Telecom at a Glance

A. TELECOM SCENARIO

Communications Sector has assumed the position of an essential

infrastructure for socio-economic development in an increasingly
knowledge-intensive world. The reach of telecom services to all regions
of the country has become an integral part of an innovative and
technologically-driven society.

India is currently the world’s second-largest telecommunications

market with a subscriber base of 1189.28 million (of which mobile
telephone connections are 1168.32 million and landline telephone
connections are 20.96 million). The overall teledensity in the country is
90.23%. While the rural teledensity is currently 57.01%, the urban
teledensity stands at 160.87% at the end of July, 2019.

Internet and broadband penetration in the country is increasing

steadily, boosting the Government’s Digital India campaign. The
number of Internet subscribers (both broadband and narrowband put
together) now stands at 665.31 million by the end of June'19. The
number of subscribers accessing internet via wireless phones etc. was
643.64 million and there were 21.67 million wired internet subscribers
at the end of June, 2019, while the number of Broadband subscribers
was 594.59 million.

FDI equity inflow in the telecom sector was US $ 2.67 billion in the
financial year 2018-19. During 2019-20 (April-June) it jumped to US $
4.23 billion. This is 58.43 % higher than the FDI received during 2018-
19.

During the period April-June 2019, Telecommunications Sector

attracted FDI Equity inflows of US$ 4,227 million (Rs. 29,352 crore)
accounting for 25.89% of total FDI Equity inflows of US$ 16,330 million
(Rs. 113,511 crore).
Total internet connections (broadband plus narrowband) during the
period 2014-15 to 2019-20 (April-June) are given at the following table:

Table 1: Total internet connections 2014-19

As on 31st Rural Urban Total
March

2014 251.58
2015 107.56 194.77 302.33
2016 111.95 230.71 342.66
2017 136.52 285.68 422.19
2018 145.83 348.13 493.96
2019 227.01 409.72 636.73
2019-2020(April- 238.26 427.05 665.31
June)
Source: TRAI

B. PROGRAM, INITIATIVES AND PROGRESS

1. Telecom Infrastructure:

 BharatNet: The Government is implementing the flagship BharatNet project

(in phases), to link each of the 2.5 lakh Gram Panchayats of India through
optical fibre network. This is the largest rural connectivity project of its kind
in the world and is the first pillar of Digital India Programme. It will facilitate
the delivery of various e-Services and applications including e-health, e-
education, e-governance and e-commerce in the future. The project
envisages optimal mix of underground fibre, fibre over power lines, radio
and satellite media for providing broadband connectivity which can be
utilized by all categories of service providers on non-discriminatory basis.

 Work on phase I of the project has been completed. Phase II of BharatNet

project is under implementation, which aims to connect 1.5 lakh GPs
through high speed broadband, and is targeted to be completed by August
2019. Under BharatNet project a total of 3,60,370 km of Optical Fibre Cable
(OFC )pipes have been laid as on 29.08.2019. The number of Gram
Panchayats (GPs) where OFC have been laid are 1,35,242. The number of
GPs made Service Ready are 1,23,242.
 Wi-Fi Hotspots: For accessing broadband services in all the 2.5 lakh Gram
Panchayats under BharatNet, around 12.5 lakh Wi-fi hotspots will be set up (with
5 hotspots in each panchayat on an average) in rural areas. This is going to
provide broadband access to millions of people in rural areas. In addition to the
Wi-Fi hotspots provisioned in the BharatNet, the Government is going to setup 1
Wi-Fi Hotspots infrastructure at BSNL’s Telephone Exchanges in rural areas
 Network for Left Wing Extremism Areas: Department of Telecom executed
a project for providing Mobile Services in 2199 locations in Andhra Pradesh,
Bihar, Chhattisgarh, Jharkhand, Maharashtra, Madhya Pradesh, Odisha,
Telangana, Uttar Pradesh and West Bengal, which are affected by Left Wing
Extremism (LWE). This large project was completed in a short period of 18
months and has brought connectivity to about 3000 villages and helped in
the operation of security forces.

2. Connecting the Unconnected

 The Government has approved a Comprehensive Telecom Development

Plan for North East Region to be funded from Universal Service Obligation
Fund (USOF). This project will connect 8621 villages through installation of
6000 mobile tower sites. The Department is also implementing a project for
laying over 3000 km of Submarine Optical Fibre Cable between Mainland
(Chennai) and Port Blair and five other islands namely Car Nicobar, Little
Andaman, Havelock, Kamorta and Great Nicobar Islands of Andaman &
Nicobar Islands.

 Active Infrastructure sharing: The Government issued a notification on

11.2.2016 permitting sharing of active infrastructure amongst service
providers based on mutual agreements. The active sharing cover antenna,
feeder cable, Node B, Radio Access network (RAN) and transmission
systems.

 Introduction of Virtual Network Operators (VNO): The Government has

issued guidelines for UL(VNO) on 31st May, 2016. VNO system allows
Telecom Service Providers to utilize their networks and spectrum efficiently
by sharing active and passive infrastructure. Further, VNOs can provide
services in small towns and rural areas using the network of existing TSPs
having unutilised capacity or by last mile connectivity. This apart, the VNOs
can be effective in providing services in airports or buildings or in smart
cities.
 Right of Way Rules: The Government has notified the Indian Telegraph
Right of Way Rules, 2016 to regulate underground infrastructure (optical
fibre) and over ground infrastructure (mobile towers). This rule is applicable
to all telecom service providers holding a licence issued under sub-section
(1) of section 4 of the Indian Telegraph Act, 1885.These rules have simplified
the grant of right of way permissions for creation of telecom infrastructure
by making it transparent and time-bound. This measure is expected to
facilitate an increase in the pace of creation of infrastructure both in both
rural and urban areas.

 Registration Certificate of Infrastructure Provider Category-I (IP-I): Under IP-I

registration, a company can provide assets such as Dark Fibres, Right of way,
Duct Space, Tower for the purpose to grant on lease/rent/sale basis to the
licensees of Telecom Services licensed under Section 4 of Indian Telegraph
Act, 1885 on mutually agreed terms and conditions. As on 27.06.2018, 862
companies have been registered as Infrastructure Provider Category-I.

2.1 Telecom Spectrum:

A major achievement in the sector has been bringing in transparency in the allocation
of spectrum by adopting an auction process. This has also resulted in the highest
ever upfront payment to the Government. There has been a marked thrust on
improving efficiency in the use of spectrum by allowing spectrum sharing, trading and
harmonisation.
3. Harnessing emerging technologies: In order to ensure that India is on track
to harness the benefits of emerging technologies government has taken the
following initiatives: -
 5G Network: The fifth generation of mobile network communication
technology- known as 5G, holds the promise of applications with high social
and economic value, leading to a ‘hyper-connected society’ in which
technology will play an even more important role in people’s lives. 5G will not
only facilitate but also add a new dimension to the missions like ‘Digital India’
and ‘Smart Cities’. The Government envisages positioning India as a globally
synchronized participant in the design, development and manufacturing of 5G
based technologies, products and applications. Therefore, Government has
constituted a multi- disciplinary High Level Forum to suggest vision, mission
and goals for 5G India 2020 along with action plan & roadmap.

DoT is supporting research and study in 5G through financial assistance to

institutions of national importance for establishment of ‘Indigenous 5G Test
Bed at IIT Chennai, in collaboration with premier technology institutions
including IIT Delhi, IIT Mumbai, IIT Hyderabad and IISC Bengaluru.

 M2M Communications: M2M represents tremendous opportunities in

bringing substantial and tangible social and economic benefits to consumers,
businesses, citizens and governments. Department of Telecommunications
(DoT) intends to facilitate complete ecosystem around M2M networks in the
backdrop of ‘National Telecom M2M Roadmap’ which will act as the foundation
for a digital society leading to integration of physical & digital infrastructure.

 Transition to IPv6: Planned transition to Next Generation Internet Protocol

i.e. IPv6 assumes significance as it is essential for sustainable growth of
Internet, one of the key pillars of Digital India. Department of
Telecommunications (DoT), being the nodal department for IPv6 transition in
the country, has been constantly working with all stakeholders including
States/UTs/Central Ministries/Departments for smooth transition to IPv6 since
the release of ‘National IPv6 Deployment Roadmap version-II’ in 2013
containing IPv6 transition guidelines/timelines.

4. Citizen and customer centric measures

 Full Mobile Number Portability (MNP): Government has allowed One Nation
Full Mobile Number Portability (MNP) recently. This has enabled the
subscribers to change their licence service area and still retain their mobile
number. MNP also allows subscribers to retain their existing mobile number
when they switch from one telecom service provider to another irrespective
of technology or service area limitation.

 All new mobiles to have panic button: The Government has mandated the
feature of Panic Button feature in all mobile phone handsets. Mobile phone
handset manufacturers have intimated that they have implemented panic
button in all their mobile handsets (smart as well as feature phones) that are
being sold in India from 01-03-2017.

 Single number 112: DoT has instructed TSPs to map Single Emergency
Number ‘112’ with existing Emergency Number ‘100’ in all States /UTs in
August 2016. At present Single Emergency Number 112 is operational and
mapped on existing emergency number ‘100’ in all States/UTs except Delhi.
112’ is designed to be used to replace the multiplicity of Emergency Numbers
operations in India such as 100, 101, 102 and 108 etc. The project is to be
made operational by all States/UTs under the supervision of Ministry of
 Home Affairs through PSAP (Public Safety Answering Point). When an
emergency call is received at the PSAP, it would be answered by a specially
trained officer/call taker/operator of respective state/UT that will transfer
the call on the type of emergency, dispatchers to police, fire medical and
other response mechanisms.

 Public Awareness Programs on EMF emission issue: The Department

initiated in 2016-17 a nation-wide Awareness Programme, on EMF Emissions
& Telecom Towers to build a direct bridge of engagement between different
stakeholders and to fill the information gap with scientific evidence. It has
been further been followed up at sub-state level by the TERM field units of
DoT so that more and more people are made aware about the scientific facts
on health effects of EMF emissions from mobile towers.

 Launch of National EMF Portal: Department of Telecommunications (DoT)

has launched Tarang Sanchar, a web portal for Information sharing on
Mobile Towers and EMF Emission Compliances, with a view to generate
confidence and conviction with regard to safety and harmlessness from
mobile towers and clearing any myths and misconceptions. The EMF Portal
provides a public interface where an easy map-based search feature has
been provided for viewing the mobile towers in vicinity of any locality.
 Social Media Presence of DoT: To have a Social Media presence of
Department of Telecom for generating awareness & education on National
action plans & implementation strategies, re-pronouncement of public
policies, dissemination of important events/activities, seeking feedback from
citizens etc., the officially verified Twitter Handle (@DoT_India) and
Facebook page (www.facebook.com/DoTIndia) were started on May 2016
along with logo of the Department. Further, to widen the reach and as an
effective time bound response to address grievances/queries/feedback,
Twitter Seva of Department of Telecom was launched on 2nd August 2016 by
the Hon’ble Minister.

C. NATIONAL DIGITAL COMMUNICATIONS POLICY

The National Digital Communications Policy, 2018 unveiled by the Government

seeks to unlock the transformative power of digital communications networks - to
achieve the goal of digital empowerment and improved well-being of the people
of India and attempts to outline a set of goals, initiatives, strategies and intended
policy outcomes.
The Policy aims to accomplish the following Strategic Objectives by 2022:
1. Provisioning of Broadband for All
2. Creating 4 Million additional jobs in the Digital Communications sector
3. Enhancing the contribution of the Digital Communications sector to 8%
of India’s GDP from 6% in 2017
4. Propelling India to the Top 50 Nations in the ICT Development Index of
ITU from 134 in 2017
5. Enhancing India’s contribution to Global Value Chains
6. Ensuring Digital Sovereignty

In pursuit of accomplishing these objectives by year 2022, the National Digital

Communications Policy, 2018 envisages three Missions:

1. Connect India: Creating Robust Digital Communications Infrastructure To

promote Broadband for All as a tool for socio-economic development, while
ensuring service quality and environmental sustainability.

2. Propel India: Enabling Next Generation Technologies and Services through

Investments, Innovation and IPR generation To harness the power of emerging
digital technologies, including 5G, AI, IoT, Cloud and Big Data to enable provision
of future ready products and services; and to catalyze the fourth industrial
revolution (Industry 4.0) by promoting Investments, Innovation and IPR.

3. Secure India: Ensuring Sovereignty, Safety and Security of Digital

Communications To secure the interests of citizens and safeguard the digital
sovereignty of India with a focus on ensuring individual autonomy and choice,
data ownership, privacy and security; while recognizing data as a crucial economic
resource

D. DIGITAL COMMUNICATIONS COMMISSION (erstwhile TELECOM

COMMISSION)

The Telecom Commission was set up by the Government of India vide

the Resolution dated 11th April, 1989 with administrative and financial powers of
the Government of India to deal with various aspects of Telecommunications. The
Government, vide Resolution dated 22nd October2018, has re-designated the
'Telecom Commission' as the 'Digital Communications Commission'.

The Digital Communications Commission consists of a Chairman, four full time

members, who are ex-officio Secretaries to the Government of India in the
 Department of Telecommunications and four part time members who are the
Secretaries to the Government of India in the concerned Departments. The
Secretary to the Government of India in the Department of Telecommunications
is the ex-officio Chairmen of the Digital Communications Commission. The full-
time Members of the Digital Communications Commission are Member (Finance),
Member (Production), Member (Services) & Member (Technology). The part-time
Members of the Digital Communications Commission are Chief Executive Officer,
NITI (National Institution for Transforming India) Aayog, Secretary (Department of
Economic Affairs), Secretary (Department of Electronics & Information
Technology) and Secretary (Department of Industrial Policy & Promotion).

The Digital Communications Commission is responsible for:

1. Formulating the policy of Department of Telecommunications for approval of

the Government;

2. Preparing the budget for the Department of Telecommunications for each

financial year and getting it approved by the Government; &

3. Implementation of Government's policy in all matters concerning

telecommunication.

E. UNIVERSAL SERVICE OBLIGATION FUND (USOF)

To give impetus to the rural telephony, the Government in June, 2002, had
established Universal Service Obligation Fund (USOF) by an Act of Parliament.
Subsequently, the scope of USOF was widened to provide subsidy support for
enabling access to all types of telegraph services including mobile services,
broadband connectivity and creation of infrastructure like optical fiber in rural
and remote areas. Therefore, various schemes have been launched by USOF for
provision of telecom services in rural and remote areas of the country.

F. REGULATORY FRAMEWORK
TRAI has played catalytic role in the development of the telecom, broadcasting
and cable services. It has been its endeavour to provide an environment, which is
fair and transparent, encourages competition, promotes a level-playing field for
all service providers, protects the interest of consumers and enables technological
benefits to one and all. A number of recommendations on various telecom issues
were made by TRAI during 2017-18. TRAI has also taken steps to ensure the
quality of service provided by the service providers by way of monitoring the
performance of Basic and Cellular Mobile Telephone Service on quarterly basis
and Point of Interconnection (POI) congestion on monthly basis. The regulatory
measures taken by TRAI facilitate orderly growth of telecom sector by promoting
healthy competition and enhancing investment efficiency besides protecting the
interest of consumers.

F. PUBLIC SECTOR UNDERTAKINGS (PSUS)

DoT has the following PSUs under its administrative control:

a) Bharat Sanchar Nigam Limited (BSNL)

b) Mahanagar Telephone Nigam Limited (MTNL)
c) ITI Limited
d) Telecommunications Consultants India Limited (TCIL)
e) Bharat Broadband Network Limited (BBNL)
f) Hemisphere Properties India Limited (HPIL)