Telecom and Postal Sector – Spectrum Allocation, Call Drops, Predatory Pricing, etc

Telecom and Postal Sector – Spectrum Allocation, Call Drops, Predatory Pricing, etc

Chakshu Platform launched against Spam Calls

Note4Students

From UPSC perspective, the following things are important :

Prelims level : Chakshu Platform purpose

Mains level : NA

In the news

  • The Department of Telecommunications (DoT) introduced Chakshu, a new platform aimed at enabling telecom users to report fraud or spam callers.

Chakshu Platform

  • Chakshu (meaning eyes), accessible at sancharsaathi.gov.in/sfc, empowers citizens to proactively report suspicious communications, as announced by the DoT.
  • The government will collaborate with private firms like Truecaller to improve the functionality of the platform.
  • The Telecom Regulatory Authority of India (TRAI) is also working on building an app for the ‘Chakshu’ platform.

Features of the platform

  • Reporting Options: Users can report various types of frauds, including those related to bank accounts, payment wallets, SIM cards, gas and electricity connections, KYC updates, impersonation, and sextortion.
  • Enhanced Reporting Mechanism: Chakshu offers a comprehensive mechanism for reporting fraudulent activities, ensuring that telecom users can address a wide range of concerns.

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Telecom and Postal Sector – Spectrum Allocation, Call Drops, Predatory Pricing, etc

Under-Sea Cable Disruptions expose key Telecom Vulnerability

Note4Students

From UPSC perspective, the following things are important :

Prelims level : Submarine Communication, Fiber Optics

Mains level : Implications of maritime crisis on Submarine Cable Infrastructure

In the news

  • Three undersea cables connecting India to global telecom networks—Asia-Africa-Europe-1, Europe India Gateway, and Tata Global Network—have been damaged in the Red Sea Conflict, possibly due to targeted attacks.

What are Submarine Communications Cable?

  • Submarine cables are laid on the seabed between land-based stations to transmit telecommunication signals across stretches of ocean and sea.
  • These cables employ fiber-optic technology, with optical fiber elements coated with protective layers suitable for the marine environment.
  • Submarine cables offer a reliable, cost-efficient, and high-capacity means of internet connectivity compared to satellites.

India’s Submarine Cable Infrastructure

  • With 17 submarine cables landing in 14 cable landing stations, mainly in Mumbai and Chennai, India is actively expanding its undersea connectivity.
  • The Telecom Regulatory Authority of India (TRAI) has introduced regulations categorizing Cable Landing Stations (CLS) into Main CLS and CLS Point of Presence to enhance data flow and reduce reliance on foreign providers.
  • TRAI’s recommendations also include recognizing submarine cable operations as critical services, proposing legislative amendments, and suggesting exemptions from custom duty and GST for essential goods.
  • Examples:
  1. MIST Submarine Cable System (connecting India with Myanmar, Thailand, Malaysia, and Singapore)
  2. Reliance Jio Infocomm’s India Asia Xpress (IAX) (India to the Maldives, Singapore, Sri Lanka, and Thailand)
  3. India Europe Xpress (IEX) (India to Italy via Saudi Arabia and Greece)
  4. SeaMeWe-6 project (Singapore to France via India, Bangladesh, and Maldives)
  5. Africa2 Cable (connecting India with the UK via several African countries)

Vulnerabilities in Telecom Infrastructure

  • Ongoing Conflict’s Impact: Damage to undersea cable systems in the Red Sea due to regional conflict exposes vulnerabilities in India’s internet and overseas telecom connectivity.
  • Limited Connectivity: India’s relatively few connections to such cables and regulatory restrictions on expanding the submarine cable industry pose significant concerns.
  • Choke Points: Cable disruptions underscore a choke point in subsea connections between Europe and Asia, particularly concerning for India due to limited connections and regulatory constraints.

Current Challenges in Submarine Cable Infrastructure

  • Capacity Shortages: Rising demand from data centers, retail usage, and enterprise applications exacerbates capacity constraints in India’s submarine cable networks.
  • Opaque Ownership Structures: Lack of transparency in ownership of submarine cable systems raises national security concerns, particularly regarding the involvement of International Long Distance Operators (ILDOs).
  • Regulatory Constraints: Stringent regulations impede investment in submarine cable infrastructure, limiting redundancy and hindering security measures.

Implications of TRAI Proposals

  • Digital Transformation: TRAI’s recommendations align with India’s digital ambitions, facilitating the expansion of data centers and enhancing internet connectivity.
  • Balancing Act: DoT’s decision on TRAI’s proposals will shape the future of India’s submarine cable industry, balancing the interests of stakeholders and national security concerns.

Case Study: Australia’s Cable Protection Zone Regime

 

  • Legislative Framework: ACPZs established within its Exclusive Economic Zone (EEZ), offer a legislative model for protecting international submarine cables.
  • Regulatory Authority: The Australian Communications and Media Authority (ACMA) oversees the enforcement of protection measures within designated zones, ensuring compliance with stringent regulations.
  • Prohibited Activities: It restricts activities such as seabed trawling, vessel anchoring, and dredging within Cable Protection Zones, mitigating the risk of cable damage.

Way Forward

[A] Replicating Success in Indian Waters

  • Adopting Legislative Framework: India can collaborate with Australia to enact similar laws within its territorial waters, leveraging sovereign rights over submarine cables within the EEZ.
  • Establishing Protection Zones: Creation of Submarine Cable Protection Zones, consistent with UNCLOS provisions, enables India to enforce jurisdictional and physical safeguards.
  • Regional Cooperation: India can advocate for the adoption of Australia’s model legislation across the Indian Ocean Rim Association, fostering multilateral cooperation in protecting subsea infrastructure.

[B] Operational Implementation and Collaboration

  • Coordination Mechanisms: Collaboration among navies and coastguards of Quad nations and like-minded countries facilitates operational coordination in monitoring and protecting high-density cable zones.
  • Policy Alignment: Aligning domestic legislative frameworks with regional initiatives ensures seamless coordination and collective action in safeguarding submarine assets.
  • Reducing Risks: Enhanced cooperation minimizes the risk of cable damage and sabotage, bolstering connectivity and resilience in the Indian Ocean Region.

Conclusion

  • India stands at a pivotal juncture in safeguarding its subsea infrastructure amidst evolving geopolitical dynamics.
  • India must fortify its submarine cable assets, ensuring uninterrupted connectivity and advancing its digital aspirations.
  • Through proactive legislative measures and strategic collaboration, India can mitigate risks and emerge as a global leader in subsea infrastructure protection.

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Telecom and Postal Sector – Spectrum Allocation, Call Drops, Predatory Pricing, etc

[pib] Kochi-Lakshadweep Islands Submarine Optical Fiber Connection (KLI-SOFC) Project

Note4Students

From UPSC perspective, the following things are important :

Prelims level : KLI-SOFC Project

Mains level : NA

kochi

Introduction

  • The Prime Minister has inaugurated Kochi-Lakshadweep islands submarine optical fiber connection (KLI-SOFC) project.

About KLI-SOFC Project

  • The KLI-SOFC project extends submarine cable connectivity from Kochi to eleven Lakshadweep Islands, including Kavaratti, Agatti, and Minicoy.
  • The project aims to provide high-speed wireline broadband connectivity through FTTH and 5G/4G Mobile networks to the Lakshadweep Islands population.
  • Funded by the Universal Services Obligation Fund (USOF), Department of Telecommunication.
  • The total link distance of the project is 1,868 kms.
  • Implementing agencies include BSNL as the Project Executing Agency and M/s NEC Corporation India Pvt Ltd for contract work.

Benefits of the Project

  • Contributes to ‘Digital India’ and ‘National Broadband Mission’, enabling e-governance projects in Lakshadweep.
  • Boosts E-Governance, Tourism, Education, Health, Commerce, and Industries, potentially improving living standards and accelerating social and economic development.
  • The bandwidth created will be available to all Telecom Service Providers (TSPs) to enhance telecom services in the Lakshadweep Islands.

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Telecom and Postal Sector – Spectrum Allocation, Call Drops, Predatory Pricing, etc

Direct-to-Mobile (D2M) Technology in India

Note4Students

From UPSC perspective, the following things are important :

Prelims level : Direct-to-Mobile (D2M) Technology

Mains level : Read the attached story

Direct-to-Mobile (D2M)

Introduction

  • The Telecommunication Engineering Centre (TEC) has identified significant challenges in implementing direct-to-mobile (D2M) technology, which allows streaming TV content directly to mobile phones without an internet connection.
  • The proposal for D2M has faced opposition from technology companies like Qualcomm, Samsung, Ericsson, Nokia, and telecom operators.

About Direct-to-Mobile (D2M) Technology

  • Direct-to-mobile (D2M) technology is a method of transmitting content directly to mobile devices using broadcast signals. Here are the key points to understand about D2M technology:
  • D2M uses broadcast networks, similar to those for TV and radio, to send content directly to mobile devices, bypassing traditional cellular or internet data networks.
  • This technology is efficient for delivering the same content to many users simultaneously, reducing the load on cellular networks and making it ideal for live events or popular broadcasts.
  • Mobile devices need to be equipped with specific hardware to receive and decode broadcast signals, which may require new standards in smartphone manufacturing.
  • D2M can offer high-quality video and audio streaming, as it doesn’t depend on the variable speed and stability of an internet connection.

Key Challenges Identified by TEC

  • Integration Issues: Integrating smartphones with D2M and digital terrestrial TV to mobile devices (DTT2M) technologies is a major challenge.
  • Infrastructure Requirements: Implementing technologies like Advanced Television Systems Committee (ATSC) 3.0 (NextGen TV) may necessitate a new nationwide network for indoor coverage, adding complexity.
  • Increased Costs: The adoption of D2M technology could lead to higher costs for smartphone manufacturers and, consequently, higher phone prices.
  • Ecosystem and Viability Concerns: Challenges include the availability of a handset ecosystem, scalability, business viability, and spectrum requirements.

TEC’s Report and Consultation Findings

  • Device Ecosystem: Success in adopting D2M technology hinges on enabling service on mobile devices, particularly smartphones or tablets, and creating an open-market, low-cost device ecosystem.
  • Need for Compatible Standards: A standard compatible with existing mobile handsets is essential for cost-effectiveness and leveraging the existing ecosystem.
  • Offloading Broadcasting Traffic: The standard should facilitate offloading broadcasting traffic over phones and guide the design and manufacture of smartphones for direct broadcast signal reception.

Government’s Intent and Potential Uses of D2M

  • Convergence of Services: The government aims to explore the convergence of broadcasting and broadband services through D2M technology.
  • Direct Broadcasting Benefits: Users could receive terrestrial digital TV content on handsets, similar to FM radio. The technology could broadcast emergency alerts, public safety messages, and social services.
  • Traffic Offloading: Telcos could offload video content to broadcasting networks, reducing network congestion.

Global Context and Trials

  • Lack of Available Devices: Currently, no mobile devices support these broadcasting technologies or standards globally.
  • International Trials: Countries like the USA, Brazil, Mexico, and Canada are conducting trials for D2M technology.

Stakeholder Concerns and Consultation Feedback

  • Hasty Implementation Worries: Stakeholders expressed concerns about the government’s rushed approach to implementing a technology still in its early stages.
  • Telcos’ Revenue Concerns: Telecom operators are apprehensive about potential revenue losses from their data business if mobiles pick up signals from D2M technology.

Conclusion

  • Critical Factors: The success of D2M in India will depend on the development of a device ecosystem and the ability to broadcast to a vast number of open-market mobile devices.
  • Navigating Implementation Challenges: Addressing the identified challenges and considering stakeholder concerns will be crucial in determining the feasibility and success of D2M technology in India.

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Telecom and Postal Sector – Spectrum Allocation, Call Drops, Predatory Pricing, etc

How Centre plans to regulate Content on OTT and Digital Media?

Note4Students

From UPSC perspective, the following things are important :

Prelims level : OTT Regulation

Mains level : Read the attached story

ott

Central Idea

  • The Centre’s new draft Broadcasting Services (Regulation) Bill, 2023, aims to revamp the regulatory framework for the broadcasting sector in India.
  • The Bill extends regulatory oversight from conventional television services to OTT platforms, digital content, and emerging technologies.

Key Provisions of the Draft Bill

  • Single Legal Framework: The Bill seeks to establish a unified legal structure for various broadcasting services, replacing the three-decade-old Cable Television Networks (Regulation) Act.
  • Mandatory Registration and Self-Regulation: It introduces mandatory registration for broadcasting services, the creation of content evaluation committees for self-regulation, and establishment of programme and advertisement codes.
  • Three-Tier Regulatory Mechanism: The Bill proposes a three-tier regulatory structure, including self-regulation by broadcasters, self-regulatory organizations, and a Broadcast Advisory Council.

Government’s Objectives and Concerns Raised

  • Ease of Doing Business: The government claims the Bill will enhance ease of doing business and update the regulatory framework to match the sector’s evolving needs.
  • Freedom of Speech Concerns: However, there are apprehensions about potential censorship and infringement on freedom of speech, especially for digital media.

Specifics of the Draft Bill

  • Intimation of Operations: The Bill requires formal registration or intimation to the government for broadcasting services, with exceptions for entities like Prasar Bharati.
  • Modern Broadcasting Definitions: It includes definitions for broadcasting, broadcasting networks, and network operators, encompassing internet broadcasting networks like IPTV and OTT services.
  • Content Quality and Accessibility: Broadcasters must adhere to yet-to-be-defined Programme and Advertisement Codes and classify their content for viewer discretion. The Bill also emphasizes accessibility for persons with disabilities.

Self-Regulation and Government Oversight

  • Content Evaluation Committees: Broadcasters must establish committees with diverse representation for content certification, except for shows exempted by the government.
  • Broadcast Advisory Council: An advisory council will oversee regulation implementation, with the power to make recommendations to the government.

Inspection, Seizure, and Penalties

  • Inspection Rights: The Centre and authorized officers can inspect broadcasting networks and services, raising concerns about government overreach.
  • Penalties for Non-Compliance: The Bill includes penalties like removal of shows, apologies, off-air periods, or cancellation of registration for non-compliance.

Concerns and Critiques

  • Digital Rights and Free Speech: Organizations like the Internet Freedom Foundation express concerns about the Bill’s impact on online free speech and creative expression.
  • Ambiguity and Rule-Making: The Bill’s numerous instances of “as may be prescribed” or “as notified by the Government” create uncertainty for stakeholders.
  • Impact on Digital Platforms: Experts highlight the need for careful consideration of the Bill’s impact on online content creators and the digital space’s dynamism.

Conclusion

  • The bill, represents a significant shift in India’s broadcasting sector regulation, aiming to encompass modern digital platforms while raising critical questions about content regulation, freedom of expression, and government oversight.

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Telecom and Postal Sector – Spectrum Allocation, Call Drops, Predatory Pricing, etc

Private: Will the New Telecom Bill streamline the sector?

Note4Students

From UPSC perspective, the following things are important :

Prelims level : Telecommunications Bill, 2023

Mains level : Read the attached story

Central Idea

  • Legislative Update: The Telecommunications Bill, 2023, was recently passed in Parliament, awaiting the President’s assent.
  • Objective: The Bill aims to modernize and consolidate laws governing telecommunications, replacing three older acts.

Overview of the Telecommunications Bill, 2023

  • Scope and Provisions: The Bill covers authorization of networks and services, spectrum allocation, right of way for infrastructure, and emergency government measures.
  • Consumer Protection: It includes provisions like a ‘Do Not Disturb’ register to protect consumers from unsolicited messages.
  • Definition of Telecommunication: The Bill broadly defines telecommunication to include various digital communication services, impacting internet apps in India.
  • Shift to Authorization Regime: It moves from a licensing to an authorization regime, requiring all telecommunication services to obtain government authorization.

Concerns and Criticisms of the Bill

  • Surveillance and Privacy Issues: Critics argue that the Bill enables mass surveillance and internet shutdowns, with contentious clauses around user identification and biometric verification.
  • Emergency Powers: Chapter IV grants the government extensive emergency powers, raising concerns about potential misuse for surveillance and message interception.
  • Encryption Standards: The government’s authority to set standards for encryption and data processing has sparked fears over weakening encryption and privacy.
  • Historical Context: The government’s interest in encryption standards is viewed against the backdrop of controversies like the Pegasus spyware scandal.

Industry Reception of the Bill

  • Support from Telecom Associations: Organizations like DIPA and the Cellular Operators’ Association of India have praised the Bill for standardizing ‘right of way’ rules and reducing tax burdens.
  • Satellite Communication Sector’s Approval: The Indian Space Association has welcomed the spectrum allocation provisions for satellite-based networks.
  • International Concerns: Groups like the Signal Foundation and Internet Freedom Foundation have expressed concerns over surveillance capabilities and the impact on encryption standards.

Debate Over Internet Suspension Authority

  • Lack of Procedural Safeguards: The Bill’s provision to suspend internet services has been criticized for not incorporating safeguards recommended by the Supreme Court and Parliamentary Committees.
  • Human Rights and Trust Issues: There are fears that these measures could undermine human rights and trust in digital services in India.

Conclusion

  • Demand for Withdrawal: Various groups have called for the withdrawal of the Bill in its current form, citing concerns over privacy, human rights, and digital trust.
  • Need for Balanced Approach: The Bill’s passage highlights the need for a balanced approach that ensures technological advancement and national security while safeguarding privacy and human rights.
  • Future Outlook: The ongoing debate suggests a need for further discussion and potential amendments to address the concerns raised by various stakeholders.

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Telecom and Postal Sector – Spectrum Allocation, Call Drops, Predatory Pricing, etc

Telecom law upgrades for a digital authoritarian state

Note4Students

From UPSC perspective, the following things are important :

Prelims level : Universal Services Obligation Fund.

Mains level : passage of the Telecommunications Bill, 2023, and the repeal of The Indian Telegraph Act, 1885

bill: Key features of the Telecommunication Bill, 2023 - The Economic Times

Central idea 

The article critiques the recently passed Telecom Bill, emphasizing its nationalistic undertones, potential authoritarian features, and the failure to address the digital divide effectively. It questions the rushed parliamentary process and highlights concerns about corporate favoritism, symbolized by the renaming of the Universal Services Obligation Fund.

Key Highlights:

  • The tweet by Union Minister Ashwini Vaishnav announces the passage of the Telecommunications Bill, 2023, and the repeal of The Indian Telegraph Act, 1885.
  • The use of the term “Bharat” instead of “India” and crediting the PM’s individual vision are intentional for cultural nativism.

Key Challenges:

  • The Telecom Bill is criticized for ignoring the persisting digital divide and lacking fresh ideas to address it.
  • Provisions favoring select private firms and potential misuse of regulatory power are highlighted.
  • State control and surveillance powers without defined safeguards raise concerns about privacy and freedom.

Key Terms and Phrases:

  • “Digital Bharat Nidhi”: Renaming of Universal Services Obligation Fund (USOF) in the Telecom Bill.
  • “Regulatory sandboxes”: Provisions likely to benefit large corporations in the telecom sector.
  • “Authorisation” vs. “Licensing”: The change in terminology with increased severity in the Telecom Act.

Key Quotes:

  • “Bharat moves on…” – Tweet by Union Minister Ashwini Vaishnav.
  • “Guess who will soon step into Mobile Satellite Services from India?” – MP Priyanka Chaturvedi on potential favoritism towards private firms.

Key Statements:

  • The Telecom Bill is criticized for distracting from the digital divide issue and lacking innovative solutions.
  • Concerns raised about potential misuse of regulatory powers and selective favoritism toward private corporations.

Key Examples and References:

  • Mention of the renaming of USOF as “Digital Bharat Nidhi” in the Telecom Bill.
  • Reference to the allocation of satellite spectrum benefiting the Adani Group.

Key Facts and Data:

  • Stagnation in new telecom users and contraction in smartphone sales, as reported by the Telecom Regulatory Authority of India and International Data Corporation.
  • A legal penalty of ₹25,000 for providing false particulars or failing to share information as required by the Telecom Act.

Critical Analysis:

  • The Telecom Bill is criticized for maintaining colonial architecture, vague definitions, and potential threats to privacy.
  • The rushed passage of the bill without addressing raised concerns reflects an unconstitutional concentration of power.

Way Forward:

  • Advocate for a thorough review of the Telecom Bill by a Standing Committee to address concerns.
  • Emphasize the need for policies that genuinely bridge the digital divide and promote fair competition in the telecom sector.
  • Encourage transparency, public participation, and safeguards to protect individual rights in telecommunications legislation.

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Telecom and Postal Sector – Spectrum Allocation, Call Drops, Predatory Pricing, etc

Telecommunications Bill, 2023: Emphasizing National Security and Regulatory Framework

Note4Students

From UPSC perspective, the following things are important :

Prelims level : Telecommunications Bill, 2023

Mains level : Not Much

Telecommunications Bill, 2023

Central Idea

  • The Telecommunications Bill, 2023, was introduced in the Lok Sabha focusing on the development and regulation of telecommunication services and networks.
  • The Bill aims to consolidate existing laws and adapt to the evolving nature of telecommunications, emphasizing national security and inclusive digital growth.

Telecommunications Bill, 2023

  • Replaces Existing Acts: The Bill seeks to replace the Indian Telegraph Act, 1885, the Indian Wireless Telegraphy Act, 1933, and the Telegraph Wires (Unlawful Possession) Act, 1950.
  • Focus on Modernization: Recognizing the significant changes in telecommunication technologies and usage, the Bill proposes a contemporary legal framework for the sector.

National Security Provisions in the Telecom Bill

  • Government Control in Emergencies: The Bill allows the government to temporarily take control of telecom services during public emergencies or for public safety.
  • Interception and Priority Routing: It provides mechanisms for intercepting messages or routing specific messages on priority in the interest of national security, public order, and other key areas.
  • Press Message Regulations: The Bill stipulates conditions under which press messages may be intercepted, detained, or prohibited from transmission.
  • Government Directives for Message Transmission: The government can direct telecom services to transmit specific messages in the public interest.

Implications and Significance

  • Enhanced Security Measures: The Bill’s provisions for government intervention in telecom services during emergencies highlight a focus on national security and public safety.
  • Balancing Security and Freedom: While ensuring security, the Bill also acknowledges the need to safeguard press freedom, with specific rules for accredited correspondents.
  • Modern Regulatory Framework: By replacing outdated laws, the Bill aims to create a regulatory environment that aligns with current technological advancements and societal needs.

Conclusion

  • Adapting to Changing Dynamics: The Telecommunications Bill, 2023, represents a significant step in updating India’s legal framework for telecommunications, keeping pace with global technological trends.
  • Focus on National Security: The emphasis on national security and public safety within the Bill reflects the government’s commitment to ensuring a secure and resilient telecommunications infrastructure.

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Telecom and Postal Sector – Spectrum Allocation, Call Drops, Predatory Pricing, etc

Rajya Sabha passes Post Office Bill  

Note4Students

From UPSC perspective, the following things are important :

Prelims level : Post Office Bill

Mains level : Read the attached story

Central Idea

  • Rajya Sabha passed the Post Office Bill, which repeals and replaces the Post Office Act of 1898.
  • The 1898 Act has seen significant amendment proposals over the years, including the 1986 Bill for aligning interception grounds with constitutional restrictions, which was not assented to by the President.

Post Office Bill, 2023: Key Features

  • Removal of Exclusive Privileges: The Bill removes the central government’s exclusive privilege over conveying letters, a significant shift from the 1898 Act.
  • Director General’s Role: The Director General of Postal Services, appointed to head India Post, will have regulatory powers, including setting tariffs and regulating postage stamps.
  • Interception Powers: The government may intercept postal articles for reasons like state security, public order, and emergency, among others.
  • Liability Exemptions: India Post is exempted from liability regarding its services, with specific liabilities to be prescribed through Rules.
  • No Specified Offences and Penalties: The Bill does not define specific offences and penalties related to postal services, following the removal of all offences under the 1898 Act by the Jan Vishwas (Amendment of Provisions) Act, 2023.

Key Issues and Analysis

  • Procedural Safeguards for Interception: The Bill lacks procedural safeguards for intercepting postal articles, potentially infringing on freedom of speech and privacy rights.
  • ‘Emergency’ as a Ground for Interception: The inclusion of ’emergency’ as a ground for interception may exceed reasonable constitutional restrictions.
  • Conflict of Interest in Liability: The central government’s role in prescribing liabilities for India Post could lead to a conflict of interest, as it also administers India Post.
  • Absence of Offences and Penalties: The lack of defined consequences for unauthorized actions by postal officers, such as opening postal articles, raises concerns for consumer privacy.

Comparative Analysis with Other Services

  • Differences with Private Courier Services: The Bill maintains distinct regulatory frameworks for public and private postal services, notably in interception provisions and consumer protection applicability.
  • Railway Claims Tribunal as a Contrast: Unlike the postal services, the Railway Claims Tribunal Act provides a clear mechanism for addressing grievances against the Indian Railways.

Concerns and Recommendations

  • Need for Clarity and Safeguards: The Bill should ideally include clear procedural safeguards for interception and specify consequences for violations by postal officers to protect individual rights.
  • Balancing Consumer Protection: Ensuring adequate consumer protection rights for India Post’s services is crucial, potentially through an independent mechanism similar to the Railway Claims Tribunal.
  • Addressing Privacy and Security: The Bill should balance the need for security with the protection of individual privacy, particularly in the context of postal article interception and officer conduct.

Conclusion

  • The Post Office Bill, 2023, represents a significant overhaul of India’s postal service regulation, aiming to modernize and adapt to contemporary needs.
  • However, it raises several critical issues, particularly concerning individual rights and the need for clear regulatory frameworks.
  • Addressing these concerns is essential to ensure that the Bill effectively serves its purpose while safeguarding fundamental rights and consumer interests.

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Telecom and Postal Sector – Spectrum Allocation, Call Drops, Predatory Pricing, etc

What is Vo5G (Voice over 5G)?

Note4Students

From UPSC perspective, the following things are important :

Prelims level : VoLTE VO5G

Mains level : NA

Central Idea

  • India witnessed a significant improvement in call quality with the introduction of VoLTE (Voice over Long-Term Evolution) in 2016, offering clearer voice calls compared to 3G/2G networks.
  • With the advent of 5G in India, there’s growing anticipation for a new calling standard, Vo5G (Voice over 5G), already deployed in several countries.

What is Vo5G?

  • Definition: Vo5G, also known as Voice over New Radio (VoNR), is the next generation of voice calling, utilizing 5G networks for voice transmission.
  • Advantages: It leverages 5G’s speed, capacity, and responsiveness to enhance voice call quality.
  • Global Trend: While Vo5G is gaining traction globally, its adoption in countries like India is still in the nascent stages.

VoNR vs. VoLTE: The Advancements

  • Call Quality: VoNR offers superior call quality with advanced audio codecs, thanks to 5G’s higher bandwidth.
  • Connection Time: Reduced network latency in 5G ensures faster call connections with VoNR.
  • Reliability: VoNR promises better call continuity with lower packet loss, potentially reducing voice cut-outs.
  • Network Transition: VoNR aims to eliminate call drops experienced during the transition from 5G to 4G for VoLTE calls.

Requirements for Vo5G

  • Compatible Device: Users need a Vo5G-supported phone, typically available in models released after 2022 with 5G capabilities.
  • Carrier Support: A network provider that offers Vo5G services is essential, along with a plan that includes Vo5G calling.
  • 5G Coverage: Effective use of Vo5G requires being in an area with 5G network coverage.

VoNR in India

  • Availability: As of now, VoNR is not available in India, despite the ongoing 5G rollout in major cities.
  • Carrier Testing: Leading carriers like Reliance are reportedly testing VoNR for seamless integration with existing 4G and 5G networks.
  • Timeline: The exact timeline for VoNR’s widespread availability in India remains uncertain.

Try this question from CSP 2019:

Q.With reference to communication technologies, what is/are the difference/differences between LTE (Long-Term Evolution) and VoLTE (Voice over Long-Term Evolution)?

  1. LTE ‘is commonly marketed as 3G and VoLTE is commonly marketed as advanced 3G.
  2. LTE is data-only technology and VoLTE is voice-only technology.

Select the correct answer using the code given below.

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Post your answers here.
2
Please leave a feedback on thisx

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Telecom and Postal Sector – Spectrum Allocation, Call Drops, Predatory Pricing, etc

I&B Ministry introduces draft Broadcasting Services (Regulation) Bill, 2023

Note4Students

From UPSC perspective, the following things are important :

Prelims level : NA

Mains level : Broadcasting Services (Regulation) Bill, 2023

Central Idea

  • The Information & Broadcasting Ministry recently unveiled the draft Broadcasting Services (Regulation) Bill, 2023, a transformative legislation designed to modernize and streamline the broadcasting sector in India.
  • This bill presents a unified regulatory framework encompassing traditional broadcasting, OTT content, digital news, and current affairs.

Broadcasting Services (Regulation) Bill, 2023

Description
What is it about? – Replaces outdated laws, including the 1995 Cable Television Networks (Regulation) Act.

– Extends regulatory oversight to emerging broadcasting technologies (OTT, Digital Media, DTH, IPTV).

Structure and Definitions – Comprises six chapters, 48 sections, and three schedules.

– Provides clear definitions for modern broadcasting terms and formally defines technical terms.

Self-Regulation and Advisory Bodies – Introduces “Content evaluation committees” for self-regulation within the broadcasting industry.

– Establishes the Broadcast Advisory Council to advise the government on program and advertisement code violations.

Penalties and Fairness – Operators and broadcasters may face penalties such as advisory warnings, censure, or monetary fines based on the seriousness of offenses.

– Imprisonment and fines are reserved for severe violations and are commensurate with the entity’s financial capacity.

Inclusivity for Disabilities – Promotes broadcasting accessibility for individuals with disabilities through subtitles, audio descriptors, and sign language.

– Provides for the appointment of a “Disability Grievance Officer” to address disabled individuals’ concerns.

Infrastructure Sharing and Dispute Resolution – Facilitates infrastructure sharing among broadcasting network operators.

– Streamlines the “Right of Way” section, improving efficiency in addressing relocation and alterations.

– Establishes a structured dispute resolution mechanism.

 

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Telecom and Postal Sector – Spectrum Allocation, Call Drops, Predatory Pricing, etc

Sanchar Saathi: Empowering Citizens

Note4Students

From UPSC perspective, the following things are important :

Prelims level : Sanchar Saathi

Mains level : Not Much

Central Idea

  • Recent reforms in the Indian telecom sector target cybercrime and financial fraud prevention.
  • The reforms focus on revising bulk SIM card procurement norms and registering final points of sale (PoS).
  • The objective is to bolster the effectiveness of the citizen-centric portal Sanchar Saathi, initiated earlier for the same purpose.

Sanchar Saathi: Empowering Citizens

  • Sanchar Saathi empowers citizens to manage mobile connections and prevent misuse.
  • Users can verify their registered connections, block stolen or lost phones, report suspicious connections, and verify device authenticity using IMEI.
  • The system employs Central Equipment Identity Register (CEIR) and Telecom Analytics for Fraud Management and Consumer Protection (TAFCOP) modules.
  • Sanchar Saathi has already analyzed 114 crore active mobile connections, identified 66 lakh suspicious connections, and disconnected 52 lakh connections.
  • Additional achievements include blocking 66,000 WhatsApp accounts and freezing 8 lakh bank/wallet accounts linked to fraud.
  • Over 300 FIRs have been filed against more than 1,700 dealers under the initiative.

Point of Sale (PoS) Reforms

  • Reforms mandate registration of SIM card franchisees, agents, and distributors (PoS) with telecom operators.
  • Operators are accountable for robust PoS verification, including mandatory police verification.
  • Written agreements between PoS and licensees for SIM card sales are now obligatory.
  • Existing SIM card providers are given a year to comply with the new registration process.
  • Non-compliance results in termination, a 3-year blacklist, and a Rs 10 lakh penalty.

Addressing Bulk SIM Card Misuse

  • The new approach replaces ‘bulk procurement’ with ‘business’ connections.
  • Businesses can procure numerous connections, but each end-user must undergo KYC.
  • KYC involves end-user verification, activating the SIM card only after successful KYC and address verification.
  • To prevent misuse of printed Aadhaar, demographic details must be captured by scanning the QR code.
  • Subscribers require full KYC for SIM replacement; outgoing and incoming SMS services are suspended for 24 hours during this process.
  • Biometric authentication options, including thumb impression, iris, and facial recognition, are introduced.
  • Disconnected mobile numbers cannot be assigned to other customers for 90 days.

Challenges and Considerations

  • Effective enforcement at the local level for smaller stores needs examination.
  • Concerns arise regarding infrastructure and safeguards for handling sensitive data.
  • Clarity on agent requirements for data acquisition, processing, and retention is necessary.
  • Despite Aadhaar-based KYC, persisting issues in fraud prevention need attention.
  • Data acquisition should strictly align with its intended purpose.

Conclusion

  • The telecom reforms aim to strengthen cybersecurity and financial safety.
  • Balancing effective data collection and privacy is essential.
  • Continuous vigilance and adaptation are vital to a robust cybersecurity framework.

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Telecom and Postal Sector – Spectrum Allocation, Call Drops, Predatory Pricing, etc

National Broadcasting Day 2023: How the Radio came to India

Note4Students

From UPSC perspective, the following things are important :

Prelims level : National Broadcasting Day , AIR, Usha Mehta

Mains level : NA

radio

Central Idea

  • This July 23, commemorated 100 years of radio broadcast in India.
  • All India Radio (AIR) started broadcasting in 1923 via 2 private stations called the Radio Club of Bombay and Calcutta Radio Club.

Facts for Prelims: Usha Mehta’s Secret Radio

usha mehta radio

  • On August 8, 1942, the historic Quit India Resolution was passed during the All India Congress Committee meeting in Bombay.
  • In this response, the idea of an underground radio station, known by various names such as the Freedom Radio, the Ghost Radio, or the Congress Radio, was conceived to counter the British-controlled AIR.
  • Usha Mehta, a 22 YO master’s student at Wilson College, became the voice of the Congress Radio.
  • The radio was an expensive endeavour, but funds were procured through various means, including contributions from Mehta’s colleague, Babubhai Khakhar.
  • Radio engineering expert Nariman Abarbad Printer constructed the Congress Radio transmission set.
  • Their first broadcast was on 14 August 1942.
  • Welcome line in her voice: “This is the Congress Radio calling on 42.34 from somewhere in India.”
  • In the beginning, they were broadcasting twice a day, in Hindi and English. But they reduced it to just once in the evening between 7.30 and 8.30 pm.
  • On 12th November 1942, the police raided the radio while Vande Mataram was being played and arrested Mehta and others.
  • Mehta was conferred the Padma Vibhushan, one of India’s highest civilian honours in 1998.

About All India Radio

  • On July 23, 1927, the Indian Broadcasting Company (IBC) was formed, but it faced liquidation within three years.
  • To revive the IBC, Lionel Fielden, a BBC producer, was appointed as the first Controller of Broadcasting in August 1935.
  • In June 1936, the Indian State Broadcasting Service (ISBS) transformed into All India Radio.
  • In August 1937, it became the Central News Organisation (CNO) under the Department of Information and Broadcasting.

Expansion and Name Change

  • In 1947, India had six radio stations, covering 2.5% of the area and 11% of the population. Pakistan had three radio stations.
  • In 1956, the name “AKASHVANI” was adopted as the National Broadcaster, used interchangeably with AIR, primarily for Hindi broadcasting.
  • The famous jingle of AIR was composed by Walter Kaufmann, who joined AIR in 1937 and significantly contributed to Indian music.

Current Status of AIR

  • Today, AIR has a network of around 260 radio stations, covering nearly 92% of the country’s total area and serving almost the entire population.
  • It broadcasts in 23 languages and 146 dialects, making it a broadcasting giant in India.

Controversies

  • Vividh Bharati Service: Launched in 1957, it included popular film music as a major component.
  • BV Keskar’s Ban on Film Music: In 1952, AIR imposed a ban on film music, causing Radio Ceylon to gain popularity among Hindi film music enthusiasts with shows like Geetmala.
  • Film Industry’s Response: The film industry withdrew music rights from AIR, leading to the absence of film music on the radio.

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TRAI suggests norms for Undersea Cables

Note4Students

From UPSC perspective, the following things are important :

Prelims level : India's Cable Projects

Mains level : Undersea Fibre Optic Cables

undersea cable

Central Idea

  • The Telecom Regulatory Authority of India (TRAI) has issued recommendations on rules governing undersea cables connecting Indian telecom networks to the global internet.
  • These recommendations address concerns raised by the Department of Telecommunications (DoT) regarding the participation of Indian firms in undersea cable projects and related regulatory clearances.

What are Undersea Cables?

  • Undersea cables, also known as submarine cables, are fiber optic strands enclosed in protective layers laid on the ocean floor.
  • They are essential for global connectivity, transmitting data and communication signals between continents and nations.
  • These cables form the backbone of international communications infrastructure, ensuring reliable internet connectivity and supporting seamless communication worldwide.
  • They play a pivotal role in facilitating collaboration, trade, and socio-cultural interactions on a global scale.

Key Recommendation by TRAI

(A) Ownership Requirements for Undersea Cables:

  • Proof of Ownership: TRAI recommends that all Indian telecom companies operating undersea cables must demonstrate ownership of the portion of cables located in Indian waters.
  • Significance: This requirement ensures that Indian firms have a stake in undersea cable infrastructure and fosters their active participation in global connectivity.

(B) Distinction between Cable Landing Stations and Points of Presence (PoPs):

  • Differentiation of Facilities: TRAI suggests distinguishing between cable landing stations and PoPs, which are further connected to the stations.
  • Regulatory Simplification: Owners of PoPs would be exempted from multiple clearance requirements but would need to comply with lawful interception regulations.
  • Significance: This differentiation streamlines the regulatory process for telecom companies and promotes ease of doing business.

(C) Allowance for Dark Fiber and Stubs:

  • Dark Fiber Usage: TRAI recommends permitting the use of dark fiber (unused optical fiber) on existing cable landing stations.
  • Use of Stubs: TRAI suggests allowing the installation of stubs, short cables in Indian waters, for potential future expansion and use.
  • Significance: Allowing dark fiber usage and stub installations enhances the flexibility and scalability of undersea cable infrastructure in India.

(D) Financial Viability Models for Repair Vessels

  • Commissioning Indian Flagged Ships: TRAI proposes that a government committee explore financial viability models for commissioning Indian flagged ships for the repair and maintenance of undersea cables.
  • Significance: This promotes indigenous capabilities and supports the growth of the domestic maritime industry.

(E) Domestic Traffic and Terrestrial Networks

  • Permission for Domestic Traffic: TRAI recommends explicitly permitting the carrying of domestic traffic on undersea cables, allowing for connectivity between domestic locations.
  • Extension through Terrestrial Networks: The regulator suggests enabling undersea cable systems to extend further inland through terrestrial networks to facilitate the flow of international traffic.
  • Significance: This improves efficiency and promotes seamless communication within India.

Critical Information Infrastructure Protection

  • Notification of Critical Infrastructure: TRAI proposes notifying undersea cables as critical information infrastructure, making them eligible for protection by the National Critical Information Infrastructure Protection Centre (NCIIPC).
  • Significance: Recognizing undersea cables as critical infrastructure strengthens their security and safeguards against potential cyber threats.

India’s Cable Projects and Future Expansion

  • India-Asia Xpress (IAX) and India-Europe Xpress (IEX): Reliance Jio is leading these projects, connecting India to Singapore, the Persian Gulf, and Europe. The capacity is around 200 Tbps, with funding from a consortium including Facebook and Google.
  • MIST: This cable will link Mumbai and Cochin in India to Myanmar, Thailand, Malaysia, and Singapore. It has a capacity of 218 Tbps and is scheduled for operation in 2024.
  • Blue-Raman: Connecting Italy, Greece, Israel, Jordan, Saudi Arabia, Oman, and India, this cable bypasses the Egyptian chokepoint. It has a capacity of over 200 Tbps and is funded by a consortium led by Google.
  • SEA-ME-WE 6: Upgrading the link from Singapore to Marseille, this cable spans 19,200 km with a capacity of 126 Tbps. It is scheduled to be operational in 2025 and involves a consortium of telecommunications companies.
  • 2 Africa Pearl: Extending from India and Pakistan, this cable orbits Africa, connecting 33 nations across three continents. It has a capacity of 180 Tbps and is funded by a consortium that includes Facebook and China Mobile.

India’s Significance in Undersea Connectivity

  • Growing digital economy: India’s rapidly expanding digital market and high data usage make it a significant consumer and provider of global data connectivity.
  • Strategic location: Situated at the crossroads of major regions, India serves as a vital link connecting Asia, Europe, Africa, and the Middle East through undersea cable networks.
  • Technical expertise: India boasts a large pool of skilled professionals in the tech industry, enabling it to actively participate in the development, deployment, and maintenance of undersea cables.
  • Rising global influence: With its projected economic growth, population size, and geopolitical significance, India’s increasing influence positions it as a key player in shaping the future of undersea cable connectivity.
  • Connectivity expansion: India’s efforts to enhance domestic and international connectivity, coupled with its focus on improving infrastructure and regulatory frameworks, contribute to its importance in undersea cable networks.

Conclusion

  • TRAI’s recommendations on undersea cables aim to enhance the participation of Indian firms, simplify regulatory processes, and strengthen the security and efficiency of undersea cable infrastructure in India.
  • These recommendations promote the growth of the telecom industry and support the country’s digital connectivity goals.

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All India Radio (AIR) to be renamed Akashvani

Note4Students

From UPSC perspective, the following things are important :

Prelims level : All India Radio

Mains level : Not Much

radio

Central idea: The Centre has ordered that public broadcaster All India Radio (AIR) be exclusively referred to as Akashvani in all broadcasts and programmes.

All India Radio: Through history

  • The journey of radio broadcasting in India began with the first commercial transmission sent out by the Radio Club of Bombay in 1923.
  • In 1927, the Indian Broadcasting Company (IBC) was established and in 1930, the Indian State Broadcasting Service (ISBS) was set up.
  • In 1936, ISBS was renamed as All India Radio (AIR).
  • At the time of Independence, AIR covered only two percent of India’s land area and reached just 11 percent of its population.
  • Today, AIR has a network of over 262 radio stations, covering 92% of India’s area and nearly all of its population.
  • It broadcasts in 23 languages and 146 dialects and also has an External Services Division which broadcasts in 11 Indian and 16 foreign languages, reaching out to more than 100 countries.
  • AIR’s News Services Division broadcasts 647 bulletins daily for a total duration of nearly 56 hours.
  • FM broadcasting began in 1977 in Chennai and today, AIR has 18 FM stereo channels.

Why the name change?

  • The order to exclusively refer to AIR as Akashvani is in line with the provisions of the Prasar Bharati Act, 1990, passed by Parliament.
  • Listeners have more of a connect with Akashvani and that the name change is in tune with the law which came into being in 1997.

Importance of AIR

  • AIR played a crucial role in communicating momentous events in India’s recent history, prior to the advent of television or digital media.
  • AIR’s place in history is cemented due to its role in broadcasting Jawaharlal Nehru’s iconic “Tryst with Destiny” speech in 1947 and Kapil Dev’s mythical 175 run knock in 1983, among other events.
  • For many Indians, the Akashvani jingle evokes nostalgia and memories of a bygone era when they woke up to the sounds of the jingle at the break of dawn and started their day with AIR programming.

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Bharat 6G project: India plans to roll out high-speed internet by 2030

Note4Students

From UPSC perspective, the following things are important :

Prelims level : 6G Technology

Mains level : Read the attached story

6g

Central idea: Despite over 45,000 Indian villages lacking 4G connectivity and ongoing efforts to build out 5G networks, the Indian government has set its sights on 6G.

Why in news?

  • On March 22, PM Modi unveiled the Bharat 6G Vision Document, aimed at gearing up policymakers and the industry for the next generation of telecommunications.

What is 6G?

  • 6G is the next generation of wireless telecommunications technology, which is expected to offer significantly faster data speeds, higher bandwidth, and lower latency than 5G.
  • It is still in the development stage, and its commercial rollout is not expected for several years.
  • However, many countries, including India, are already working on developing 6G technology and setting standards for its implementation.

Differences between 6G and 5G

  • While 6G will offer faster loading times, improved video quality, and faster downloads, like every new generation of technology, it is unclear how much better it will be.
  • With latency already at the speed of light on existing networks, the benefits of 6G will depend on how different groups plan to use the spectrum.
  • Satellite constellations will join telecom towers and base stations, integrating networks and extending them to rural areas.

Motivations for pursuing 6G

  • Encourage local industry: The Indian government hopes to encourage local manufacturing of telecom gear and support Indian companies and engineers in international discussions around standardization.
  • Avoid delay unlike 5G: India aims to avoid the delay in previous generations of telecommunications technology, which started rolling out in India years after countries like South Korea and the United States.
  • Increased connectivity: Additionally, the lower frequency in 4G networks may not be able to keep up with the demand for traffic with increasing data usage, making 6G a necessity.

Government Plans for 6G

  • The Indian government plans to financially support “research pathways” to advance connectivity goals and establish an “apex body”.
  • India’s 6G goals include-
  1. Guaranteeing every citizen a minimum bandwidth of 100Mbps
  2. Ensuring every gram panchayat has half TB (terabyte) per second of connectivity, and
  3. Providing over 50 million internet hotspots with thirteen per square kilometre.

Roadmap for 6G in India

  • The government plans to implement 6G in two phases.
  1. Phase 1 will support explorative ideas, risky pathways, and proof-of-concept tests.
  2. Phase 2 will support ideas and concepts that show promise for global acceptance, leading to commercialisation.
  • It would appoint an apex council to oversee the project and deal with standardisation, identification of spectrum, finances for research and development, and more
  • The council will finance research and development of 6G technologies by Indian start-ups, companies, research bodies, and universities.
  • Key focus of the council will be on new technologies such as Terahertz communication, radio interfaces, tactile internet, and artificial intelligence.
  • Bharat 6G Mission aligns with the national vision of Atmanirbhar Bharat and aims to make India a leading supplier of advanced telecom technologies that are affordable and contribute to the global good.

Approaches to 6G in Other Countries

  • South Korea plans significant investments in 6G technology development, with a focus on laying the ground for key original technologies and domestic production of core equipment and components.
  • Countries are also starting to work together, with Japan and Germany planning a workshop to work on everything from “fundamental technologies to demonstrations.”
  • Europe’s equivalent of the Indian 6G Vision Document emphasizes leadership in strategic areas and establishing secure and trusted access to key technologies.

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Return of the Net Neutrality debate in India

Note4Students

From UPSC perspective, the following things are important :

Prelims level : Net Neutrality

Mains level : Net Neutrality Debate

net neutrality

Since November 2022, India’s Cellular Operators Association (COAI) has been requesting that platforms like YouTube and WhatsApp pay a share of revenue to offset network costs, reigniting the net neutrality debate.

What is Net Neutrality?

  • Net Neutrality is the concept that all traffic on the internet should be treated equally, without discrimination or preference given to certain types of content, websites, or users.
  • This means that internet service providers (ISPs) should not be allowed to block, slow down, or prioritize traffic based on the source, destination, or content of that traffic.
  • Net Neutrality is considered important for ensuring a level playing field for all internet users and promoting innovation, competition, and freedom of expression online.
  • It has been a subject of debate and regulatory action in many countries, including India, the United States, and the European Union.

Features of Net Neutrality

The following are some of the features of net neutrality:

  • Non-discrimination: All data should be treated equally, and internet service providers (ISPs) should not discriminate or prioritize any type of content, application, service, or device based on its source, destination, or ownership.
  • Transparency: ISPs should provide customers with clear and accurate information about their internet services, including their network management practices, terms of service, and fees.
  • No blocking: ISPs should not block or censor lawful content, applications, services, or devices that customers want to access, use, send, receive, or offer on the internet.
  • No throttling: ISPs should not intentionally slow down or degrade the quality of any lawful content, application, service, or device that customers want to access, use, send, receive, or offer on the internet.
  • No paid prioritization: ISPs should not offer faster or better access to any content, application, service, or device in exchange for payment or other consideration from content providers, developers, or users.
  • Competition: Net neutrality promotes competition among ISPs by preventing them from using their control over access to the internet to favor their own content, applications, services, or devices or those of their partners, affiliates, or subsidiaries over those of their competitors.

Why in news?   

Ans. BIF responds to COAI’s demands

  • The Broadband India Forum (BIF), which represents Internet firms such as Meta and Google, responded to the COAI’s demands by refuting them.
  • The COAI’s argument that the current demand has nothing to do with Net neutrality was contested by the BIF.
  • The COAI argued that Net neutrality pertains to the non-discriminatory treatment of content that has no nexus to the usage fee issue.

Arguments for and against the usage fee

  • Net neutrality activists and content providers argue that imposing a usage fee, even on a limited number of large players, would be a distortion of the Internet’s architecture.
  • They contend that content providers and telecom operators enjoy a symbiotic relationship without charging each other.
  • On the other hand, the COAI argues that a network fee is not related to Net neutrality and suggests that the government reduce spectrum fees and support telecom companies with the Universal Service Obligation Fund (USOF).
  • Worldwide, telecom operators in the European Union are also demanding similar usage fees from content providers.

TRAI ruling and the Unified License

  • In 2016, the Telecom Regulatory Authority of India (TRAI) ruled in favour of Net neutrality, which requires that all traffic on an Internet network be treated equally.
  • In 2018, the Department of Telecommunications embedded the net neutrality concept into the Unified License, which binds all telecom operators and Internet providers.

 

 

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I&B Ministry issues advisory on private TV channels’ ‘Public Service Broadcasting’ Obligation 

Note4Students

From UPSC perspective, the following things are important :

Prelims level : NA

Mains level : TV Content on National Importance

tv

The Information and Broadcasting Ministry clarified that the topics of national importance and social relevance embedded in the programs broadcast by private TV channels would qualify for “Public Service Broadcasting” Obligation.

What is the news?

  • The Ministry had earlier issued the guidelines on November 9 last year.
  • Following consultations with the stakeholders, it has now come up with the advisory.

Content on National Importance: Key Guidelines for TV channels

  • The obligations are under the “Guidelines for Uplinking and Downlinking of Television Channels in India, 2022” to telecast such contents for 30 minutes every day.
  • The time for which the public service broadcasting content is telecast in between commercial breaks shall not be accounted for the 12-minute limit for commercial breaks.
  • The time for the content shall be accounted cumulatively on monthly basis i.e. 15 hours per month.
  • Broadcasters have the liberty to modulate their content.

Themes of National Interest

  • The relevant content embedded in the programs may be accounted for public service broadcasting.
  • However, it should be done in a manner that the overall objective of the public service broadcasting may be achieved.
  • The content could include the themes of:
  1. Education and spread of literacy
  2. Agriculture and rural development
  3. Health and family welfare
  4. Science and technology
  5. Welfare of women
  6. Weaker sections of society
  7. Protection of environment and cultural heritage and
  8. National integration

Provisions for voluntary compliance

  • Other subjects: The above list is indicative and could be extended to include similar subjects such as water conservation, disaster management, etc.
  • Self-certification: The advisory seeks to achieve the objective of public service broadcasting by the private TV channels through voluntary compliance and self-certification.
  • Repeat telecast: As advised, the content can be shared between the broadcasters and telecast repeatedly on one or several TV channels.
  • Common e-platform: Such platform can also be developed as a repository of relevant videos or textual content from various sources for access and use.

Rationale behind

  • Social responsibility: The government has argued that since “airwaves/ frequencies are public property” they “need to be used in the best interest of the society”.
  • Creating awareness: The role of mass media, especially the new channels plays a vital role in reshaping public opinion.

Ensuring compliance

  • Once the guidelines are implemented, the Ministry will monitor the channels for the broadcast of this content. In case non-compliance is observed in the Ministry’s view, an explanation will be sought.
  • If a channel continues to be non-compliant, more steps can be taken based on specific advisories that will be issued from time to time, and on a case-to-case basis.

Exemptions

  • Sports channel: The guidelines specify exceptions where it may not be feasible, such as in the case of sports channels, etc.
  • Wildlife channels: The exemption may also apply to wildlife channels and foreign channels, besides live telecasts in the case of sports channels.

 

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TRAI’s Calling Name Presentation (CNAP) Proposal

Note4Students

From UPSC perspective, the following things are important :

Prelims level : Calling Name Presentation (CNAP)

Mains level : Caller spams these days

cnap

Telecom operators have expressed concerns over user privacy on the Telecom Regulatory Authority of India’s Calling Name Presentation (CNAP) proposal.

Calling Name Presentation (CNAP)

  • Under this phones would need to display the name of a caller, by extracting the name of the telecom subscriber from their SIM registration data.
  • The feature would provide the called individual with information about the calling party (similar to ‘Truecaller’ and ‘Bharat Caller ID & Anti-Spam’).
  • The idea is to ensure that telephone subscribers are able to make an informed choice about incoming calls and curb harassment by unknown or spam callers.

Why need CNAP?

  • Securing important calls: Genuine calls should not get unanswered. Hence proper system is solicited.
  • Blocking of spammers: Since subscribers are not given the name and identity of the caller, they may choose not to answer them believing it could be commercial communication from unregistered telemarketers.
  • Rise of robocalls: There have been rising concerns about robocalls (calls made automatically using IT-enabled systems with a pre-recorded voice), spam calls and fraudulent calls.

What are the proposed models? 

The regulator has proposed four models for facilitating the CNAP mechanism-

  1. TSPs operating CNAP database: The first model involves each telecom service provider (TSP) establishing and operating a CNAP database of its subscribers. Here, the caller’s TSP would have to extract the relevant data from its own database.
  2. Database sharing: In the second model, the operator of the calling entity shares its CNAP database with the receiver’s operator. The difference here is that the calling operator would permit the receiver’s operator to access its database for the caller’s CNAP data.
  3. Creating a Centralised database: The onus rests on the receiver’s operator to delve into the centralized database to retrieve and present the caller’s data. This model is similar to a plan envisaged by the Department of Telecommunications (DoT) in 2018, involving the setting up of a Digital Intelligence Unit at the central level.
  4. Centralized CNAP database: TSP retains a copy of a synchronized central database operated by a third party. It works this way: the call is facilitated as per the routine procedure, and since the receiver’s operator has access to both the centralized and their own database, the lookup is, therefore, internal.

Issues involved

  • Latency: The regulator has said that latency in setting up the call must be ensured and CNAP must be inter-operable. The responsiveness might also suffer when moving from a faster wireless network (4G or 5G) to a comparatively slower one (2G or 3G), or vice-versa.
  • Privacy Issue: It is not clear how the CNAP mechanism would balance the caller’s right to remain anonymous, an essential component of the right to privacy. To put it into perspective, an individual may opt to remain anonymous for multiple reasons, for example, whistle-blowers or employees being harassed.
  • Gendered impact: The proposal may particularly harm women. The service will display a woman subscriber’s name and data, to every calling party whether or not she consents to it.
  • Data sharing without consent: We have to see it in parallel with The Digital Personal Data Protection Bill (2022) which has a clause on deemed consent lacking adequate safeguards including sharing of data with third parties.
  • Implementation loopholes: Marketers have figured out newer ways to circumvent the existing framework. Previously, telemarketers were required to be registered as promotional numbers. Now they have started deploying people not necessarily part of the entity’s set-up, but rather “at-home workers”.

Way forward

  • Innovative solution: TRAI must build an interface that is user-friendly and in turn, an effective mechanism.
  • Spam identification: Active participation from the subscribers would ensure that spammers are rightly identified and are unable to make further calls.
  • Digital literacy: The government must also invest in digital literacy, skilling citizen’s to navigate and use the tech better, ensuring they do not share their data indiscriminately and are informed about dangers such as financial fraud and spoofing.

 

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Broadcasting Infrastructure and Network Development (BIND) Scheme

Note4Students

From UPSC perspective, the following things are important :

Prelims level : BIND Scheme

Mains level : Read the attached story

bind

The Cabinet Committee on Economic Affairs approved the “Broadcasting Infrastructure and Network Development (BIND)” scheme to upgrade Prasar Bharati to expand the public service broadcasting infrastructure across the country.

Prasar Bharati

  • Prasar Bharati is India’s state-owned public broadcaster, headquartered in New Delhi.
  • It is a statutory autonomous body set up by Prasar Bharati Act, 1990.
  • It comprises the Doordarshan Television Network and Akashvani All India Radio, which were earlier media units of the Ministry of Information and Broadcasting.

 

BIND Scheme

  • BIND scheme is the vehicle for providing financial support to Prasar Bharati for expenses related to expansion and upgradation of its broadcasting infrastructure, content development and civil work.
  • Its features include-
  1. Outreach expansion: It will enable the public broadcaster to undertake a major upgradation of its facilities with better infrastructure which will widen its reach, in the LWE, border and strategic areas and provide high quality content to the viewers.
  2. Quality content: Another major priority area of the scheme is the development of high-quality content for both domestic and international audience and ensuring availability of diverse content to the viewers.
  3. More TV channels: It seeks to upgrade the capacity of DTH platform to accommodate more channels.
  4. Expansion of radio coverage: The scheme will increase coverage of AIR FM transmitters in the country to 66 percent by geographical area and 80 percent by population up from 59 percent and 68 percent respectively.
  5. Free DISH services: The scheme also envisages free distribution of over 8 lakh DD Free Dish STBs to people living in remote, tribal, left wing extremism inflicted and border areas.

Benefits provided

Ans. Employment generation

  • The project has the potential to generate indirect employment by way of manufacturing and services related to supply and installation of broadcast equipment.
  • Content generation and content innovation for AIR and DD has the potential of indirect employment of persons with varied experience of different media fields in the content production sector including TV/radio production, transmission and associated media-related services.
  • Further, the project for expansion of the reach of DD Free Dish is expected to generate employment opportunities in the manufacturing of the DD Free Dish DTH boxes.

 

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India takes over leadership of the Asian Pacific Postal Union

Note4Students

From UPSC perspective, the following things are important :

Prelims level : APPU

Mains level : Not Much

postal

India took over the leadership of the Asian Pacific Postal Union (APPU) having its Headquarters in Bangkok, Thailand.

About Asian Pacific Postal Union (APPU)

  • APPU is an intergovernmental organization of 32-member countries of the Asian-Pacific region.
  • It was formed by International treaty through an Asian-Pacific Postal Convention signed in Yogyakarta on 27 March 1981.
  • The organisation has origins dating back to 1961.
  • APPU is the only Restricted Union of the Universal Postal Union (UPU) in the region, which is a specialized agency of the United Nations.
  • Secretary General leads the activities of the Union and is also the Director of the Asian Pacific Postal College (APPC) which is the largest intergovernmental postal training institute in the region.

Goals and objectives

  • The goal of APPU is to extend, facilitate and improve postal relations between member countries and to promote cooperation in the field of postal services.
  • As the regional center for various UPU projects, APPU also takes the lead in ensuring that all technical and operational projects of the UPU are fulfilled in the region.

Significance of India’s chair

  • The Asia Pacific region accounts for around one-third of the world’s postal workforce and about half of the world’s mail volume.
  • India seeks to improve the regional coordination with postal players in the Asia Pacific region to improve the growth of the business through the postal network, to ensure the sustainability of the Union.
  • This is the first time an Indian is leading an international organization in the postal sector.

 

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Telecom and Postal Sector – Spectrum Allocation, Call Drops, Predatory Pricing, etc

Need to ensure that the digital gateways do not become gatekeepers of services

Note4Students

From UPSC perspective, the following things are important :

Prelims level : NA

Mains level : Digital gateways, market dominance of big tech and government regulations

digital

Context

  • The ease of living enabled by digital technologies has turned digital innovations into essential services for the common public. Considered a novelty earlier, the internet has become a necessity for most day-to-day affairs.

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Internet access and restrictions

  • To enable access to the internet, various gateways have come up in the last few decades in the form of telecom service providers, personal computers and smartphones, operating systems, etc.
  • However, when these gateways enable and restrict access to other gateways or networks, the openness of the internet is threatened.
  • They then shift roles from being a facilitator to a regulator, from being a gateway to a gatekeeper. Hence, the need for a code of conduct or regulation arises to keep the playing field level and accessible to all.

digital

Analysis: Telecoms and Government

  • Telecom service providers: Telecom companies have been instrumental in providing a gateway to essential communication services such as voice calls, internet data, and text messages.
  • Government measures to regulate telecoms: We have seen governments across the world take measures from time to time to regulate these entities to ensure democratic access for the public. If this code of conduct was not enforced on these gateway providers, the internet would not be what it is today. These providers would have turned into gatekeepers, and the internet would have been controlled by them, thwarting innovation and its democratic expansion.
  • Code of conduct cannot catch up the pace of emerging digital tech: With the rate at which digital technologies are evolving, the code of conduct and regulations can’t catch up with the new gateway providers that are emerging. One such example is distribution platforms for smartphone applications.
  • Benchmarks set by bigtechs helps to bring some hygiene in smartphone apps: The two prominent operating systems emerging for smartphones, Google and Apple, enjoy a lion’s share of the app store market. They brought in good practices to ensure basic hygiene for smartphone applications, maintained quality benchmarks for the content on their operating systems, and safeguarded the interests of their users.
  • Lack of full proof regulation would be a slippery slope: Though, without proper regulations to oversee how they decide on what should be weeded and whose interests should be guarded, it’s a slippery slope.

Policy on Net Neutrality put forwarded by Indian Government 

  • Enforcing a code of conduct on telecoms: Closer home, another example of the enforcement of this code of conduct on providers was when the Indian government came out with the policy on Net Neutrality which, inter-alia, stipulates that telecom networks should be neutral to all the information being transmitted through it.
  • Meaning of Net Neutrality: Networks should treat all communication passing through them equally, independent of their content, application, service, device, sender, or recipient address. Adopting Net Neutrality ensured that we took a democratic stance against Big Tech.

digital

Questionable practices of distribution platforms

  • Practices without consent of its users: Various practices range from restrictions on payment gateways, advertising choices, app policies and various other aspects of an application or business that could be considered discriminatory in both principle and practice.
  1. For instance, a case of Goggle’s Update: Recently a report placed before the Competition Commission of India found Google Play Store’s payments policy “unfair and discriminatory”. As per an update in Google’s Play Store billing policy in September 2020, all applications on its platform were mandated to use its payment services for any kind of in-app payments or subscriptions.
  2. Similar case of Apple’s appstore: Similar concerns have been raised for Apple’s App Store, with both platforms said to be charging up to 30 per cent commission on payments processed.
  • Market dominance and unilateral control over smartphone apps by the bigtechs: Google and Apple dominate the global market share of smartphone operating systems (OS). This has enabled them to garner unilateral control over the publishing of smartphone applications on their OS.
  • Developers are forced to bend to the diktats of these bigtech gatekeepers: Bigtechs force developers to make changes to their applications or resort to using their proprietary advertising engines if they wish their applications to see the light of day. As is evident from the overnight change in Google’s billing policy, various smartphone application-dependent businesses and developers continue to remain vulnerable to such internal business policy changes on these platforms.

European Union’s Digital Markets Act (DMA) sets an example

  • Recognising these concerns: The European Union has recently enacted the Digital Markets Act; it is expected to be implemented by early 2023.
  • Aims to keep digimarket open for competition: The Digital Markets Act regulation aims to keep digital markets innovative and open to competition, through ex-ante regulation.
  • Prohibit anti-competitive practices: The DMA will prohibit the implementation of the most harmful anti-competitive practices by the largest digital platforms.
  • Objective is to maintain balance: The objective is to balance the relationship between these platforms that control access to digital markets and the companies that offer their services there.

Conclusion

  • The Indian government has taken a huge leap forward in maintaining its sovereignty through the path-breaking and disruptive digital public goods it has created. Aadhaar, UPI, DigiLocker, and CoWIN are just a few names that adorn this list. However, there is still a wide dependence on various digital offerings enabled by multinational Big Tech companies. It is the need of the hour for the government to devise appropriate regulations to ensure a level playing field and not let the innovating gateways turn into tyrannical gatekeepers.

Mains Question

Q. India is the largest consumer of wireless internet. Analyze the role of big tech service providers in this and the role of government in ensuring a level playing field for all.

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Telecom and Postal Sector – Spectrum Allocation, Call Drops, Predatory Pricing, etc

QUAD and the Telecom network security

Note4Students

From UPSC perspective, the following things are important :

Prelims level : NA

Mains level : Network security collaboration in QUAD countries

QUAD

Context

  • The advent of 5G provides the Quad or the Quadrilateral Security Dialogue of the United States (US), Japan, Australia and India, a unique opportunity to demonstrate how democracies can engage in effective technology collaboration.

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Background: The Huawei and QUAD response

  • Huawei’s connection with Chinese Communist Party: Recognising the risks that companies like Huawei, which is connected to the Chinese Communist Party, pose to telecommunications networks, each member country of the Quad has taken steps to ensure secure and resilient access to 5G.
  • Australia’s measure: Australia, for one, banned Huawei from its 5G rollout in 2018 and did the same with ZTE, citing national security concerns.
  • US concerns: For its part, the US has been raising concerns about Huawei since 2012, and doubled-down on its efforts in 2019 by adding Huawei to the Entity List.
  • Japan creating Open RAN: Japan, meanwhile, a long-time leader in the telecommunications space has accelerated its efforts to create ‘Open Radio Access Networks (Open RAN)’, which promote vendor diversification and competition for better solutions.
  • India 5G and conflict with China on border: India took what it called a “step towards the new era” by deploying its first 5G services in select cities in October 2022; it is aiming to extend the network across the country over the next few years. India is unlikely to include Huawei in its networks, given the clash with Chinese forces in Galwan Valley in June 2020 and concerns about vendor trustworthiness.

QUAD

QUAD alignment on securing 5G telecom networks

  • Agreement in first meeting: During the first in-person leaders’ meeting in September 2021, Quad countries agreed to “build trust, integrity, and resilience” into technology ecosystems by having suppliers, vendors, and distributors ensure strong safety and security-by-design processes, and committed to a “fair and open marketplace”.
  • Memorandum of cooperation on 5g suppliers: Later, at the fourth meeting in May 2022, partners signed a New Memorandum of Cooperation on 5G Supplier Diversification and Open RAN, and reaffirmed their desire to “collaborate on the deployment of open and secure telecommunications technologies in the region.”

Why QUAD must cooperate on Network Security?

  • Fast emerging telecom technologies: For one, virtualised (software-based) networks will be the norm in the next 10 years, by which time 6G networks will begin to rollout. Early attention to security issues for emerging telecommunications technologies will help ensure that there is sufficient focus on security in the runup to 5G rollouts.
  • Interoperable software’s need to check: The Quad’s advocacy of Open RAN networks or network architectures that consist of interoperable software run on vendor-neutral hardware is another reason why there is a need to focus on software supply chain and software-based infrastructure security.
  • To ensure the comprehensive network strategy: Critics of Open RAN solutions often point to security concerns to argue against deploying these technologies. A comprehensive 5G security strategy is necessary to ensure trust in these networks.5G networks are critical infrastructure and it is imperative for states to ensure their security.
  • For instance: In 2018, Australian officials were the first to warn the public of the risks posed by untrustworthy vendors on 5G networks. Officials from the other Quad countries have followed suit and, along with key partners such as the European Union and United Kingdom, there is a clear consensus on the fundamental importance of secure and resilient communications networks.

How QUAD will be a key player in Talent Development?

  • Bridging the gap of talent pool: Nations across the globe are suffering from a talent shortage in the technology domain. With heightened demand for high-skilled workers, like-minded nations must cultivate and share their expertise with one another to bridge critical gaps.
  • Quad Fellowship: this, the Quad created the Quad Fellowship, which will support 100 students per year to pursue STEM-related graduate degrees in the United States. This could be an effective way to grow the talent pipeline in a way that fills current and emerging needs.
  • Restructuring programs that can fulfil the current and future demand: Many nations have started to consider changes to immigration policies for high-skilled talent. Australia, for example, has raised its permanent immigration cap by 35,000 for the current fiscal year, and Japan is planning to expand its programs soon.
  • Creative ways of QUAD countries to recruit talent: Shortage of talent pool that all Quad countries are experiencing as they seek creative ways to grow their technology talent pool. Indian companies, for example, are beginning to recruit in rural areas to address significant tech worker shortages that may stymie a growing start-up ecosystem.

QUAD

What QUAD need to do?

  • Ensure close coordination: While these commitments are significant, maintaining momentum requires close coordination of resources and policies. No one country can build resilient, open, and secure telecommunications networks on its own, particularly as countries deploy 5G and think ahead to 6G.
  • Adhering to the goals and principles: To ensure that operationalisation moves forward in line with the Quad’s stated principles and goals, the member countries must work together in four key areas: standard-setting; security; talent development; and vendor diversity.
  • Develop a recruitment framework for telecommunications: Quad countries have an opportunity to set a precedent for other democracies by rethinking what it means to be “qualified” for a position. Companies can look beyond degrees during the hiring process and focus on relevant skills by jointly developing assessment criteria for worker readiness and performance.
  • Incentivise 5G deployment in underserved areas: To ensure that talent is not left out of the candidates’ pool for tech jobs, Quad members can agree to prioritise secure 5G deployment in rural regions. Lack of access to reliable information and communications can be a significant barrier to entering the workforce, and expanding 5G deployment is a critical aspect of broadening the talent pool.
  • Enhance public-private partnerships: As Quad countries build their infrastructure and talent pools at home, they must also think about other countries that only consider cost when choosing Huawei and other untrusted telecom providers. As such, the Quad could leverage public-private partnerships to bolster the presence of trusted companies in new locations. By using coordinated, strategic financial incentives, they will also have an opportunity to train and educate third country governments on the threats posed by untrusted 5G vendors. Consequently, they will contribute to broader network security and resiliency as 5G is more widely deployed.
  • Provide R&D incentives: The governments of the Quad countries should offer incentives to promote ongoing work in hardware, software, and security improvements, specific technologies such as high-band technology and end-to-end network slicing, and research areas including telehealth, energy research, and agriculture. A broad base of enabling technologies and applications would encourage new entrants into the market.

Conclusion

  • Quad countries are well-positioned to accomplish plenty together. Of the many areas where they can progress, securing 5G is particularly promising due to the clearly stated objectives that Quad countries share. The Quad countries have the potential to provide a secure, flexible and open 5G network model to the Indo-Pacific and nations seeking democratic alternatives for their telecommunications infrastructure.

Mains question

Q. It is said that QUAD countries are well-positioned to secure the telecommunication network in the world. Discuss.

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Telecom and Postal Sector – Spectrum Allocation, Call Drops, Predatory Pricing, etc

Revitalizing India’s Spectrum Policy

Note4Students

From UPSC perspective, the following things are important :

Prelims level : Telecom Spectrum

Mains level : Spectrum policy, auctions, Digital divide, issues and Solutions

Spectrum

Context

  • It is widely acknowledged that spectrum policy in India has had ups and downs, regretfully more downs than ups. Despite the recognized failure, India hosts 800 million internet users and host the second-largest telecommunications network in the world. We wonder what might have been achieved with a more reasonable and transparent spectrum policy.

Background

  • On September 22, the government released the draft Indian Telecommunication Bill, 2022 seeking to replace the colonial era Indian Telegraph Act, 1885.
  • The draft bill compares spectrum to aatma: “In a way, spectrum is similar to aatma, like aatma, spectrum too does not have any physical form, yet it is omnipresent.” And yet there is one immutable difference in this material world. While the value of aatma is inestimable, spectrum has always had a banal price tag associated with it.

Spectrum

What is Draft Indian Telecommunication Bill, 2022?

  • The draft Indian Telecommunication Bill, 2022 is an attempt by the Department of Telecommunications (DoT) to consolidate various legislations presently governing the telecommunication landscape in India.
  • The Bill seeks to replace three laws, the Indian Telegraph Act, 1885, the Indian Wireless Telegraphy Act, 1933 and the Telegraph Wires (Unlawful Possession) Act, 1950.
  • The new regulatory framework is to bring the law at par with technological advancements and remove obsolete provisions from the colonial era laws.

What is mean by Spectrum?

  • In physics, it’s a word that describes the distribution of something, like energy or atomic particles
  • Spectrum refers to the invisible radio frequencies that wireless signals travel over. Devices such as cell phones and wireline telephones require signals to connect from one end to another.
  • These signals are carried on airwaves, which must be sent at designated frequencies to avoid any kind of interference. The frequencies we use for wireless are only a portion of what is called the electromagnetic spectrum.
  • The Union government owns all the publicly available assets within the geographical boundaries of the country, which also include airwaves.
  • With the expansion in the number of cell phones, wireline telephone and internet users, the need to provide more space for the signals arise from time to time.

The status of Spectrum policy in India?

  • Host the second largest telecommunications network despite of failures:
  • It is widely acknowledged that spectrum policy in India has had ups and downs, it has for the most part failed to capitalize on the ubiquity of the electromagnetic spectrum to provide meaningful connectivity to all citizens.
  • Despite the recognized failure, we boast of a billion plus mobile subscribers, 800 million internet users and host the second-largest telecommunications network in the world.
  • Ineffective access widening space of digital divide:
  • The intent of the draft bill is to correct past sins so that the benefits of spectrum and technology are better shared, and the quality of access improved for everybody.
  • In other words, since effective access to spectrum has remained a significant barrier to facilitating meaningful connectivity for Indians.
  • Spectrum’s potential is huge but with technical limitations:
  • The draft bill rightly refers to the spectrum as having the characteristics of a public good. It is also an inexhaustible resource. But while spectrum per se is not depletable, there are technical limitations to its optimum utilization at a given point in time.
  • Consequently, it is viewed as a scarce natural resource and what’s more, expensive auctions have made the spectrum dear and arguably exclusionary.
  • High cost of spectrum acquisition:
  • Since 2010, the government has consistently used auctions for spectrum allocation and in only one of the seven auctions held since then, the government was successful in selling 100 per cent of the available spectrum. One reason for this lukewarm response, barring the 2010 auction, is the high cost of spectrum acquisition.
  • High cost of auctions leading to revenue loss for the government:
  • Due to the high reserve price, the most recent auction witnessed spectrum being sold at the reserve price, effectively rendering the basis of an auction moot.
  • If almost all spectrum was sold at its reserve price, and a significant amount goes unsold, it implies that the price was too high, to begin with. It also implies a loss of revenue for the government for spectrum unsold is spectrum squandered.
  • Finally, it results in areas being underserved or unserved affecting quality and quantity.
  • High network charges by operators impacts compromising equal distribution and quality:
  • According to one estimate, at 7.6 per cent of their aggregate revenue, spectrum cost in India is amongst the most expensive in the world.
  • Since network operators incur a significantly higher cost for spectrum compared to other emerging markets, the ability to invest in network upgradation and infrastructure is severely impacted, resulting in uneven distribution of service and poor quality to boot.

Spectrum

What Could be the fresh approach?

  • Acknowledging and addressing the issues:
  • It must be recognized that the spectrum needs to be combined with other infrastructure to enable service delivery.
  • The cost of deploying other infrastructure in remote areas is nearly twice as much, while revenue opportunities are far lower, damaging if not destroying the prospects of rural businesses. Plugging the digital divide, therefore, needs a fresh approach.
  • Correcting the cost of spectrum and boosting investment:
  • Since licences and spectrum are typically assigned for service areas that are, for the most part, identified by state boundaries.
  • Since operators predominantly cater to urban markets, the spectrum in remote areas remains under- or in places un-utilized due to a lack of investment in allied infrastructure.
  • Reviving the old and executing the fresh provisions enshrined in draft bill for equitable sharing:
  • The draft bill incorporates practical provisions on the spectrum such as use it, share it, or lose it – an awaited policy that, however, needs innovative support to be successful. The idea of “niche operators” providing services including to telecom operators and manufacturers, introduced in 2005, needs revival in this regard.
  • If licensed operators are unable to utilise the assigned spectrum, the same could be given to local entrepreneurs who understand the needs of rural customers and are better placed to develop a more effective business case more quickly than the larger telcos. Active promotion of the idea of niche operators might just jolt operators out of their lethargy towards rural services.
  • Adopting innovative methods:
  • Alternatively, the government may explore innovative methods of spectrum access such as a non-competitive licensing framework for certain specific use cases.
  • Canada, for instance, has initiated consultations on a non-competitive local licensing framework in the 3900-3980 MHz Band and portions of the 26, 28 and 38 GHz bands to inter alia facilitate broadband connectivity in rural areas.
  • Emphasizing on Transparency and enhancing healthy competition:
  • The government should build an ecosystem that inspires trust so that transparency in assignment can be secured at a reasonable price for operators with strict service obligations without the phantasm of auctions.
  • At the same time, there should be no unsold spectrum. Niche operators should be invoked to engender competition, and government could yet collect revenue for itself.

Spectrum

Conclusion

  • The telecom is no longer an end in itself. It exists for user industries much more than ever before. The spill over benefits are far greater than what the sector commands within. Thus, to state the obvious, the vision that is “Digital India” can never be realized if affordable broadband connectivity remains only within the reach of a few.

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Telecom and Postal Sector – Spectrum Allocation, Call Drops, Predatory Pricing, etc

Draft Telecom Bill 2022

Note4Students

From UPSC perspective, the following things are important :

Prelims level : Indian Telecommunication Bill, 2022

Mains level : Read the attached story

telecom

In a bid to do away with British-era laws governing the telecom sector, the Department of Telecommunications (DoT) issued the draft Indian Telecommunication Bill, 2022.

Indian Telecommunication Bill, 2022

  • The proposed Bill aims to bring in sweeping changes to how the telecom sector is governed, primarily by giving the Centre more powers in several areas to do so.
  • The draft Bill consolidates three separate acts that govern the telecommunications sector:
  1. Indian Telegraph Act 1885
  2. Indian Wireless Telegraphy Act 1933, and
  3. The Telegraph Wires, (Unlawful Protection) Act 1950

Why has the government issued a draft Telecommunication Bill?

  • Through the bill, the Centre aims to consolidate and amend the existing laws governing the provision, development, expansion and operation of telecom services, networks and infrastructure.

Key amendments introduced

  • Inclusion of messengers: One of the key changes is inclusion of new-age over-the-top communication services like WhatsApp, Signal and Telegram in the definition of telecommunication services.
  • Licensing of telecom services: As per the draft law, providers of telecom services will be covered under the licensing regime, and will be subjected to similar rules as other telecom operators.
  • Covering OTT services: This issue has been under contention for several years now with telecom service providers seeking a level-playing field with OTT apps over communication services such as voice calls, messages, etc. Operators had to incur high costs of licences and spectrum, while OTT players rode on their infrastructure to offer free services.

Other focus areas

  • The Centre is also looking to amend the Telecom Regulatory Authority of India Act (TRAI Act) to dilute the sectoral watchdog’s function of being a recommendatory body.
  • The current TRAI Act mandates the telecom department to seek the regulator’s views before issuing a new licence to a service provider.
  • The proposed Bill does away with this provision.
  • It has also removed the provision that empowered TRAI to request the government to furnish information or documents necessary to make this recommendation.
  • Additionally, the new Bill also proposes to remove the provision where if the DoT cannot accept TRAI’s recommendations or needs modification, it had to refer back the recommendation for reconsideration by TRAI.

Addressing the concerns of telecom industry

(1) Insolvency of Telecoms

  • The DoT has also proposed that if a telecom entity in possession of spectrum goes through bankruptcy or insolvency, the assigned spectrum will revert to the control of the Centre.
  • So far, in insolvency proceedings, there has been a lack of clarity on whether the spectrum owned by a defaulting operator belongs to the Centre, or whether banks can take control of it.

(2) Granting relief

  • The draft Bill also accords the Centre powers to defer, convert into equity, write off or grant relief to any licensee under extraordinary circumstances, including financial stress, consumer interest, and maintaining competition, among other things.

(3) Replacing USOF

  • It also proposes to replace the Universal Service Obligation Fund (USOF) with the Telecommunication Development Fund (TDF).
  • USOF is the pool of funds generated by the 5 per cent Universal Service Levy that is charged upon all telecom fund operators on their Adjusted Gross Revenue.
  • The USOF has largely been used to aid rural connectivity.
  • However, with the TDF, the objective is also to boost connectivity in underserved urban areas, R&D, skill development, etc.

Back2Basics: Universal Service Obligation Fund (USOF)

  • The Universal Service Obligation Fund (USOF) was formed by an Act of Parliament, was established in April 2002 under the Indian Telegraph (Amendment) Act 2003.
  • It aims to provide financial support for the provision of telecom services in commercially unviable rural and remote areas of the country.
  • It is an attached office of the Department of Telecom, and is headed by the administrator, who is appointed by the central government.

 

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Telecom and Postal Sector – Spectrum Allocation, Call Drops, Predatory Pricing, etc

History of the PIN code, which turns 50 this I-Day

Note4Students

From UPSC perspective, the following things are important :

Prelims level : PIN code

Mains level : Not Much

The 75th Independence Day coincides with another milestone in the country’s history — it was on August 15, 1972, that the Postal Index Number (PIN) was introduced in India.

As the PIN code turns 50 on Monday, we look at its history and evolution.

Why was the PIN code introduced?

  • According to the Department of Posts, there were 23,344 post offices, primarily in urban areas, in India at the time of Independence.
  • But, the country was growing rapidly and the postal network had to keep pace.
  • The PIN code was meant to ease the process of mail sorting and delivery in a country where different places, often, have the same or similar names, and letters are written in a wide variety of languages.

How does the PIN code work?

  • The PIN is made up of six digits.
  • The first number indicates the postal region — Northern, Eastern, Western, Southern; and number 9, which signifies the Army Postal Service.
  • The second number denotes a sub-region, and the third represents the sorting district.
  • The remaining numbers narrow the geography further to the specific post office making the delivery.

Who was the person behind the initiative?

  • The person behind the initiative was Shriram Bhikaji Velankar, additional secretary in the Union Ministry of Communications and a senior member of the Posts and Telegraphs Board.
  • Velankar was also a Sanskrit poet of eminence who had been conferred the President’s Award for Sanskrit in 1996, three years before he died in Mumbai.
  • He had set up a cultural group in Mumbai, called the Dev Vani Mandiram, which worked to create awareness about Sanskrit in India and foreign countries.
  • Velankar was also the chairman of the World Philatelic Exhibition, called Indipex, which was held in New Delhi in 1973 and featured 120 countries.
  • He retired from his government service on December 31, 1973.

What are some parallel systems followed world over?

  • Globally, in the US, the Zone Improvement Plan (ZIP) code was introduced July 1, 1963, under the aegis of the Postal Service Nationwide Improved Mail Service plan to improve the speed of mail delivery.
  • Under the old system letters went through about 17 sorting stops – the new system was going to be considerably less time-consuming utilizing newer, more mechanical systems.

Is the PIN code still relevant?

  • With the spread of the Internet, when people are sending fewer letters, it is easy to question the relevance of the PIN code.
  • But try to order food delivery or a parcel over online shopping and the importance of Velankar’s work in India will become evident.

 

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Telecom and Postal Sector – Spectrum Allocation, Call Drops, Predatory Pricing, etc

5G

Note4Students

From UPSC perspective, the following things are important :

Prelims level : 5G technology

Mains level : 5G Rollout and related issues

The much-awaited auction for telecom spectrum, including for 5G airwaves, will begin tomorrow.

Spectrums for auctions

  • A total of 72,097.85 MHz (or 72 Ghz) of spectrum with a validity period of 20 years will be put on the block.
  • Airwaves across low (600 MHz, 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz), mid (3300 MHz) and high (26 GHz) frequency bands, valued at ₹4,316 billion ($56 billion) at least, will be put up for bidding.

What is (Electromagnetic) Spectrum?

  • Devices such as cellphones and wireline telephones require signals to connect from one end to another.
  • These signals are carried on airwaves, which must be sent at designated frequencies to avoid any kind of interference.
  • The Union government owns all the publicly available assets within the geographical boundaries of the country, which also include airwaves.
  • With the expansion in the number of cellphones, wireline telephone and internet users, the need to provide more space for the signals arise from time to time.

Spectrum allocations

  • Spectrum refers to the invisible radio frequencies that wireless signals travel over. The frequencies we use for wireless are only a portion of what is called the electromagnetic spectrum.
  • To sell these assets to companies willing to set up the required infrastructure to transport these waves from one end to another, the central government through the DoT auctions these airwaves from time to time.
  • These airwaves called spectrum is subdivided into bands which have varying frequencies.
  • All these airwaves are sold for a certain period of time, after which their validity lapses, which is generally set at 20 years.

What is 5G technology?

  • 5G or fifth generation is the latest upgrade in the long-term evolution (LTE) mobile broadband networks.
  • It mainly works in 3 bands, namely low, mid and high-frequency spectrum — all of which have their own uses as well as limitations.

Three bands of 5G

(1) Low band spectrum

  • It has shown great promise in terms of coverage and speed of internet and data exchange, the maximum speed is limited to 100 Mbps (Megabits per second).
  • This means that while telcos can use and install it for commercial cellphones users who may not have specific demands for very high-speed internet, the low band spectrum may not be optimal for the specialized needs of the industry.

(2) Mid-band spectrum

  • It offers higher speeds compared to the low band but has limitations in terms of coverage area and penetration of signals.
  • Telcos and companies, which have taken the lead on 5G, have indicated that this band may be used by industries and specialized factory units for building captive networks that can be molded into the needs of that particular industry.

(3) High-band spectrum

  • It offers the highest speed of all the three bands, but has extremely limited coverage and signal penetration strength.
  • Internet speeds in the high-band spectrum of 5G have been tested to be as high as 20 Gbps (gigabits per second), while, in most cases, the maximum internet data speed in 4G has been recorded at 1 Gbps.

Where does India stand in the 5G technology race?

  • On par with the global players, India had, in 2018, planned to start 5G services as soon as possible, with an aim to capitalize on the better network speeds and strength that the technology promised.
  • Indian private telecom players have been urging the DoT to lay out a clear road map of spectrum allocation and 5G frequency bands so that they would be able to plan the rollout of their services accordingly.
  • One big hurdle, however, is the lack of flow of cash and adequate capital with some companies due to their AGR dues.

Global progress on 5G

  • More than governments, global telecom companies have started building 5G networks and rolling it out to their customers on a trial basis.
  • In countries like the US, some companies have taken the lead when it comes to rolling out commercial 5G for their users.
  • A South Korean company, which had started researching on 5G technology way back in 2011, has, on the other hand, take the lead when it comes to building the hardware for 5G networks for several companies.

 

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A path to global connectivity

Note4Students

From UPSC perspective, the following things are important :

Prelims level : LEO

Mains level : Paper 3- 5G network with LEO satellites

Context

As terrestrial 5G mobile networks are being rolled out across countries, there is a renewed interest in integrating Non-Terrestrial Networks.

SatNets for 5G

  • Satellites and terrestrial networks have always been considered two independent ecosystems, and their standardisation efforts have proceeded independent of each other.
  • The primary non-terrestrial network that is being considered is the low latency Low Earth Orbit (LEO) satellite networks (SatNets), as a complement to terrestrial networks.
  • Towards this, Starlink, operated by the Elon Musk-owned SpaceX, and OneWeb, promoted by Bharti Global, have launched about 2,500 and 648 LEO satellites respectively at an altitude of about 1,200 km with the objective of promoting global broadband connectivity.
  • There are other players such as Reliance Jio in a joint venture with Luxembourg-based SES and Amazon’s Project Kuiper.

Benefits of using SatNets

  • 1] Service continuity in emergency: service continuity to provide seamless transition between terrestrial networks and SatNets in case of public safety, disaster management and emergency situations;
  • 2] Providing service in remote area: Service ubiquity to provide 5G services in unserved and underserved areas of the world, thereby bridging the digital divide;
  • 3] Scalability: Service scalability that utilises the unique capabilities of SatNets in multicasting and broadcasting similar content over a large geographical area.
  • 4] Service to in-motion user: The LEO SatNets can provide service not only to stationary but also to in-motion users.
  • 5] Low latency over long distance: Wireless communications through LEO satellites over long distances is proven to be 1.47 times faster than communication over the same distance through terrestrial optic fibre. It is this advantage along with global coverage that provide a strong use case for LEO SatNets to complement terrestrial optic fibre networks.
  • SatNet in standardisation: In view of the above advantages, standard-setting organisations such as the Third Generation Partnership project (3GPP), comprising telcos and equipment manufacturers around the world, started integrating SatNets in the standardisation process.

Measures by the government

  • Realising the advantages, the Government, in its National Digital Communications Policy 2018, has indicated the development of an ecosystem for local manufacturing of satellite communication systems and promoting participation of private players for the strengthening of satellite communication infrastructure in the country.
  • Accordingly, the New Space India Limited (NSIL), a public sector enterprise, was established in 2019 to re-orient space activities from a ‘supply driven’ model to a ‘demand driven’ model, thereby ensuring optimum utilisation of the space assets.
  • The Department of Space also established in 2020 a new regulatory body named the Indian National Space Promotion and Authorisation Centre (IN-SPACe).
  • IN-SPACe is intended to provide a level playing field for private companies to use Indian space infrastructure.

Issues and challenges

  • Allocation of frequency: Issues will involve addressing issues around frequencies to be allocated for satellite broadband, the methodology of allocation, the relatively higher cost of consumer equipment and the placement and interconnections of SatNets with terrestrial public landline/ mobile networks at the ground stations
  • Cost: The other major challenge in LEO SatNets is the cost of user terminal and access charges to the end users.
  • A recent research analysing both Starlink and OneWeb concludes that the standalone LEO SatNets have a distinct cost advantage only if the density is less than 0.1 person per square km compared to terrestrial broadband networks.
  • Hence it is to the advantage of LEO SatNet providers to integrate their networks with terrestrial 5G networks to improve the cost economies.

Conclusion

All these, along with the proposed revisions to the Satellite Communications Policy of the Government, will provide the required fillip to LEO SatNets to become an integral part of the communication infrastructure of the country.

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Back2Basics: LEO satellites

  • LEO satellites orbit between 2,000 and 200 kilometers above the earth. LEO satellites are commonly used for communications, military reconnaissance, spying and other imaging applications.
  • A low earth orbit (LEO) satellite is an object, generally a piece of electronic equipment, that circles around the earth at lower altitudes than geosynchronous satellites.
  • Satellites made for communications benefit from the lower signal propagation delay to LEO.
  • This lower propagation delay results in less latency.
  • Being closer to the earth has an obvious benefit for many types of earth observational satellites by resolving smaller subjects with greater detail.

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What are Private Captive Networks?

Note4Students

From UPSC perspective, the following things are important :

Prelims level : Private Captive Networks

Mains level : 5G Rollout

The Cellular Operators’ Association of India (COAI) wrote a letter urging the government against allotting 5G spectrum to private captive networks, claiming that it will diminish their revenue to the point where offering 5G will pointless.

What is a Private Captive 5G Network?

  • A private captive 5G network is basically a network set up by a private entity for the use of just one organisation.
  • It is similar to a captive coal mine in that the 5G service offered by this captive network will only be utilised by the enterprise concerned, and no one else.

Why are telecom providers against it?

  • The COAI’s argument is that enterprises are the biggest users of 5G networks.
  • If private entities are allowed to offer captive networks to enterprises, the TSPs (telecom service providers) retail revenues will fall.
  • COAI implied that there is no great demand for 5G right now as “the needs of voice and data of the entire nation is being adequately met by the TSPs through their 4G networks today”.

 

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Cabinet approves mega 5G auction

Note4Students

From UPSC perspective, the following things are important :

Prelims level : 5G technology

Mains level : Not Much

The Union Cabinet has approved the auction of airwaves capable of offering fifth generation, or 5G, telecom services, including ultra-high-speed Internet, and gave its nod for setting up of captive 5G networks by big tech firms.

What is the news?

  • The auction of over 72 GHz of the spectrum will be held by July-end.
  • Auctions will be held at reserve prices recommended by the sector regulator, Telecom Regulatory Authority of India (TRAI).
  • TRAI had earlier recommended about a 39% reduction in the reserve or floor price for the sale of 5G spectrum for mobile services.

What is 5G technology?

  • 5G or fifth generation is the latest upgrade in the long-term evolution (LTE) mobile broadband networks.
  • It mainly works in 3 bands, namely low, mid and high-frequency spectrum — all of which have their own uses as well as limitations.

Three bands of 5G

(1) Low band spectrum

  • It has shown great promise in terms of coverage and speed of internet and data exchange, the maximum speed is limited to 100 Mbps (Megabits per second).
  • This means that while telcos can use and install it for commercial cellphones users who may not have specific demands for very high-speed internet, the low band spectrum may not be optimal for the specialized needs of the industry.

(2) Mid-band spectrum

  • It offers higher speeds compared to the low band but has limitations in terms of coverage area and penetration of signals.
  • Telcos and companies, which have taken the lead on 5G, have indicated that this band may be used by industries and specialized factory units for building captive networks that can be molded into the needs of that particular industry.

(3) High-band spectrum

  • It offers the highest speed of all the three bands, but has extremely limited coverage and signal penetration strength.
  • Internet speeds in the high-band spectrum of 5G have been tested to be as high as 20 Gbps (gigabits per second), while, in most cases, the maximum internet data speed in 4G has been recorded at 1 Gbps.

Where does India stand in the 5G technology race?

  • On par with the global players, India had, in 2018, planned to start 5G services as soon as possible, with an aim to capitalize on the better network speeds and strength that the technology promised.
  • Indian private telecom players have been urging the DoT to lay out a clear road map of spectrum allocation and 5G frequency bands so that they would be able to plan the rollout of their services accordingly.
  • One big hurdle, however, is the lack of flow of cash and adequate capital with some companies due to their AGR dues.

Global progress on 5G

  • More than governments, global telecom companies have started building 5G networks and rolling it out to their customers on a trial basis.
  • In countries like the US, some companies have taken the lead when it comes to rolling out commercial 5G for their users.
  • A South Korean company, which had started researching on 5G technology way back in 2011, has, on the other hand, take the lead when it comes to building the hardware for 5G networks for several companies.

 

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The way forward on 5G

Note4Students

From UPSC perspective, the following things are important :

Prelims level : Not much

Mains level : Paper 3- Duopoly threat in India's telecom sector

Context

The near-death of competition signalled by the incipient exit of Vi late last year pushed the Department of Telecommunications (DoT) to announce steps to prevent the premature exit of a sagging operator.

About 5G

  • 5G is the 5th generation mobile network.
  • It is a new global wireless standard after 1G, 2G, 3G, and 4G networks.
  • 5G can be significantly faster than 4G, delivering up to 20 Gigabits-per-second (Gbps) peak data rates and 100+ Megabits-per-second (Mbps) average data rates.
  • 5G enables a new kind of network that is designed to connect virtually everyone and everything together including machines, objects, and devices.
  • 5G wireless technology is meant to deliver higher multi-Gbps peak data speeds, ultra low latency, more reliability, massive network capacity, increased availability, and a more uniform user experience to more users.
  • Higher performance and improved efficiency empower new user experiences and connects new industries.
  • With high speeds, superior reliability and negligible latency, 5G will expand the mobile ecosystem into new realms.
  • 5G will impact every industry, making safer transportation, remote healthcare, precision agriculture, digitized logistics — and more — a reality.

India’s telecom sector: From monopoly to hyper-competition to duopoly

  • India’s telecom market has seen monopoly as well as hyper-competition.
  • Twenty-five years ago, the government alone could provide services.
  • Technology and deregulation: In the following years, the combined forces of technology and deregulation helped break the shackles of public sector dominance despite the latter’s stiff resistance
  • In the following years, there were nearly a dozen competing operators. Most service areas now have four players.
  • However, the possible exit of the financially-stressed Vodafone Idea would leave only two dominant players-Airtel and Jio in the telecom sector.
  • A looming duopoly, or the exit of a global telecommunications major, are both worrying.
  • They deserve a careful and creative response.

Government package for telecom sector to prevent duopoly

  • The near-death of competition signalled by the incipient exit of Vi late last year pushed the Department of Telecommunications (DoT) to announce steps to prevent the premature exit of a sagging operator.
  • As a part of its support package for the telecom sector, in October 2021, it dispensed with the requirement of performance bank guarantees required earlier as security.
  • It increased the tenure of spectrum holding from 20 to 30 years.
  • It allowed for the surrender of the unutilised or underutilised spectrum after 10 years.
  • Most importantly removed the levy of spectrum usage charges. 

Why competitive telecom market is important?

  • Key to achieving digital ambitions: A competitive telecom sector is fundamental to realising India’s digital ambitions.
  • Innovation: Monopolies have no incentive to innovate.
  • Investment: The competition will guarantee that operators find it attractive to invest in network infrastructure upgradation and offer consumers a wide range of innovative service options.
  • Source of revenue: A competitive telecom sector would be an indirect source of tax revenue as well.
  • How to make market competitive? Competition cannot be willed into the sector.
  • It needs careful nurturing, assiduous fostering and regulatory neutrality. 

Way forward on 5G

  • Structural changes: While the package may have prevented the exit of Vi from the market, to embed competition within the sector, structural changes are necessary.
  • The imminent 5G networks demand massive investment and sophistication of operations.
  • 1] Level playing field: This will not be achieved unless the playing field is level across the relevant operators and honest incentives are provided to operators to embrace new technology.
  •  2] Change the spectrum allocation method: There is no doubt that spectrum auctions have served India well in the past due to the acrimonious political economy associated with administrative spectrum assignment, including First Come First Serve (FCFS) method.
  • The auction regime worked well when demand exceeded supply, but if there is an adequate quantity of spectrum for everyone, that constraint would not exist.
  • Administrative assignments can thus be considered once again.
  • 3] Administrative assignments:  An administrative assignment will include the possibility that all spectrum can be assigned at reasonable prices and in the process, a grand bargain can be struck with telecom operators.
  • 4] Assigning 5G spectrum for private enterprise business: TRAI and the Digital Communications Commission (DCC) are considering whether 5G spectrum should be assigned to companies like TCS, Amazon and Google, among others, for their private enterprise business.
  • 5G spectrum assignment for enterprises would adversely affect the business model of telcos.
  • But there will be enterprises that telcos could serve that are not large enough to purchase 5G spectrum.
  • A grand bargain that allows enterprises to buy 5G spectrum while assigning spectrum to the existing telcos through the administrative route will also serve the revenue needs of the government.
  • 5] Privatise public sector operator: This is an opportunity to also signal to the public sector operator that 5G business is outside the range of its capability set.
  • Hence like Air India it needs to be privatised in the fullness of time.
  • These are difficult decisions and will need much more political will than in 1994.

Consider the question “Why a competitive telecom market is a prerequisite for achieving India’s digital dream and why an eminent duopoly in the sector stands to threaten that dream? Suggest way forward.”

Conclusion

It would be tragic if India’s telecom-access market was to be reduced to only two competing operators, as we have a long way to go. What we need is structural changes in the sectors as well as the way the sector is regulated.

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Back2Basics: Spectrum usage charges

  • Companies had to pay 3-5 per cent of their adjusted gross revenue (AGR) as spectrum usage charge to the department of telecom.
  • If they share spectrum with another operator, operators must pay an additional 0.5 per cent of AGR for that band as SUC.
  • However, in September 2021, the Department of Telecommunications (DoT) decided to remove the floor rate of 3% of the adjusted gross revenue (AGR) for operators to pay their spectrum usage charge (SUC).
  • The removal of the clause fixing a floor rate of 3% was done to give effect to the recently announced telecom relief package.
  • Though the telecom package talks of scrapping SUC only on spectrum acquired in future auctions like that of 5G, if the 3% floor is abolished, as and when operators acquire more spectrum in future auctions, their SUC will become zero on the entire holding.
  • This is because of a complex weighted average formula to calculate the SUC of operators who have a mix of administratively allocated spectrum and acquired through auctions.

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What is D2M Technology?

Note4Students

From UPSC perspective, the following things are important :

Prelims level : D2M Technology

Mains level : Telecom sector reforms

The Department of Telecommunications (DoT) and India’s public service broadcaster Prasar Bharati are exploring ‘direct-to-mobile’ (D2M) broadcasting.

What is D2M Technology?

  • The technology is based on the convergence of broadband and broadcast, using which mobile phones can receive terrestrial digital TV.
  • It would be similar to how people listen to FM radio on their phones, where a receiver within the phone can tap into radio frequencies.
  • Using D2M, multimedia content can also be beamed to phones directly.

Benefits of D2M

  • It allows broadcasting video and other forms of multimedia content directly to mobile phones, without needing an active internet connection.
  • It promises to improve consumption of broadband and utilisation of spectrum.

Why need D2M?

  • The idea behind the technology is that it can possibly be used to directly broadcast content related to citizen-centric information.
  • It can be further used to counter fake news, issue emergency alerts and offer assistance in disaster management, among other things.
  • Apart from that, it can be used to broadcast live news, sports etc. on mobile phones.
  • More so, the content should stream without any buffering whatsoever while not consuming any internet data.

What could be the consumer and business impact of this?

  • For consumers, a technology like this would mean that they would be able to access multimedia content from Video on Demand (VoD) or Over The Top (OTT) content platforms.
  • This will be without having to exhaust their mobile data, and more importantly, at a nominal rate.
  • The technology will also allow people from rural areas, with limited or no internet access, to watch video content.
  • For businesses, one of the key benefits of the technology is that it can enable telecom service providers to offload video traffic from their mobile network onto the broadcast network.
  • It thus helps them to decongest valuable mobile spectrum.
  • This will also improve usage of mobile spectrum and free up bandwidth which will help reduce call drops, increase data speeds etc.

What is the government doing to facilitate D2M technology?

  • The DoT has set up a committee to study the feasibility of a spectrum band for offering broadcast services directly to users’ smartphones.
  • Band 526-582 MHz is envisaged to work in coordination with both mobile and broadcast services.
  • DoT has set up a committee to study this band.
  • At the moment, this band is used by the Ministry of Information & Broadcasting across the country for TV transmitters.

What are the possible challenges to the technology’s rollout?

  • Bringing key stakeholders like mobile operators onboard will be the biggest challenge in launching D2M technology on a wide scale.
  • A mass roll out of the technology will entail changes in infrastructure and some regulatory changes.

 

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BARC resumes ratings of news channels

Note4Students

From UPSC perspective, the following things are important :

Prelims level : BARC, TRP

Mains level : Not Much

The BARC India had temporarily suspended the viewership ratings of news channels in October 2020, amid the allegations of a Television Rating Point (TRP) scam. Now it has resumed the ratings.

What is TRP?

  • In simple terms, anyone who watches television for more than a minute is considered a viewer.
  • The TRP or Target Rating Point is the metric used by the marketing and advertising agencies to evaluate this viewership.
  • In India, the TRP is recorded by the Broadcast Audience Research Council (BARC) using Bar-O-Meters that are installed in televisions in selected households.
  • As on date, the BARC has installed these meters in 44,000 households across the country. Audio watermarks are embedded in video content prior to broadcast.
  • These watermarks are not audible to the human ear, but can easily be detected and decoded using dedicated hardware and software.
  • As viewing details are recorded by the Bar-O-Meters, so are the watermarks.

What is BARC?

  • It is an industry body jointly owned by advertisers, ad agencies, and broadcasting companies, represented by The Indian Society of Advertisers, the Indian Broadcasting Foundation and the Advertising Agencies Association of India.
  • Though it was created in 2010, the I&B Ministry notified the Policy Guidelines for Television Rating Agencies in India on January 10, 2014, and registered BARC in July 2015 under these guidelines, to carry out television ratings in India.

How are the households selected?

  • Selection of households where Bar-O-Meters are installed is a two-stage process.
  • The first step is the Establishment Survey, a large-scale face-to-face survey of a sample of approximately 3 lakh households from the target population. This is done annually.
  • Out of these, the households which will have Bar-O-Meters or what the BARC calls the Recruitment Sample are randomly selected. The fieldwork to recruit households is not done directly by BARC.
  • The BARC on its website has said that the viewing behaviour of panel homes is reported to BARC India daily. Coincidental checks either physically or telephonically are done regularly.

Vigilance activities by BARC

  • Certain suspicious outliers are also checked directly by BARC India.
  • BARC India also involves a separate vigilance agency to check on outliers that it considers highly suspicious.
  • And as per the guidelines of the Ministry of Information and Broadcasting, these households rotate every year.
  • This rotation is in such a manner that older panel homes are removed first while maintaining the representativeness of the panel.
  • The Ministry guidelines further say that the secrecy and privacy of the panel homes must be maintained, and asked the BARC to follow a voluntary code of conduct.

What are the loopholes in the process?

  • Several doubts have been raised on many previous occasions about the working of the TRP.
  • As per several reports, about 70% of the revenue for television channels comes from advertising and only 30% from subscriptions.
  • It is claimed that households were being paid to manipulate the TRP.

 

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All you need to know about Satellite Internet

Note4Students

From UPSC perspective, the following things are important :

Prelims level : Satellite Internet

Mains level : Not Much

The Reliance has launched a joint venture (JV) with European satellite-based broadband service company SES to enter the satellite internet space.

What is Satellite Internet?

  • The technology beams the internet down from a satellite that’s orbiting the Earth.
  • Jio, Bharti Airtel Ltd’s OneWeb, and billionaire Elon Musk’s Starlink want to send thousands of these satellites to orbit.
  • OneWeb plans to launch 648 satellites, while Musk’s Starlink has permits to launch over 4,000 of them.
  • So far, OneWeb has launched over 400 satellites, while Starlink has launched over 2,000 satellites.
  • It’s worth noting that Starlink plans to launch 42,000 satellites in the coming decade. Jio’s journey has only just begun.

Which satellites will Indian JV use?

  • The JV will use geostationary (GEO) and medium earth orbit (MEO) satellites, while Starlink and OneWeb use low earth orbit (LEO) satellites.
  • LEO satellites are cheaper to make and deploy, but require a satellite constellation working in sync to offer coverage on earth.
  • On the other hand, GEO and MEO satellites are larger, deployed in higher orbits, and therefore cost more.
  • These satellites cover a larger area and require fewer ground stations, which makes them ideal for targeted coverage area.
  • LEOs move faster and can hence provide global coverage.

What are the advantages of satellite internet?

  • The reason telecom firms want to explore satellite internet is because there are areas where fibre connections just can’t reach.
  • Satellite networks are used to bring connectivity in such areas, which include hills and remote islands.
  • Consumer applications are new, but satellite networks have been used for ages in military applications.

Are there any disadvantages?

  • The applications and the power of satellite internet are often exaggerated.
  • In reality, these networks have limitations, the biggest being high latency and low bandwidths.
  • Latency is all about internet speed, while bandwidth determines how many devices can connect on a network at the same time.
  • Experts say current satellite connections will bring 1-2 MB bandwidth, which just about qualifies as broadband under India’s broadband policy.
  • Trouble-shooting can be a problem because it needs specialized knowledge.

Who can use satellite internet?

  • Militaries across the world have depended on satellite communications for a long time.
  • However, many military experts, too, consider this form to be unreliable and too expensive to be made the sole communication medium.
  • In remote areas, satellite internet can still allow businesses to open up local branches and provide digital services.
  • In theory, a bank could set up more ATMs in remote regions if it has access to satellite internet.

 

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Why 5G roll-outs are disrupting flights to the US?

Note4Students

From UPSC perspective, the following things are important :

Prelims level : Read the attached story

Mains level : Hurdles in 5G Rollout

Air India said Boeing had cleared its B777 aircraft for flights to the US following concerns that the 5G roll-out there could interfere with critical aircraft functions.

What is 5G Technology?

  • 5G or fifth generation is the latest upgrade in the long-term evolution (LTE) mobile broadband networks.
  • It’s a unified platform which is much more capable than previous mobile services with more capacity, lower latency, faster data delivery rate and better utilization of spectrum.

How can 5G affect flight safety?

  • Airlines take off and land using auto-pilot systems, which use data from radar altimeters to determine the altitude of the aircraft.
  • Altimeters emit radio waves at 4.2-4.3 Gigahertz (GHz) frequency, which could interfere with a 5G band called C-Band, which lies between 3.7-4.4 GHz.
  • This interference can mess up the data. That’s the safety concern. Radio altimeters are used at airports and other low-altitude locations.
  • A different kind of altimeter, called pressure altimeter, is used for high altitude areas.
  • Not using auto-pilot would lead to more fuel consumption and higher costs for airlines.

What happens to Air India’s operations?

  • While scheduled international flights, to and from India, remain suspended due to the pandemic, Air India operates flights to the US under an air bubble agreement.
  • These routes are served by the airline’s wide-body fleet of Boeing 777 and Boeing 787 planes.
  • The roll out of 5G is expected to primarily impact the operations of Boeing 777 and 747.

Can this impact India’s 5G roll-out?

  • India’s 5G auctions are expected to include spectrum bands of 3.3GHz -3.6GHz, which means the C-Band may not be operational, at least in the near future.
  • Plus, aircraft equipment is manufactured globally, with certain standards.
  • The FAA tests will likely lead to standards for altimeters and applied internationally.
  • For aircraft makers, altimeters are key equipment. But they’re bought off-the-rack instead being designed in-house.
  • Once a standard is known, it can be implemented in all aircraft.

Also read

[Burning Issue] 5G Technology

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Telecom and Postal Sector – Spectrum Allocation, Call Drops, Predatory Pricing, etc

Millimeter Wave band in 5G auctions

Note4Students

From UPSC perspective, the following things are important :

Prelims level : 5G technology

Mains level : Delay in roll-out of 5g

The Telecom Regulatory Authority of India (TRAI) has asked for views on band plan, block size, and conditions for auction of spectrum in 5G bands, which includes Millimetre (mm) Wave band of 24.25-28.5 GHz.

Must read:

Status of 5G Rollout in India

What is 5G technology?

  • 5G or fifth generation is the latest upgrade in the long-term evolution (LTE) mobile broadband networks.
  • It’s a unified platform that is much more capable than previous mobile services with more capacity, lower latency, faster data delivery rate and better utilisation of spectrum.

5G spectrum

5G mainly works in 3 bands, namely low, mid and high-frequency spectrum — all of which have their own uses as well as limitations.

(1) Low band spectrum

  • It has a great promise in terms of coverage and speed of internet and data exchange but the maximum speed is limited to 100 Mbps (Megabits per second).
  • So Telcos can use and install it for commercial cell phone users who may not have specific demands for very high speed internet, the low band spectrum may not be optimal for specialized needs of the industry.

(2) Mid-band spectrum

  • It offers higher speeds compared to the low band, but has limitations in terms of coverage area and penetration of signals.
  • This band may be used by industries and specialized factory units for building captive networks that can be moulded into the needs of that particular industry.

(3) High-band spectrum

  • It offers the highest speed of all the three bands, but has extremely limited coverage and signal penetration strength.
  • Internet speeds in the high-band spectrum of 5G has been tested to be as high as 20 Gbps (giga bits per second), while, in most cases, the maximum internet data speed in 4G has been recorded at 1 Gbps.

What is Millimetre (mm) Wave Band?

  • Millimetre Wave band or mmWave is a particular segment of radio frequency spectrum that range between 24 GHz and 100 GHz.
  • This spectrum, as the name suggests, has a short wavelength, and is apt to deliver greater speeds and lower latencies.
  • This in turn makes data transfer efficient and seamless as the current available networks work optimally only on lower frequency bandwidths.

Significance of this mm band

  • 5G services can be deployed using lower frequency bands.
  • They can cover greater distances and are proven to work efficiently even in urban environments, which are prone to interference.
  • But, when it comes to data speeds, these bands fail to hit peak potential needed for a true 5G experience.
  • So, mmWave is that quintessential piece in the 5G jigsaw puzzle for mobile service providers.

Concerns with inclusion of mm-band

  • The mm bands have been preserved for satellite-based broadband services as per the decision taken by the International Telecommunication Union (ITU).
  • Providing excess spectrum could pose a downside risk of the bands going unsold, or even worse, underutilised by terrestrial players at the expense of satellite-based service providers.
  • Offering excessive spectrum will result in Indian citizens being denied the benefits of high-demand, advanced satellite broadband services.
  • In addition to this, it will result in a massive loss to the Indian economy of up to $184.6 billion by 2030, along with the loss of foreign direct investment (FDI) and employment generation benefits.

How could this disrupt the satellite communication industry?

  • Internet has largely been provided to users via fibre-optic based broadband connectivity or mobile network.
  • Of late, another class of Internet vendors is showing up. These are satellite-based communication service providers.
  • For example, SpaceX’s Starlink and Bharti Airtel’s OneWeb are some of the players in this market.
  • This segment uses Low-Earth Orbit (LEO) satellites to provide broadband to both urban and rural users. Their service could also be used for weather predictions.
  • The mm band had been the subject of controversy due to out-of-band emissions into the passive satellite band used for weather satellites at 23.6-24 GHz.

HeaWay ahead

  • The allocation of mmWave band is critical to the satellite communication industry, which needs a stronger regulatory support to ensure that 5G operations don’t interfere with their existing operations.
  • The industry body pointed to Europe’s “5G Roadmap”, which is built on the ITU’s decision to hold these bands for satellite-based broadband services.

 

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BARC ratings for news channels to resume soon

Note4Students

From UPSC perspective, the following things are important :

Prelims level : TRP

Mains level : Read the attached story

Ratings by Broadcast Audience Research Council (BARC) for the news channels will resume, after the organisation revised its procedures and protocols.

The ratings were suspended after the Mumbai police busted a racket involving a private channel’s efforts to tamper the TRPs.

Try this question:

Q.What do you mean by “TRP Journalism”? Discuss the loopholes in the present system of self-regulation in Indian media.

What is TRP?

  • In simple terms, anyone who watches television for more than a minute is considered a viewer.
  • The TRP or Target Rating Point is the metric used by the marketing and advertising agencies to evaluate this viewership.
  • In India, the TRP is recorded by the Broadcast Audience Research Council (BARC) using Bar-O-Meters that are installed in televisions in selected households.
  • As on date, the BARC has installed these meters in 44,000 households across the country. Audio watermarks are embedded in video content prior to broadcast.
  • These watermarks are not audible to the human ear, but can easily be detected and decoded using dedicated hardware and software.
  • As viewing details are recorded by the Bar-O-Meters, so are the watermarks.

What is BARC?

  • It is an industry body jointly owned by advertisers, ad agencies, and broadcasting companies, represented by The Indian Society of Advertisers, the Indian Broadcasting Foundation and the Advertising Agencies Association of India.
  • Though it was created in 2010, the I&B Ministry notified the Policy Guidelines for Television Rating Agencies in India on January 10, 2014, and registered BARC in July 2015 under these guidelines, to carry out television ratings in India.

How are the households selected?

  • Selection of households where Bar-O-Meters are installed is a two-stage process.
  • The first step is the Establishment Survey, a large-scale face-to-face survey of a sample of approximately 3 lakh households from the target population. This is done annually.
  • Out of these, the households which will have Bar-O-Meters or what the BARC calls the Recruitment Sample are randomly selected. The fieldwork to recruit households is not done directly by BARC.
  • The BARC on its website has said that the viewing behaviour of panel homes is reported to BARC India daily. Coincidental checks either physically or telephonically are done regularly.

Vigilance activities by BARC

  • Certain suspicious outliers are also checked directly by BARC India.
  • BARC India also involves a separate vigilance agency to check on outliers that it considers highly suspicious.
  • And as per the guidelines of the Ministry of Information and Broadcasting, these households rotate every year.
  • This rotation is in such a manner that older panel homes are removed first while maintaining the representativeness of the panel.
  • The Ministry guidelines further say that the secrecy and privacy of the panel homes must be maintained, and asked the BARC to follow a voluntary code of conduct.

What are the loopholes in the process?

  • Several doubts have been raised on many previous occasions about the working of the TRP.
  • As per several reports, about 70% of the revenue for television channels comes from advertising and only 30% from subscriptions.
  • It is claimed that households were being paid to manipulate the TRP.

 

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Status of 5G Rollout in India

Note4Students

From UPSC perspective, the following things are important :

Prelims level : 5G technology

Mains level : Issues with 5g rollout

Delhi, Gurgaon, Mumbai, Bengaluru, Kolkata, Ahmedabad, Hyderabad, and Pune will be the first places to get 5G services next year in 2022, informed the Department of Telecommunications (DoT).

Must read:

[Burning Issue] 5G Technology

What is 5G technology?

  • 5G or fifth generation is the latest upgrade in the long-term evolution (LTE) mobile broadband networks.
  • It’s a unified platform which is much more capable than previous mobile services with more capacity, lower latency, faster data delivery rate and better utilisation of spectrum.

5G spectrum

5G mainly works in 3 bands, namely low, mid and high-frequency spectrum — all of which have their own uses as well as limitations.

(1) Low band spectrum

  • It has a great promise in terms of coverage and speed of internet and data exchange but the maximum speed is limited to 100 Mbps (Megabits per second).
  • So Telcos can use and install it for commercial cell phone users who may not have specific demands for very high speed internet, the low band spectrum may not be optimal for specialized needs of the industry.

(2) Mid-band spectrum

  • It offers higher speeds compared to the low band, but has limitations in terms of coverage area and penetration of signals.
  • This band may be used by industries and specialized factory units for building captive networks that can be moulded into the needs of that particular industry.

(3) High-band spectrum

  • It offers the highest speed of all the three bands, but has extremely limited coverage and signal penetration strength.
  • Internet speeds in the high-band spectrum of 5G has been tested to be as high as 20 Gbps (giga bits per second), while, in most cases, the maximum internet data speed in 4G has been recorded at 1 Gbps.

Stipulated bands for roll-out

  • While the low band spectrum has shown great promise in terms of coverage and speed of Internet and data exchange, the maximum speed is limited to 100 Mbps (Megabits per second).
  • This means that while telecoms can use and install it for commercial cellphone users who may not have specific demands for very high speed Internet.
  • However the low band spectrum may not be optimal for specialised needs of the industry.
  • The mid-band spectrum, on the other hand, offers higher speeds compared to the low band, but has limitations in terms of coverage area and penetration of signals.

Where does India stand in the 5G technology race?

  • Like other global players, India had, in 2018, planned to start 5G services as soon as possible, with an aim to capitalise on the better network speeds and strength that the technology promised.
  • India’s private telecom players have been urging the DoT to lay out a clear road map of spectrum allocation and 5G frequency bands.

Issues in roll-out

  • Monopoly: One big hurdle, however, is the lack of flow of cash and adequate capital with some players due to an existing monopoly.
  • AGR dues: There is an ongoing dispute between the telecoms and the government mainly over the definition of Adjusted Gross Revenue.
  • Device upgrade: As far as commercial smartphones are concerned, some newer devices in the market claim to be 5G-ready but are much costlier.

Why is there early roll-out in big cities?

  • Services penetration: One of the reasons why the bigger cities were chosen for these trials is their telecom services penetration, making it easier to convince more people to upgrade from 4G.
  • Cost management: Since the costs for 5G services are initially going to be on the higher side, it would be wise to test the service in areas where more consumers would find them affordable.
  • Testing ground: A third reason is that cities provide all kinds of locations, such as walled complexes and open spaces, that are suitable for testing of various 5G bands.

What is the global progress on 5G?

More than governments, global telecom companies have started building 5G networks and rolling it out to their customers on a trial basis.

  • South Korea: Samsung, which had started researching on 5G technology way back in 2011, has taken the lead when it comes to building the hardware for 5G networks for several companies.
  • USA: In countries like the US, companies such as AT&T, T-mobile, and Verizon have taken the lead when it comes to rolling out commercial 5G for their users.
  • China: In other countries such as China, some of the telecoms such as China Unicom had started 5G trials as early as 2018, and have since rolled out the commercial services for users.

What changes for consumers with 5G?

  • One of the major changes will be in terms of rich experiences on their phones and other connected devices.
  • For instance, users will be able to stream videos with multiple camera angles during sports matches or even play immersive video games using VR headsets or other accessories.
  • This next-generation telecom network will also enable a mesh of connected Internet of Things (IoT)-enabled devices and services with zero-fail rate, as in the case of connected cars.
  • 5G could also draw high-speed mobile broadband connectivity to replace existing broadband services, especially in locations where these services are constrained, provided there isn’t a huge price differential.

 

Try this question from CSP 2019:

 

With reference to communication technologies, what is/are the difference/differences between LTE (Long-Term Evolution) and VoLTE (Voice over Long-Term Evolution)?

  1. LTE ‘is commonly marketed as 3G and VoLTE is commonly marketed as advanced 3G.
  2. LTE is data-only technology and VoLTE is voice-only technology.

Select the correct answer using the code given below.

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

 

Post your answers here.
2
Please leave a feedback on thisx

 

 

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Telecom and Postal Sector – Spectrum Allocation, Call Drops, Predatory Pricing, etc

5G Network and Aviation Safety

Note4Students

From UPSC perspective, the following things are important :

Prelims level : 5G technology

Mains level : Issues with 5g rollout

The US Federal Aviation Administration (FAA) has issued directives to create a framework as well as gather more information about the potential effects of 5G on crucial aviation safety equipment.

What is 5G technology?

  • 5G or fifth generation is the latest upgrade in the long-term evolution (LTE) mobile broadband networks.
  • It mainly works in 3 bands, namely low, mid and high-frequency spectrum — all of which have their own uses as well as limitations.

Three bands of 5G

  • The low band spectrum has shown great promise in terms of coverage and speed of internet and data exchange, the maximum speed is limited to 100 Mbps (Megabits per second).
  • This means that while telcos can use and install it for commercial cellphones users who may not have specific demands for very high-speed internet, the low band spectrum may not be optimal for specialised needs of the industry.
  • The mid-band spectrum, on the other hand, offers higher speeds compared to the low band but has limitations in terms of coverage area and penetration of signals.
  • Telcos and companies, which have taken the lead on 5G, have indicated that this band may be used by industries and specialised factory units for building captive networks that can be moulded into the needs of that particular industry.
  • The high-band spectrum offers the highest speed of all the three bands, but has extremely limited coverage and signal penetration strength.
  • Internet speeds in the high-band spectrum of 5G have been tested to be as high as 20 Gbps (gigabits per second), while, in most cases, the maximum internet data speed in 4G has been recorded at 1 Gbps.

What is the issue?

  • There is a threat of potential radar altimeter interference from 5G cellular in the 3700 MHz-3800 MHz frequency or the C-band.
  • The 3700-4200 MHz band is close to the 4200 MHz-4400 MHz range used by aircraft radio altimeters.

Potential impacts

  • Operations by aircraft including large jets could be limited or prohibited from using certain landing and navigation systems in places where there is scope for potential interference from new 5G cellular networks.
  • The restrictions could be severe for smaller aircraft and helicopters.
  • Overall, these could result in flight cancellations, delays or diversions in 46 places where these towers are, according to an aviation report.

What is the aircraft equipment that can be affected?

  • The radio altimeter measures height (not altitude) of the aircraft above the surface immediately below the plane. It transmits a radio signal directly below.
  • There are various other systems that depend on inputs from the radio altimeter — for example, predictive wind shear, ground proximity warning system, traffic collision avoidance system, and auto land.
  • These effects are only when the aircraft is close to the ground, i.e. up to 2,500 ft above ground level (depending on the aircraft make).
  • Any disturbance to internal radio altimeter readings caused by 5G or other equipment transmitting in frequency bands close to it can result in disastrous effects on crucial systems during approach/landing.

Impact of mobile phones

  • 5G devices can interfere with aircraft altitude instruments and recommended that they should be turned off (or put to flight mode) during flight.
  • Experts believe that electrical interference from a mobile phone could have been a factor in the crash of a small aircraft.
  • The navigation system of the small aircraft could be disrupted by mobile phone signals.
  • But up until now, there has been no evidence of a mobile phone having caused a crash.

What about the implications for India?

  • Pilots in India are aware of the implications of 5G in the country.
  • However, in India, 5G could be rolled out in the 3.2 GHz-3.6 GHz band, which may not have the potential to interfere with aircraft operations.

 

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Telecom and Postal Sector – Spectrum Allocation, Call Drops, Predatory Pricing, etc

Ericsson Mobility Report on 5G Subscriptions

Note4Students

From UPSC perspective, the following things are important :

Prelims level : 5G technology

Mains level : Useful data about 5G in India

India 5G subscriptions are set to reach 500 mn by 2027, said Ericsson in its report.

Ericsson Mobility Report

  • The report has added that the total number of smartphone subscriptions is expected to be 810 million at the end of 2021.
  • It is projected to grow at a compounded annual growth rate of 7%, exceeding 1.2 billion by 2027.

5G penetration in India

  • 5G telecom services are likely to account for 39% of mobile subscriptions or about 500 million subscriptions in India at the end of 2027.
  • 4G is expected to remain the dominant technology in India in 2027.
  • 4G subscriptions are expected to reduce from 68% of mobile subscriptions in 2021 to 55% in 2027 as subscribers migrate to 5G.
  • However, 4G subscriptions are forecast to drop from 790 million in 2021 to 710 million in 2027, showing an annual average decline of 2%.

Back2Basics: 5G Technology

  • 5G or fifth generation is the latest upgrade in the long-term evolution (LTE) mobile broadband networks.
  • It mainly works in 3 bands, namely low, mid and high-frequency spectrum — all of which have their own uses as well as limitations.

Three bands of 5G

  • The low band spectrum has shown great promise in terms of coverage and speed of internet and data exchange, the maximum speed is limited to 100 Mbps (Megabits per second).
  • This means that while telcos can use and install it for commercial cellphones users who may not have specific demands for very high-speed internet, the low band spectrum may not be optimal for specialised needs of the industry.
  • The mid-band spectrum, on the other hand, offers higher speeds compared to the low band but has limitations in terms of coverage area and penetration of signals.
  • Telcos and companies, which have taken the lead on 5G, have indicated that this band may be used by industries and specialized factory units for building captive networks that can be molded into the needs of that particular industry.
  • The high-band spectrum offers the highest speed of all the three bands, but has extremely limited coverage and signal penetration strength.
  • Internet speeds in the high-band spectrum of 5G have been tested to be as high as 20 Gbps (gigabits per second), while, in most cases, the maximum internet data speed in 4G has been recorded at 1 Gbps.

 

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Telecom and Postal Sector – Spectrum Allocation, Call Drops, Predatory Pricing, etc

Private: Telecom sector in India

Note4Students

From UPSC perspective, the following things are important :

Prelims level : Not much

Mains level : Paper 3- Issues faced by Indian telecom sector

The article examines the challenges telecom sector in India is facing and suggests the measures to keep alive the competition in the sector.

Context

Shortly after the Cabinet announced nine structural and procedural reforms in September to address the deep financial woes of telcos, Vodafone Idea and Bharti Airtel hiked their tariff.

Telecom Sector in India

  • India is currently the world’s second-largest telecommunications market and has registered strong growth in the past decade and a half.
  • The liberal and reformist policies of the Government of India have been instrumental along with strong consumer demand in the rapid growth in the Indian telecom sector.
  • The deregulation of FDI norms has made the sector one of the fastest-growing and top-five employment opportunity generators in the country.

From plenty to monopoly

  • There was a time when the number of unique service providers in Delhi, Mumbai, Gujarat, Tamil Nadu and Karnataka were in excess of a dozen.
  • Fragmentation of spectrum and subscribers, it was argued, increased costs to operators.
  • Three or four effective rivals could produce outcomes in favor of the consumer, they argued.
  • Now, consolidation has occurred, mergers have materialised and exits have taken place.
  • The dominant narrative in telecom today is how to preserve competition in the market by way of numbers.
  • The threat of monopolization is real and palpable as incumbent private operators, Airtel and Vodafone Idea (Vi), struggle to keep pace.

Threat of duopoly

  • The theory of contestable markets suggests that as long as there is a real threat of entry, even monopolies will be compelled to behave as if they are operating in a competitive market place.
  • But this theory works in an environment where entry of a new player occurs once in a while.
  • India telecom market suffers from multiple entry barriers in the form of spectrum acquisition costs, the licence fee burden as a percentage of the Adjusted Gross Revenue (AGR), infrastructure requirements and the policy uncertainty.
  •  It is far-fetched to expect a new entrant to come in and demolish a potential monopoly.

About the package for the telecom sector

  • The telecom relief package announced by the government in September supports proposals that have been repeatedly presented to the government by the regulator, industry associations, and think tanks.
  • Risk of duopoly: With the risk of a duopoly looming large, the government was pushed to take up these long-pending decisions that included nine key changes.
  • Provisions in the package: Besides providing immediate relief on payment of license fees and penalties due to the government, the package increased FDI limits, extended license tenure to 30 years from 20, removed charges on spectrum-sharing, and proposed timelines for spectrum auctions.
  • The package will undoubtedly have a positive short-term impact and perhaps safeguard competition in the future.

Reforms and challenges of addressing the inequality

  • From socialist to market-oriented economy: In July this year, we celebrated three decades of India’s 1991 reforms, one that catapulted India from being a socialist economy with a heart but no trickle-down, to a market-oriented economy with a mind but also very little trickle-down.
  • Inequality has been a feature of both models.
  • The 2018 Oxfam report showed that 10 percent of the richest Indians took home 77.4 percent of the wealth (compared to 73 percent the year before).
  • Moreover, 58 percent of India’s wealth was in the hands of 1 percent of the country’s population.
  • Changes in the modes of distribution: In the pre-1991 period, the principal modes of redistribution were taxation and public sector operations.
  • In the post-1991 period, it has been a combination of taxation, technology, smartphones, and the associated direct benefit transfers.

Role of telecom sector in addressing the challenge of achieving growth and inclusion

  • High growth dividend of telecom sector: Every 10 percent increase in investment in telecom, for example, leads to a 3.2 percent increase in GDP growth for India.
  • Not only is the growth dividend positive, but it is also large.
  • Mobile as a means of financial integration: At the same time, the mobile phone has become a means for sophisticated financial integration, as shown by the expanding usage of pre-paid payment instruments and mobile banking.
  • The Jan-Dhan Yojana (JDY) attempts to include the marginalized and unbanked through technology.
  • As of October 2021, a total of 440 million bank accounts have been opened and more than 310 million RuPay cards have been issued under the latter, indicating the large unmet demand for banking services.
  • Making transfers predictable and targeted: The Jan-Dhan-Aadhaar-Mobile (JAM) trinity ties the Aadhaar number to an active bank account, making income transfers predictable and targeted.
  • There is already evidence that payments through Aadhaar-linked bank accounts have increased efficiency and reduced leakages.

Way forward

  • Predictable and less erratic telecom policy: The benefits of digitalization could have been much larger and more widespread had telecom policy been more predictable and less erratic.
  • That Indian reforms more often than not happen on the back of a crisis is true for the telecom sector.
  • The principal motive of the New Telecom Policy of 1999 was to rescue the deeply indebted sector of its own reckless bidding by replacing the fixed license fee system with a revenue-sharing regime.
  • In hindsight, it was the right thing to do since it threatened business continuity.
  • The move to auction spectrum “for all times to come” in 2008 was necessitated by the administrative bungling in spectrum assignment.
  • Quick adaptation: A question we pose is why did it take a crisis — a grave one at that — to push the needle on policy change?
  • It is a reasonable expectation of policy to adapt quickly and not wait for a crisis to emerge.

Conclusion

Protecting competition and not competitors is a repeated refrain in policy circles. It is now up to the government to play its role and adopt measures to stimulate and fortify competition in Indian telecom without which our $1 trillion digital ambition will remain on paper.

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The growth and inclusion potential of India’s telecom sector

Note4Students

From UPSC perspective, the following things are important :

Prelims level : Not much

Mains level : Paper 3- Challenges facing the telecom sector

Context

Shortly after the Cabinet announced nine structural and procedural reforms in September to address the deep financial woes of telcos, Vodafone Idea and Bharti Airtel hiked their tariff.

About the package for telecom sector

  • The telecom relief package announced by the government in September supports proposals that have been repeatedly presented to the government by the regulator, industry associations and think tanks.
  • Risk of duopoly: With the risk of a duopoly looming large, the government was pushed to take up these long-pending decisions that included nine key changes.
  • Provisions in the package: Besides providing immediate relief on payment of licence fee and penalties due to the government, the package increased FDI limits, extended licence tenure to 30 years from 20, removed charges on spectrum-sharing and proposed timelines for spectrum auctions.
  • The package will undoubtedly have a positive short-term impact and perhaps safeguard competition in the future.

Reforms and  challenge of addressing the inequality

  • From socialist to market-oriented economy: In July this year, we celebrated three decades of India’s 1991 reforms, one that catapulted India from being a socialist economy with a heart but no trickle-down, to a market-oriented economy with a mind but also very little trickle-down.
  • Inequality has been a feature of both models.
  • The 2018 Oxfam report showed that 10 per cent of the richest Indians took home 77.4 per cent of wealth (compared to 73 per cent the year before).
  • Moreover, 58 per cent of India’s wealth was in the hands of 1 per cent of the country’s population.
  • Changes in the modes of distribution: In the pre-1991 period, the principal modes of redistribution were taxation and public sector operations.
  • In the post-1991 period, it has been a combination of taxation, technology, smartphones and the associated direct benefit transfers.

Role of telecom sector in addressing the challenge of achieving growth and inclusion

  • High growth dividend of telecom sector: Every 10 per cent increase in investment in telecom, for example, leads to a 3.2 per cent increase in GDP growth for India.
  • Not only is the growth dividend positive, it is large.
  • Mobile as a mean of financial integration: At the same time, the mobile phone has become a means for sophisticated financial integration, as shown by the expanding usage of pre-paid payment instruments and mobile banking.
  • The Jan-Dhan Yojana (JDY) attempts to include the marginalised and unbanked through technology.
  • As of October 2021, a total of 440 million bank accounts have been opened and more than 310 million RuPay cards have been issued under the latter, indicating the large unmet demand for banking services.
  • Making transfers predictable and targeted: The Jan-Dhan-Aadhaar-Mobile (JAM) trinity ties the Aadhaar number to an active bank account, making income transfers predictable and targeted.
  • There is already evidence that payments through Aadhaar-linked bank accounts have increased efficiency and reduced leakages.

Way forward

  • Predictable and less erratic telecom policy: The benefits of digitalisation could have been much larger and more widespread had telecom policy been more predictable and less erratic.
  • That Indian reforms more often than not happen on the back of a crisis is true for the telecom sector.
  • The principal motive of the New Telecom Policy of 1999 was to rescue the deeply indebted sector of its own reckless bidding by replacing the fixed licence fee system with a revenue-sharing regime.
  • In hindsight, it was the right thing to do since it threatened business continuity.
  • The move to auction spectrum “for all times to come” in 2008 was necessitated by the administrative bungling in spectrum assignment.
  • Quick adaptation: A question we pose is why did it take a crisis — a grave one at that — to push the needle on policy change?
  • It is a a reasonable expectation of policy to adapt quickly and not wait for a crisis to emerge.

Consider the question “Telecom sector could play an important role in achieving the growth with inclusion. In context of this, examine the challenges facing the sector and suggest the measures to deal with these challenges.”

Conclusion

The seemingly naïve question about the adaptation in policies may not be as credulous for the intensely dynamic digital markets. For there is no point shutting the stable door after the horse has bolted.

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Telecom and Postal Sector – Spectrum Allocation, Call Drops, Predatory Pricing, etc

Universal Service Obligation Fund (USOF)

Note4Students

From UPSC perspective, the following things are important :

Prelims level : Universal Service Obligation Fund (USOF)

Mains level : Not Much

The Union Cabinet has approved the provisioning of mobile services in over 7,000 uncovered villages through the Universal Service Obligation Fund (USOF).

What do you mean by Universal Service?

  • In the modern world, universal service refers to having a phone and affordable phone service in every home.
  • It means, providing telecommunication service with access to a defined minimum service of specified quality to all users everywhere at an affordable price.
  • In 1837, the concept was rolled on by Rowland Hill, a British educator and tax reformer, which included uniform rates across the UK and prepayment by sender via postage stamps.

What is USOF?

  • The Universal Service Obligation Fund (USOF) was formed by an Act of Parliament, was established in April 2002 under the Indian Telegraph (Amendment) Act 2003.
  • It aims to provide financial support for the provision of telecom services in commercially unviable rural and remote areas of the country.
  • It is an attached office of the Department of Telecom, and is headed by the administrator, who is appointed by the central government.

Scope of the USOF

  • Initially, the USOF was established with the fundamental objective of providing access to ‘basic’ telecom services to people in rural and remote areas at affordable and reasonable prices.
  • Subsequently, the scope was widened.
  • Now it aims to provide subsidy support for enabling access to all types of telecom services, including mobile services, broadband connectivity and the creation of infrastructure in rural and remote areas.

Funding of the USOF

  • The resources for the implementation of USO are raised by way of collecting a Universal Service Levy (USL), which is 5 percent of the Adjusted Gross Revenue (AGR) of Telecom Service Providers.

Nature of the fund

  • USOF is a non-lapsable Fund.
  • The Levy amount is credited to the Consolidated Fund of India.
  • The fund is made available to USOF after due appropriation by the Parliament.

 

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Four-year moratorium for AGR dues

Note4Students

From UPSC perspective, the following things are important :

Prelims level : AGR

Mains level : Stress in the telecom sector

In big bang reforms, the Union Cabinet approved a relief package for the telecom sector that includes a four-year moratorium on payment of statutory dues by telecom companies as well as allowing 100% foreign investment through the automatic route.

What is AGR?

  • Adjusted Gross Revenue (AGR) is the usage and licensing fee that telecom operators are charged by the Department of Telecommunications (DoT).
  • It is divided into spectrum usage charges and licensing fees, pegged between 3-5 per cent and 8 per cent respectively.

Why is AGR important?

  • The definition of AGR has been under litigation for 14 years.
  • While telecom companies argued that it should comprise revenue from telecom services, the DoT’s stand was that the AGR should include all revenue earned by an operator, including that from non-core telecom operations.
  • The AGR directly impacts the outgo from the pockets of telcos to the DoT as it is used to calculate the levies payable by operators.
  • Currently, telecom operators pay 8% of the AGR as licence fee, while spectrum usage charges (SUC) vary between 3-5% of AGR.

Why do telcos need to pay out large amounts?

  • Telecom companies now owe the government not just the shortfall in AGR for the past 14 years but also an interest on that amount along with penalty and interest on the penalty.
  • While the exact amount telcos will need to shell out is not clear, as in a government affidavit filed in the top court, the DoT had calculated the outstanding licence fee to be over ₹92,000 crore.
  • However, the actual payout can go up to ₹1.4 lakh crore as the government is likely to also raise a demand for shortfall in SUC along with interest and penalty.
  • Of the total amount, it is estimated that the actual dues is about 25%, while the remaining amount is interest and penalties.

Is there stress in the sector?

  • The telecom industry is reeling under a debt of over ₹4 lakh crore and has been seeking a relief package from the government.
  • Even the government has on various occasions admitted that the sector is indeed undergoing stress and needs support.
  • Giving a ray of hope to the telecom companies, the government recently announced setting up of a Committee of Secretaries to examine the financial stress in the sector, and recommend measures to mitigate it.

Issue of lower tariff

  • Currently, telecom tariffs are among the lowest globally, driven down due to intense competition following the entry of Reliance in the sector.
  • The TRAI examines the merits of a “minimum charge” that operators may charge for voice and data services.

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Telecom and Postal Sector – Spectrum Allocation, Call Drops, Predatory Pricing, etc

Can India avoid a telecom duopoly?

Note4Students

From UPSC perspective, the following things are important :

Prelims level : Not much

Mains level : Paper 2- Threat of duopoly in telecom sector

The Indian telecom sector faces the prospect of duopoly due to the impending exit of Vodafone-Idea. This has several implications.

India’s telecom sector: From monopoly to hyper-competition

  • India’s telecom market has seen monopoly as well as hyper-competition.
  • Twenty-five years ago, the government alone could provide services.
  • Ten years later, there were nearly a dozen competing operators. Most service areas now have four players.
  • However, the possible exit of the financially-stressed Vodafone Idea would leave only two dominant players-Airtel and Jio in the telecom sector.
  • A looming duopoly, or the exit of a global telecommunications major, are both worrying.
  • They deserve a careful and creative response.

Why it matters

  • Competition has delivered relatively low prices, advanced technologies, and an acceptable quality of services.
  • There is a long way to go in expanding access as well as network capacity.
  • For example, India is ranked second globally—after China—in the number of people connected to the internet.
  • However, it is also first in the number of people unconnected.
  • Over 50% of Indians are not connected to the internet, despite giant strides in network reach and capacity. India tops aggregate mobile data usage.
  • However, its per capita or device data usage is low.
  • It has an impressive 4G mobile network, however, its fixed network—wireline or optical fibre—is sparse and often poor.
  • 5G deployment has yet to start and will be expensive.
  • Filling the gaps in infrastructure and access will require large investments and competition.
  • The exit of the Vodafone-Idea will hurt both objectives.
  • The closure of Vodafone Idea is an arguably greater concern than the fading role of BSNL and MTNL.
  • The government companies are yet to deploy 4G and have become progressively less competitive.
  • Vodafone Idea, on the other hand, still accounts for about a quarter of subscriptions and revenues and can boast of a quality network.

Way out

1) Strategic partnership with BSNL-MTNL

  • A possible way out could be to combine the resources of the MTNL and BSNL and Vodafone Idea through a strategic partnership.
  • Creative government action can save Vodafone Idea as well as improve the competitiveness of BSNL and MTNL.
  • It could help secure government dues, investments, and jobs.

2) Develop resale market

  • Global experience suggests that well-entrenched incumbents have massive advantages.
  • New players are daunted by the large investments.
  • However, regulators and policymakers have other options to expand choice for telecom consumers.
  • Their counterparts in mature regulatory regimes—e.g., in the European Union—have helped develop extensive markets for resale. 
  • Recognising the limited influence of smaller players, regulators mandate that the incumbent offer wholesale prices to resellers who then expand choice for end-users.
  • A key barrier to resale is India’s licence fee regime which requires licence-holders to share a proportion of their revenues with the government.

Conclusion

It would be tragic if India’s telecom-access market was to be reduced to only two competing operators, as we have a long way to go. The government needs to consider the implications of the situation arising due to the exit of one of the major players in the sector.


Source:

https://www.financialexpress.com/opinion/failing-to-connect-can-india-avoid-a-telecom-duopoly/2281486/

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Telecom and Postal Sector – Spectrum Allocation, Call Drops, Predatory Pricing, etc

Lawsuit against 5G and the debate around

Note4Students

From UPSC perspective, the following things are important :

Prelims level : 5G technology

Mains level : Issues with 5g rollout

A notable actor has filed a lawsuit in the Bombay High Court against the 5G telecom technology up-gradation, trial runs for which have started in India now.

What is 5G technology?

  • 5G or fifth generation is the latest upgrade in the long-term evolution (LTE) mobile broadband networks.
  • It mainly works in 3 bands, namely low, mid and high-frequency spectrum — all of which have their own uses as well as limitations.

Issues with the rollout

  • However, 5G and its rollout in many countries have been hampered due to fears over health concerns even some conspiracy theories as well, which have tried to link it with the coronavirus among other things.
  • The recent lawsuit is asking questions around the overall impact of 5G and low intensity radiofrequency (RF) electronic magnetic field (EMF) radiation on human health, and its environmental impact as well.
  • These concerns, while not yet proven, have been raised by various scientists before too.

Arguments raised in the lawsuit

  • It has stated that the ‘radiation’ it will emit will be “extremely harmful and injurious to the health and safety of the people”.
  • While using wireless devices one is in a constant dilemma about “RF radiation from wire-free gadgets and network cell towers”.
  • There is sufficient reason to believe that the radiation is extremely harmful and injurious to the health and safety of the people.
  • It wants the concerned department to certify that 5G technology is safe for humans and also animals and birds.

Why is 5G essential?

  • 5G promises to revolutionize mobile broadband and is a big generational leap over the existing 4G technology.
  • This new technology will be capable of not just ensuring fast internet on our phones, but also help power IoT (Internet of Things) networks to run connected cars and homes smarter.
  • It will also support the streaming of rich media.

Rollout status in India

  • 5G has not yet been rolled out in India though some companies have been given a trial spectrum to test 5G technology in the country.
  • Once this is over, it is expected that networks will go live with the 5G bands by the end of this year.
  • The 5G rollout is expected to gather pace in the country by 2022.

Fear around the impact of 5G radiation on human health

  • The claim is that the more powerful 5G waves will emit more radiation and cause harm to humans as well as other living beings.
  • Also, 5G will require more towers in order to ensure better connectivity, and since it will power more than just our smartphones, it will increase human exposure to such radiation in general.
  • This is an extension of the idea that cellular towers, which emit low-level RF-EMF radiation, are in general damaging our bodies.
  • But radiation from cellphone towers, mobile phones, WiFi routers is typically called non-ionizing radiation like radio waves, microwaves, and optical radiation.
  • RF fields have been classified by WHO’s International Agency for Research on Cancer (IARC) as possibly carcinogenic to humans (Group 2B).

Layman understandings over such radiations

  • There’s no doubt that radiation at very high levels, also referred to as ionizing radiation, heats up our tissue and can eventually lead to cancer.
  • This applies to medical devices such as a CT-scan machine or X-ray machine, which emit high-level ionizing radiation.
  • That’s exactly why doctors don’t recommend that you go get a CT scan for every health issue because it does increase unnecessary exposure to radiation.
  • But there are increasing concerns that our smartphones, other WiFi-ready devices such as laptops, and mobile phone towers which also emit low-level RF radiation are damaging our bodies given the constant exposure.

What WHO has to say?

  • On its page on 5G, the World Health Organization (WHO) says “no adverse health effect has been causally linked with exposure to wireless technologies.”
  • But it also states that “only a few studies have been carried out at the frequencies to be used by 5G.”
  • Given the growing concerns, the WHO is conducting “a health risk assessment from exposure to radio frequencies, covering the entire radiofrequency range, including 5G.”
  • This study will be published by 2022.

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Telecom and Postal Sector – Spectrum Allocation, Call Drops, Predatory Pricing, etc

Govt. gives nod for 5G trials

Note4Students

From UPSC perspective, the following things are important :

Prelims level : 5Gi technology

Mains level : Paper 3- Permission granted for 5-G trial

Trials for 5G technology

  • The Department of Telecommunications (DoT) on Tuesday gave permission to Telecom Service Providers (TSPs) to conduct trials for the use and application of 5G technology.
  • The applicant TSPs include Bharti Airtel Ltd., Reliance JioInfocomm Ltd., Vodafone Idea Ltd. and MTNL.
  • These TSPs have tied up with original equipment manufacturers and technology providers which are Ericsson, Nokia, Samsung and C-DOT.
  • Each TSP will have to conduct trials in rural and semi-urban settings also in addition to urban settings so that the benefit of 5G technology proliferates across the country.
  • This formally leaves out Chinese companies like Huawei and ZTE from the 5G race in India.

About 5Gi technology

  • TSPs are encouraged to conduct trials using 5Gi technology in addition to the already known 5G technology.
  •  5Gi technology was advocated by India, as it facilitates much larger reach of the 5G towers and radio networks.
  • The 5Gi technology has been developed by the Indian Institute of Technology, Madras (IIT-M), Centre of Excellence in Wireless Technology (CEWiT) and IIT Hyderabad.

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Telecom and Postal Sector – Spectrum Allocation, Call Drops, Predatory Pricing, etc

Government earnings from the spectrum auction

Note4Students

From UPSC perspective, the following things are important :

Prelims level : Telecom Spectrum

Mains level : 5G technology and its rollout

The end of India’s first auction of telecommunications spectrum in five years was held with the government generating revenue of ₹77,815 crores from the exercise.

What is Spectrum?

  • Devices such as cellphones and wireline telephones require signals to connect from one end to another.
  • These signals are carried on airwaves, which must be sent at designated frequencies to avoid any kind of interference.
  • The Union government owns all the publicly available assets within the geographical boundaries of the country, which also include airwaves.
  • With the expansion in the number of cellphones, wireline telephone and internet users, the need to provide more space for the signals arise from time to time.

Spectrum allocations

  • Spectrum refers to the invisible radio frequencies that wireless signals travel over. The frequencies we use for wireless are only a portion of what is called the electromagnetic spectrum.
  • To sell these assets to companies willing to set up the required infrastructure to transport these waves from one end to another, the central government through the DoT auctions these airwaves from time to time.
  • These airwaves called spectrum is subdivided into bands that have varying frequencies.
  • All these airwaves are sold for a certain period of time, after which their validity lapses, which is generally set at 20 years.

How has the industry been since the last auction?

A lot has changed in the industry since 2016 when the previous auction took place.

  • In the last few years, there has been a consolidation in the industry, as a result of which there are only a few major players now.
  • While the user base has grown, the industry itself has witnessed unforeseen financial stress in the form of an important court case against it.
  • The reference is to the Supreme Court verdict last September that ordered telecom players to share revenues coming from even non-telecom services with the government.
  • It gave telecom companies 10 years to pay their Adjusted Gross Revenue (AGR) dues to the government, with 10% of the dues to be paid by March 31, 2021.

Try this question for mains:

Q.What are the various challenges faced by India’s telecom before the upgradation to 5G technology?

What about the 5G rollout?

  • The auction for 5G is likely to happen later.
  • In the auction that was held last week the government offered spectrum for 4G in the following bands: 700 MHz, 800 MHz, 900 MHz, 1,800 MHz, 2,100 MHz, 2,300 MHz and 2,500 MHz.
  • The “king” in 5G, the C-band, which is the band between 3,300 MHz and 4,200 MHz, was not on offer in this round of auctions.

How did this auction compare to the last round?

  • In 2016, about 40% of the 2,355 MHz of spectrum (at a reserve price of ₹5.6 lakh crore) was sold, giving the government ₹65,789 crores in revenue.
  • This time, the Centre has managed to get more.
  • The government said the revenue generated by the auction has exceeded its expectations, which was about ₹45,000 crore.

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Telecom and Postal Sector – Spectrum Allocation, Call Drops, Predatory Pricing, etc

Cabinet approves PLI Scheme for telecom

Note4Students

From UPSC perspective, the following things are important :

Prelims level : PLI scheme and various sectors

Mains level : Make in India promotions

The Union Cabinet has approved the production-linked incentive scheme for the telecom sector with an outlay of ₹12,195 crores over five years.

Why such a scheme?

  • The scheme aims to make India a global hub for manufacturing telecom equipment.
  • The sector is expected to lead to an incremental production of about ₹2.4 lakh crore, with exports of about ₹2 lakh crore over five years and bring in investments of more than ₹3,000 crores.

PLI Scheme

  • The PLI scheme aims to boost domestic manufacturing and cut down on imports by providing cash incentives on incremental sales from products manufactured in the country.
  • Besides inviting foreign companies to set shop in India, the scheme aims to encourage local companies to set up or expand, existing manufacturing units.

UPSC can directly as the sectors included in the PLI scheme. Earlier it was only meant for Electronics manufacturing (particularly mobile phones).

Benefits for MSMEs

  • For inclusion of MSMEs in the scheme, the minimum investment threshold has been kept at ₹10 crores, while for others it is ₹100 crore.
  • For MSMEs, a 1% higher incentive is also proposed in the first three years.

Employment generation

  • The scheme was also likely to generate 40,000 direct and indirect employment opportunities and generate tax revenue of ₹17,000 crores from telecom equipment manufacturing.

Which equipments?

  • The telecom manufacturing would include core transmission equipment, 4G/5G Radio Access Network and wireless equipment, access and Customer Premises Equipment (CPE), IoT access devices, other wireless equipment.

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Telecom and Postal Sector – Spectrum Allocation, Call Drops, Predatory Pricing, etc

5G Technology and India’s preparedness

Note4Students

From UPSC perspective, the following things are important :

Prelims level : 5G technology

Mains level : 5G technology and its rollout

 

The Department of Telecommunications (DoT) has sought inputs from telcos and other industry experts on the sale and use of radiofrequency spectrum over the next 10 years, including the 5G bands.

Try this PYQ:

Q. In India, which of the following review the independent regulators in sectors like telecommunications, insurance, electricity, etc.?

  1. Ad Hoc Committees set up by the Parliament
  2. Parliamentary Department Related Standing Committees
  3. Finance Commission
  4. Financial Sector Legislative Reforms Commission
  5. NITI Aayog

Select the correct answer using the code given below:

(a) 1 and 2

(b) 1, 3 and 4

(c) 3, 4 and 5

(d) 2 and 5

What is 5G technology?

  • 5G or fifth generation is the latest upgrade in the long-term evolution (LTE) mobile broadband networks.
  • It mainly works in 3 bands, namely low, mid and high-frequency spectrum — all of which have their own uses as well as limitations.

Three bands of 5G

  • The low band spectrum has shown great promise in terms of coverage and speed of internet and data exchange, the maximum speed is limited to 100 Mbps (Megabits per second).
  • This means that while telcos can use and install it for commercial cellphones users who may not have specific demands for very high-speed internet, the low band spectrum may not be optimal for specialised needs of the industry.
  • The mid-band spectrum, on the other hand, offers higher speeds compared to the low band but has limitations in terms of coverage area and penetration of signals.
  • Telcos and companies, which have taken the lead on 5G, have indicated that this band may be used by industries and specialised factory units for building captive networks that can be moulded into the needs of that particular industry.
  • The high-band spectrum offers the highest speed of all the three bands, but has extremely limited coverage and signal penetration strength.
  • Internet speeds in the high-band spectrum of 5G have been tested to be as high as 20 Gbps (gigabits per second), while, in most cases, the maximum internet data speed in 4G has been recorded at 1 Gbps.

Where does India stand in the 5G technology race?

  • On par with the global players, India had, in 2018, planned to start 5G services as soon as possible, with an aim to capitalize on the better network speeds and strength that the technology promised.
  • Indian private telecom players have been urging the DoT to lay out a clear road map of spectrum allocation and 5G frequency bands so that they would be able to plan the rollout of their services accordingly.
  • One big hurdle, however, is the lack of flow of cash and adequate capital with some companies due to their AGR dues.

Global progress on 5G

  • More than governments, global telecom companies have started building 5G networks and rolling it out to their customers on a trial basis.
  • In countries like the US, some companies have taken the lead when it comes to rolling out commercial 5G for their users.
  • A South Korean company, which had started researching on 5G technology way back in 2011, has, on the other hand, take the lead when it comes to building the hardware for 5G networks for several companies.

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Telecom and Postal Sector – Spectrum Allocation, Call Drops, Predatory Pricing, etc

What are Spectrum Auctions?

Note4Students

From UPSC perspective, the following things are important :

Prelims level : Telecom Spectrum

Mains level : Read the attached story

In the spectrum auctions scheduled to begin on March 1this year, the government plans to sell spectrum for 4G in the 700, 800, 900, 1,800, 2,100, 2,300, and 2,500 MHz frequency bands.

Q.What are the various challenges faced by India’s telecom before the upgradation to 5G technology?

What is Spectrum?

  • Devices such as cellphones and wireline telephones require signals to connect from one end to another.
  • These signals are carried on airwaves, which must be sent at designated frequencies to avoid any kind of interference.
  • The Union government owns all the publicly available assets within the geographical boundaries of the country, which also include airwaves.
  • With the expansion in the number of cellphones, wireline telephone and internet users, the need to provide more space for the signals arise from time to time.

Spectrum allocations

  • Spectrum refers to the invisible radio frequencies that wireless signals travel over. The frequencies we use for wireless are only a portion of what is called the electromagnetic spectrum.
  • To sell these assets to companies willing to set up the required infrastructure to transport these waves from one end to another, the central government through the DoT auctions these airwaves from time to time.
  • These airwaves called spectrum is subdivided into bands which have varying frequencies.
  • All these airwaves are sold for a certain period of time, after which their validity lapses, which is generally set at 20 years.

Why is spectrum being auctioned now?

  • The last spectrum auctions were held in 2016 when the government offered 2,354.55 MHz at a reserve price of Rs 5.60 lakh crore.
  • Although the government managed to sell only 965 MHz – or about 40 per cent of the spectrum that was put up for sale.
  • The need for a new spectrum auction has arisen because the validity of the airwaves bought by companies is set to expire in 2021.

How is the spectrum priced?

  • The reserve price of all these bands together has been fixed at Rs 3.92 lakh crore.
  • Depending on the demand from various companies, the price of the airwaves may go higher, but cannot go below the reserve price.

How will the payment plan work?

  • As part of the deferred payment plan, bidders for the sub-1 GHz bands of 700, 800 and 900 MHz can opt to pay 25 per cent of the bid amount now, and the rest later.
  • In the above-1 GHz bands of 1,800, 2,100, 2,300, and 2,500 MHz frequency bands, bidders will have to pay 50 per cent upfront, and can then opt to pay the rest in equated annual instalments.
  • The successful bidders will, however, have to pay 3 per cent of Adjusted Gross Revenue (AGR) as spectrum usage charges, excluding wireline services.

Who is likely to bid for the spectrum?

  • All major private telecom players in India are eligible contenders to buy additional spectrum to support the number of users on their network.
  • Apart from these three, new companies, including foreign companies, are also eligible to bid for the airwaves.
  • Foreign companies, however, will have to either set up a branch in India and register as an Indian company or tie-up with an Indian company to be able to retain the airwaves after winning them.

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Telecom and Postal Sector – Spectrum Allocation, Call Drops, Predatory Pricing, etc

What is Interconnection Usage Charge (IUC) in Telecom?

Note4Students

From UPSC perspective, the following things are important :

Prelims level : IUC

Mains level : TRAI and its regulations of telecom services

The termination charge for wireless to wireless domestic calls has been zeroed from January 1 onwards. Until now operators paid Interconnection Usage Charges (IUC) of 6 paise per minute on mobile calls.

We are heading for 5G and yet we were indulged in 2G era spat. Sounds strange, but finally IUC got away….

Interconnection Usage Charge (IUC)

  • IUC is the cost that a mobile operator pays to another operator for carrying through/ terminating a call.
  • If a customer of Mobile Operator A calls a customer of Mobile Operator B and the call is completed, then A pays an IUC charge to B for carrying/facilitating the call.
  • Essentially, it is the originating network compensating the receiving network for the cost of carrying the call. In India, IUC is set by the TRAI.

When was it introduced?

  • IUC was introduced at a time when some operators had a larger network footprint compared to new players.
  • In such a scenario, the larger operators had to be compensated for the investments it had to enable call completion. However, over the years this gap between operators has reduced.
  • All the remaining operators have identical network footprint when it comes to voice calls.
  • TRAI’s original deadline to phase out IUC was January 1, 2020.

What does it mean to Consumers?

  • For mobile users, this means that all voice calls will be free from now on.
  • While almost all operators had already started offering unlimited calls as part of their bundled pack, some were charging the 6 paise from consumers for paying IUC charges.
  • From January 1, operators will stop collecting the charges.
  • But other than that there will not be any significant gain for users. Tariff packs available in the market already offer data with unlimited voice calls.

What does the end of the IUC regime imply?

  • For the operators, the end of the IUC regime will lead to easier operations.
  • Many legal battles have been fought in the past over disputes related to IUC charges.
  • Now, the operators can keep whatever money they collect from consumers without having to keep a tab on where the call is terminating.
  • The change in the billing system will not have any significant impact on operators’ revenue.

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Telecom and Postal Sector – Spectrum Allocation, Call Drops, Predatory Pricing, etc

Spectrum auction

Note4Students

From UPSC perspective, the following things are important :

Prelims level : TRAI

Mains level : Paper 3- Ensuring the success of radio spectrum

The article analyses the factors influencing the outcome of the spectrum auction and suggests the measures to ensure the success and avoid the repeat of 2016 auction.

Details of the auction

  • Based on the recommendation of the Telecom Regulatory Authority of India (TRAI), the government is planning to auction spectrum in the sub GHz bands of 700, 800, and 900 MHz along with mid-band frequencies in bands of 1800, 2100, 2300, and 2500 MHz across the 22 Licensed Service Areas (LSAs) of the country.
  • The cumulative reserve price — and hence the potential revenue accrual to the government at reserve prices — is about $50 billion.
  • The total reserve price of spectrum put on auction in 2016 was about $90 billion while the realized value was just about one-tenth of that.
  • Hence, while the 2016 auction could be considered as a failure from the auctioneer’s point of view.

Factors determining the success of  the spectrum auction

1) Right reserve price

  • Research on a cross-country spectrum database shows that the reserve price significantly and positively correlated to the winning bid price.
  • However, a higher reserve price also inhibits bidders from bidding for more spectrum blocks.
  • If the quantity effect is more than the price effect, then it results in reduced revenues for the government exchequer, as happened in 2016.

2) Role of Over The Top (OTT) provider

  • Over The Top (OTT) providers who are providing substitute goods such as Voice Over Internet Protocol (VoIP); and capturing a greater mind share of customers while remaining relatively invisible to government regulators.
  • The rise of VoIP subscribers could have a positive effect on winning bid prices.
  • However, the erosion of the position of telcos in the overall digital value network of devices, connectivity, and apps, could result in a lower willingness to pay.

3) Allocation of unlicensed spectrum for WiFi

  • By off-loading mobile data, Wi-Fi supplements the carrier network and reduces the demand for mobile network capacity.
  • A number of countries including the United States have unlicensed the V-band spectrum in 60 GHz — pencil beam band.
  • Referred to as “wireless fiber”, the 60 GHz spectrum provides huge capacities in a limited area.
  • Wi-Fi 6 (a.k.a. IEEE 802.11 ax) that operates in the 2.4/5 GHz unlicensed band requires additional unlicensed spectrum allocation to provide Gigabit speeds.
  • The more the unlicensed spectrum allocation, the lower will be the demand for licensed spectrum.

4) Clarity on the availability of spectrum for auction

  • While there is an indication by the government that the spectrum for the 5G auction, namely 3.4-3.6 GHz, will be held in late 2021, the amount of spectrum that will be made available is not clear.
  • There is still uncertainty about the release of 26 GHz by the Department of Space for mobile services.
  • With this limited visibility, the bidders will be in a quandary whether to acquire the spectrum now or wait for subsequent auctions.
  • Further, some part of the current spectrum holding of all the operators is coming up for renewal in mid-2021, and hence there is additional pressure on them to retain them in the forthcoming auction.

Steps need to be taken

  • A re-visit of reserve prices and lower it further, especially that of 700 MHz which is the “golden band” for covering the hinterlands of the country.
  • Releasing more unlicensed spectrum in 2.4/5/60 GHz for proliferating Wi-Fi as a suitable complement to [the] carrier network.
  • This will also augment the deployments of the Public Wi-Fi project which the cabinet approved recently.
  • Provide visibility of future auctions, especially the quantum of the spectrum that can be put on the block in 3.3/3.6/26/28 GHz.
  • The government should release guidelines on how OTT platforms will be regulated and what will be regulated so that the telcos and OTTs can join hands to provide superior services for the benefit of the consumers.

Conclusion

The government should follow the steps mentioned here to make the auction of the spectrum a success.

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Telecom and Postal Sector – Spectrum Allocation, Call Drops, Predatory Pricing, etc

Future of 5G in India

Note4Students

From UPSC perspective, the following things are important :

Prelims level : 5G Technology

Mains level : 5G Technology and the Huawei issue

India, which has the highest average monthly mobile data traffic per smartphone, is expected to surpass 350 million 5G subscriptions by 2026, according to a report by Swedish telecom equipment maker Ericsson.

Also read:

[Burning Issue] 5G Technology

Ericsson Mobility Report, 2020

  • As per the report, four out of every ten mobile subscriptions in 2026 will be 5G globally with 5G subscriptions forecast to reach 3.5 billion.
  • In the India region, LTE (long-term evolution technology) subscriptions are forecast to increase from 710 million in 2020 to 820 million in 2026” by which time 3G will be phased out.
  • LTE remains the dominant technology in 2020, accounting for 63%.
  • Based on the reported timeline for spectrum auction for 5G services, India could have its first 5G connection in 2021.

Internet usage in India

  • In India, the reliance of people on mobile networks to stay connected as well as work from home during the pandemic has resulted in average traffic per smartphone is the global highest.
  • Low prices for mobile broadband services, affordable smartphones and increased time spent by people online all contribute to monthly usage growth in India.

Back2Basics: 5G Technology

  • It is the next-generation cellular technology that will provide faster and more reliable communication with ultra-low latency.
  • A government panel report points out that with 5G, the peak network data speeds are expected to be in the range of 2-20 Gigabits per second (Gbps).
  • This is in contrast to 4G link speeds in averaging 6-7 Megabits per second (Mbps) in India as compared to 25 Mbps in advanced countries.
  • Once 5G becomes commercial, users will be required to change their current devices in favour of 5G-enabled ones.
  • However, it is likely that the primary use of the technology will go beyond the delivery of services on personal mobiles devices.

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Telecom and Postal Sector – Spectrum Allocation, Call Drops, Predatory Pricing, etc

Governing OTT Platforms

Note4Students

From UPSC perspective, the following things are important :

Prelims level : OTT

Mains level : Need for OTT media regulation

In a move that will have a far-reaching impact, the Union government has brought Over The Top (OTT) platforms, or video streaming service providers under the ambit of the Ministry of Information and Broadcasting (MIB).

Try answering this

Q.What is Over the Top (OTT) media services? Critically analyse the benefits and challenges offered by the OTT media services in India.

Background

  • The MIB has found a vast swathe of unregulated content, namely news online and Over the top (OTT) platforms which had escaped any architecture of regulation.
  • The print was regulated by the Press Council of India and Television, both News and Entertainment were being regulated by the Cable Networks Regulation Act (2005).
  • However, the content on online, the Government felt, fell into a black hole with no oversight.

What are OTT Media?

  • An over-the-top (OTT) media service is a streaming media service offered directly to viewers via the Internet.
  • OTT bypasses cable, broadcast, and satellite television platforms, the companies that traditionally act as a controller or distributor of such content.
  • The term is most synonymous with subscription-based video-on-demand (SVoD) services that offer access to film and television content.
  • They are typically accessed via websites on personal computers, as well as via apps on mobile devices (such as smartphones and tablets), digital media players, or televisions with integrated Smart TV platforms.

Regulating OTT

  • Currently, there is no law or autonomous body governing digital content. The recent move will give the government control over OTT platforms, which were unregulated till now.
  • From time to time, the government had indicated the necessity to monitor these platforms.
  • In October 2019, the government had indicated that it will issue the “negative” list of don’ts for the video streaming services like Netflix and Hotstar.
  • It also wanted the platforms to come up with a self-regulatory body on the lines of the News Broadcasting Standards Authority.

Self-regulation is not sufficient

  • Anticipating the government’s intervention, in January 2019, video streaming services had signed a self-regulatory code that laid down a set of guiding principles for content on these platforms.
  • The code adopted by the OTTs prohibited five types of content:
  1. Content that deliberately and maliciously disrespects the national emblem or national flag,
  2. Any visual or storyline that promotes child pornography
  3. Any content that “maliciously” intends to outrage religious sentiments
  4. Content that “deliberately and maliciously” promotes or encourages terrorism and
  5. Any content that has been banned for exhibition or distribution by law or court
  • The government had refused to support this code.

What lies ahead?

  • The government had been giving enough hints from time to time that it wanted to regulate digital media but the exact nature of the regulation it wanted to bring was not clear.
  • The government considers digital media and digital aggregators in the same breath but they are different things.
  • It is unclear whether it is looking at licensing or entry barriers, or any other curbs in digital media.
  • However, monitoring content 24×7 has its own challenges. Whether the Ministry will set up a committee involving the public to look into complaints received remains to be seen.

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Telecom and Postal Sector – Spectrum Allocation, Call Drops, Predatory Pricing, etc

Regulation of Other Service Providers (OSP)

Note4Students

From UPSC perspective, the following things are important :

Prelims level : Other Service Providers (OSP)

Mains level : Various sectors of the economy

The Department of Telecom (DoT) has eased the rules for registration, submission of bank guarantee and other norms for other service providers (OSP) in the business process outsourcing (BPO) and information technology-enabled services (ITes).

Recall your basics from NCERT books… Sectors of the Economy … More precisely, the Tertiary, Quaternary and Quinary Sectors.

What are Other Service Providers (OSP)?

  • OSPs or other service providers are companies or firms which provide secondary or tertiary services such as telemarketing, telebanking or telemedicine for various companies, banks or hospital chains, respectively.
  • As computers made their foray into the Indian information technology space, a number of such OSPs, which were either voice or non-voice based, came into the market.
  • The sector required minimal investment but gave great returns in business, which prompted a large number of individuals and companies to float other service providing firms.

Registration of OSPs

  • The new telecom policy of 1999 suggested that all OSPs register themselves so that the government could keep a check on the usage of its resources.
  • Since most of these firms used leased telephone lines, this in turn used the telecom spectrum auctioned by the DoT, hence facing the regulation.
  • Further, the registration was also made mandatory to ensure that firms did not establish fake OSPs which swindled customers under the garb of providing telebanking and other such sensitive services.

What were the various registration norms for OSPs?

  • To start services in India, OSPs had to register themselves with the DoT and declare to the government as to how many employees were working in the firm as well as the area of service it was engaged in.
  • For example, if a firm wished to provide telebanking services, it had to tell the government the number of people working with the BPO and the state that firms catered to.
  • Further, the OSPs also have to declare whether they were providing services to domestic firms or international firms, and the nature of services being offered.

Significance of the new guidelines

  • The guidelines will make it easier for BPOs and ITes firms in many ways, such as cutting down on the cost of location, rent for premises and other ancillary costs such as electricity and internet bills.
  • The doing away of registration norms will also mean that there will be no renewal of such licenses and therefore will invite foreign companies to set up or expand their other service providing units in India.
  • This change, in line with the norms of countries in the West can also allow employees to opt for freelancing for more than one company while working from home, thereby attracting more workers in the sector.

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Telecom and Postal Sector – Spectrum Allocation, Call Drops, Predatory Pricing, etc

Television Rating Points (TRP) System and its loopholes

Note4Students

From UPSC perspective, the following things are important :

Prelims level : TRP, BARC

Mains level : TRAI and its regulations of telecom services

Mumbai police are investigating the alleged manipulation of Television Rating Points (TRP) by an extremely right-wing opinionated news reporter.

Try this question:

Q.What do you mean by “TRP Journalism”? Discuss the loopholes in the present system of self-regulation in Indian media.

What is TRP?

  • In simple terms, anyone who watches television for more than a minute is considered a viewer.
  • The TRP or Target Rating Point is the metric used by the marketing and advertising agencies to evaluate this viewership.
  • In India, the TRP is recorded by the Broadcast Audience Research Council (BARC) using Bar-O-Meters that are installed in televisions in selected households.
  • As on date, the BARC has installed these meters in 44,000 households across the country. Audio watermarks are embedded in video content prior to broadcast.
  • These watermarks are not audible to the human ear, but can easily be detected and decoded using dedicated hardware and software.
  • As viewing details are recorded by the Bar-O-Meters, so are the watermarks.

What is BARC?

  • It is an industry body jointly owned by advertisers, ad agencies, and broadcasting companies, represented by The Indian Society of Advertisers, the Indian Broadcasting Foundation and the Advertising Agencies Association of India.
  • Though it was created in 2010, the I&B Ministry notified the Policy Guidelines for Television Rating Agencies in India on January 10, 2014, and registered BARC in July 2015 under these guidelines, to carry out television ratings in India.

How are the households selected?

  • Selection of households where Bar-O-Meters are installed is a two-stage process.
  • The first step is the Establishment Survey, a large-scale face-to-face survey of a sample of approximately 3 lakh households from the target population. This is done annually.
  • Out of these, the households which will have Bar-O-Meters or what the BARC calls the Recruitment Sample are randomly selected. The fieldwork to recruit households is not done directly by BARC.
  • The BARC on its website has said that the viewing behaviour of panel homes is reported to BARC India daily. Coincidental checks either physically or telephonically are done regularly.

Vigilance activities by BARC

  • Certain suspicious outliers are also checked directly by BARC India.
  • BARC India also involves a separate vigilance agency to check on outliers that it considers highly suspicious.
  • And as per the guidelines of the Ministry of Information and Broadcasting, these households rotate every year.
  • This rotation is in such a manner that older panel homes are removed first while maintaining the representativeness of the panel.
  • The Ministry guidelines further say that the secrecy and privacy of the panel homes must be maintained, and asked the BARC to follow a voluntary code of conduct.

What are the loopholes in the process?

  • Several doubts have been raised on many previous occasions about the working of the TRP.
  • As per several reports, about 70% of the revenue for television channels comes from advertising and only 30% from subscriptions.
  • It is claimed that households were being paid to manipulate the TRP.

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Telecom and Postal Sector – Spectrum Allocation, Call Drops, Predatory Pricing, etc

AGR dues issue in Telecom Sector

Note4Students

From UPSC perspective, the following things are important :

Prelims level : AGR issue

Mains level : AGR disputes of Telecom companies

The Supreme Court has held that telecom firms will get 10 years to clear their adjusted gross revenue or AGR dues and that the National Company Law Tribunal (NCLT) should decide whether or not spectrum can be sold under the Insolvency and Bankruptcy Code.

Try this PYQ:

Q. In India, which of the following review the independent regulators in sectors like telecommunications, insurance, electricity, etc.?

  1. Ad Hoc Committees set up by the Parliament
  2. Parliamentary Department Related Standing Committees
  3. Finance Commission
  4. Financial Sector Legislative Reforms Commission
  5. NITI Aayog

Select the correct answer using the code given below:

(a) 1 and 2

(b) 1, 3 and 4

(c) 3, 4 and 5

(d) 2 and 5

Supreme Court rule on AGR dues

  • In its judgment, the SC gave all telcos a 10-year timeline to complete the payments of AGR dues, instead of the old 20-year schedule suggested by the DoT.
  • It also directed telcos to pay 10 per cent of the total AGR dues by March 31, 2020, following which they can make payments in annual instalments between 2021 and 2031.
  • The non-payment of dues in any year would lead to the accrual of interest and invite contempt of court proceedings against such companies.
  • A crucial issue of whether the spectrum could be sold under IBC will now be decided by the National Company Law Tribunal.

What is AGR?

  • Adjusted Gross Revenue (AGR) is the usage and licensing fee that telecom operators are charged by the Department of Telecommunications (DoT).
  • It is divided into spectrum usage charges and licensing fees, pegged between 3-5 per cent and 8 per cent respectively.

What is the issue about?

  • All the telecom companies that operate in India pay a part of their revenues as licence fee and spectrum charges to the Department of Telecommunications (DoT) for using the spectrum owned by the government.
  • In its definition of AGR, the DoT had said that telcos must cover all the revenue earned by them, including from non-telecom sources such as deposit interests and sale of assets.
  • The telecom companies were opposed to this and had challenged this definition of AGR in several forums, including the Supreme Court.
  • On October 24, 2019, the SC had upheld the DoT’s definition of AGR.
  • Though the telcos sought a review of the judgment, it was dismissed by the top court which had then insisted that telcos clear all the dues by January 23, 2020.

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Telecom and Postal Sector – Spectrum Allocation, Call Drops, Predatory Pricing, etc

Adjusted Gross Revenue (AGR) in Telecom Sector

Note4Students

From UPSC perspective, the following things are important :

Prelims level : AGR

Mains level : AGR disputes of Telecom companies

The Centre and telcos assured the Supreme Court that they would not conduct any re-assessment or re-calculation of the Adjusted Gross Revenue (AGR) dues, which now stands at ₹1.6 lakh crore.

Try this question for mains:

Q.What are the various challenges faced by India’s telecom before the upgradation to 5G technology?

What is AGR?

  • Adjusted Gross Revenue (AGR) is the usage and licensing fee that telecom operators are charged by the Department of Telecommunications (DoT).
  • It is divided into spectrum usage charges and licensing fees, pegged between 3-5 per cent and 8 per cent respectively.

What is the issue?

  • The Bench observed that 15 or 20 years was not a reasonable time period and the telcos must come forward with an appropriate time frame.
  • The Centre had earlier urged the court that up to 20 years be given to the firms for the payments.
  • The telcos said they were in no position to give fresh bank guarantees for the payments.

Why is AGR important?

  • The definition of AGR has been under litigation for 14 years.
  • While telecom companies argued that it should comprise revenue from telecom services, the DoT’s stand was that the AGR should include all revenue earned by an operator, including that from non-core telecom operations.
  • The AGR directly impacts the outgo from the pockets of telcos to the DoT as it is used to calculate the levies payable by operators.

Read the complete issue here at:

Explained: Adjusted Gross Revenue (AGR) in Telecom Sector

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Telecom and Postal Sector – Spectrum Allocation, Call Drops, Predatory Pricing, etc

Trending in news: 5G Technology

Note4Students

From UPSC perspective, the following things are important :

Prelims level : 5G Technology

Mains level : 5G Technology and the Huawei issue

One of India’s business tycoon recently announced that his company’s telecom venture has designed and developed from scratch, a complete indigenous 5G solution ready for deployment.

Try this question from CSP 2019:

Q.With reference to communication technologies, what is/are the difference/differences between LTE (Long-Term Evolution) and VoLTE (Voice over Long-Term Evolution)?

  1. LTE ‘is commonly marketed as 3G and VoLTE is commonly marketed as advanced 3G.
  2. LTE is data-only technology and VoLTE is voice-only technology.

Select the correct answer using the code given below.

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

What is 5G?

  • 5G or fifth generation is the latest upgrade in the long term evolution (LTE) mobile broadband networks.
  • The first generation of networks allowed only mobile voice calls to be made, while the second generation allowed mobile voice calls as well as sending of short text messages.
  • It was the third generation or 3G network which allowed web browsing on mobile devices, the speed and latency of which improved with fourth-generation or 4G networks.
  • The 5G networks will have even faster speeds with latency down to between 1-10 milliseconds.

(Note: Latency is the time a device takes to communicate with the network, which stands at an average of up to 50 milliseconds for 4G networks across the world.)

How does 5G work?

All 5G networks chiefly operate on three spectrum bands.

  • The low-band spectrum has been proven to have great coverage and works fast even in underground conditions. However, the maximum speed limit on this band is 100 Mbps (Megabits per second).
  • In the mid-band spectrum, though the speeds are higher, telcos across the world have registered limitations when it comes to coverage area and penetration of telephone signals into buildings.
  • The high-band spectrum offers the highest speed but has extremely limited network coverage area and penetration capabilities.

The telcos using this band rely on the existing LTE networks and will need to install a number of smaller towers to ensure adequate coverage and high-speed performance.

What does it mean to be 5G ready?

  • Globally many companies have been deploying 5G networks across their service areas as early as 2018.
  • Not only the network, but the devices will also have to be 5G ready for customers to be able to enjoy the maximum benefits of the latest upgrade in mobile broadband.
  • One of the major improvements in 5G is the use of beam tracking to follow all devices on the network to ensure consistent connection in real-time for the device.
  • 5G networks are also designed to multiple-input multiple-output (MIMO) efficient which improves signal throughput for all devices on the network.

Where does India stand on the deployment of 5G?

  • Companies, both telecom service providers and their equipment vendors, have completed lab trials of 5G network components but are yet to commence field trials, which were initially scheduled to happen last year.
  • For the same, telecom companies are awaiting allocation of test spectrum from the Department of Telecommunications (DoT).
  • The service providers have already tied up with equipment makers like Nokia, Ericsson, etc for deploying their 5G networks.

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Telecom and Postal Sector – Spectrum Allocation, Call Drops, Predatory Pricing, etc

What is the National Numbering Plan?

Note4Students

From UPSC perspective, the following things are important :

Prelims level : TRAI, National numbering plan

Mains level : National numbering plan

The Telecom Regulatory Authority of India (TRAI) has recommended that a new National Numbering Plan be issued at the earliest so that a uniquely identifiable number can be provided to every subscriber in India.

The TRAI and Telecom Disputes Settlement and Appellate Tribunal are quite often seen in the news.  Most recent was the dispute risen due to AGR dues.

TRAI has a wide range of jurisdiction over Telecoms. Keep a track on all such news.

National Numbering Plan

  • The management of numbering resources is governed by the National Numbering Plan.
  • The Department of Telecom administers the numbers for fixed and the mobile networks based on the ITU’s Telecommunication Standardization Sector (ITU-T) recommendations.
  • TRAI has recommended automated allocation of numbering resources be done using number management system software to speed up the process

Broadly, the TRAI has recommended:

  • switching to an 11-digit mobile number,
  • reallocation of mobile numbering resources surrendered by operators who have shut shop and
  • prefixing zero for all mobile calls made from fixed line

Issues with 11 digit number

  • TRAI said that some serious problems are anticipated with a change in the mobile number from 10 to 11 digits.
  • Migrating to 11 digits would require widespread modifications in the configuration of switches involving cost.
  • This would also cause inconvenience to the customers in the form of dialling extra digits and updating phone memory.
  • This could lead to more dialling errors, traffic, and loss of revenue to telecom operators.

Still, why need a plan as such?

  • The total number of telephone subscribers in India stands at 1,177.02 million with a teledensity of 87.45% at the end of January 2020.
  • This increasing digitization would pave the way towards the dream of digital India and mobile economy.
  • Thus, it has become necessary to review the utilization of numbering resources in the country.
  • Considering the above scenario the implementation of the TRAI’s recommendation with solutions to possible issues would help for sustainable growth of the telecommunication services.
  • Hence TRAI needs to review the utilization of the numbering resources and make some policy decisions to ensure that adequate resources are available for sustainable growth of the telecom services.

Back2Basics: Telecom Regulatory Authority of India (TRAI)

  • The TRAI is a statutory body set up under section 3 of the Telecom Regulatory Authority of India Act, 1997.
  • It is the regulator of the telecommunications and its tariffs in India.
  • The TRAI Act was amended by an ordinance, effective from 24 January 2000, establishing a Telecom Disputes Settlement and Appellate Tribunal (TDSAT) to take over the adjudicatory and disputes functions from TRAI.
  • TRAI regularly issues orders and directions on various subjects such as tariffs, interconnections, quality of service, DTH services and mobile number portability.

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Telecom and Postal Sector – Spectrum Allocation, Call Drops, Predatory Pricing, etc

TRAI wants set top boxes to be made interoperable

Note4Students

From UPSC perspective, the following things are important :

Prelims level : TRAI

Mains level : TRAI and its regulations of telecom services

The Telecom Regulatory Authority of India (TRAI) has recommended that all set-top boxes (STBs) in the country must be interoperable, meaning that consumers should be able to use the same STB across different DTH or cable TV providers.

The TRAI and Telecom Disputes Settlement and Appellate Tribunal are quite often seen in the news.  Most recent was the dispute risen due to AGR dues.

TRAI has a wide range of jurisdiction over Telecoms. Keep a track on all such news.

Why such a recommendation?

  • TRAI noted that while the STBs deployed in the cable TV networks are non-interoperable, those by DTH players complied with licence conditions to support common interface module based interoperability.
  • However, in practice, even in the DTH segment the STBs are not readily interoperable.
  • The lack of interoperability of set-top boxes between different service providers deprives the customer of the freedom to change her/his service provider.
  • It also creates a hindrance to technological innovation, improvement in service quality, and the overall sector growth.

About TRAI

  • The TRAI is a statutory body set up under section 3 of the Telecom Regulatory Authority of India Act, 1997.
  • It is the regulator of the telecommunications and its tariffs in India.
  • The TRAI Act was amended by an ordinance, effective from 24 January 2000, establishing a Telecom Disputes Settlement and Appellate Tribunal (TDSAT) to take over the adjudicatory and disputes functions from TRAI.
  • TRAI regularly issues orders and directions on various subjects such as tariffs, interconnections, quality of service, DTH services and mobile number portability.

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Telecom and Postal Sector – Spectrum Allocation, Call Drops, Predatory Pricing, etc

Online versus offline

Note4Students

From UPSC perspective, the following things are important :

Prelims level : Not much.

Mains level : Paper 3-Ensuring fair competition and dealing with the problem of predatory pricing.

Context

Any intervention to “correct” pricing essentially involves placing a higher weightage on the assumed losses of competitors/producers than on the consumer’s apparent gains. This is not a straightforward exercise.

Duopolies and scrutiny by the CCI

  • Duopolies in the most segment: The online marketplace or the platform/intermediation service market is now largely characterised by duopolies in most segments:
    • Amazon and Flipkart in e-commerce, Uber and Ola in transport, Zomato and Swiggy in food service, MakeMyTrip and Yatra in travel bookings.
    • Some niche players do exist in these segments, but by and large, the market has been carved up by large players.
  • Why CCI is scrutinising these companies? Several of these companies have come under the scrutiny of the Competition Commission of India (CCI).
    • What are the issues involved? The issues involved here have far-reaching ramifications for both online and offline market places. Some of the more contentious issues are:
    • Do such market structures restrict online competition?
    • Are the players engaging in predatory pricing?
    • If so, is it driving out both online and offline competition and does this adversely impact consumer welfare?
    • Is there a need for policy intervention, and, if so, what should be the underlying framework?

Lower barrier to entry not translating into greater competition

  • Market not working as per theory: In theory, the online market structure should facilitate greater competition given the lower barriers to entry. But this may not be the case.
    • Take-over: Most other firms in the segments mentioned above have either been taken over or have folded up.
  • What is the reason for the emergence of such marker structures
  • Positive feedback loop: One explanation for the emergence of these market structures is that as companies grow, with more users coming on board these platforms, they benefit from what CCI calls positive feedback loop.
    • This leads to market concentration.
    • Difficulties for new players: Given the network effects, which are common in digital spaces, it becomes difficult for new players to enter these spaces, and gain market share as there isn’t much space for many such networks.
  • Capital intensive market: Another possible explanation is that, contrary to perception, the online space is highly capital intensive.
    • Deep pockets are required to fund the discounts to get customers on board initially.
    • Such market structures are more likely in capital deficit countries like India.
  • Incumbents restricting new entrant: Incumbents, as in other sectors, may also engage in various strategies to restrict entry and thus competition.
    • Even small actions by these platforms coupled with the network effects can adversely impact competition.

Predatory pricing-issues involved in it

  • Allegations of predatory pricing driving out the competition: Many allege that these two-sided online platforms engage in predatory pricing or below-cost pricing either by funding it themselves (deep pockets) or by squeezing producers.
    • This drives out the competition — both online as well as offline.
    • Predatory pricing is anti-competition, to begin with.
    • How it is harmful to the customers? While consumers do benefit in the short run, once the competition is driven out, the platform starts raising prices to recoup previous losses.
    • But is it that straightforward?
  • What are the issues involved in predatory pricing?
  • First- Assessing whether a platform is engaged in predatory pricing.
    • In India, it is defined as price falling below average variable cost — may not be a straightforward exercise.
    • Why it is not a straight forward exercise? The dynamics of online pricing (prices change over time), their unique cost structures — in such two-sided platforms, prices/costs on both sides should be seen in conjunction — as well as the impact of economies of scale and organisational efficiency in lowering costs, all need to be factored in.
    • Discount for clearing inventories: Besides, one would also have to take into account that even offline firms engage in deep discounting to clear inventories.
    • As do both online and offline firms to acquire customers in the early stages of their business.
  • Second-The impact of such pricing strategies on competition and on consumer welfare must be carefully assessed.
    • Driving out competitors is not equal to driving out the competition: It is quite likely that once the competition is eliminated and the platform starts to raise prices, new players will enter the market, attracted by higher prices.
    • Driving out competitors may not be the same as driving out the competition — though the extent to which new firms are able to enter the market will depend on the degree to which barriers to entry exist.
    • Concerns of recovering the losses: Platforms will be mindful that losses will be hard to recover, and may not engage in below-cost pricing to drive out competitors for extended periods.
    • Consumers are unlikely to lose out as prices are likely to remain low.
  • Third- Possibility of collusion
    • There is also an argument for closer examination of such market structures because of the possibility of collusion.
    • Customers moving towards cheaper options: In most such markets, as the consumer has little to differentiate between the two platforms, it is the price that sets them apart.
    • Consumers tend to gravitate towards the cheaper option. This ensures continuous competition between the major players to offer low prices.
    • Possibility of customer left with no option: It is possible that at some point, the players will find it in their interest to venture into some sort of agreement that allows both of them to survive, rather than be engaged in a race to the bottom — as has seemingly happened in the telecom sector.
  • Fourth- Linking predatory pricing with abuse of dominant market position must be reexamined.
    • The dominant position is not always linked with predatory pricing: As the experience of the telecom sector shows, a dominant position may not be a prerequisite for predatory pricing.
    • Accepting this argument would imply that if regulatory intervention is required to check predatory pricing, it could kick in before market power or dominance is established.
    • Taking into account deep pockets: Alternatively, the definition of market dominance could be expanded to take into account deep pockets.

Conclusion

  • Set of guidelines instead of the fixed framework: Any intervention to “correct” pricing essentially involves placing a higher weightage on the assumed losses of competitors/producers than on the consumer’s apparent gains. This is not a straightforward exercise. Having a fixed predetermined framework is unlikely to be helpful. Instead, it would be more useful to have a set of guiding principles based on which regulatory intervention, if required, can be undertaken.
  • Safeguarding competition not competitors: Competition policy should be driven by safeguarding competition, not competitors. It should seek to bring about greater transparency in pricing and reduce information asymmetry.

 

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Telecom and Postal Sector – Spectrum Allocation, Call Drops, Predatory Pricing, etc

Adjusted Gross Revenue (AGR)

Note4Students

From UPSC perspective, the following things are important :

Prelims level : AGR

Mains level : AGR disputes of Telecom companies

The Supreme Court came down heavily on the Department of Telecommunications (DoT) for issuing a notification that asked for no coercive action against telecom companies even though they had not paid the adjusted gross revenue (AGR) dues by the stipulated deadline.

What is AGR?

  • Adjusted Gross Revenue (AGR) is the usage and licensing fee that telecom operators are charged by the Department of Telecommunications (DoT).
  • It is divided into spectrum usage charges and licensing fees.

What does SC order on AGR mean?

  • The order by the top court means that the telecom companies will have to immediately clear the pending AGR dues, which amount to nearly Rs 1.47 lakh crore.
  • Vodafone Idea, which has to pay up nearly Rs 53,000 crore, faces the prospect of shutting down business.
  • Bharti Airtel, which faces a payout of more than Rs 21,000 crore, could also be in trouble for not paying the AGR dues on time.
  • Other than the telcos, non-telecom companies could also be facing huge payouts individually, which amount to total of Rs 3 lakh crore.

What exactly did the government notification say?

  • The Licensing Finance Policy Wing of the DoT last month directed all government departments to not take any action against telecom operators if they failed to clear AGR-related dues as per the Supreme Court’s order.
  • The order came as a huge relief for operators — mainly Bharti Airtel and Vodafone Idea — that would have otherwise faced possible contempt action for not paying dues by the deadline that ran out on that same day.

No more relief to telecoms

  • Bharti Airtel and Vodafone Idea together owe the telecom department Rs 88,624 crore.
  • Prior to the DoT order restraining coercive action, the companies had told the government that they would wait for the outcome of the Supreme Court hearing.
  • Reliance Jio paid up its dues of Rs 195 crore on January 23.
  • As things have turned out, however, the companies have got no relief from the Supreme Court.

What is the background of SC’s AGR order?

  • On October 24, 2019, the court had agreed with DoT’s definition of AGR, and said the companies must pay all dues along with interest and penalty.
  • Bharti Airtel and Vodafone Idea had tried to persuade DoT to relax the deadline and, after failing, moved the court seeking a review of its judgment.
  • The court dismissed the review petition in mid-January, and also did not extend the deadline for paying AGR dues.
  • It had, however, agreed to hear the companies’ modification plea.

Where does the government stand in this situation?

  • The payout by telecom and non-telecom companies is likely to lead to windfall gains for the central government, which could help it close some of the fiscal deficit gap for the current financial.
  • At the same time, however, the government will be under pressure to ensure that the telecom market does not turn into a duopoly if Vodafone Idea does indeed decide to shut shop.
  • It will also have to manage the payouts to be done by non-telecom companies as most of them, such as Oil India, Power Grid, Gail, and Delhi Metro Rail Corporation are public sector units.

What does this situation mean for customers and lenders?

  • If Vodafone Idea does exit, an Airtel-Jio duopoly will be created, which could lead to bigger bills, considering it was the cutthroat competition in the sector that made mobile telephony and Internet almost universally affordable.
  • The AGR issue has triggered panic in the banking industry, given that the telecom sector is highly leveraged.
  • Vodafone Idea alone has a debt of Rs 2.2 lakh crore that it has used to expand infrastructure and fund spectrum payments over the years.
  • The mutual fund industry has an exposure of around Rs 4,000 crore to Vodafone Idea.

Assist this newscard with:

Explained: Adjusted Gross Revenue (AGR) in Telecom Sector

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Telecom and Postal Sector – Spectrum Allocation, Call Drops, Predatory Pricing, etc

Missed call

Note4Students

From UPSC perspective, the following things are important :

Prelims level : Not much.

Mains level : Paper 3- AGR issue and its impact on the telecom sector of the country.

Context

As the dust settles after the Union budget and the Supreme Court’s decision to not provide relief to telcos from their licence fee liabilities, it is an appropriate moment to step back and examine how we got here.

The issue over the definition of AGR (Aggregate Gross Revenue)

  • What is AGR issue: Since the New Telecom Policy of 1999 (NTP 1999), operators were required to pay a percentage of their AGR to the government as licence fees instead of a one-time licence fee.
    • License fee based on earnings: This was done in exchange for moving operators from fixed licence fee-based on irrationally exuberant bids they had made in the mid-nineties-to a regime that determined licence fee based on revenue earned, thereby de-risking the obligation.
    • Why it matters? What constitutes AGR is important for the purpose of the computing licence fee and thousands of crore are dependent on this.
  • Consequences of ambiguity over the definition of AGR: Bundling – a pervasive phenomenon in most telecom markets have not taken off in India.
    • What is bundling? Product bundling is a marketing strategy that involves offering several products and/or services for sale as one combined product.
    • The fear is that handset sales will also come under the purview of AGR. Handsets, it could still be argued are part of the service offering.
    • Dividend on earning is considered as the part of AGR: Interest and dividend earnings on investments have also been included in AGR.

Unfair practices and cancellation of licences by the court

  • Controversy over conversion charges: In 2003, “limited” mobility service was converted into a fully mobile service with a one-time payment of Rs 1,658 crore as “conversion” charges, generating controversy. It was labelled as a “back door entry” to full mobility.
  • Disguising international calls as domestic: Around the same time, the DoT used to levy a fee of Rs 4.75 per minute on international calls known as “access deficit charge” (ADC) to fund universal coverage. It is well known that an operator disguised international calls as domestic to bypass ADC.
  • Showing call revenue as internet services revenue: For some time, internet services attracted lower or no licence fee and it became expedient for operators to indulge in license fee “arbitrage” by showing more revenue from internet services.
  • Inflating subscriber numbers: Another manoeuvre was to inflate subscriber numbers to gain access to scarce spectrum in the days when fresh spectrum was administratively assigned based on subscriber numbers.
  • First come first serve policy: Finally, the shameful spectacle was the battle fought by operators to jump the queue to deposit earnest money for gaining rights over the spectrum that was oddly sought to be assigned by a method called “first come first served” and whose definition itself was quite elastic.
  • Cancellation of licence by the Court: Thereafter, in the litigation that inevitably followed, the Court cancelled 122 telecom licences and mandated allocation of spectrum by auction.

Conclusion

  • Erosion of trust between the public and private sector in general and in the telecom sector, in particular, has been a negative externality of the reform process.
  • Restoration of trust between public and private sector is necessary: In this context, the appeal made by the finance minister during her budget speech for the restoration of “vishwaas” between the public and private sectors and between citizens and government is critical

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Telecom and Postal Sector – Spectrum Allocation, Call Drops, Predatory Pricing, etc

[pib] UNCITRAL

Note4Students

From UPSC perspective, the following things are important :

Prelims level : UNCITRAL

Mains level : Not Much

 

An International Arbitration Tribunal has dismissed all claims brought against  India in entirety. The arbitration arose out of the cancellation of Letters of Intent for the issuance of telecom licences to provide 2G services in five telecommunications circles by reason of India’s essential security interests.

UNCITRAL

  • The UN Commission on International Trade Law (UNCITRAL) is a subsidiary body of the U.N. General Assembly responsible for helping to facilitate international trade and investment.
  • Established by the UNGA in 1966, UNCITRAL’s official mandate is “to promote the progressive harmonization and unification of international trade law” through conventions, model laws, and other instruments that address key areas of commerce, from dispute resolution to the procurement and sale of goods.
  • UNCITRAL carries out its work at annual sessions held alternately in New York City and Vienna, where it is headquartered.
  • The Tribunal constituted in accordance with the UNCITRAL Arbitration Rules 1976 is seated at the Hague, Netherlands, and proceedings are administered by the Permanent Court of Arbitration.

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Telecom and Postal Sector – Spectrum Allocation, Call Drops, Predatory Pricing, etc

Telecommunication Consumers Education and Protection Fund (TCEPF)

Note4Students

From UPSC perspective, the following things are important :

Prelims level : TCEPF, TRAI

Mains level : Telecom regulation in India

The Telecom Regulatory Authority of India (TRAI) has informed that telecom service providers will need to deposit all unclaimed money of consumers, including excess charges and security deposit, in the Telecommunication Consumers Education and Protection Fund (TCEPF).

Telecommunication Consumers Education and Protection Fund (TCEPF)

  • The TCEPF Regulations, 2007 have been amended to provide the basic framework for depositing unclaimed money of consumers by service providers, maintenance of the TCEPF and other related aspects.
  • Any unclaimed / unrefundable amount belonging to consumers in the TCEP fund will be utilized for the welfare measures of the consumers.
  • With this amendment, service providers will deposit any unclaimed consumer money of any form such as excess charges, security deposit, plan charges of failed activations, or any amount belonging to a consumer, which service providers are unable to refund to consumers.

Why such move?

  • The TRAI observed that there is a need to bring clarity among service providers in depositing money which they are unable to refund to the consumers.
  • While some service providers were depositing money only on account of excess billing revealed in the audit, others were depositing unclaimed money such as security deposits and plan charges of failed activations.

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Telecom and Postal Sector – Spectrum Allocation, Call Drops, Predatory Pricing, etc

Millimeter Spectrum

Note4Students

From UPSC perspective, the following things are important :

Prelims level : Millimeter Spectrum

Mains level : Rolling out of 5G services in India

The DoT plans to auction the 24.75 – 27.25 gigahertz (GHz) spectrum in the 5G band in March-April 2020.

Millimeter Spectrum

  • The new spectrum under the 5G band called the ‘millimeter-wave bands’ is separate from the 8,300 megahertz (MHz).
  • The millimeter-wave band or extremely high-frequency frequency spectrum is mainly designed for usage in airport security scanners, closed-circuit television, scientific research, machine-to-machine communication, and military fire control.

What’s so special with this MM spectrum?

  • As the wavelength becomes smaller, the cell size becomes less, which is the footprint of the relay station. This will be used more by the industry.
  • If we you already have fiber connection and want to reach houses, this will be through millimeter bands.

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