Fresh Goals

The telecom sector is passing through an exciting phase with its scorching
pace of technological development. Three factors appear to me particularly
remarkable-the increasing speed being provided by the networks, convergence, and
cloud computing. While DSL technologies can provide Internet speeds ranging from
8-24 Mbps, 3G technologies 3.6 Mbps, the 3G+ and LTE technologies are likely to
support speeds from 42 Mbps to 150 Mbps. Simultaneously, the nature of
applications is changing fast, with the focus shifting from commonly used
applications like email, educational information, text to video download,
advertisements, gaming and video chat, etc. Convergence is now synonymous with
IP. Digital media content is increasingly being distributed via IP-based
streaming to a variety of devices-mobiles, game consoles, media gateways, and
computers. Quality viewing necessitates, in its turn, higher bandwidth. 'Cloud
computing' is another area for advance application of Internet and has the
potential of profoundly changing the way people work and companies operate.
According to analysts, almost 30% of the companies globally would be using
generic cloud computing applications in the next twelve months.

This digital revolution is fast transforming the lives of people,
particularly the way they interact with each other and conduct business. During
the period 2008-12, the Internet traffic has been forecast to increase
four-fold. The main driver internationally is expected to be web-based video
targeted to broadband users and radio/video to 3G mobiles. Subscribers will look
for a minimum speed of at least 2 Mbps in near future.

The use of Internet through mobile is becoming a powerful delivery mechanism
for a variety of services, be it online payment, advertisement, entertainment or
getting any information. m-Commerce services being provided by ngpay, m-check
and Oxicash are a few examples. Several mobile entertainment companies are
closely working with telecom service providers to deliver entertainment content
to users. It is expected that the value added services market in India will grow
to Rs 20,000 crore by 2015. Online advertisement has witnessed an impressive
growth in the recent past, supporting push, pull and location based
advertisements.

Inclusion is the essential prerequisite of democracy. Social equity demands
development of a digital economy in which all Indians would be able to
participate. There is still a considerable way to go in achieving this ideal,
particularly with reference to the rural areas and the urban poor. The
relatively low levels of income, literacy, housing, sanitation, health,
education, skill development, employment, productivity and infrastructure are
barriers that need to be overcome. Broadband should be recognized as a key
element in our strategy to promote inclusive growth. The spread of broadband in
the rural areas is very low, with only three lakh broadband connections against
the national figure of 6.65 mn connections, as on June 30, 2009. To quickly
overcome this deficiency, it would be worthwhile to consider laying an optical
fiber network connecting 3.75 lakh villages having population more than 500.
This would integrate with the national backbones of various service providers
and subscribers could be served with a variety of wired and wireless solutions.
Such a network would require laying of about 1.2 mn km of optical fiber at an
estimated cost of about Rs 32,000 crore not taking into account the right of way
cost. One funding option is to utilize the resources of USO Fund for the
material cost, and NREGS for the digging operations. A National Optical Fiber
Agency can be entrusted with this responsibility within a definite time frame of
two to three years. The agency can be self-sustaining as it could lease out
bandwidth to the government, public and private organizations.

Another area that needs our attention is the concept of Green
Telecommunications. According to ITU, ICT industry alone accounts for 2.5% of
the world's greenhouse gas emissions and a typical communications company spends
nearly 1% of its revenues on energy, which for a large operator can amount to
hundreds of millions of dollars. A study points out that CO2 emission for a
particular telecom operator is India alone is 1.9 MT, as compared with just
1.31MT for its operations in rest of the world. All of us have a collective
responsibility for 'greening' telecommunications for the benefit of the society.

It is in this context and environment that regulation will need to chart its
course, creating in the process an environment to provide world class ICT
services to consumers and business enterprises in India; bridging the digital
divide; making ICT services an engine of sustainable and inclusive growth; even
as it promotes fair competition at all levels.

Dr JS Sarma, chairman, Trai

vadmail@cybermedia.co.in