Telecom policy

According to World Bank Report ‘’A 10% increase in mobile and broadband penetration increases the per capita GDP by 0.81% and 1.38% respectively in the developing countries’’ Following are the sectors where telecom companies can seek grow

A. Infrastructure Sharing - Reduces network deployment cost for many service provider through sharing infrastructure •Improved service quality •Increased affordability for customers •Faster roll out of services in rural and remote areas •Significant reduction in initial set up cost •Lower operating costs for service providers B. Managed Services •Service providers find it difficult to manage their infrastructure and network management operations •Completely or Partially outsource of the infrastructure or network management operations C. Virtual Private Network

•Private data network that provides connectivity within closed user groups via public telecommunication infrastructure •DoT had relaxed norms for private players D. 3G •The immense potential for 3G is reflected by the 30–40 percent annual growth in Value-Added Services •India expects to replicate its 2G growth in 3G services E. WiMax •This mode of communication provides network access in inaccessible locations at a speed of more than 4 Mbps. •It is estimated that India will have 13 million WiMAX subscribers •The state-owned player, BSNL, aims to connect 74,000 villages through WiMAX. •Bharti, Reliance and VSNL have acquired licenses in the 3.3GHz range to utilize the opportunities offered by this domain. F. Value Added Services

•The VAS industry was worth USD 632 million •The industry is estimated to grow by 60 percent G. Rural Telephony •Government targets to increase rural teledensity from the current 2 percent to 25 percent •Rural telephony will require major investments II.GOVERNMENT POLICIES FACILITATING THESE SECTORS

•Reduction in license fee: The Government of India plans to cut license fees up to 33 per cent for operators that cover services for over 95 per cent of the residential areas in a calling circle

•Abolishment of Roaming Charges : The Union Cabinet declared to abolish roaming charges and allow mobile number portability even outside designated circles

•Relaxed FDI Norms: FDI cap in the telecom sector has been increased to 100 per cent from 74 %. FDI of up to 100 per cent is permitted for infrastructure providers offering dark fiber, electronic mail and voice mail

•Allowed use of Wimax: The Department of Telecommunication (DoT) allowed operators to use WiMAX networks as an alternative to cable and DSL to offer voice services

•Expansion to Rural Areas: The government has identified 5,000 villages, and is in the process of developing a scheme to connect through wireless broadband. It also intends to provide 888,832 broadband connections in rural areas

•Financial Support: The government is expected to extend financial support to operators providing service in rural areas and encourage active infrastructure sharing among the operators

•Enhanced Spectrum Limit: An increase in the prescribed limit on spectrum from 6.2MHz to 2x8 MHz (paired spectrum) for GSM technology in all areas other than Delhi and Mumbai

•Relaxing M&A Norms: The government has recently revised the M&A guidelines for the telecom sector which raised the limit on the market share of a merged entity in a circle to 50 per cent from 35 per cent earlier

III.NEW GROWTH AREAS There are some new sector where telecommunication is playing a very important role in enhancing their growth. These are listed below A. Education: There are three important ways in which telecom is contributing •One Way Non Interactive: Broadcast radio for example All India Radio broadcast farmer education and teacher education programs. Broadcast television eg. Doordarshan broadcast NCERT & UGC programs in India and Satellite Radio As of now there is no satellite radio broadcast in India

•One Way Interactive: Interactive Radio Instructions: The OLSET program in South Africa was launched to teach language and mathematics to primary school children. Web casting courses with interactive multimedia, streaming audio & video

•Two Way Interactive: Satellite two-way access to the Internet. Video conferencing in various formats. Audio conferencing by telephone conference calls with high quality audio conferencing equipment. E-mail, computer conferencing, file transfer and other one-to-one or one-to-many data exchanges. Widely shared information resources, e.g. shared databases. B. Health care catalyzed by Telecom: There are four important ways in which telecom is contributing •Home Monitoring: patient self-testing using medical devices and remote transmission of the medical data to healthcare providers for disease management

•Assisted living: Senior citizens are monitored to ensure their health, safety and well-being.

•Clinical Monitoring and Connected Medical Environment: Patient sensors also act as extra eyes and ears for doctors, helping them to spot early warnings of medical deterioration and applytreatment earlier than physical diagnosis allow

C. Telecom innovating Energies & Utilities There are four important ways in which telecom is contributing •Smart Grid: Modernization of transmission and distribution grids, in order to support the energy needs. Sensing devices are placed on the grid. These sensors send information about problems, grid performance statistics, status update etc. to applications that can read data. The data is processed and analyzed enables personnel in making better decisions regarding delivery of electricity

•Smart Meters: Smart meters track consumption in more detail than a conventional meter. Giving customers the information and incentives they need to alter consumption habits and economically shift their energy usage from peak to off-peak times

•Smart Homes: Smart homes will have several devices such as smart meters, smart appliances, personal energy management systems and home automation systems. These devices enable a consumer to manage their energy usage and costs

D. Role of Telecom in inclusive Financial Growth: There are four important ways in which telecom is contributing •M- Banking: banking services with the help of mobile communication devices •M- Payments: Substitute to cash for Point of Sale payments •Mobile Wallet: Allows customers to transact on the move. Bank account is not required. Cash has to be loaded into prepaid mobile wallet.