Developing India 2020 : Strategies for Building National Broad Band Infrastructure
Background India has already missed two very important buses.
One is for building a nationwide network of roads and the other involves
metro rail for easing local transportation. Both the buses have already adversely
affected its GDP growth. India is now trying to catch up by attempting
to build 20 kms of road per day as also some states are trying to go for metro rail
infrastructure.
Fortunately, India has successfully demonstrated when it latched on to software
wagon and shook the whole world by its amazing innovations centric approach to IT
and forced the top global companies invest and set up shops here. The results
are here for all of us to see.
GDP Rating. India stands as follows in the GDP at Purchasing Power Parity
(PPP) per capita through three different means of evaluation of the world
countries :-
(a) By IMF - 130
(b) By World Bank- 113
(c) By CIA World Bank FactBook - 134
GDP Growth. The quality of governance and efficient
use of basic economic resources must improve drastically if our GDP growth
has to hit the double digit. This is directly dependent upon the type of country leadership
and available tools to exploit the resources. True broad band access to citizens
can greatly assist in optimal utilization of available economic resources even today.
Basic Infrastructure. While the development of basic infrastructure
of roads, ports, aviation, railways, education institutes, hospitals, power etc
is inescapable to the inclusive growth of the economy of the country, parallel
creation of an infrastructure for optimal utilization and
full exploitation of basic infrasructure is equally essential
Broad Band Infrastructure. The mother of all basic infrastructure is
ubiquitous high speed true broad band which enables efficient fulfillment of
business and social needs of the society through the exploitation and utilization
of the basic infrastructure. High speed true broad band removes the barrier
of distance and shortage of time by making the basic infrastructure available for
use any time any where on 24/7 basis thereby multiplying the availability of working
hours in a day.
True Broad Band to Turn Around the Economy Fastest.
In India, only 12 % of students go to college as against 40 % in US.
The health care is available to only minuscule % of people. Imagine, true
broad band bringing multi lingual school, college and university education class
rooms to homes. True broad band also would bring multi specialty hospitals to homes
and so on. All this becomes available on TVs at homes through intelligent STBs
and versatile RF remote which works as phone and keyboard. In one stroke, the country
starts exploiting costly and limited avaiability of basic infrastructures
of educational institutions and hospitals while Billions of $ are being spent on
their creation. We start increasing the % of people who go to college as also
who get health care services of diagnosis, consultation and prescription as the
infrastructures are being built. There is no sleep period. The facilities are practically
usable on 24/7 basis.
India No 1 in 2020. If India is to be a numero uno
country by 2020, it can not afford to miss now the most important bus of
the century for giving its citizens access to high speed true broad band services
of the likes of at least 100 mbps. Thus, Govt must commit true broad band access
to 70 % of the citizens by 2020 and 100 % by 2025 at least. This article suggests
a pragmatic methodology of delivering this most essential and challenging service
to its citizens by quickly establishing ubiquitous and most cost effective
fat and efficient pipes.
General
While for wireless telecom, there is a near unanimous consensus to leap frog
to 4G rather than transitioning from 2G to 3G to 4G, there is an urgent need to
build and operate high speed true broadband infrastructure and services. For India,
wireless alone is not the solution. This must be backed up in parallel by a sound
plan and implementation program for end-to-end true broad band infrastructure
consisting of fat and efficient pipes covering core, edge and access networks throughout
the geography of the country.
Developed Countries Scenario Broad band access to its people at
their work place and at homes can accelerate the GDP growth of a nation to
an astronomical figure of 6.25 times. Therefore, nearly 40 developed countries have
already put in place the necessary organization structure and funds to plan and
execute a time bound program to get their citizens more than 100 mbps broad band
access. In most of these countries, the heads of states themselves have
declared that in some finite time, their 70 % to 80 % citizens would get access
to at least 100 mbps true broad band. This is an indication of the importance
and commitment the developed world is giving to true broad band access by ensuring
its delivery through dedicated long term based Govt supported corporations.
Examples of a time bound work being done at break neck speed in US are as follows
:-
Does the US get the bold broad band vision Congress has asked for?
The
US Congress has asked the FCC for
a bold plan to achieve the bold vision expressed by the Congress. See the
BuddeBlog.
US Broad Band Stimulus Program Round Two is going strong to create infrastructure
including mid mile and last mile and connect millions of users in rural areas for
additional economic development, education and health care as also create many jobs.
The link is below :-
http://www.wimax.com/commentary/blog/... -for-wimax-operators-0223
FCC Chairman is upset that US is ranked 40th out of 40 developed countries surveyed
for creation and deployment of innovations. He wants to make US as Ist out of 40
by being the first country in giving 100 mbps broad band access to 100 million US citizens
:-
http://www.cellular-news.com/story/42403.php
The FCC plan, mandated by last year's stimulus bill and being delivered to Congress
on Tuesday, lays out an ambitious vision for wiring the entire country with broadband.
It reflects the Obama administration's position that high-speed Internet access
is no longer just a luxury but is critical for economic development, education and
health care.
"To me, broadband is an infrastructure challenge that's very akin to what we've
faced in the past with telephones and electricity," FCC Chairman Julius Genachowski
said in an interview with The Associated Press. Genachowski has made the national
broadband plan his top priority, and his legacy at the commission will be linked
closely to the plan's success or failure.
The proposal sets a goal of connecting 100 million U.S. households to broadband
connections of 100 megabits per second — at least 20 times faster than most
home connections now — by 2020 :-
http://www.cellular-news.com/story/42395.php?s=h
Now
Google has announced plans to offer ultra fast Internet
access of the likes of Gigabits per sec :-
https://councils.glgroup.com/news/ExternalLink.mvc/Article/305910
Australia has earmarked $ 43 Billion and appointed a separate minister
for broad band communications and digital economy to provide true broad band access
to its citizens in 93 % of its geography in five years.
UK launches new body called Broad Band Delivery UK (BDUK) for universal broad
band push :-
http://www.telecompaper.com/news/article.aspx?cid=722297
Indian Scenario
True Broad Band a GDP Growth Driver. 6.25 times rise in GDP
growth on account of true broad band access to the businesses and people of the
country is a serious national level exercise in which all sectors of the economy
participate. Therefore, the country should neither vest with nor expect DoT and
private players alone to deliver this service to all the sectors.
ROW. Experience of past 15 years in telecom liberalization has shown
that unclear ROW and clearance poilcy has only brought such rampant corruption within
the ranks of the civic bodies like MCD, NDMC, NHAI, PWDs, DDA, state Govt municipal
corporations, Police etc which if persisted with would reinforce a dismal
failure for the nation.
Private Telcos. About entrusting the private telcos to set
up such huge infrastructure is also impossible as their investors while lending
them funds today want ROI as of yesterday. Thus, per force the sector looks into
those opportunities which yield quick ROI like wireless 2G, 3G, 4G, BWA
etc.
Govt Telcos. Public sector telcos like BSNL and MTNL have
their own problems of political interference and bureaucratic delays. Their working
structure impedes the progress due to many procedural problems. No where in
the world, Govt incumbent operators have been decimated as badly as in India in
telecom liberalization. By short sighted policies, BSNL and MTNL have been made
as statues of bronze with feet of clay. All this has led to the erosion of
the annual revenue of BSNL from INR 100,000 Cr to around INR 30,000 Cr. More over,
BSNL has been given BWA spectrum one year back but has not rolled out a single base
station as yet. Thus, BSNL and MTNL can not be burdened with this national
level time bound serious responsibility.
Public Pvt Partnership. This is a long term national
commitment which is poised to be a constitutional one also meant for the benefits
of all sections of society for their business and social needs requiring an
inclusive participation. Being a long gestation based business, it requires
a time bound plan, funds, efforts and relentless hard work. This is ideally suited
to be a public private partnership venture wholly managed by the empowered board
having central Govt mandate where states and other private players just act on the
policies and plan.
Right To Broad Band. Keeping the world scenario in view
as articulated above and demonstrating seriousness towards making India as
No 1 country by 2020, it would not be out of place to mention that the Govt must
come out with a bill for Right To Broad Band (RTBB) for every citizen just like
RTE and RTI. RTBB alone would commit the Govt to its time bound delivery.
A National Broad Band Corporation of India (NBBCI)
A classic example is that of Delhi Metro Rail Corporation (DMRC), an independent
corporation which has shown how to build and operate a world class metro
rail infrastructure and services. The Delhi government has provided all clearances
and minimum essential funds without any political and bureaucratic delays.
Broad band infrastructure and service is exactly like building and operating nation
wide metro rail infrastructure and service. DMRC digs tunnels underground and builds
metro lines on ground parallel to major roads and arteries. Broad band also digs
trenches under ground for ducting and cabling as also neatly builds over head cables
and base station towers for wireless and mobility.
DMRC establishes large, medium and small size stations where people embus and debus
and then take recourse to feeder routes to reach destinations. Broad band also establishes
large, medium and small size node stations which interconnect to access infrastructure
and thus enable multi terabits of traffic reach destinations.
For Operations and Maintenance (O&M) too both take recourse to similar procedures
popularly known as FCAPS in telecom parlance to run the service 24/7. Both
have busy hours and lean hours. During busy hours, the capacity utilization
is highest and in lean hours from 11 pm to 6 am, it is the lowest. All in all,
there is a proven similarity in both.
DMRC model can be successfully replicated by establishing an independent National
Broad Band Corporation of India (NBBCI) managed by an empowered board directly
working under the Prime Minister Office (PMO). They get their targets from the Planning
Commission, only essential funds are released by the Ministry of Finance bereft
of politically compulsive budgeting exercise suffering delays due to red
tapism. All clearances are automatic in nature with full records and documentation.
Thereafter, they plan and implement as DMRC has successfully done.
The mandate of NBBCI would be to create efficient and cost effective broad band infrastructure
and service, they would therefore, include all available public and private ducts,
OFC, copper, HFC, wireless and satellite assets in their roll out plan employing
an optimum mix of lease and build strategies. For Operations and
Maintenance (O&M), they adopt a franchisee model.
The telcos and all other service providers lease this infrastructure and services in
accordance with a well laid down NBBCI competitively priced policy based upon
TRAI recommendations to ensure that this does not become a monopoly scenario. The
operators run and manage all the GDP growth driving applications in conjunction
with Wi-Fi, BWA and 4G for access and mobility.
High Speed Access Infrastructure
Fixed Line OFC, HFC and Copper
For high speed access infrastructure, apart from planning FTTH/FTTB/FTTC for the
candidate cities, NBBCI would take into account existing copper and more
than 130 million homes already wired up with Hybrid Fiber Co axial (HFC) cable for
TV.
HFC based CATV last mile is capable of delivering the desired broad band speeds
90 % of which today only shows 90 analog TV channels. NBBCI would plan
to have this upgraded for two way last mile IP infrastructure by
making more than 70,000 Local Cable Operators (LCOs) their franchisees in accordance
with a qualifying criteria and following proper procedures, agreements and systems to
account for each and every connection, service tax, income tax, entertainment tax
and so on.
In one attempt, the country would be able to regulate the unorganized cable industry,
swamp the nation with otherwise capex intensive, time consuming much
needed last mile infrastructure, the most inescapable part for true broad band access
and most importantly collect more than INR 5000 Cr annually as legitimate taxes which
today get evaded due to 90 % under declaration of the business in this industry.
NBBCI would also ensure overall improvement in HFC CATV infrastructure by enforcing
standards and regulations upon the LCOs. The defaulting LCOs would stand to
lose their registration. Home wiring/wireless is left up to the customer.
KTMT Consulting (
www.kheratmt.com)
has already prepared a blue print to offer multi play of voice, broad band, two
way interactive multi lingual IP on demand GDP growth driving applications/TV
and Fixed Mobile Convergence (FMC) services as B2B2C business and network
models by making LCOs as the last mile franchisees.
The cable industry has one positive achievement to its credit. Starting from early
90s, at a lightning speed in about 15 years time, they have wired up more than 130
million homes with HFC plant. Thus, to 130 million homes, there already exists a
fat pipe which with little upgrade is capable of carrying multi megabits of digital
data. The unorganized nature of the cable industry is attributed to lack of political
will and poor appreciation and understanding in Min of I&B. Both have
failed in organizing this very valuable industry. Now when CWG are approaching,
Delhi government wants to uproot all overhead cables to give the city a neat
and clean look. Again, the objective is good but solution is short sighted,
pathetic and bureaucratic. It is just like we want to remove the weeds by uprooting
the lawn.
Lets take a cue from the developed world. Cable competes with telcos for voice,
broad band and TV which has ensured an unprecendented growth of competitively priced
broad band in quick time.
India can do much better as we already have more than 130 million homes wired
up for CATV which is the second largest in the world. Rather than dumping
this, NBBCI needs to exploit it innovatively to beat the time and win the most important
global race of this century. Therefore, NBBCI, teclos and other service providers
should use this very valuable last mile to complement other traditional access
networks to provide true broad band service fastest and cheapest in the
world.
Virgin Media in UK has planned to serve 1 million rural homes through fiber to the
premise over telegraph poles with next generation broad band service of 50 mbps.
This is a non traditional roll out. Read full article on the link below
:-
http://www.telecompaper.com/news/article.aspx?cid=723432.
Wireless 3G, Wi-Fi, BWA and 4G
Country needs to be complimented for achieving stupendous growth in mobile wireless
2G infrastructure and services. However, just becoming the fastest growing telecom
country in the world is no guarantee to being a numero uno by 2020. This
growth needs to be backed up in parallel by fast and robust build up of nationwide
fat pipes all the way to businesses and homes.
To stay ahead of the world, we need to build 3G, Wi-Fi, BWA, 4G as also femto cells
of 3G, WiMAX and LTE to exploit quickly deployable last mile and mid haul
wireless infrastructure to achieve mobility by offering interconnects to
the OFC based node stations and provide the super highway on lease to
these service providers. The service providers would offer high speed true
broad band Internet as also two way interactive IP multi lingual GDP growth driving
applications to business and consumer segments both at their place of work as also
homes on 24/7 basis thereby multiplying the availability of working hours in a day
for the country to reap the economic windfall.
The cells size is going to be much smaller in LTE era thus femto cells back hauled
over broad band would be a necessity to provide mobility and high speed internet
access over wireless. Therefore, even for the success of full wireless and
4G, true broad band for back haul is a must.
We should run this in parallel as spectrum issues would take time to get resolved
and it is a known fact that wireless alone is hopelessly inadequate for true broad
band access . Without taking any thing away from the success of mobile wireless,
we should realize that, it is only 10 % of the target achievement. 90 % is still
left. Realizing this, the heads of states of 40 developed countries are way ahead
in this.
All this necessitates that NBBCI, COAI, AUSPI etc need each other even
for their own businesses. Thus, they complement each other in infrastructure
and only compete in pricing, QoS and customer experience to deliver the world's
fastest and cheapest true broad band service never seen any where in the developed
countries.
Keeping the above in view, the delivery of broad band infrastructure
and service can never be managed by a dept or a ministry. Thus, being inclusive
in nature, the NBBCI must come up on the lines of DMRC, led and staffed by professionals with
responsibility to deliver the true broad band infrastructure and service and accountability
to the highest and apex executive office of the PM of the country.
Funds Management for Broad Band through Partnerships
Purely going by the bland estimates, for 150 Million homes @ INR 10,000 per home
including the customer premise equipment, total capex comes to INR 150,000 Cr to
be spent over 10 years time. At a very conservative ARPU of INR 250, this would
generate annual revenue of INR 36,000 Cr when fully operational.
NBBCI can take a cue from the private telcos and incorporate the Managed Capacity
(MC), Pay As You Go (PAYG), Managed Services (MS) and Managed Distribution (MD)
proven lowest cost operational and financial models by inviting the global
top vendors and contractors for selecting the best out of these as their strategic
partners on revenue share basis through long term deals. This model needs minimum
essential capital to start, then quickly becomes self sustaining and governs
the entire infrastructure and the service chain resulting into lowest cost
of generation and delivery of true broad band in the world.
Conclusion
The sooner NBBCI is created, India would become the first largest and cheapest broad
band country in the world. This alone has the potential to make India as the most
developed nation with very high GDP in about 10 years by fully exploiting
the basic infrastructure.