1. V K Agarwal Dy. Advisor (Converged Network) Telecom Regulatory Authority of India 1

2. 2 2 Importance of Broadband Broadband provides access to enormous information and knowledge bank / resources. Provides a platform for communication and advance applications like Internet Telephony, e-governance, e-education, e-health, e- commerce etc. Boost employment opportunities and IT proliferation. Able to create entrepreneurship even in rural and remote areas. Saving in national resources by providing the opportunity to work from home through tele-conferencing & virtual office and reduce need for long distance travel. World bank study indicates that there is 1.38 % increase in GDP for every 10% increase in broadband penetration.

3. 3 Broadband impact on Economy 3 Source: World Bank World bank study indicates that there is 1.38 % increase in GDP for every 10% increase in broadband penetration.

4. 4 India: Present Telecom Scenario India is undergoing wireless revolution Fastest Monthly subscriber addition in world > 16 million 10-12 competing operators in over 8000 cities & towns Very competitive tariff Broadband is lagging behind Number of projected Internet users is more than 72 million, still Broadband subscriber connection is just 9.45 Million Monthly addition – 0.1-0.2 million Broadband penetration in rural areas is just 5% as compared to 31% in case of mobile telephony

5. 5 India: Internet & Broadband Growth

6. India : Broadband Potential Target & Forecast YearTarget of Broadband Status 200709 Million2.34 million 201020 Million9.45 million* YearNo of Households % of Households to be covered for broadband Number of Broadband Subscribers 2010236 Million10%23 Million 2012241 Million20%48 Million 2014250 Million40%100 Million Government Target Desirable Target *status as on 30 th June 10 6

7. 21/11/2008T R A I7 Broadband Growth Critical Factors CPE CARRIAGE CONTENT 3C Diagram : The growth of Internet & Broadband depends on 3Cs

8. 8 Broadband Growth Challenges Availability of suitable network Access Network Core Network Definition of Broadband Affordability of Broadband Right of Way Customer premises equipment Content

9. 9 Access Network Presently available Broadband access technologies DSL/ ADSL over Copper loop Wireless Cable TV network Satellite Fiber Broadband Growth challenges (contd.)

10. Copper loop (in Access Network) Total number of Wire line connections- 36.96 Million Broadband connections over DSL – 6.19 Million (Mar 10) Challenges Limited Availability Maximum 15 million Broadband connections can be provided with existing 24 Million copper loop (~60%) in urban areas. Maximum 4 million Broadband connections can be provided with existing 16 Million copper loop (~25%) in rural areas. The growth in Copper network is dismal. 10

11. Broadband Growth- challenges (contd.) Wireless (in Access Network) It is an effective solution for increasing Broadband penetration Broadband on wireless may soon contribute much more than wireline Challenges Limited Capacity to support bandwidth requirement in access network. High cost of handsets Even with most optimistic projections, wireless cannot support huge bandwidth requirement of core Network. 11

12. 12 Broadband Growth - challenges (contd.) Cable TV Network Total number of Cable TV subscribers - 82 Million Broadband connections over cable TV – 4.19 Million (Mar 10) Challenges Capability of last mile in cable Network to support Broadband (< 10% last mile of cable network is suitable at present) High upgradation cost of cable TV network to support broadband. Commensurate returns on investment for upgradation of cable network considering present Broadband tariff.

13. 13 Broadband Growth - challenges (contd.) Satellite Suitable to provide broadband for inaccessible and remote areas Challenges: Limited Availability of satellites transponders. Cost of providing Broadband connection using satellite media is high. Limited Bandwidth support. Transponder of 36 MHz can provide uplink bandwidth upto 64 kbps and downlink bandwidth upto 2 Mbps.

14. 14 Broadband Growth - challenges (contd.) Optical Fibre in access Broadband connections on optical fibre- 0.32 million (Mar10) Available mainly in long distance network ( > 0.7 Million route Kms) Challenges: Limited availability of fiber to the curb or house (FTTx). High Cost of Right of Way (RoW ) Cost of hiring optical fiber in local access networks is high. Emergence of New Wireless Technologies, hence no clear business model.

15. 15 Broadband Growth Present applications and Future Bandwidth Requirement Broadband is used for various applications like E-Mail, Education, Entertainment, Chat & E-commerce. Bandwidth hungry applications like video streaming, video on demand, online gaming will increase the bandwidth demand 66 times from 2008 to 2013 as per CISCO Visual Networking Index (VNI). In rural areas e-governance, e- health, e-education, e-agriculture applications will require huge bandwidth, as bandwidth requirement is inversely proportional to literacy level. Purpose of Broadband% E-Mail91% General Information Search76% Educational Information Search49% Text Chat46% Online Gaming41% Online Jobsites37% Music/ Video on Internet32% Financial Information Search21% Book railway ticket on Internet21% Online Banking20% Online NEWS13% Internet Telephony/ Video chat13%

16. 16 Bandwidth Requirement for Individual user 16 ApplicationBW E-mail64 kbps Chatting with video256 kbps Video Clips256 kbps Video Streaming2 Mbps ApplicationBW Video on Demand 3-4 Mbps* Online Gaming Video streaming IPTV Present Scenario *Bandwidth required per connection may be higher due to simultaneous usage of various applications. Scenario 2012 Core Network Bandwidth Requirement Forecast YearNo of Households ForecastContention Ratio (1:50) Core Bandwidth Requirement (@3mbps per user) 2010236 Millions23 Million~0.5 Million1500 Gb 2012241 Millions48 Million~1.0 Million3000 Gb 2014250 Million100 Million~2.0 Million6000 Gb

17. 17 Broadband Growth Challenges (contd.) Core Network Looking at the future bandwidth requirement Optical fibre seems to be the suitable option for core network Presently Optical Fibre is only available upto cities and in some cases upto block level In order to provide broadband facilities in villages suitable connectivity is required upto village level Creation of such a network will require huge expenditure

18. 18 National Broadband Plan Estimated cost for covering villages with optical fibre cable Total Number of inhabited Villages (population>500)374552 Total single connectivity roads to villages having population more than 500 *1146000 Km Total Optical Fibre requirement (in Kms) for connecting villages having population > 500 1146000 Km Estimated cost of digging for OF cable laying Rs. 18565 Crore Estimated Cost of material(OF cable, HDD pipes & end equipments) Rs. 13730 Crore Total estimated Cost for covering all villages (population>500) with optical fiber (excluding RoW Cost) Rs. 32295 Crore *As per information given by National Rural Road Develop Agency (NRRDA)

19. 19 Broadband Growth Challenges (contd.) Definition of Broadband Present definition mentions always on connection with minimum download speed of 256 kbps, which holds good for wire line In case of wireless connection is not always on and it is difficult to maintain minimum download speed of 256 kbps Bandwidth demand is increasing with emergence of bandwidth hungry applications Consumer has become Prosumer - A lot of content is being uploaded by consumers (facebook, twitter, YouTube)

20. 20 Broadband Challenges (contd.) Affordability of Broadband Entry level tariffs are low, but cost of subsequent usage is high (per MB download charges) Broadband prices as a percentage of Monthly Gross National Income (GNI) per capita is high as compared to mobile tariffs Inefficient utilisation of National Internet Exchange of India (NIXI) Higher International bandwidth prices

21. 21 Broadband Challenges (contd.) Right of Way Complicated Right of Way procedures High charges RoW permissions Non uniform policies

22. 22 Broadband Challenges (contd.) Content Development of content in Indian vernacular languages Low English literacy Killer application and perceived utility to customers framework to resolve commercial issues between access providers and content providers

23. 23 Broadband Challenges (contd.) Customer Premises Equipment High cost of PCs and other access devices Alternate options like thin clients, net books Recycling of old PCs/laptops Bundling of PCs with broadband subscription Fiscal incentives for reducing costs of CPEs

24. 24 India: TRAI Initiative for Broadband Growth Various recommendations to increase the growth of broadband: Streamlining the RoW procedures Ensure the availability of more Ku band for broadband through DTH. Steps to reduce the internet bandwidth costs i.e. resale in IPLC improvement in effectiveness of NIXI. Sharing of backhaul in rural areas USO support for broadband. Making multiple dwelling units/ buildings broadband ready

25. 25 Way forward Broadband will create opportunities for service providers, content developers and end users leading to convergence of service delivery platforms Advent of 3G & BWA will be decisive for takeoff of broadband growth National Fibre Network will extend the reach of broadband to rural areas and will provide huge bandwidth to support bandwidth hungry applications.

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