well as to enable the introduction of new or emerging technologies." (para 2.6)

Previously the TRAI in its Recommendation on Licensing Framework and Spectrum Management, 2010 had pointed out that 800 MHz and 900 MHz should be refarmed for use of new technology (UMTS 900), which would allow more efficient use of the spectrum.

In the 2012 Recommendation, TRAI has made detailed suggestions by taking into consideration international practices, different methodologies of refarming of spectrum and comments from the stakeholders. The main recommendations are:

Spectrum in the 900 MHz band is a valuable asset both technologically and economically. Use of 900 MHz spectrum should be liberalized and restriction on the use of technology in the licence should be done away with.
It advises the government to take back 900 MHz from the licensees, who were granted licence in 1994-1995 and the two government operators. These licensees should be granted licence for liberalized spectrum at 1800 MHz frequency band at a price relevant in November, 2014
It also recommended that the 1800 MHz is not completely open for commercial exploitation and the government agencies should vacate the frequency band for successful refarming of 900 MHz.
The licence holder in the 800 MHz band should be reallocated to 1900 MHz band and it strongly recommends that the government should make immediate arrangements to refarm 800 MHz and reallocate licence holder to the 1900 MHz band.

Recently in October, 2012, The Telecom Commission under the Department of Telecom has also recommended refarming of all spectrum used by the telecom companies in the 900 MHz frequency bands during the next phase of renewal of licence. The Commission’s recommendation implies that the complete 900 MHz band has to be reallocated.

In the light of the above recommendation, the telecom companies will have the option of shifting from 900 MHz to 1800 MHz, for which auctions are happening in 2012m or it can bid for 900 MHz auctions schedule to happen in early 2013.These recommendations, if implemented may result in huge investments by the telecom companies and would affect the end users. In 2012, the minimum reserve for auction of 1800 MHz spectrum is set at Rs. 14000 crores and the minimum reserve price for auction of 900 MHz would be twice the amount. The existing licence holder in the 900 MHz band, who migrate to the 1800 MHz band would have not only make huge investment to procure spectrum but also have to install 1.5 times more cell sites to ensure adequate coverage. This would result in further investment and in turn affect the tariff rates.

However, this has been welcomed by the new players in the market, who will have the opportunity to bid for 900 MHz spectrum band which economically and technologically more viable and if liberalized it can also introduce new technologies such as UMTS 900 which would ensure better utilization of the spectrum.

Therefore, it is quite evident that the main challenge so far has been who is liable to compensate for refarming and reallocation. On one hand refarming will ensure deployment of new technology and efficient use of spectrum and also create level playing field for all the telecom companies on the other hand, reallocation or re-auction of spectrum would hit the incumbent telecom companies.

Bibliography

TRAI Recommendations and Consultations available at http://trai.gov.in
Ashok V. Desai, India’s telecommunications industry: history, analysis and diagnosis, Sage Publications India Pvt. Ltd., 2006
Vikram Raghavan, Communications Law in India (Legal Aspects of Telecom, Broadcasting and Cable Services), Lexis Nexis Butterworths, 2007
Varadharajan Sridhar, The Telecom Revolution in India: Technology, Regulation and Policy, Oxford University Press, 2012

Notes
[1]. Andrea Prat, Tommaso Valletti, Spectrum Auctions versus Beauty Contests: Costs and Benefits, Prepared for the OECD - Working Party on Telecommunications and Information Services Policies, (First draft - November 2000) available at http://istituti.unicatt.it/economia_impresa_lavoro_OECD-draft.pdf (last visited on 7/06/2012).
[2]. Consultation Paper on Auction of Spectrum , Telecom Regulatory Authority of India, (7^th March, 2012) available at http://www.trai.gov.in/WriteReaddata/ConsultationPaper/Document/consultation paper spectrum of auction.pdf (last visited on 4/6/2012).
[3]. Id.
[4]. Rohit Prasad and V. Sridhar, A Critique of Spectrum Management in India, Economic and Political Weekly, Vol. 43, No. 38 (Sep. 20 - 26, 2008), pp. 13-17.
[5]. See, R.S. Jain, Spectrum auctions in India: lessons from experience, Telecommunications Policy 25 (2001) 671–688 available at http://rru.worldbank.org/Documents/PapersLinks/spectrum_auctions_india.pdf (last visited on 05/06/2012) "The bidders could apply for any number of service areas, subject to the fulfillment of the specified entry conditions. The existing licensees could not bid for the same service area. Rollout obligations would be imposed on the winning bidders such as covering at least 10% of the district headquarters in the first year and 50 percent within 3 years of the effective date of the license. Having been criticized for the single round highest bid mechanism that caused inflated licence fee in earlier rounds, the government produced a bidding process which it called the informed ascending bidding process. The bidding process would have three rounds. The highest pre-qualified offer in the first financial bid would be treated as the reserve price for subsequent rounds of bidding. The lowest bidder in any round would not be allowed to participate in the next round, provided there were four or more bidders in any round. In case there were only two short listed bidders, both would qualify. The highest bidder in the third round would be declared successful for the grant of a licence."
[6]. Id.
[7]. Recommendations on Spectrum Management and Licensing Framework, TRAI, 11th May, 2010
[8]. Supra note iv at pp.14, "The fixed fee based licence (as opposed to auction based) theoretically allowed any number of mobile licences to be provided and implicitly de- linked spectrum allocation from licensing."
[9]. Justice Shivraj V. Patil (Former Judge, Supreme Court of India), Report on Examination of Appropriateness of Procedures followed by Department of Telecommunications in Issuance of Licences and Allocation of Spectrum during the Period 2001- 2009. (One man committee report), Published on January 31, 2011, pp. 100 available at http://www.dot.gov.in/miscellaneous/OMC/report.pdf
[10]. Clause 43.6, Licence Agreement for Provision of Unified Access Services after Migration from CMTS.
[11]. Rule 5, Use of low power Equipment in the frequency band 2.4 GHz to 2.4835 GHz (Exemption from Licensing Requirement) Rules, 2005
[12].Lower frequencies bands such as 800 MHz or 900 MHz have a greater wavelength and covers larger areas as opposed to higher frequency bands such 1800 MHz or 2.1 GHz. Therefore the telecom company with lower frequency spectrum has to set up less telecom infrastructure to provide adequate network coverage.

For more details visit https://cis-india.org/telecom/resources/spectrum-management

Market Structure in the Telecom Industry

snehashish — 2013-03-15T07:17:12Z

In this unit Snehashish examines the market structure of telecom industry — which include the teledensity, wireless, wireline, and internet services.

Teledensity

Teledensity means number of telephones per hundred people. The current teledensity in India is 78.10. However, there is a large disparity between urban teledensity and rural teledensity. The urban teledensity stands at 169.37 whereas rural teledensity is 38.53 only. The reason for the slow growth in teledensity in the rural areas is that it is less attractive for the telecom service providers to invest. Furthermore, providing service in the remote and rural areas also requires massive investment.


Teledensity in India (Rural, Urban and Cumulative) 2007 – December, 2011
Source: Department of Telecommunication, Annual Report 2011-2012

Public and Private Share in the Market

Annual Growth Rate in the Telecom Industry (1981 to December, 2011)


CAGR: Compounded Annual Growth Rate Source: TRAI, Telecom Sector in India: A Decadal Profile

After the Government of India gave up its monopoly in the telecom sector in 1992 the growth of the telecom industry was slow due to lack of roust policy. However, with the change in the policy and licensing regime in the 1999, it is evident from the above graph that the telecom industry recorded a phenomenal growth. There was 35 per cent growth in the compounded annual growth rate.

Wireless

Market share in the wireless subscription as on February, 2012

	The pie chart clearly shows that currently the private sector dominates the cellular market. However, this was not the case in the beginning. The changes in the market structure were due to the changes in telecom policy in 1999. The growth rate of number of wireless subscribers from 1996-2011 in the graph below, clearly depicts the growth in wireless subscribers after the change in policy in 1999. Currently, the three main players in the mobile services sector are Vodafone, Reliance and Bharti.

Wireline

Market share in the wireline subscription as on December, 2011

In the basic telecom services or wireline services the incumbent — Bharat Sanchar Nigam Limited (BSNL) has the majority share in the market. This is due to the expanse of the infrastructure available to the incumbent, and its ability to provide basic telecom services in the rural and remote areas. The private wireline service providers do not have the capital to invest in building such infrastructure and there is no profit in such capital investment as well. Therefore, the private players mainly concentrate in urban areas where they can earn more revenue.

Internet Services

Market share of ISPs as on December, 2011


Source: TRAI, Telecom Sector in India: A Decadal Profile

The broadband services came into forefront after the implementation of the Broadband Policy, 2004. It laid down that the minimum speed for a broadband connection has to be 256 kilo bits per second. This has been revised to 512 kilo bits per second under the National Telecom Policy, 2012. In India, 59.6 per cent internet subscription is broadband subscription.

Currently, the main technology used for broadband access is digital subscriber line (DSL). About 85.1 per cent of the broadband subscriptions are via DSL technology. While the other technologies such as fibre, leased line, wireless, ethernet, cable modem covers only 14.9 per cent of the market. The main internet service provider (ISP) in the market is BSNL which has a share of 54.97 per cent.

For more details visit https://cis-india.org/telecom/resources/market-structure-in-telecom-industry

Cable Television

srividya — 2013-03-15T08:33:08Z

Srividya Vaidyanathan brings you the history and evolution of cable television in India, how it works, cable television penetration in India, digitization rule and the end consumer in India.

What is Cable TV?

Cable TV (CATV) stands for Cable Television, i.e., a method of providing consumers with access to television programs via coaxial cables or through optical fiber cable located in the subscribers’ premises.

Evolution/History

There were four television terrestrial networks in the United States in the 1950s. One had to have a clear line of sight to the transmitting towers to be able to watch TV. Those living in hilly regions could not watch the TV programs because they could not have a clear "line of sight" over the hills. In 1948, people living in the hilly regions of Pennsylvania solved their problems by putting antennas on hills and running cables to their houses.[1] Using Terrestrial TV only a few TV channels could be broadcast whereas in the case of cable TV it is possible to downlink a good number to satellite TV channels, add local TV content, get TV contents from other sources, form bouquets of the TV channels and transmit it to TV homes using coaxial cables.

How does it work?

The figure below gives a high level flow diagram explaining the working of a CATV.

Figure 1: CATV Architecture – The image above is a pictorial representation of the working of a Cable TV.

TV Network companies beam their TV shows via satellites. Cable operators (or multi-system operators (MSO)) install head-ends (control centres for cable network) for aggregation of TV channels received from different satellites. They can mix this with content received from other sources such as broadband connections, local channels, etc., to form a bouquet of channels and then distribute to homes using coaxial cable (hence, the name cable TV) network installed either underground or hung over utility poles. To access the cable television services, one needs to subscribe to a cable company which will then connect a simple coaxial cable from the wall outlet to the television sets. One has to then program his/her cable ready television sets to receive the cable channels. In case one does not have a cable ready television then one needs to install a device called a converter box.

In CATV, the signals are sent through cables and not through the air, thus doing away with "line of sight" requirement and enabling much better quality of reception. The television signals that come via cable are not disturbed by trees, buildings, or other hindrances.[2]

Other cable based services

Coaxial cables are capable of carrying signals in both directions (to and from the customer’s end) and also the ability to carry large amounts of data. Cable television signals use only a portion of the bandwidth available over coaxial lines. This leaves plenty of space available for other digital services such as cable, internet and cable telephony. Broadband cable internet is made possible by having a cable modem at the customer's end and a cable termination system at the cable operator's end. Cable internet works very well when the distance between the cable modem and the cable termination system is not more than 160 km.

Cable TV penetration in India

The TAM Annual Universe Update – 2012 indicates that India has over 148 million households (out of 231 million) with TVs, of which over 126 million have access to CATV or Satellite TV, including 42 million households which are digital subscribers. In Urban India, 88 per cent of all households have a TV and over 70 per cent of all households have access to satellite, cable or DTH services. Households with TVs have been growing between 8 to 10 per cent, while growth in satellite/cable homes exceeded 9 per cent and DTH subscribers grew 63 per cent. CATV households could be higher because of unaccounted for or informal/unregistered cable networks that aren't taken into consideration during mainstream surveys. India now has over 500 TV channels covering all the main languages spoken in the nation.[3] Digicable Networks (India), Hathway Cable and Data Com, InusInd Media and Communications (InCable), and DEN Networks are some of the notable cable service providers in India.

Cable TV digitization rule and the end consumer in India

An ordinance has been passed by the Government of India making digitization of cable services compulsory. According to this amendment made in the section 9 of the Cable Television Networks (Regulation) Amendment Ordinance, 1995, the Ministry of Information & Broadcasting will make Digital Addressable System (set-top box) mandatory. As part of the first phase, October 31, 2012 is the sunset date for the four metro cities in India to adopt set-top boxes. The Ministry of Information and Broadcasting has clarified that there would be no further extensions on the sunset date. This measure will empower consumers to an increased number of channels and high quality viewing.

Consumers will be able to enjoy digital picture and sound quality, enhanced services such as high definition and video on demand content. The Bill will prevent local cable operators from bypassing the digital set-top box. TV broadcasters will be able to monitor their subscriber base and control the flow of revenues. This will render obsolete the role of the "middleman". Advertisers too will be able to create targeted campaigns owing to higher knowledge or analytics about the viewership patterns of users.[4]

The two key terms in the cable digitization mandate are digitization and addressability.

Digitization will solve the problem of capacity constraint and will enable introduction of value added services (viz., pay per view, time shifted video, personal video recorder, near video on demand, radio services, broadband, etc.) in the offerings to the customer, which would enhance the range of choice for the customer and improve the financial viability of operations for the service provider. Addressability will ensure choice of channels to the consumer and transparency in business transactions and will build stakeholder confidence in the sector. It will also effectively address the issue of piracy.[5]

The key here is — the end consumer will need to buy a set-top box from his cable service provider to continue watching TV. This will cost anywhere between Rs. 700 and Rs. 2000, and will be offered with the option of an all up-front payment or part payment and part EMIs. Without this box, the customer will not be able to watch television, not even free to air channels (FTA). This could have an impact on the mode of TV access in India. Some may not upgrade their cable television connection, while the majority may simply shift to a DTH service, since both incur set-top box costs.

TRAI recommendation: The Telecom Regulatory Authority of India (TRAI) has mandated that all multi-service operators (MSOs) carry a minimum of 200 channels from the beginning. This number must be increased to 500 channels by 2013. Subscribers will have to be offered 100 free-to-air channels as a basic pack — Basic Service Tier, if they wish to subscribe to that, at a minimum of Rs. 100, carrying all 18 Doordarshan channels and five channels of each genre — news, sports, infotainment, music, lifestyle, movies and general entertainment. TRAI recommends the approximate cost of a basic set-top box to be Rs.1500.

Suggested Reading

IPTV
Mobile TV
DTH
Terrestrial TV

Glossary

Co-axial Cable

Coaxial cable, or coax, has an inner conductor surrounded by a flexible, tubular insulating layer, surrounded by a tubular conducting shield. The term coaxial comes from the inner conductor and the outer shield sharing a geometric axis. Coaxial cable is used as a transmission line for radio frequency signals. Its applications include feed lines connecting radio transmitters and receivers with their antennas, computer network (internet) connections, and distributing cable television signals.[6]

Figure 2 - The above is a cross-sectional view of Coaxial cable

Optical Fiber

An optical fiber (or optical fibre) is a flexible, transparent fiber, made of glass (silica) or plastic, slightly thicker than a human hair. It functions as a waveguide, or "light pipe" to transmit light between the two ends of the fibre.[7]

Figure 3 - The above picture shows a bunch of optical fibres

[1]. From How Cable Television Works (http://www.howstuffworks.com/cable-tv.htm)
[2]. From How does cable television work? (http://wiki.answers.com/Q/How_does_cable_television_work)
[3]. From TAM Update (http://www.tamindia.com/tamindia/Images/Overview_TV_Universe_Update-2012.pdf)
[4]. From Cable TV Digitization Top 10 Facts (http://www.ndtv.com/article/india/cable-tv-digitisation-top-10-facts-204388)
[5]. From TRAI Recommendations (http://www.trai.gov.in/WriteReadData/Recommendation/Documents/finalreom5agust.pdf)
[6]. From Coaxial Cable (http://en.wikipedia.org/wiki/Coaxial_cable).
[7]. From Optical Fiber (http://en.wikipedia.org/wiki/Optical_fiber)

For more details visit https://cis-india.org/telecom/resources/cable-tv

Mobile Television

Tina Mani — 2013-03-15T08:56:35Z

In this chapter, Tina Mani tells us about DVB-H technology, MBMS technology and combining satellite television with mobile.

What is Mobile Television?

Mobile Television, as the name suggests, is the ability to view regular television channels over your mobile.

Mobile Television – Broadcast – DVB-H

Traditional Television uses a broadcast medium, i.e., different channels are played out from one source and all the listeners of a channel tune in to the particular channel frequency. Keeping the same philosophy, standards like DVB-H evolved from the broadcasting world, to allow viewership on the mobile by tuning into the channel. The DVB-H technology did not take off worldwide mainly because of the high upfront investment in infrastructure and because a separate radio network had to be built exclusively for this purpose. Also the technology was dependent on support in the handsets, which needed an additional radio. Nokia tried to solve the problem by launching a DVB-H antenna accessory that could plug into any Nokia phone and make it DVB-H enabled, but by the time they launched this, the technology was more or less dead.

In India, Doordarshan launched DVB-H on a trial basis in some areas around Akashwani Bhavan in Delhi. This service can be availed using a DVB-H compliant handset. Today, there are no DVB-H compliant handsets in the Indian market. Initially the service was not launched commercially because of lack of spectrum in the UHF band (470-862 Mhz), and a lack of understanding on how to commercialize this model. Now the Information & Broadcasting Ministry in India has already made plans to release this spectrum for auction to use for Broadband Wireless Access (LTE) instead. So this kills the DVB-H story in India.

Mobile Television – Broadcast – MBMS

Another new technology that is now being talked about is Mobile Broadcasting Multimedia Service (MBMS) which is based on cellular technologies. LTE Operators in India like Reliance Industries are running trials for this technology, because it fits well into their plans of LTE deployment with a big focus on video. It is used to bring IPTV services to the mobile, and can work very well with LTE networks. This utilizes the cellular (mobile) network. This technology is used to create the equivalent of IPTV on a mobile network. Each channel is streamed to one multicast IP address and the mobiles in that cell join that multicast group to view the channel. It requires support of MBMS technology on the base stations as well as in the core network equipment. Since each Base station (radio) is responsible for a cell, this helps optimize the bandwidth only if multiple users within that cell are viewing the same program.

Interactive Television – combining satellite television (DVB-S) with mobile

Satellite television uses a one way satellite connection to the television through a dish antenna. This means that the communication with the viewer is one-way. Hence all the users in an area get the same set of programs. To make one way medium more interactive, and personalize television more, an uplink channel from the user to the headend is required. Set top boxes with a broadband port or a wireless dongle can be used to provide this communication from the user to the head end. This can enable many interesting applications like distance learning, true Video On Demand, etc.

For more details visit https://cis-india.org/telecom/resources/mobile-tv

Module 8.3 (Mobile Television FAQs)

Tina Mani — 2013-03-15T09:35:03Z

Tina Mani gives answers to commonly asked questions on the differences between mobile television and video, video downloading and video streaming, suitable video compression standard for mobile television, content delivery network, specific regulations needed to increase the adoption of mobile television in India, etc.

What is the difference between a mobile television and video on demand?
Mobile TV is the availability of regular TV channels to view on your mobile. Video on Demand (VoD) services make a central collection of pre-recorded content like videos available to view any time the user wants to on the mobile , PC or television.
Do the handsets need any special features to view streaming video?
No, most of the handsets that support a high speed data connection also have video capabilities and a built in media player. These support the standard streaming protocols. However, for better user experience, an application client can be used on the handset to render the programming guide and to change channels easily.
What is the difference between video downloading and video streaming?
Video downloading downloads the file to the mobile and then it can be played from the local storage any number of times without a subsequent internet connection to the server. In the case of streaming, the file is located on a separate streaming server and played out to the mobile over an internet connection. Chunks of the media are stored in the buffer, can start to be viewed before the entire file is downloaded.
Where is the video content that is to be streamed stored?
The Video Content to be streamed to a mobile is usually stored in a separate storage associated with a Content Management System (CMS).
What are the protocols used for streaming video?
The protocols commonly used for streaming video are RTSP (Real Time Streaming protocol), Microsoft Silverlight and HTTP Adaptive Streaming (Iphone).
What determines the size of the digital content file?
The size of the digital content file is determined by the resolution, screen size or number of pixels (eg High Definition means 1920x1080), Standard Definition means 720x480), the frame rate (eg. 5 frames/sec) and the type of encoding (for eg., MP4 container with H264 is the most suitable for streaming).
What determines the frame rate of a video?
A video is a series of fast moving pictures. To capture more action, more frames are required to be taken per second. Sports or Action videos typically require higher frame rates than news channels. The frame rate is determined at the time of creation of the video.
What is the most suitable video compression standard (encoder) for mobile television?
H264/AVC, also known as MPEG-4 is the most suitable encoder for mobile TV, because it has the best quality for a given bitrate, and also can be used in a very wide range of applications and bit rates from very low bandwidth for a small screen like a mobile to HDTV on a big television screen. It is also an industry standard and most widely supported by the mobiles in the market.
What is the relationship between the speed of your data connection and the bit rate at which the stream is encoded?
Usually, the stream should be played out at a rate closest to the speed of the data connection, so that the video is smooth and uninterrupted. If the data connection is too slow, the video has to buffer for some time, and only when there is enough data, it plays on the handset.
Since the rights for the content to be played over mobiles are different from the standard rights, who in the ecosystem usually acquires these rights?
Several models are prevalent worldwide, but the most common one is where content aggregators who already work with media companies to acquire the rights for other content like music or pictures also acquire rights for the video content. They then get into revenue sharing arrangements with telecom operators to use their network to broadcast the content. Some fixed network operators who have broadcasting rights for IP Television (IPTV) or satellite TV (eg Airtel, Reliance) can work with the same media companies to extend the rights. There have been successful models outside India (eg Belgacom) where mobile operators have acquired content themselves and provided to the consumers over their network.
What are examples of some mobile television services in India?
Mobile TV services were launched by most of the Indian operators (eg. Airtel, VF, Idea Cellular, etc) with GPRS (2G) data connections, however, the user experience at the lower data speeds was not very good. There weren’t many technology players in the market at this time either. With the 3G launches, the experience is much better now. However, the success of any service like mobile TV depends on the content as well. So far this service has not seen huge adoption. Some of the content providers like NDTV have also launched services independent of the operator.
Are any specific regulations needed to increase the adoption of mobile television in India?
Mobile TV has two possible modes – broadcast and unicast. For the unicast mode, all it requires is a data connection that is provided through a regular 2G, 3G or 4G connection. Hence there is no special spectrum requirement for this mode. For the broadcast mode, depending on the technology (DVB-H or MBMS), special spectrum may be needed (for DVB-H). At this point, there is some contention about the use of the 698-862 MHz spectrum for DVB-H (Doordarshan), or for the use of this spectrum for BWA deployments in India . The latter approach would make sense because the general BWA spectrum can then be used for all services including mobile TV. Also the MBMS technology, which seems to be the most universally accepted broadcast technology for LTE does not require separate spectrum, but can run mobile TV in a broadcast mode using the same spectrum. Mobile TV licenses should be available to mobile operators as well.

Tina Mani works with Wavesncloud Consultants

For more details visit https://cis-india.org/telecom/resources/mobile-tv-faq

An Infrastructure Road Map

Shyam Ponappa — 2014-06-02T08:30:03Z

What should and should not be done by a new government in this crucial sector.

The article was first published in the Business Standard on April 30, 2014 and in Organizing India Blogspot on May 1.

Comprehensive, Integrated Strategy & Execution

Let's hope a newly elected government has the coherence and leadership to begin to deal right away with the mess in infrastructure, learning from what has gone wrong before. There are problems galore with our infrastructure, but a couple of examples stand out for what to look out for and avoid in future initiatives. There's little doubt that we must improve our approach to projects and undertakings in terms of functionality and efficiency, and that digital infrastructure is a key requirement.

While this article is on prioritising digital infrastructure, let us not underestimate the problems of deficient infrastructure. For sustained high growth, equally critical needs relating to power and logistics, with its interdependent linkages between transportation - by road, rail, air and water, and the associated holding/staging areas of terminals, airports and ports - need to be addressed with organisation and capital for capacity and de-bottlenecking.

One example is the multiplicity of schemes to register individuals, including the Unique Identification (UID) orAadhaar scheme, the National Population Register (NPR), the multipurpose national identity card, the voter identification card, and so on1. Another example is the National Optical Fibre Network (NOFN) by Bharat Broadband Network Limited (BBNL). Accepting for the moment that these projects are well intentioned, there seem to be flaws right from the design stage, and on through execution. While the fallout from past errors has to be dealt with, it's most important to avoid these mistakes in fresh initiatives.

The UID and NPR projects apparently began without sufficient care in defining their purposes; they did not mesh seamlessly with each other and with other objectives and processes. This disjunction has carried through in implementing their design and execution2.

The NOFN aims to extend a countrywide network on the foundation of the existing fibre networks of state-owned entities Bharat Sanchar Nigam Limited (BSNL), RailTel and PowerGrid. This was to link over 245,000 village panchayats by the end of 2013, but is still undergoing limited trials. Given its magnitude, this requires vast capital investment that is unrelated to likely revenue generation in the short run. This critical infrastructure project is apparently behind time and over budget despite its reduced scope3. That said, such monumental undertakings and changes can't be expected to go like clockwork, and the considerable efforts being made should eventually contribute to positive outcomes. For instance, a Confederation of Indian Industry report prepared with the help of KPMG in 2013 outlines possible business models and ecosystems in four areas, namely, education, health care, banking and agriculture4. It's just that a thorough, comprehensive approach from the outset would be most beneficial.

In hindsight, what's lacking in both instances is proper organisation and co-ordination, the discipline of sound project management; and this is a missing piece in most areas of deficiency in governance, including infrastructure development. While a great deal of opprobrium is directed at corruption, there's little focus on these disciplines related to competent design, execution and delivery. Both depend on digital infrastructure. This is where real efforts must be focused to fix things, quite apart from dealing with corruption.

The "plumbing" of hardware, software, communications lines, and systems that enables effective use of information and communications technology is a critical necessity for our economic growth and well-being. While a balanced availability of energy, transportation and water supply/sewerage is required, in the short run, it is ICT that is likely to yield the broadest overall benefits and economic returns through multiplier effects, provided the others come up to minimum requirements. According to the World Economic Forum's (WEF's) Global Information Technology Report 2014 issued last week, the top 10 countries embracing information technology are Finland, Singapore, Sweden, the Netherlands, Norway, Switzerland, the United States, Hong Kong, the United Kingdom, and South Korea, in that order. The report includes a "networked readiness index" that ranks countries based on an assessment of their digital infrastructure and ability to use information and communications technologies to grow, foster innovation, and improve the well-being of their citizens.

Between 2012 and 2014, India dropped in networked readiness from 69th to 83rd out of 144 countries. By comparison, China dropped from 51st to 62nd, and Brazil from 65th to 69th. The WEF report says that India continues on its declining trajectory - and, among other things, that despite competitive markets (24th) and the availability of the latest technologies (58th), its difficult business environment and lack of digital infrastructure (119th) reflect in deprivation in education, resulting in limiting the creation of a wide skill base (101st). Our information technology and business process management (IT-BPM) sector is still largely oriented to external markets. For the financial year 2014, export revenues are expected to have grown 13 per cent to $86 billion. This is almost five times domestic revenues, estimated to have grown at 10 per cent to Rs 1.15 lakh crore (just over $19 billion).

Clear, convergent objectives and task-oriented processes and systems are not really part of our culture or vocabulary, barring sectors oriented to external markets like IT-BPM, and some corporations and professionals. There are, of course, rare individuals who excel, such as the former head of Delhi Metro, E Sreedharan, who maintained his reputation from the Konkan Railway and before that, Indian Railways. But it's not as if getting it right is a foregone conclusion for countries with a far better record of good systems and high-quality delivery - as evidenced, for instance, by Germany's increasing problems after turning away from nuclear energy. So, the incoming government needs to focus on starting to do things right, and that is the best way to create opportunities that can make the most of our demographics, and the potential of our large and increasing markets. It must view any scheme as part of an integrated, overarching system, and apply itself from the very beginning with care and understanding to defining the aims, objectives, and detailed processes so that they mesh and converge with what else is there.

An explanation of Aadhaar and NPR: http://egov.eletsonline.com/2012/04/there-is-actually-no-conflict-between-uid-and-npr/
A discussion on systems aspects such as authentication and data security: "Do we need the Aadhaar scheme?", February 1, 2012, Business Standard (http://goo.gl/j3P5vf)
"Reality check on the broadband dream", April 27, 2014, Business Standard (http://goo.gl/C9h4im)
"Creating viable business models for inclusive growth through the National Optical Fibre Network": http://www.kpmg.com/IN/en/IssuesAndInsights/ArticlesPublications/Documents/KPMG_CII_Broadband_Report_Final.pdf

For more details visit https://cis-india.org/telecom/blog/organizing-india-blogspot-shyam-ponappa-may-1-2014-an-infrastructure-road-map

January 2017 Newsletter

praskrishna — 2017-03-01T06:00:37Z

Welcome to the January 2017 newsletter of the Centre for Internet and Society (CIS).

Dear readers,

We are pleased to bring you the Centre for Internet & Society's January newsletter. Previous issues of the newsletters can be accessed here.

Highlights
The Rights of Persons with Disabilities (RPD) Act, which was passed in December 2016, seeks to give effect to the rights and obligations enshrined in the United Nations Convention on the Rights of Persons with disabilities, which India signed and ratified nearly a decade ago. Nirmita Narasimhan in a blog entry has summarized the key provisions of the Act relating to digital accessibility. The latest judgment in the matter of Super Cassettes v. MySpace is a landmark and progressive ruling, which strengthens the safe harbor immunity enjoyed by Internet intermediaries in India. CIS was one of the intervenors in the case, and has been duly acknowledged in the judgment. Meena Gayathri became the first South Indian Wikiwoman to complete 100 Wikidays challenge. The challenge required Wikipedians to create one new article per day for one hundred days in a row. Gayathri's contribution and passion towards Telugu language and culture have transcended into a "knowledge revolution". The Committee on Digital Payments constituted by the Ministry of Finance and chaired by Ratan P. Watal, Principal Advisor, NITI Aayog, submitted its report on the "Medium Term Recommendations to Strengthen Digital Payments Ecosystem" on December 09, 2016. The report was made public on December 27, and comments were sought from the general public. CIS submitted its comments. The comments were authored by Sumandro Chattopadhyay. ICANN sought community input on the Proposed ICANN Community Anti-Harassment Policy on 7 November 2016. In response to this CIS submitted its comments. The comments were authored by Padma Venkataraman, Rohini Lakshané, Sampada Nayak and Vidushi Marda. The eleven sessions selected for the Internet Researchers' Conference 2017 (IRC17) to be held at the IIIT Bangalore campus during March 3-5, 2017 has been announced. The conference is being organised by the Centre for Information Technology and Public Policy (CITAPP) at IIIT Bangalore and CIS.

CIS in the news

India’s Digital ID Rollout Collides With Rickety Reality (Gabriele Parussini; Wall Street Journal; January 13, 2017).
Millions of Indians move from cash to digital payments. But some ask whether it’s safe (Rama Lakshmi; Washington Post; January 14, 2017).
Sunil Abraham on Aadhaar's misuse during demonetisation (Economic Times; January 14, 2017)
The soon-to-be launched Aadhaar Pay will let you make purchases using your fingerprint (Indulekha Aravind; January 15, 2017).
Lost your phone? Here's how you can make your mobile theft-proof (Sanjay Kumar Singh; Business Standard; January 16, 2017).
The Dangers Of Aadhaar-Based Payments That No One Is Talking About (Mayank Jain; Bloomberg; January 17, 2017).
Supreme Court issues notice to WhatsApp, Centre on data privacy (MJ Antony, Ayan Pramanik and Apurva Venkat; Business Standard; January 17, 2017).
Demonetisation: Cost Vs Benefit (NDTV; December 24, 2016). Sunil Abraham took part in the Big Fight programme aired by NDTV. The video was published on January 17, 2017.
For India’s complaints department, visit Facebook Live (Amy Kazmin; Financial Times; January 23, 2017).

CIS members wrote the following articles:

Cashlessness Needs Connectivity (Shyam Ponappa; Business Standard; January 4, 2017).
Digital Native: The Dream of the Cyborg (Nishant Shah; Indian Express; January 8, 2017).
Digital transitions in the newsroom: How are Indian language papers adapting differently? (Zeenab Aneez; London School of Economics and Political Science; January 16, 2017).
Digital native: Back at it Again (Nishant Shah; Indian Express; January 22, 2017).

Jobs

Policy Officer (Cyber Security)
Senior Policy Officer (Cyber Security)
Internship - Application accepted throughout the year
Survey Participants for Research on Musician Livelihood

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Accessibility & Inclusion
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India has an estimated 70 million persons with disabilities who don't have access to read printed materials due to some form of physical, sensory, cognitive or other disability. As part of our endeavour to make available accessible content for persons with disabilities, we are developing a text-to-speech software in 15 languages with support from the Hans Foundation. The progress made so far in the project can be accessed here.

Blog Entry

Digital accessibility in the Rights of Persons With Disabilities Act 2016 (Nirmita Narasimhan; January 23, 2017).

Participation in Event

Workplace Solutions Champions Consultative Workshop (Organized by Enable India, January 21 - 22, 2017; Ecumenical Christian Centre, Bangalore). Nirmita Narasimhan attended the workshop.

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Access to Knowledge
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Our Access to Knowledge programme currently consists of two projects. The Pervasive Technologies project, conducted under a grant from the International Development Research Centre (IDRC), aims to conduct research on the complex interplay between low-cost pervasive technologies and intellectual property, in order to encourage the proliferation and development of such technologies as a social good. The Wikipedia project, which is under a grant from the Wikimedia Foundation, is for the growth of Indic language communities and projects by designing community collaborations and partnerships that recruit and cultivate new editors and explore innovative approaches to building projects.

►Copyright and Patent

Blog Entry

Super Cassettes v. MySpace (Redux) (Anubha Sinha; January 16, 2017).

Event Organized

Seminar on Rethinking Copyright and Licensing for Digital Publishing Today (Organized by Pro Helvetia - Swiss Arts Council, Goethe-Institut Max Mueller Bhavan New Delhi, and CIS; New Delhi; January 23, 2017). Anubha Sinha attended the event.

►Wikipedia

As part of the project grant from the Wikimedia Foundation we have reached out to more than 3500 people across India by organizing more than 100 outreach events and catalysed the release of encyclopaedic and other content under the Creative Commons (CC-BY-3.0) license in four Indian languages (21 books in Telugu, 13 in Odia, 4 volumes of encyclopaedia in Konkani and 6 volumes in Kannada, and 1 book on Odia language history in English).

Blog Entries

WikiSangamotsavam 2016 (Manasa Rao; January 18, 2017).
Telugu Wikipedia Stall at Hyderabad Book Fair (Manasa Rao; January 18, 2017).
Telugu Wikipedia Stall at Rajahmundry Book Fair (Manasa Rao; January 18, 2017).
Mini Workshop on Tools: Wikipedia Monthly Meetup, Hyderabad (Manasa Rao and Pavan Santhosh; January 18, 2017).
Meet Telugu Wikipedian Surampudi Meena Gayathri – the first South Indian Wikiwoman completing 100 Wikidays Challenge (Ting-Yi Chang; January 23, 2017).

Event Organized

Odia Wikipedia and Orientation Training Programme (Organized by CIS-A2K team; Indian Institute of Mass Communication, Dhenkanal; January 31, 2017).

►Openness

Our work in the Openness programme focuses on open data, especially open government data, open access, open education resources, open knowledge in Indic languages, open media, and open technologies and standards - hardware and software. We approach openness as a cross-cutting principle for knowledge production and distribution, and not as a thing-in-itself.

Participation in Event

CBGA - Consultation on Opening Up Access to Budget Data in India (Organized by CBGA; January 27, 2017; New Delhi). Sumandro Chattapadhyay was a speaker.

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Internet Governance
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As part of its research on privacy and free speech, CIS is engaged with two different projects. The first one (under a grant from Privacy International and IDRC) is on surveillance and freedom of expression (SAFEGUARDS). The second one (under a grant from MacArthur Foundation) is on restrictions that the Indian government has placed on freedom of expression online.

►Privacy

Submission

Comments on the Report of the Committee on Digital Payments (Sumandro Chattapadhyay and Amber Sinha; January 12, 2017).

Blog Entries

The Design & Technology behind India’s Surveillance Programmes (Udbhav Tiwari; January 20, 2017)
Workshop on ‘Privacy after Big Data’ (Amber Sinha; January 27, 2017).

Events Organized

Discussion on Ranking Digital Rights in India (India Islamic Cultural Centre, New Delhi; January 7, 2017).
Rankathon on Digital Rights (CIS office, New Delhi; January 8, 2017).

Participation in Events

Global Governance Futures 2027 - Session 3 (Organized by Global Public Policy Institute and supported by Robert Bosch Stiftung; New Delhi; January 17, 2017). Sumandro Chattapadhyay joined Ankhi Das (Facebook) and Arun Mohan Sukumar (Observer Research Foundation) to discuss the "data governance" scenarios developed by the GGF 2027 Fellows.
CPDP (Computers, Privacy and Data Protection) 2017 (Organized by Privacy International; Brussels, January 26, 2017). Amber Sinha participated as a panelist.

►Big Data

Blog Entry

New Media, personalisation and the role of algorithms (Amber Sinha; January 2, 2017).

Participation in Events

Training programme for Chairs, Convenor and Experts for International Standardization Work (Organized by National Institute of Training for Standardization, under the Bureau of India Standards; January 19 - 20, 2017; NOIDA). Udbhav Tiwari attended the training programme.
Seminar on Understanding Financial Technology, Cashless India, and Forced Digitalisation (Centre for Financial Accountability; New Delhi; January 24, 2017). Sumandro Chattapadhyay spoke on the emerging architecture of FinTech in India.

►Free Speech & Expression

Submission

Comments on the Proposed ICANN Community Anti-Harassment Policy (Padma Venkataraman, Rohini Lakshané, Sampada Nayak and Vidushi Marda; January 13, 2017).

Blog Entry

Social Media Monitoring (Amber Sinha; January 13, 2017).

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Telecom
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CIS is involved in promoting access and accessibility to telecommunications services and resources, and has provided inputs to ongoing policy discussions and consultation papers published by TRAI. It has prepared reports on unlicensed spectrum and accessibility of mobile phones for persons with disabilities and also works with the USOF to include funding projects for persons with disabilities in its mandate:

Article

Cashlessness Needs Connectivity (Shyam Ponappa; Business Standard; January 4, 2017 and Organizing India Blogspot; January 5, 2017).

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Researchers at Work
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The Researchers at Work (RAW) programme is an interdisciplinary research initiative driven by an emerging need to understand the reconfigurations of social practices and structures through the Internet and digital media technologies, and vice versa. It aims to produce local and contextual accounts of interactions, negotiations, and resolutions between the Internet, and socio-material and geo-political processes:

Event

Internet Researchers' Conference 2017 (IRC17) - Selected Sessions (Organized by Centre for Information Technology and Public Policy and CIS; IIIT, Bangalore; March 3 - 5, 2017). Eleven sessions have received 10 or more nominations.

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About CIS
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The Centre for Internet and Society (CIS) is a non-profit organisation that undertakes interdisciplinary research on internet and digital technologies from policy and academic perspectives. The areas of focus include digital accessibility for persons with disabilities, access to knowledge, intellectual property rights, openness (including open data, free and open source software, open standards, open access, open educational resources, and open video), internet governance, telecommunication reform, digital privacy, and cyber-security. The academic research at CIS seeks to understand the reconfigurations of social and cultural processes and structures as mediated through the internet and digital media technologies.

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CIS is grateful to its primary donor the Kusuma Trust founded by Anurag Dikshit and Soma Pujari, philanthropists of Indian origin for its core funding and support for most of its projects. CIS is also grateful to its other donors, Wikimedia Foundation, Ford Foundation, Privacy International, UK, Hans Foundation, MacArthur Foundation, and IDRC for funding its various projects.

For more details visit https://cis-india.org/about/newsletters/january-2017-newsletter

Cashlessness Needs Connectivity

Shyam Ponappa — 2017-02-02T15:17:34Z

And connectivity needs political and administrative convergence. This new year brings with it uncertainties amidst the push for cashlessness. Without going into the demerits or otherwise, some clarity on a road map to go forward from where we are might help with realistic planning to manage our way out of this situation.

The article was published by Business Standard on January 4, 2017 and mirrored in Organizing India Blogspot on January 5, 2017.

Cashless transactions need ubiquitous connectivity, which we don’t have. Without it, the goal is simply unfeasible. Better to recognise this now, rather than act out elaborate charades, resulting in avoidable economic hardship and social ructions. Connectivity needs effective, efficient communication links at a reasonable cost. These call for realistic objectives and solid implementation, not bluster and unrealistic goals or plans, such as fibre-optic networks everywhere, payment systems on a hastily assembled database riddled with imposters, or insufficient security and privacy.

What is required?

The need is for internet connectivity using fibre backbones, extending to users through aggregation networks that are mostly wireless. The chances of establishing these networks increase if political parties and government agencies take concerted action on how to do so. This is necessary for two reasons. One is that our present network development and spectrum policies do not facilitate achieving universal broadband, especially in areas with lower commercial potential than prosperous urban clusters. The second is the legacy of network development with entrenched rivalries and perceived ways of managing spectrum, and the aftermath of the spectrum scam. These constrain society’s collective ability to configure solutions for connectivity, as opposed to the biased or limited perceptions of stakeholder groups such as the government, the judiciary, the citizenry, and industry (comprising service providers and equipment suppliers). Government agencies also have divergent agenda, e.g., the Telecom Regulatory Authority of India (Trai) is responsible for recommending spectrum use, the Department of Telecommunications/Ministry of Communications has licensing authority and runs the state-owned operators, the Ministry of Information and Broadcasting holds certain spectrum bands, the Ministry of Defence and government agencies hold other bands, and the Ministry of Electronics and Information Technology is responsible (without the authority) for providing broadband. Hence, the need for a convergent approach, as effected partially for electricity supply, from coal mining through transportation to distribution (although other sectors – hydel, hydrocarbons and nuclear – are yet to be similarly linked).

What needs doing

Radical changes such as pooling and sharing network infrastructure have to be considered for widespread connectivity. Such changes can’t happen with confrontation and mistrust, but only with trust and cooperation. This may seem naïve, but the ruling party leadership sets the tone for cooperation, as does the administrative leadership. Their pitch has to be sufficiently persuasive to induce diverse stakeholders – other political leaders, the judiciary, the citizenry who want industry to pay their pound of flesh while getting good services that are priced very low, and the operators, who have huge investments in networks and spectrum rights – to consider sharing equipment, and to work out worthwhile terms for everyone.

Currently, contending political parties pursuing selfish objectives as antagonists settle at the lowest achievable equilibrium. To understand why, consider two parties, A and B, with objectives along the horizontal X axis for A and the vertical Y axis for B in the chart.

When parties pursue conflicting interests confrontationally, they end up at N or Nash Equilibrium, where neither can improve their position without the other’s concurrence. Assume A has the objective of maximising a majoritarian agenda, while B seeks to maximise dynastic control of its leadership positions. This holds for any objectives that are unrelated (orthogonal). If their objectives are along the same dimension — say, control of the Centre or of the same states, there can be no accommodation: one wins what the other loses. This has happened so far, as parties are periodically voted in and then out by a disenchanted electorate. But if they accommodate, their equilibrium could move up to S, the “Best Feasible Equilibrium” point, where the acceptable limits of their respective objectives meet. (For more details, see: “Tata’s Corus Buy: A Game Theory Analysis”, organizing-india.blogspot.in, November 2, 2006, and "India’s Access To Nuclear Fuel & Technology", April 3, 2008.)

Imagine waking up to find that instead of the usual confrontation and vitriol, a different and gracious protocol awaits you. One of harmonious interaction marked by accommodation and courtesy, despite nature being red in tooth and claw. Utopian? Perhaps. But not if the powers that be realise that the way out of the cashless crisis is to seek benefits for everyone, instead of self-destructing by chasing chimera such as pure cashlessness or other unrealistic goals. Instead, they could give people what they need but don’t have: ubiquitous communications infrastructure that facilitates all activities (not just cashless transactions), and a more secure, well-ordered environment for pursuing their livelihoods and well-being. Policy decisions to share network infrastructure would be the start of this journey.

We can then break out of the impasse created by legacy communications policies and posturing, e.g., which party was responsible for what scam, the popular obsession with high auction prices for spectrum while wanting cheaper services, and operators committed to cornering spectrum.

Once the leadership collaborates, they’ll find that communications services delivery will be much improved by sharing capacity and coordination. This would enable other stakeholders – private sector operators, the citizenry, the judiciary – to accept that everyone gains from cooperative access to and delivery of communications services, provided adequate profits are generated and shared equitably. This will help in accepting a more rational, pay-for-use policy on the lines of highways, metro rail, or oil pipeline usage, and recognise the financial infeasibility of having auctions as well as funds for investments in networks for countrywide broadband access.

Government and stakeholders can then work together to develop solutions that are fair and practical. For instance, one or more consortium/s of operators with the government as a co-investor in each (on the lines of Singapore’s OpenNet) can co-own the network and coordinate for most effective and efficient service delivery. Earnings from spectrum usage can be collected by the government once the networks are commercially viable, as for developing any other infrastructure. Such collections are likely to exceed the auction fees foregone, as with revenue sharing from licence fees.

For more details visit https://cis-india.org/telecom/blog/business-standard-shyam-ponappa-january-4-2017-cashlessness-needs-connectivity

Your telco could help spy on you

praskrishna — 2013-07-30T06:13:07Z

Telecom minister gives approval to changes in rules for mobile licences to enable such mass surveillance.

The article by Joji Thomas Philip, Leslie D'Monte and Shauvik Ghosh was originally published in Livemint on July 30, 2013. Sunil Abraham is quoted.

Telecom companies and Internet service providers will soon help the government monitor every call made, every email sent and every website visited, with the Centre deciding to connect their networks to its automated surveillance platform known as the Centralised Monitoring System (CMS).

Communications minister Kapil Sibal has approved changes in existing rules and new clauses to be inserted in mobile licences for enabling such mass surveillance, copies of documents reviewed by Mint reveal.

	The department of telecommunications (DoT) will shortly send a letter to all telcos asking them to connect their “lawful interception system (LIS)” to the CMS “at a regional monitoring centre through an interception, store and forward (ISF) server placed in the licensee’s premises”, according to the documents. Telcos including Bharat Sanchar Nigam Ltd (BSNL), Mahanagar Telephone Nigam Ltd (MTNL), Reliance Communications Ltd, Bharti Airtel Ltd, Vodafone India Ltd and Tata TeleServices Ltd declined to comment on questions emailed in this regard.

The department of telecommunications (DoT) will shortly send a letter to all telcos asking them to connect their “lawful interception system (LIS)” to the CMS “at a regional monitoring centre through an interception, store and forward (ISF) server placed in the licensee’s premises”, according to the documents.

Telcos including Bharat Sanchar Nigam Ltd (BSNL), Mahanagar Telephone Nigam Ltd (MTNL), Reliance Communications Ltd, Bharti Airtel Ltd, Vodafone India Ltd and Tata TeleServices Ltd declined to comment on questions emailed in this regard.

“The automated process of the CMS will be subjected to the same regulatory scrutiny as is available in the present manual system under Section 5(2) of Indian Telegraph Act and Rules 419-A thereunder, with the added advantage of having a safeguard against any illegal provisioning by the telecom service providers in the present system, however, remote it may be,” DoT said in an email reply to a questionnaire with a brief on CMS.

“Safeguard has also been built against any unauthorized provisioning by having a different interception provisioning agency than the interception requisitioning and monitoring agencies thus having an inbuilt system of checks and balances. Further, a non-erasable command log will be maintained by the system, which can be examined anytime for misuse, thus having an additional safeguard,” DoT said.

The CMS was approved by the cabinet committee on security (CCS) on 16 June 2011, with government funding of Rs.400 crore. It is expected to enable the government to monitor all forms of communication, from emails to online activity to phone calls, text messages and faxes by automating the existing process of interception and monitoring. The government completed a pilot project in September 2011 under which the Centre for Development of Telematics (C-DoT) installed two ISF servers, one of them for MTNL.

“The interception services have been integrated and tested successfully for these two telecom services providers (TSPs),” the note said, referring to MTNL and Tata Communications Ltd. MTNL officials declined to comment. There was no response to queries by Tata Communications.

It added that training had been imparted to six law enforcement agencies—the Intelligence Bureau, the Central Bureau of Investigation, the Directorate of Revenue Intelligence, the Research and Analysis Wing, the Delhi Police and the National Investigation Agency.

However, the documents also reveal that the CMS project is getting delayed over technical issues such as lawful interception systems sending the intercept-related information (IRI) in “their own proprietary format”; difficulty in tracing the movement of “the target from the home network to the roaming network”; and how to independently provision voice and data interception of mobile users.

The government is simultaneously devising a strategy to counter criticism from the media and privacy lobby groups that this surveillance platform has no privacy safeguards. Mint reported on 13 July that fresh questions were raised on the CMS infringing on the rights of individuals, especially in the wake of the US government’s PRISM surveillance project.

In an internal note on 16 July to help Sibal brief the media, DoT said even as the CMS will automate the existing process of interception and monitoring “... all safeguards that are currently in place in the manual mode of interception will continue”.

The note argued that implementation of the CMS “will rather enhance the privacy of the citizens” since it will not be necessary to take the authorization (for tapping) to the nodal officer of the telecom service providers “who comes to know whose or which phone is being intercepted”. The note added that after the CMS is implemented, provisioning of interception will be done by a CMS authority, who would be different from the law enforcement agency authorities.

“The law enforcement agency (LEA) cannot provision for interception and monitoring and the CMS authority cannot see the content but would be able to provision the request from the LEA.Hence, complete check and balance will be ensured. Further, a non-erasable command log will be maintained by the system, which can be examined anytime for misuse, thus having an additional safeguard,” added the department’s note briefing the minister.

Also, acknowledging that “questions were being asked about the practices of Indian agencies and the privacy and rights of its citizens”, national security adviser Shivshankar Menon in a 23 June note to the ministries of home, external affairs and telecom, the department of electronics and information technology, and the cabinet secretary said: “Only home secretaries of the Centre and states can authorize such monitoring; orders are valid for two months, are not extendable beyond six months; records are to be maintained, use of storage is limited and a review committee of cabinet secretary, law secretary and secretary of the telecom department regularly screens all cases.”

Menon also admitted that when it came to individual privacy rights, there were “larger issues that needed serious consideration and wider consultation with industry, advocacy groups and NGOs (non-governmental organizations) as has been the case so far in the draft privacy Bill... For data protection and retention in India, however, there may be a need to consider legislation or strengthening existing legislation, as the march of technology has made most present laws irrelevant.”

Privacy experts are convinced that safeguards are needed, especially since India does not have a privacy law.

“To safeguard public interest, the government should also draft a law that will make it a criminal offence if a CMS authority is found in possession of any personal information culled through the CMS. That will prove to be a deterrent,” said Sunil Abraham, executive director of the Centre for Internet and Society, a privacy lobby body. “Also, the government must build an audit trail using PKI (public key encryption) and people as an additional safeguard.”

“As I understand it, there is also no clear statutory backing for the CMS,” said Apar Gupta, a partner at law firm Advani and Co. that specializes in information technology (IT) law. “What is important is that every tapping order should be backed by a reason. This was the case with the manual process. Will this be possible in an automated surveillance system such as the CMS?”

“What is disturbing is that there is no transparency with regard to the CMS. Everything is happening under the radar with media reports periodically giving us glimpses into the project,” he said. “A state should protect its interests but should do so in a manner that safeguards privacy and limits abuse.”

According to the Freedom on the Net 2012 report by Freedom House, an independent privacy watchdog body, of the 47 countries analysed, 19 had introduced new laws or other directives since January 2011 that could affect free speech online, violate users’ privacy, or punish individuals who post certain types of content. India, which scored 39 points out of 100 (score achieved out of 100 for censoring the Internet), was termed partly free by the report, which was released on 24 September.

Globally, 79% of the respondents in another study said they were concerned about their privacy online, with India (94%), Brazil (90%) and Spain (90%) showing the highest level of concern, according to a June survey undertaken by research firm ComRes, and commissioned by Big Brother Watch, an online privacy campaign.

For more details visit https://cis-india.org/news/livemint-july-30-2013-joji-thomas-philip-leslie-d-monte-shauvik-ghosh-your-telco-could-help-spy-on-you

Building Up vs Tearing Down

Shyam Ponappa — 2013-08-02T07:06:30Z

We have to find ways to deal with corruption without subverting our developmental aims.

This article by Shyam Ponappa originally published in the Business Standard on July 3, 2013 was also mirrored in Organizing India Blogspot

Many economies around the world are in an unenviable state. India too has lost another chance at breaking out of its self-limiting mould of haphazard divergence and fractious irresponsibility. These constraints are exemplified by the ruling party's overindulgence in populist and crony handouts, such as ill-considered Mahatma Gandhi National Rural Employment Guarantee Act or food security initiatives, or the latest gas pricing decision, apparently without any sense of responsibility for the detrimental consequences, including for cash flows. The sole criterion is to somehow stay on top. Alas, they are matched by the unmitigated confrontationism of a flailing Opposition. As a consequence, we remain a land of unrealised potential, our energies focused on hindering or tearing down instead of building up. Lack of credible enforcement is hampering development, and the two are becoming mutually exclusive.

To a considerable extent, the troubles worldwide, including our own, appear to have resulted from excesses of some sort, whether of dishonesty or destructive activism. Is a sense of decline because of the economic downturn, or are there genuine negativities in our times? Is there an inevitable slide to dishonesty, as Plato concluded - reaffirmed in more recent works across cultures, such as Corruption Cycles by Cristina Bicchieri and John Duffy? [1]

The distribution of personal attributes in any large set of people ensures that there will always be some who will try to cheat, even in the elevated domain of scientific research. A consideration of two instances, one global and the other local, may provide some indicators.

Misconduct in Research
Consider the retraction of scientific papers. The title of a report published in October 2012 says it all: "Misconduct Accounts for the Majority of Retracted Scientific Publications". [2] First, there has been a rising trend in the 2,047 retractions since the first in 1977 (there's a puzzling caveat about retractable offences not being necessarily new). Second, the rise since 1977 has been almost tenfold. Third, over two-thirds were attributable to misconduct, including intentional falsification or fabrication of data. Almost half of all retractions (43 per cent) were for fraud, suspected or actual; duplicate publications were 14 per cent, and plagiarism almost 10 per cent. The report concludes that for articles for which the reason for retraction is known, three-quarters were for actual or suspected misconduct, while errors accounted for only a quarter (Chart 1).

Chart 1

Geographic Spread
Of the retracted articles from 56 countries, three-quarters of fraud or suspected fraud were from the United States, Germany, Japan, and China. India's share in plagiarism and duplicate publication is relatively high; its share in fraud, also relatively high, is lower than in the other two (Chart 2).

Chart 2

India's research papers in science, social science, and economics/business for the period 2000 to 2010 and their share in world citations were as follows:

The Science Watch website provides details for each field. To quote from it: "For the period 2000-2010, India ranked 11th in output, 17th in citations received, and 34th in citations per paper (among nations publishing 50,000 or more papers during the period) across the science and social sciences fields surveyed in Essential Science Indicators." By way of comparison, the US published nearly 3,050,000 papers (11 times as many) from 2001 to August 2011, while China was second with about 8,37,000 (three times as many). [3]

These data show that the loss of innocence is global and rising, but that we have a disproportionate share: 11th in output, but sixth in fraud, fifth in plagiarism and sixth in duplicate publication.

Improved Indian Highways
At the local level, press reports seemed to indicate that our highways programme was faring badly. A few, like the Greater Noida Expressway near Delhi, the Yamuna Expressway to Agra, and the Jaipur-Agra highway appeared to be exceptions. Last month, however, our 3,000-kilometre drive from Delhi to Coorg averaged 600 km a day on mostly good roads. Some stretches in Northern Karnataka were breathtaking, and the feeder roads alongside were particularly impressive. Something is really happening in road construction (see http://www.nhai.org/allphase.htm, on a well-presented website).

This demonstrates the possibility of achievement despite evident deficiencies and alleged corruption, even though much remains to be done to make the road system genuinely world-class.

Less Cheating, More Fair Play
So how can we tackle corruption while pursuing development? The trick is to devise processes and institutions that favour equitable outcomes, or less cheating and more fair play rather than the opposite, without obstructive policing. If the processes have incentives and penalties that are credibly administered, perhaps we'll get the desired results. One essential requirement is of universal acceptance, and inculcation of these processes as an obligatory aspect of citizenship. Impartial and systematic enforcement has to be the norm - perhaps the hardest step for us - without recourse to the imposition of parallel bureaucracies of elaborate policing mechanisms, street demonstrations, or handouts of free electricity, food, TVs, computers and the like. Credible enforcement could allow us the opportunity to focus on building pleasant, productive communities with decent living standards with systems against corruption, preventing the expending of discretionary effort on such matters at the cost of development.

But the prerequisite is to get those in power to allow the trick. If we could learn to apply standard operating procedures to incentives and punishments, the fight against corruption and progress in development need not be mutually exclusive.

[1]. http://www.anth.ucsb.edu/faculty/gurven/anth169/bicchieriduffy1997.pdf

[2]. http://www.pnas.org/content/109/42/17028.full.pdf
(Ferric C Fang, R Grant Steen, and Arturo Casadevall; Proceedings of the National Academy of Sciences, US, September 2012)

[3]. http://sciencewatch.com/articles/top-20-countries-all-fields-2001-august-31-2011

For more details visit https://cis-india.org/telecom/blog/business-standard-op-ed-shyam-ponappa-july-3-2013-building-up-vs-tearing-down

Super WiFi & Shared Spectrum: A Time to Start Sharing

Shyam Ponappa — 2012-11-08T07:00:53Z

Look into sharing spectrum and 'Super Wi-Fi', instead of auctions, refarming and exclusive allocation.

Shyam Ponappa's article was published in Organizing India Blogspot on November 3, 2012 and earlier in the Business Standard on November 1, 2012.

Amidst our preoccupation with internal problems of misgovernance, we’re losing track of long-term technical developments elsewhere. For instance, there’s a buzz about “Super Wi-Fi” technology in other countries that's missing in India. Yet this could make spectrum abundant, while avoiding the problems of private allocation. Here’s why India with its floundering, beleaguered telecommunications sector should stay abreast.

Super Wi-Fi using TVWS

The technology for unused TV spectrum bands, or TV White Spaces (TVWS), is referred to as “Super Wi-Fi”, although it doesn’t conform to earlier Wi-Fi standards, nor does it use the 2.4 GHz or 5 GHz licence-exempt spectrum. Super Wi-Fi has its own standards (IEEE 802.22 and 802.11 af) using 470-810 MHz, the “digital dividend” after conversion from analogue broadcast TV. It can be used for long-range rural broadband, and to improve short-range coverage. In the US, where it was pioneered, access is available without a licence to devices registered with a proximate geolocational database. Like regular Wi-Fi, Super Wi-Fi expands the use of available spectrum by sharing access.

The US is also permitting exploration of shared use in defence and security bands from 1755-1850 MHz, extending the potential for sharing spectrum.[1]

TVWS trials

Earlier this month, Singapore’s Infocomm Development Authority organised a workshop on TVWS with government and private entities. Organisers included the Institute for Infocomm Research (IR) and other local participants, with presentations from companies from the US, Europe, Asia, and Africa, including Microsoft, Google, Spectrum Bridge, Adaptrum, Ericsson subsidiary Telcordia, Neul, Japan’s NCIT, and so on.[2] Completed or ongoing trials are shown in the diagram below.

Super WiFi Trials


Source: http://www.microsoft.com/en-us/download/details.aspx?id=29678

TVWS and shared spectrum vs refarming

These developments should be of vital interest in India to policy makers, operators and users — not only for TVWS as a shared resource, but as an approach that could be extended to other bands, so that limited spectrum availability doesn’t constrain reasonably priced, high-speed data services. This is a serious limitation in India, unlike in other countries where a few operators have sufficient spectrum; in this sense, the need to share spectrum is much greater in India. For example, sharing could provide a better alternative to refarming of the 900 MHz band, allowing for both 4G and legacy uses.

One difficulty is that dominant operators may oppose sharing because their spectrum holdings provide a competitive advantage: possibly Bharti, Reliance, or an aspirant like Vodafone with access to inexpensive offshore funding. Our collective interests here, however, are likely to be best served not by constraining access through limited, exclusive spectrum, but by making spectrum abundant through sharing, allowing for wide bands (2x20 MHz or 2x40 MHz) that can be aggregated for much higher throughput for data, not just for voice.

For this to happen, (a) the government has to explore spectrum sharing in TVWS as well as in other bands, and (b) stakeholders must be receptive, to co-operate effectively on a workable plan on the lines of revenue sharing after NTP-99, extending to broadband delivery. Everyone will gain: users will get better access, operators can thrive, and the government will collect much more revenue over time. However, dominant operators will need to give up their spectrum for the greater common interest including their own, and for this, they will need compensation — as in production-sharing agreements in the oil sector.

The advantages of spectrum sharing

There are a number of advantages of sharing spectrum. First, and important, it can be non-discriminatory. Second, it avoids private allocation; shared spectrum can be accessed without allocation to private parties. Then there is the fact that capital cost is reduced. There is no deadweight loss from capital tied up in auctions, freeing it all for network development and service delivery. Finally, there’s the general misinformation about auctions, which become academic if spectrum is shared. If spectrum is instead auctioned, the public interest – of users, operators and producers – will be adversely affected. (On producers, while local manufacturing is currently insignificant, there is considerable scope if it is set up right, as telecommunications equipment imports are expected to exceed energy imports in a few years).

The Supreme Court was misinformed about auction fees exceeding revenue-sharing collections, and not informed of its detriments. As evidenced after NTP-99, networks and services proliferated, resulting in much higher collections than auction fees foregone. The Supreme Court’s opinion on the Presidential Reference clarified that auctions were not mandatory for other resources, but not for spectrum, although the reasoning is the same. This needs rectification if spectrum is not shared, because revenue-share collections and tax revenues on profits from more extensive networks and services are likely to far exceed the estimated auction fees of Rs 40,000 crore over three years, quite apart from the major public benefits of access.

Space for constructive decisions

Another requirement for constructive resolution is that policy makers be given the requisite space to frame solutions that are genuinely in the public interest. These solutions can be premised on abundance if it is possible, rather than artificial scarcity and rationing. At present, the Telecom Regulatory Authority of India, the Department of Telecommunications, and other authorities including the Empowered Group of Ministers are under immense pressure to favour aggressive government collections, instead of what might be genuinely beneficial. This is an odd consequence of the government’s increasing loss of credibility, resulting in the rise of populists, “profit haters”, and ignorant-yet-opinionated sceptics. Uninformed attacks on constructive approaches and alternatives need to be presented and seen in a more balanced way by an informed media, press and public, instead of being fuelled by indiscriminate hype.

Also, we have to learn to distinguish between problems of ideological conviction – those that can be solved through political accommodation – and engineering problems, like network design and service delivery at least cost. Resorting to political accommodation for engineering requirements results in malfunction and/or collapse.

A good way to proceed is to ensure sharing solutions are worked out without incurring exorbitant cost — not only for TVWS but also for legacy operations, such as in the 900 MHz band. These can induce new network build-outs for data services in urban as well as underserved rural areas, and broadband service delivery across the country.

[1]. Other bands being considered for sharing in the US are:
1695-1710 MHz & 3550-3650 MHz; Unlicensed: 5350-5470 MHz & 5850-5925 MHz. For details, see: http://news.cnet.com/8301-1035_3-57529959-94/defense-department-pushes-spectrum-sharing-as-solution-to-wireless-crunch/
[2]. http://whitespace.i2r.a-star.edu.sg/TVWS_Workshop/Programme.html

Details on the UK (Cambridge) trials at: http://www.cambridgewireless.co.uk/docs/Cambridge White Spaces Trial - technical findings-with higher res pics.pdf

For more details visit https://cis-india.org/telecom/blog/organizing-india-blogspot-in-2012-nov-3-2012-shyam-ponappa-super-wifi-shared-spectrum