<<

Digital Healthcare Logistics Infrastructure Networks 5G Social media Education Spectrum Smart Augmented Reality Networks Analytics Analytics Satellite 4G Infrastructure Artificial Intelligence Social media Digital Energy Opportunities Social Agriculture media Digital IOT Smart Cities Jan Dhan Digital Education Digital 4G Banking IOT Net Neutrality Jan Mobile Dhan Aadhaar Cyber NetworksEnergy IOT Mobile Security Cyber Security IOT 4G Cyber Smartphones 4G Energy Security Banking SmartBroadband 5G Networks Cyber Security Energy Aadhaar SpectrumEducation Start-ups Social Energy Smartphones Stack media Cyber Security Smart Cities Energy Digital Cyber Artificial Education Security Jan Dhan Economy Healthcare Satellite Intelligence Social media Augmented Reality Technology India Stack Education Artificial Intelligence Agriculture Technology Internet of Things Cognitive Computing Banking Broadband Smart IOT Cognitive Computing Digital Economy Augmented Reality TechnologySmart Cities Artificial Intelligence Spectrum Agriculture LogisticsStart-ups Technology Energy Artificial Intelligence Internet of Things Banking Jan Dhan Infrastructure Energy Start-ups Aadhaar Convergence

Connecting the Next Billion Propelling towards $5T economy September 2017 Connecting the Next Billion | Propelling towards $5T economy

Contents

02 Connecting the Next Billion | Propelling towards $5T economy

03 Connecting the Next Billion | Propelling towards $5T economy

Message from Department of Telecommunications

Aadhaar and Mobile (JAM Trinity) which helps Smart City projects, Wi-Fi at railway stations in (DBT) to billions of and public places, electronic delivery of citizens is an exemplary case study of applying services are not only transforming governance ICT towards socio-economic benefits. As but also changing the lifestyle. The rapid the 2nd largest and fastest growing telecom digitisation, transparent and efficient market with 1.2 billion mobile subscribers and governance and growing adoption of digital the IT /ITeS capital of the world, India has the services makes India a favourite destination potential to leapfrog to a digitally empowered for ICT-based investments while initiatives like society and knowledge economy. , Start-up India and are ensuring the growing popularity of Indian program has been working talent and products in a global market. Ms. Aruna Sundararajan towards the digital integration of the Chairman Telecom Commission government and citizens through ICT- The first edition of India Mobile Congress & Secretary (T) based services and taking key utilities to brings the global ICT community along with the remotest corner of the country. The thought leaders, academia, policy makers and Bharat Net project is laying a foundation emerging businesses under one umbrella. Technological innovation and Information of digital services by ensuring high speed Numerous conferences, leadership conclaves, Communication Technologies (ICTs) are crucial broadband connectivity to 250,000 gram keynotes and exhibitions promise to cover to foster socio-economic development of a panchayats through optical fibre. Initiatives different dynamics of the ICT sector in nation. When next generation communication like Aadhaar, e-payments facility through the South East Asia. I hope it will provide channels converge with emerging BHIM, National Digital Literacy Mission have opportunity to all stakeholders to create a technologies, they provide innovative witnessed huge success in terms of adoption platform to showcase innovative ideas, skills, solutions to address numerous challenges and service delivery while digital platforms technologies and products. in core sectors like education, healthcare, such as National e-governance platform, manufacturing, agriculture, banking and m-governance, Government E-Market are Wishing you all the best. financial services to name a few. The Jan Dhan, helping to provide citizen-centric services.

04 Connecting the Next Billion | Propelling towards $5T economy

Message from India Mobile Congress

such Digital India, Skill India, make in India, The size of the market and its appetite are Start Up programs, Smart Cities, State fibre presented in the research paper prepared grid projects, E waste adaption, Smart Grid by our knowledge partner Deloitte and implementation, IoT initiatives, E-Health Company, India. programs, Digital Classroom has opened unlimited opportunities. IMC 2017 is I conclude by thanking the team at IMC, COAI, presented to each one of you as a platform to K and D and Deloitte for working together to capture the number’s opportunity. successfully deliver this program to you. Our aim is to grow bigger and next year and look IMC 2017 takes a lead in creating a facilitative forward to bigger success and gains from the policy ecosystem, , showcase the best in best insight and partnerships forged this year in P. Ramakrishna of the new technologies, innovation, skill India. CEO, India Mobile Congress development and investment opportunities and empower Start-up ecosystem, This edition of IMC 2017 would bring in an Welcome to 1st edition of India Mobile environment for participation of more than Congress 2017, (IMC 2017) in support with 150 companies from all key stakeholders and COAI aiming at including the industry, academia and “Connecting the next billion”. governments from across the world, 160 plus speakers from across the globe, Keynotes Aiming at the next billion users, incumbent session from best of the best International Telco’s, Product companies, OEM’s, speakers and thought leaders, product Handsets and other Mobile, the Internet launches, attracting 5000 delegates, and and Technology players are finding new 50,000 footfalls for the Conference and ways to rethink their product lines and exhibition. competition. Government of India programs

05 Connecting the Next Billion | Propelling towards $5T economy

Foreword

accounts, 1.17 billion Aadhaar. On top of this, transfer (mostly from LPG subsidy called combine emerging technologies of social Pahal) has saved the government ` 500 billion media, cloud, analytics, artificial intelligence, (~$8 billion) so far. This is just the tip of the ice- blockchain, robotics and IoT interplaying with berg. Many other schemes such as insurance, the above and various industries - information pension, deleting ration cards, MGNREGS, technology, banking and financial services, etc. are joining the DBT mechanism for better telecommunication, media, entertainment, targeting of beneficiaries. energy, agriculture, retail, waste management, water, manufacturing and others. In addition, Indian economy grew eight-fold in the last 25 17 Sustainable Development Goals of the years to reach $2.4 trillion today and if the United Nations – no poverty, zero hunger, same momentum is maintained, it could be Hemant Joshi quality education, good health, gender $5 trillion by 2025* and a $20 trillion economy equality, clean water and sanitation, clean in the next 25 years. Considering the above, energy, decent work, reduced inequalities, in my opinion, $5 trillion could be reached India is - 640,867 villages, 7935 towns/ sustainable cities, life on land and below much earlier than expected backed by cities, 3.3 million kms of road network, 1.4 water, peace, justice, climate action - offer exponential growth. The vision of Digital India, million schools, 300+ million students, 500+ immense opportunities for the telecom to transform India into a digitally empowered million livestock, 200,000 hospitals, 37000+ industry to create trillions of dollars of value. society and knowledge economy, will be colleges, 789 universities, 210+ million realized at a faster pace. vehicles, 156 million hectare agri-land, 245+ Telecom will enable the interplay of As the fastest growing and second largest million households, 5000+ dams, 330+ GW technologies and industries, is redefining telecom market, India represents a hot of installed power capacity, 155000+ post mobility, work, governance, education, destination for investment. IMC 2017 event offices, over 120,000 bank branches, 36 entertainment, etc. and promote truly provides a global platform and a communication and 8 navigation satellites, geographical, financial and social inclusion. distinct opportunity for both, domestic and 7000+ railway stations, world’s third largest Based on this, the connected devices in India international businesses, to understand railway network comprising 120,000 km are expected to increase from 200 million the potential demand in the Indian telecom, railway route, 1.2 million km optic fibre in 2016 to 2.7 billion devices by 2020. The technology and allied sectors, to enhance network, and much more. Add a virtual telecom offers opportunity to recapture value strategic cooperation and to strengthen layer to the above consisting of India Stack by preventing and reducing leakages in social multilateral relationships between all - presence-less, paperless, cashless and sector spending, supply chain, energy, water, stakeholders. consent, 1.2 billion mobiles, 400+ million bank logistics, etc. For example, the direct benefit

*From here to $20 trillion: India’s economic growth strategy | May 2017 | http://www.livemint.com/Opinion/ rVW5NwetwPuItO325fhbjJ/From-here-to-20-trillion--economic-growth-strategy.html 06 Connecting the Next Billion | Propelling towards $5T economy

1. ICT unleashing Convergence:

Vision for 2020 07 Connecting the Next Billion | Propelling towards $5T economy

India is the second most populated nation smartphones coupled with government in the world. Perhaps a little lesser known initiatives focussed on ‘Digital India’, rise fact is that India currently ranks 36th among of convergence, and exponential growth in 75 nations in internet inclusiveness (based adoption of latest technologies will play a on Economist Intelligence Unit’s Availability, critical role in connecting the next billion to Affordability, Relevance, and Readiness the internet. factors).1 Current internet penetration in India is 33%; juxtaposed with this is rural penetration at 16%. Figure 1: Key India Statistics

Given the deep correlation between internet 455 Million inclusion and economic affluence, connecting Internet subscribers in India the next billion Indians to the World Wide ~95% Wireless 241 Million Web will be the singular biggest challenge and ~65% Broadband users as on opportunity for India. ~32% Rural July 2017 Growth of ~70% from Mar 2016 Increasing trend of accessing the internet through wireless devices (~95%2 subscribers access internet wirelessly) enabled by technologies such as public Wi-Fi, 3G, and 4G has put mobility at center of next big revolution. India is currently the world’s second largest smart phone market in terms of volume, with an installed base of 275 million3, and is predicted to lead smartphone adoption worldwide with a net addition of over 350 million connections by 2020. 200 Million WhatsApp active monthly Moreover, with the advent of the Internet users as on Feb 2017 of Things (IoT), it will not only be people Growth of ~100% from connecting to the internet but also billions 69 Million Feb 2016 Online consumers of machines and appliances such as in India Expected to wearables, cars, homes, industrial equipment, exceed 100 Mn in 2017 white goods, etc. Introduction of low cost

08 Connecting the Next Billion | Propelling towards $5T economy

Convergence Fairyland: A myriad of growth It is estimated that nearly 41 million high mobile phone penetration and rapidly opportunities households (~163 million people), primarily growing smartphone adoption creates Convergence is expected to usher a ‘fairyland’ rural, don’t have a bank account today and ideal conditions for mHealth adoption. for the consumer in the next three years depend on informal lending system to These new platforms can offer numerous with a wide range of new technologies which access credit. Fintech can play a major role solutions for remote diagnosis and will make information access and lifestyle in connecting these households to formal treatment. easier. The six prioritized areas which look channels of accessing credit. very promising from a growth opportunity The National Optical Fibre Network (NOFN) perspective are discussed below: India is slated to have the youngest project aims to connect over 250,000 gram 01. E-Commerce: The Indian consumer has population by 2020 with 64% of its panchayats via optic fibre to broadband been hooked on the online purchasing people, approximately 450 million, in the internet. This hold particular promise to both phenomenon and the behaviour is here “working-age” demographic. Technology Virtual Reality (VR) and Augmented Reality to stay and grow. Online retail sales have savvy youngsters are expected to gravitate (AR) based converged healthcare services for grown at a CAGR of ~75% between 2012 towards increased personal financial suite the rural market. Technology could be used to and 2016 to reach $16 billion.4 However, of services, which brings significant growth diagnose ailment remotely through a network with only 5% of the population estimated opportunities in this space. of community centers who are connected to to be covered, there remains a massive the internet. In cases of urgent treatments, opportunity to tap the sector. India’s online Strong digital initiatives by the Indian specified centers at block panchayat level could retail market is predicted to grow at a CAGR government and regulatory authorities, be enabled with remote surgery capabilities. of 31.2% to $64 billion by 2021.5 such as Aadhaar-based identification, eKYC, These services will have immense potential digital lockers, Unified Payments Interface, even in Tier 2 & Tier 3 market where there is a The next wave of growth is expected to come and more recently the mandate for lack of specialists. from Tier 2 and Tier 3 cities. Deepening last e-Insurance accounts, are creating enabling 04. Media and Entertainment: The most mile access, distribution and logistics to these systems for simplification of transactions. installed app category in 2016 was markets for the online retailer players will Hence, numerous opportunities are Entertainment, Games and Music be an important success factor. Innovative opening up in this ecosystem to monetize. comprising ~41% of total app downloads market penetration models including some 03. Healthcare: According to the Medical in India.7 Video streaming apps seem to collaborative approaches along with offline Council of India (MCI), in 2017, the doctor- be in great demand with an estimated 66 entities (legacy and new ones) will be another patient ratio in India is 1:1674 which is million unique connected video viewers in important area of focus. lower than the WHO recommended 1:1000 India.8 The total time spent on the top 10 02. Digital Finance/FinTech: Mobile payments, ratio. The urban-rural divide deepens video streaming apps (on Android phones) Prepaid Payment Instruments (PPIs), and this skew. For instance, ~ 60% of India’s between July and December 2016 increased mobile wallets have registered a sharp healthcare workforce serves a market nearly 6x compared to the same period in growth trajectory between 2016 and 2017 where 28% of the population resides. the previous year. The number of unique accentuated further by the demonetization Addressing this divide and offering online video viewers will grow from 66 drive. As per data from State Bank of India, platforms for patients to connect with million to 355 million in 2020.9 Media and the volume of digital transactions reached doctors is an immense opportunity for entertainment related converged services the $11 billion mark6 thus leapfrogging India. The vastly under-served rural are seeing the largest pull among Indian three years of digitisation in just 7 months. healthcare consumers, combined with consumers. 09 Connecting the Next Billion | Propelling towards $5T economy

Bottom of the Pyramid (BoP) consumers fed to the fleet management team’s devices As of May 2017, have always bought videos, music and games can allow for more efficient decision from local mobile shops, computer centers, making. Indian music label and mom and pop stores. Many of these •• Improved Efficiency and Security – BoP consumers are now leveraging free Preventive Maintenance through data T-Series' Youtube Wi-Fi services, like those enabled in various inputs from the vehicles will allow vehicle railway stations, to connect and access these diagnostics. Fleet managers could monitor Channel had the products. Accessible and intuitive apps, vehicle performance from a control centre low-end smart phones, and affordable/ enabling the minimization of down times, largest number of free data plans will lead to drastically improvement of mileage and accident increased adoption among BoP consumers prevention. views worldwide of media and entertainment products. Features like voice messaging, picture based •• Location based solutions to improve with 1.1 billion views communication, bit-sized videos, and voice services to clients – Location based enable search will broaden the user base to apps can help companies provide more in the preceding non-English speaker. Content will also have accurate and targeted services to their to be tailored for these customers, with consumers. Food delivery apps are using month smaller sized and targeted content, to ensure these technologies for location based food viewability at lower speeds and in less-smart deliveries. Their end-customers are located devices. Current data indicates that most of via the app and can themselves monitor India’s English speaking population is already movement of their order. connected to the Internet. Localised digital •• Collaboration with government public content is expected to augment this further. transportation – Government transport 05. Logistics: The growth in the logistics companies are increasingly going digital to sector can be in two key areas —B2B and boost collections and streamline processes. transportation of masses. This would allow consumers to purchase

tickets, track their transport and provide B2B: Opportunity exists for various location feedbacks via a digital media. For example, based services (including GPS, NFC, etc.) in , an app has been introduced to specifically for logistics operations. Key enable commuters to book paperless tickets potential for growth lies in four areas: after boarding the vehicle. Various state •• Fleet Optimization – Utilization of fleet and local government will be increasingly can be optimized through analysis of looking to the private sector to develop and data obtained from high end sensors maintain these digital platforms. which measure key metrics such as fuel Transportation of masses: The market share consumption, braking patterns, gear-shift of organised taxi in the Indian taxi market patterns, etc. These reports when directly is just 10%. However, the adoption rates are

10 Connecting the Next Billion | Propelling towards $5T economy

very promising. The top two ride-hailing opportunity exists in connecting and The 2011 census apps in India registered a nearly 250% servicing this market. Converged services rise in number of rides between 2015 will therefore have an important role. counted about and 2016 to 500 million. The potential The Indian agriculture sector is plagued by is large and the organized taxi market multiple challenges with productivity and 830 million people is expected to grow by at least 20% to credit availability to farmers remaining ~$7 billion by 2020. This will be primarily the most pressing issues. Opportunities living in rural achieved through innovative solutions in this sector primarily revolve around including subscription based pricing, enhancing productivity through relevant india. That would control of on-board media and accessing information access, overcoming the legacy wider markets. Public transport logistical bottlenecks by better converging make rural India information platforms, which provide demand-supply, and addressing the information on timings of buses, trains, credit challenge. Precision farming the 3rd most etc., are already seeing great traction. through IoT enabled systems, cloud These will help consumers tackle the enabled warehouse & logistics tracking populous country chaos of commute in rush hour. ecosystems, and cloud platforms for collaboration between co-operatives/ in the world 06. AgriTech: Indian agriculture is an self-help groups (SHG)/farmer producer important sector in India which organizations (FPO) are some of the contributes ~17% to the GDP but most promising areas in this sector. importantly employs ~58% of the populations (predominantly rural). The Start-ups: Accelerating convergence Rural India sector has seen a 2.5% growth over the through innovations last 5 years. In 2016, India saw about $30 India has a vibrant start-up culture and is has over 490 billion in agricultural exports. currently the fourth largest base for start- ups in the world. The government is actively million mobile Rural India offers the next opportunity supporting start-ups through the “Start-up for Telcos as they transform into India” campaign by providing a wide range subscribers. That's communication, technology and financial of incentives including, among other things, service products. Already ~42% of existing single window clearances, tax holidays, a more people that telecom subscriber base are rural (~501 simplified bankruptcy code, and reduced million) with mobile network availability patent registration fees. the populations covering most rural areas. Rural internet penetration is expected to grow from A majority of the start-ups are in the of Indonesia and 136.52 million in March 2017 to 315 million technology space with most of the more by 2020. Mobile is considered the primary recent start-ups focused on convergent Brazil combined communication device in rural India. Great mobility products. In fact India ranks third for

11 Connecting the Next Billion | Propelling towards $5T economy

the number of tech start-ups.10 Start-ups keep also create innovative commercial models to Technology (ICT) Industry. It is predicted finding innovative ways to increase customer monetize emerging opportunities across the that Indian enterprises across industries adoption of converged services especially six key prioritized areas analysed earlier. and sectors would see telecom operators as mobile platforms. A vibrant start-up key enablers and business partners in their ecosystem can help accelerate the adoption A Billion Connected Entities own transformation journey. IoT devices of internationally successful models which 2020 has very promising prospects for alone is expected to add a majority of these are bespoke for an Indian environment, and Indian Information and Communication connected devices.

Figure 2: Number of Connections (in millions)

2,500.00 407 2407

2,000.00 304

156 8 20 21 1,500.00 400 39

235 1,000.00 817

500.00

- Other Devices Internet Media & Services Agritech Logistics Devices + Healtcare Information eCommerce Users [2020] + Users [2016] Entertainment Digital Finance

Source: Gartner & CISCO

This along with increasing rural internet market presents incredible opportunities and penetration and a largely young population companies need to innovate to leverage on will easily see the number of new “connected this unprecedented scale and opportunity. entities” increase manifold by 2020. The 12 Connecting the Next Billion | Propelling towards $5T economy

2. Infrastructure: Building for billions

13 13 Connecting the Next Billion | Propelling towards $5T economy

Globally, we are on the cusp of the Globally, broadband has been identified rural population as well as strengthen the fourth industrial revolution wherein new as one of the key drivers for achieving a productivity of India’s urban populace. technologies have the potential to bring country’s socio-economic objectives. Studies about a disruptive change. As a nation, India have provided empirical evidence of the Developed countries such as the US, UK, etc. has come a long way, transforming from the direct impact of broadband coverage and have defined broadband as a minimum of initial post-independence era where it was speeds on the GDP growth of countries. over 20 Mbps in their National Broadband primarily agriculture dependent and focused Additionally, broadband drives the plans (as in Figure 3). Countries have set on securing our economy, to emergence as a transformation of lives of people by enabling targets for coverage and capacity (speed) as strong knowledge-based economy. It is critical services such as healthcare, education, well. to capitalize on the opportunity presented in and other development programs by the the fourth industrial revolution to continue government. Broadband has far reaching The current penetration of Broadband the growth. Sustaining and enhancing this implications and has been leveraged to in India stands at 23% with 300 million economic growth, while bridging the divide achieve national objectives by multiple subscribers as of June, 2017. However, India between various sections of society, are the countries. In India, significant efforts need continues to lag behind other countries key national objectives for India today. to be made in order to reduce the digital significantly. divide, so as to unleash the power of the 67%

Figure 3: Definition of Broadband across major countries (in Mbps)

30

25 25 24

20 20

15

10

5 0.512 1 0 India Australia China UK USA 5G 5G 5G

14 Connecting the Next Billion | Propelling towards $5T economy

Rise in broadband penetration is expected Figure 4: Role of Broadband in India to translate into a significant increase in the country’s GDP and additionally help achieve the goals set as part of the government’s Achieve potential strategic programs such as Digital India, of progressive Skill India, e-Governance, etc. Increasing government plans broadband penetration is expected to help accelerate social inclusion, drive our leadership as a knowledge-based economy, and foster entrepreneurship and jobs. Contribute to economic growth: The accelerated socio-economic growth continue our strength of India and success of the ambitious as a knowledge Bridge digital 02 government programs depend significantly driven economy divide 01 on enabling broadband access to the masses without which either the programs would not be available for use or, the customer experience would be highly sub- optimal. 03 It is thus imperative that build out of broadband infrastructure becomes a 06 Role of key priority of the government and the Broadband industry players. Enable smart utilities Support social development 05 04

Assists in environment protection

15 Connecting the Next Billion | Propelling towards $5T economy

Broadband Infrastructure choice of technology for broadband demand, topography, and other such As described in the figure below, availability may vary depending on the considerations. it is critical to appreciate that the feasibility of deployment, potential

Figure 5: Technology Mapping by Demand Clusters Requirements Recommendations Demand clusters

• Fast and reliable connections FTTx (GPON) • High Users capacity • High scalability LTE-A Cluster A Cluster Green Field Urban A Requirements FTTx (GPON) Cluster Cluster • Need of mobility LTE-A C B • High scalability Rural Semi-Urban Cluster • Need for low Brown Field B infrastructure cost FTTx (GPON)

DC-HSPA+/LTE-A Cluster Requirements C • Existing telecom infrastructure Recommendations Muncipal is available DSL • Need for governmental office/ school/hospital

• Strong wireless coverage Suburban DC-HSPA+/LTE-A • High mobility

Rural • Poor wireless coverage • Low mobility • Lack of basic infrastructure Satellite

It is important to thus evolve an ecosystem overview of some of these technologies is wherein a suitable mix of traditional and given below along with their current adoption emerging technologies are used to build the in India and the way forward to ensure reach broadband infrastructure optimally. A brief of infrastructure to the masses. 16 Connecting the Next Billion | Propelling towards $5T economy

Full Fiber Networks Figure 6: Comparative analysis of fiber-deployed-to-population ratio Fiber is critical to drive various broadband technologies, including wireless, and is 1381 1320 technology agnostic. However, India continues to remain highly under-fiberized, with 1060 cumulative fiber-deployed-to-population ratio at ~ 0.1x (v/s United States: 1.2x and China: 0.7x) and only 30% of towers (in major cities) currently fiberized v/s the required 70-80% to support 4G today and 5G in future. 417 323

The government and private players have a 99 key role to play to expand and roll-out fiber both in urban and rural India US India China

Fiber for Urban Broadband Population (Mn) Cumulative fiber deployed (Mn f-Km) For urban broadband, private players are recommended to lay down a progressive plan to fiberize 77-80% of tower assets (currently projects the National Optic Fiber Network and approximately 28,000 GPs have been only 30% sites are fiberized in major cities) (NOFN) project now known as BharatNet. lit (GPON integrated and tested). from FY17-FY20 and thereby be at par with Approved in 2011, the project aims to The responsibility of the implementation other developed nations in urban areas. It connect 250,000 gram panchayats (GPs) of NOFN has been handed over to the is estimated that an investment of $8 billion via the optical fiber network. It is funded 3 Central Public Sector Undertakings would be required from FY17-FY20 for the by the Universal Service Obligation Fund (CPSUs), i.e., Bharat Sanchar Nigam Ltd. same. Additionally, the government should (USOF) with an investment of $3 billion (BSNL), Power Grid Corporation of India primarily play the role of a facilitator to and was proposed to be completed (PFCIL), and Railtel Corporation of India support the funding, with ownership being in 2 years’ time. Access to NOFN will Ltd. The implementation was allotted borne by the telecom and infrastructure be given to all service providers for based on the existing optic fiber network players. The government is required to various applications such as e-health, of these players in the ratio of 70%, BSNL; facilitate ease of execution and ensure e-education, e-governance, etc. Initially 15%, PGCIL and 15% RailTel. efficiency in the broadband infrastructure the focus was only on laying incremental rollout. underground optical fibre, but it has now The project is facing challenges evolved to creating a seamless backbone in implementation due to various Fiber for Rural Broadband to realize goals of Digital India and hence complexities such as low investment in In order to provide fiber connectivity at its name was changed to BharatNet in fiber networks, traceability/poor usability every corner of rural India, the Government April 2016. Currently, as of 6th August, of existing fiber networks because of of India launched one of its most ambitious 2017 OFC for 100, 443 GPs has been laid fiber cuts, lack of proactive coordination

17 Connecting the Next Billion | Propelling towards $5T economy

among stakeholders, etc. It is required that EPC model, deployment partners also taking alternate implementation models (e.g. CPSUs up responsibilities for O&M as well) be looked being complemented with end–to-end at for expediting the progress of BharatNet. deployment by private partners through an

Figure 7: Current BharatNet Roadmap It is important to thus evolve an ecosystem wherein a suitable mix of traditional and emerging technologies are used to build the broadband infrastructure optimally. A brief overview of some of these technologies is given below along with their current adoption in India and the way forward to ensure reach of infrastructure to the masses.

NOFN project renamed to BharatNet by Telecom Commission and strategy to implement redrawn

Physical implementation of Phase III BharatNet began

NOFN project • Focus on providing state- initiated with the of-the-art, future-proof , task of connecting Phase II reliable and scalable network 2,50,000 GPs (underground & other types • Connect 1.20 of), with ring topology to Phase I lac GPs via OFC provide redundancy across the (underground and 2.5 lac GPs (Ring topology from • Connect 1 lac overhead) in linear DHQ-BHQ and from BHQ - GP ) GPs from BHQ topology via OFC in linear • Balance 0.30 lac via topology radio & satellite • Last mile connectivity (enabling private sector to assess service provisioning)

Oct ’11 Jun ’14 Apr ’16 Aug ’17 Dec ’18 Dec ’23

Aug ‘17 ~28,000 GPs lit (GPON OFC at ~100,000 GPs deployed integrated and tested) 18 Connecting the Next Billion | Propelling towards $5T economy

Recommendations on deployment of fiber and effective implementation of fiber infrastructure infrastructure are captured in figure below. At an overall level, a few additional considerations that can aid timely

Figure 8: Key recommendations on deployment of optical fiber cable and infrastructure

Single window Dig-Once to Co-deploy GIS Mapping clearances Multiple Utilities & Fiber Checks Single window including Broadband GIS mapping, and clearances for Dig-once policy fiber health checks rapid deployment implementation for on timely basis of broadband prevention of public infrastructure and utility disruption

01 02 03 04 05 06

Standards for Utility Corridor Uniform RoW Policy Sustainable Construction of Utility for Broadband Infrastructure corridors Infrastructure Deployment Pricing, timelines, Establishment transparency and of standards for synergy between deployment of fiber multiple authorities infrastructure

While fibre is one of the most reliable and build-out, there are technologies which can robust methods for broadband infrastructure complement the growth quite effectively:

19 Connecting the Next Billion | Propelling towards $5T economy

Complementary Technologies (Small and small cells in India. This proportion Cells/Wi-Fi off loading/TV white space) is expected to go up to 50%-60% in In the coming years increasing average India as data consumption increases data per user with 4G penetration would exponentially. In developed markets, drive an increased need for capacity and revenue from small cells offerings forms a impetus on Wi-Fi offloading and small significant proportion of overall revenues cells. Currently, 25% of cellular data of Tower cos. traffic is being offloaded through Wi-Fi

Figure 9: Data traffic split by macro, small cells and Wi-Fi

1056

754

554 176 113 74 340 41 1293 1122 181 20 982 99 710 49 10 4 442 Traffic petabytes per month 159 281 2016 2017e 2018e 2019e 2020e 2021e 2022e Total traffic 212 390 643 1,097 1,620 2000 2536 (PB/mth)

Off-loading 2016 2022E Wi-Fi 23% 42% Small Cell 2% 7% Macro 75% 51%

20 Connecting the Next Billion | Propelling towards $5T economy

Wi-Fi offloading is the use of complementary They help to patch coverage holes, and Communication through Wi-Fi to deliver data originally targeted for optimize signal strength over both licensed satellite has been so far only cellular networks. It reduces the amount of and unlicensed spectrums. Small Cells in enterprises, especially in data being carried on cellular bands, freeing are expected to improve capacity up to the case of bank ATM networks – most bandwidth for other users. It facilitates 1600x. The technology is highly beneficial in of which are running on satellite based catering to growing mobile data and densely populated metro cities and supports communication. It has also benefitted the enhances user experience. implementation of Internet of Things (IoT) broadcasting sector. The communication which involves a large number of connected via satellites takes place via the Very small It is estimated that currently there are 50 devices. Globally, ~10 million small cells have aperture terminal (VSAT) — a box that is million hotspots globally and the number been deployed. installed at the premises of an end user that is expected to grow to 340 million by 2018. connects the user's computer to a satellite France, US, and UK lead the Wi-Fi hotspot In India, the telecom service providers are signal through an antenna. VSAT has been deployment with 13 million, 9.8 million, leveraging Small Cells as a part of their used in rural areas for providing Internet. and 5.6 million hotspots respectively. The heterogeneous network strategy. Leading business models being used include having telecom providers have invested to deploy Satellite communication is readily available revenue-share agreements with venue Small Cells on public spots and even in in India, and about 10 gigabyte capacity is owners. residential buildings. already available all over India. However, according to the current policy, the VSAT In India, there are 31,000 Wi-Fi spots as However, there are challenges during terminal can only receive 1.3 megabyte of of March 2016 and are expected to grow deployment of the same because of data while technology is now available to be to ~200,000 by 2018. Most Indian telecom interference resulting from cells being able to receive much more data than that. providers set up Wi-Fi through custom placed very near each other along with Hence, the growth of broadband via satellite deployments in business parks, etc. macro stations. technologies is highly dependent on the has deployed Wi-Fi spots in partnership with regulatory and policy changes. RailTel at 400 railway stations; Facebook too Satellite Technologies in partnership with BSNL is planning to set- Satellite communication can provide high up community Wi-Fi spots in rural India. speed broadband connectivity for all by Small Cells: Small Cells are used to speeding up access in rural and hard to strengthen the capacity of existing reach terrain. networks. They are roughly defined as something smaller than a macrocell having a range from 10 m to 3 Kms.

21 Connecting the Next Billion | Propelling towards $5T economy

Smart Networks (Software Defining SDN and NFV reduce the hardware, power, Currently the LTE-A offers speeds Network, Network Functional and space requirements to deploy network up to 3 Gbps, but actually the Virtualization, etc.) functions through the use of industry- speeds experienced are 10-20% of Additionally, as the demand for bandwidth standard high-volume servers, switches and the maximum ones. By the end of is expected to grow significantly, telecom storage, making the network applications 2017, it is expected that LTE-A will enable operators will need to invest in networks portable and upgradeable with software. speeds in the tens of Mbps. And, by the that can cater to the demands of users. time 5G launches in 2020, a large percentage Conventional static architecture is not In India, SDN is expected to be the next game of users will be used to obtaining connectivity optimally positioned for the evolving changer. The two technologies are expected speeds of over 100 Mbps. dynamic computing and storage needs, to be viable especially in the case of IoT and due to complexity, scalability and vendor Smart Cities adding more connected data In India, wide-scale commercial launch of dependence constraints. Software Defined sources. Currently, when technologies such as 5G is expected to happen by 2020. However, Networking (SDN) and Network Function Cloud and Big Data are growing dramatically the launch might get delayed because of Virtualization (NFV) can enable the Telecom in India, there is immense pressure for several challenges. Capital expenditure is a Service Providers to migrate to a software- expanding these networks. Many telecom key challenge with the high sector debts; it is centric network architecture that is dynamic, players have already laid roadmaps to expected that an investment of $60-70 billion manageable, cost-effective, and adaptable. move forward with NFV and SDN planning will be needed for 5G. The slow adoption of & implementation. 4G can be another reason for delay in 5G The SDN architecture is directly roll-outs; the penetration of 4G as of March, programmable and centrally managed. It 4G/5G 2017 lies at 12% and is expected to reach 40% is also based on open standards, making The LTE revolution along with incremental by 2022. it vendor agnostic. SDN helps with its improvements is laying the path for 5G. It has ability to model physical networking into seen two iterations namely LTE-Advanced software, reducing the overall expenditure. (LTE-A) and LTE-Advanced Pro (LTE-A Pro). The flexibility offered by SDN is important These improvements are focused on meeting considering the change in traffic patterns, many requirements for 5G and hence it is at rise of Cloud services, and mega datasets the core of development of 5G. requiring massive parallel processing. NFV is closely related to SDN, with both aiming towards flexible network and technology.

22 Connecting the Next Billion | Propelling towards $5T economy

Figure 10: US followed by China are expected to launch 5G by 2019-20, whereas India is expected to adopt 2-3 years after US

2022

2021 2-3 Years 2020 2015-2019 2014

2013 2.5 Years 2012

Year of adoption 2011 2010 3 Years 2009 2008

Generation 3G 4G 5G*

Definition Digital broadband packet data Broadband packet with high speed NA

Throughput/Speed (Peak) 14.4 Mbps 100-300 Mbps >1 Gbps

Key breakthrough Video streaming Multi person video call Virtual reality, HD streaming

Additionally, 5G needs Fiber Backhaul The evolution of 5G will open possibilities – currently only 30% of the towers have to several data intensive services been fiberized thus far. which weren’t possible on the existing networks.

23 Connecting the Next Billion | Propelling towards $5T economy

Figure 11: 5G will enable an ecosystem of interconnected devices generating and sending large quantities of data

5G Hyper Services Cube Mobility: 0km/h -500km/h Frequency: 300 MHz – 300GHz

Smart HD City Sensors

Links (Per km2)

Augmented 106 Reality Emergency

Stadium Delays Shipping (ms) Logistics 4 2G, 3G, 4G 10 Interactive Social HD TV Wireless Gaming Cloud Multi user UHD Office Vehicular 103 Telepresence Telematics 102 2 High 10 Mirror Sys Virtual Speed Reality Train Throughput 101 2 (kbps/km ) 109 106 103 100 Source: Huawei

24 Connecting the Next Billion | Propelling towards $5T economy

For 5G to proliferate in India, operators need Increase planned budgetary allocation and Sustainability: It is critical to deploy to overcome existing financial stress. Also, effective use of USOF: As a GDP multiplier, networks based on specific standards-these LTE-A and LTE-A Pro will be very critical in Government of India should expand the standards will ensure increased life span of preparing for 5G and hence provisioning of budgetary allocation for the proliferation of the assets. Geographic information system billions of connected devices. Broadband access by a percentage of GDP. (GIS) mapping for all new fiber must be This should reflect in the annual budget of the instituted and a framework must be instituted Data networks will define India’s future in country. Simultaneously optimal utilization of to secure the network. many ways and will enable India to leapfrog the USOF is the need of the hour. ahead of many countries. Our global Constitute Governance Framework: The competitiveness depends on the wide spread Policies and guidelines to facilitate ease, government should consider instituting access and speed of broadband proliferation. efficiency and sustainability and roll-out an empowered government-industry joint India will require a fresh look at the pace of broadband networks working group to work on various aspects of development and its regulatory policy 01. Address regulatory and policy barriers: of the policy including long to medium term environment. Broadband ecosystem players, The regulatory levies on the Indian direction, short term tactical fixes and quick the government along with the Regulator, telecom sector (in the range of 29-32% of wins. need to work cohesively to revise the National the revenues) are significant and therefore telecom policy. a long term sustainable policy ecosystem Ease of Doing Business: Ease of business is which is favorable for the orderly growth about finding solutions to challenges faced by The policy should be technology agnostic of the system should be facilitated. the industry. It requires simplicity, clarity and to enable and promote orderly growth, by harmony between Policy, Regulations and fostering a robustly competitive environment. 02. Secure the network: Policy must be laid contracts (licenses). Thus, the issues related down to secure fiber network by adhering to Right of Way (RoW), restrictions on fiber Key Recommendations to deployment standards and defining deployment and others need to be resolved. Some of the key recommendations that guidelines such as ‘call before you dig’. could be considered for an expedited optimal broadband infrastructure rollout are: Spectrum: The government has introduced policies around spectrum harmonization, Set aspirational goals – It is critical to define spectrum sharing and trading, making it a strategic direction for broadband that available through a transparent process, includes framing the definition of minimum which has enabled deployment of various speed of broadband along with setting broadband technologies. Auction pricing capacity and coverage targets, and the may be reviewed based on market forces. In ambition to maintain certain minimum levels addition the government should continue to of availability, reliability and affordability. give contiguous blocks of spectrum.

25 Connecting the Next Billion | Propelling towards $5T economy

3. Technology: Connecting billions

26 Connecting the Next Billion | Propelling towards $5T economy

Rapid new technological advancements ability and how they augment each other in are transforming the production of goods delivering cohesive solutions. Understanding and services throughout much of the global and planning for such convergence is the economy and the effect is also starting to key to unlocking the highest value of future show in India. Though India is still at the production systems and ecosystems. nascent stage of the adoption curve but soon these transformative initiatives would For government and corporate leaders, the initially evolve with maturity of technologies future of digital is arriving more quickly than and accelerate exponentially in the coming many realize, and demands rapid assessment, years. By leveraging on emerging and new support and adoption of these exponential disruptive technologies, most organizations technologies that fast tracks them to build and industry sectors would embark on to operational efficiencies by improving digital transformation projects with focus reliability and asset utilization. These newer to improve operational efficiency leading to technology dominant ecosystems are increased productivity. expected to communicate digitally delivering intelligent and measurable information to Also to address the changing market and improve overall efficiencies. competitive landscape, affected industry verticals would initiate end-to-end Also the increasing number of connected organizational transformation activities in devices and the proliferation of smartphones a bid to provide affordable, accessible, and have contributed significantly to the rise quality services to their customers.11 As a of these technologies.12 Rising adoption of result, innovation would start taking center cloud platforms, development of cheaper stage with development of new applications and smarter sensors, and evolution of and use cases defining new business models. lower power and high-speed networking technologies will drive the growth of the To drive innovation, new disruptive and future connected world in a true convergence exponential technologies like Cognitive, manner leading to immense value-creation Virtual and Augmented Reality, Analytics, opportunities. Biometrics, and IoT will predominate soon that will revolve largely around connecting people, things, and processing huge amounts of data/information with the promise of paving way for newer ecosystems, business models, and economy. The true power of these technologies lies in their convergence

27 Connecting the Next Billion | Propelling towards $5T economy

Cognitive Technologies that require human perceptual skills, such as technologies extend the power of information (AI, Automation, Bots) recognizing handwriting or identifying faces, technology to tasks traditionally performed A relatively newer term in the industry, and those that require cognitive skills, such as by humans, they have the potential to enable cognitive computing, the popularity of planning, reasoning from partial or uncertain organizations to break prevailing trade-offs which can be largely attributed to some information, and learning. Technologies able between speed, cost, and quality. In view major technology companies, is based on to perform tasks such as these, traditionally of these benefits, over the next five years the concept of simulating human thought assumed to require human intelligence, are there is expected to be significant impact processes in a computerized model. known as cognitive technologies.13 of cognitive technologies on organizations Cognitive is widely regarded as the third era A product of the field of research known as enabling them to grow substantially.14 of computing beyond the Social, Mobile, artificial intelligence, cognitive technologies Analytics, Cloud (SMAC), and IoT and is again have been evolving over decades. Businesses Leaders of organizations in all sectors fundamentally changing the way humans are taking a new look at them because critically need to understand and evaluate work with machines. some have improved dramatically in recent whether, how, and where to invest in applying years, with impressive gains in computer cognitive technologies. Computers cannot think. But increasingly, vision, natural language processing, they can do things only humans were able speech recognition, and robotics, among to do. It is now possible to automate tasks other areas. The reason being cognitive

28 Connecting the Next Billion | Propelling towards $5T economy

Figure 12: Key drivers and use cases of cognitive technologies

IT service companies Start-ups in AI Digital India initiative Increase in Growth of Internet of 24*7 Mobile Customer data focusing on and Automation Computational capacity Things Connectivity present everywhere innovation

Text Analytics Conversational Facial Robotics Process Natural Language Generation and NLP Service Solutions Recognition Automation

Human Resources Finance Retail Supply Chain

Talent Management- Bad Debt Provision- The Machine learning can be used Operational Procurement- Managing recruitment, hiring, whole process of managing for self-service on the website, Tasks like creating requisition onboarding and integration. collections can be automated triggers for savings and tools and obtaining approval, Managing performance and using RPA, saving costs and for reps powered by the same creating PO, receive and verify employee development and time algorithms. product and authorize supplier training can be automated payments can be automated using RPA Cross-Functional tasks- IBM’s Watson is being used using RPA Processes relying on in conjunction with client’s HR Operations- Tasks like unstructured data; time own internal personalization Order Processing- Processing performing employee data spent on data reconciliation; APIs to be able to assess of Inquiry and Quotes, administration, managing sub-processes shared across buyers’ habits over time receiving entering and reporting, manage payroll multiple functions requiring and to predict their order validating orders, generating and time booking can be similar capabilities. All these preferences and quantiles. invoice and collecting automated can be automated payment, all these tasks can be automated

29 Connecting the Next Billion | Propelling towards $5T economy

Interestingly, adoption points for cognitive are Major technology companies are already working Virtual reality (VR) immerses users in univariate to multivariate across industries with with both central and state governments to bring constructed surroundings that depict actual telecommunications, healthcare, banking and the benefits of cognitive technology to masses. places or imaginary worlds. To date, VR has been financial services demonstrating maximum For example, The Government of Andhra used primarily in gaming and entertainment agility. With enhanced customer experience Pradesh is working with to minimize applications. Augmented reality (AR) uses as the key driver, telecom industry is using the dropouts and increase employability of technology to overlay contextual information cognitive to derive personality insights for hyper- students. Using machine learning, they are on physical environments — for instance, personalization of products and enabling greater predicting school dropouts by processing by projecting sales and inventory data onto customer experience value for prolonged value complex data consisting of student performance, products on store shelves. Mixed reality (MR) is a management cycles. school infrastructure, family backgrounds, and blend of VR, AR, and IoT, creating environments teacher skills to find meaningful patterns. in which digital and physical objects can interact. High-end banks in Tier-1 and Tier-2 are For example, MR could allow marketers to put adopting cognitive computing faster than their In telecom industry, cognitive solutions can assist virtual products in consumers’ hands and gauge counterparts who have only been investing more players in network planning and optimization, their responses.16 around fraud and risk management. Few players service assurance, and capital acquisition are also experimenting with cognitive computing initiatives by fetching network analytics, Implicit learning and development is also one for customer service improvements. However, topology and hierarchy schematics, and of the spaces where AR & VR enabled products the real value of cognitive in improving complete regulatory standards along with financial metrics are expected to emerge. Other incumbent customer journey starts right from the time to determine prioritization of investment. industries that will experience a traction in customer becomes aware about the product or the similar space are Oil and Gas, Aerospace, service until the time of post-purchase loyalty Cognitive computing is a valuable extension Heavy machinery where on-the-job training is campaigns. to the offerings around analytics offered by conventionally difficult or dangerous but can IT services industry in India, making it an be transformed to a never-been-easier version In India some oncology departments and emerging player for disruption across industries. through digital reality solutions.17 reputed eye institutes are investing in cognitive The future is promising for companies that technologies by collaborating with large can embed cognitive into their product and Increasing demand for VR gear among mobile enterprises that offer machine learning, Big Data, service offerings. users, introduction of entry-level VR headsets Analytics, and other technology platforms and in the market and effective communication solutions. All these when used in a collaborative Virtual/ Augmented/Mixed Reality through marketing campaigns by smartphone way is helping hospitals in gathering insights Virtual, augmented, and mixed reality have the manufacturers have boosted the India's virtual from millions of clinical data points collected potential to reshape marketing in industries reality market.18 Advent of 4G and high speed from multiple locations where patients were ranging from automotive and real estate to retail data communication have become a key drivers treated for ailments and diseases. Leveraging on and consumer packaged goods. Technological for adoption of AR/VR. these data driven insights, predictive models are advances—from smaller headsets to improved created that will help doctors in making informed user interfaces—are ushering in an age in which decisions while recommending the surgery, its brands will be able to provide deeply engaging outcomes, and more importantly in reducing the experiences for consumers in their daily lives.15 pain and cost for the patients.

30 Connecting the Next Billion | Propelling towards $5T economy

Figure 13: Key drivers and use cases of Digital Reality (AR, VR & MR)

Mobile Edge Software Defined Higher 24*7 Mobile ConnectivityCustomer Controlled Media Artificial Rise of profitable Computing Networking (SDN) Processing speed Consumption & Production Intelligence AR/VR developer ecosystem

Virtual Reality Augmented Mixed reality NLP Machine Vision Reality

Healthcare E&R Retail Manufacturing Government Aerospace services

Connected Worker: VR to reduce risks: Product Catalog AR SOP Guide & Customs & Border AR Knowledge on AR Solutions to be In the complex, with AR: Deloitte Instructor: Digitizing Protection: AR enabled Demand: Deloitte used pre-operations potentially developed a standard operating Interactive Training developed a hands- (training, surgical dangerous facilities, functionality that procedures, along makes it possible for free augmented planning, decision- it can be beneficial displayed interactive with computer agents to simulate reality solution to making) to have a safe features when the vision, gesture scenarios where provide on-demand space to practice customer scanned inputs, and voice trainees can see and access to and share VR for PTSD: VR is maintenance, train the display icon commands were interact with virtual knowledge with being used to help new staff, and even found in the product used to create environments. other employees soldiers with post- carry out designs catalog using the the solution. traumatic stress by providing real- store app Operators receive Augmented Emergency “Peekaboo!” – disorder (PTSD) by time immersive 3D 3D modeled step-by- Management: AR See-What-I-See: using VR warfare training. AR based Digital step instructions, can allow agencies Hands-Free Remote simulations to Catalog: Through automated task to use 3D mapping Assistance allows help veterans deal VR provides offshore the use of AR, smart guidance, and visual of surrounding engineering experts with instances that virtual technology phone users scan assistance on smart environments and to provide see-what- might be triggers to training, helps the catalog and glasses and tablets Wayfinding capabilities, I-see assistance for behavior that could to build oilfield open additional such as virtual aircraft inspection be destructive to Visualization and information about compasses showing and issue resolution themselves and others Simulation. the product target location 31 Connecting the Next Billion | Propelling towards $5T economy

Several government services can use AR/VR and the enormous troves of raw data found As the focus on customer experience value for customer and border protection by making in the unexplored recesses of the “deep web”, (CXV) in India grows, brands are increasing it easier for agents to simulate scenarios for which when used effectively can become a their efforts and investments to provide virtual training. Similarly, unique advantages powerful tool that can help businesses gain customers with higher quality, contextual, and of VR-based training for disaster preparedness the hindsight, insight, and foresight needed to personalized experiences. Big data and analytics and response would yield decent results. solve complex problems that seem intractable. provide the foundation for a great CXV, making Coupled with this, recent advances in computer firms invest heavily in not only capturing data Hands free remote assistance can be coupled vision, pattern recognition, and cognitive but also deriving dark data insights. These firms with augmented reality for maintenance of analytics are making it possible for companies vary across industries such as BFSI, Consumer aircraft, oilrigs, pipelines and any machine, to leverage these untapped sources and derive products, healthcare, retail and IT services. which is difficult for humans to enter into. insights that lead to better experiences and decision making across the business. The Indian Government has also been Edutech is an important area where AR/VR experimental when it comes to utilizing data for could witness maximum utilization. This could Until recently, taking a passive, backward- valuable insights. The Prime Minister’s Office be an immense help for the Indian education looking approach to data and analytics was (PMO) is using big data analytics to process system employing virtual teaching, digital standard practice. With the ultimate goal of the citizens’ sentiments and ideas through the learning and development methods mainly “generating a report,” organizations frequently mygov.in crowdsourcing platform. in primary schools in tier II cities, towns and applied analytics capabilities to limited samples rural villages. There is a certain opportunity of structured data siloed within a specific The challenges with the Indian markets include for Indian start-ups to start building learning system or company function. Moreover, legacy systems and primitive models of solutions with the idea to bring a better learning nagging quality issues with master data, lack of working, redundant and unstructured data, and experience to schools and higher education user sophistication, and the inability to bring resistance to adopt new methods of operations. colleges. This is done through the use of high- together data from across enterprise systems Organizations and governments alike are taking quality 3D, virtual, augmented, and mixed often colluded to produce insights that were at up foundational and special initiatives to make reality content and teaching tools. best limited in scope and, at worst, misleading. sure that data is organized, structured and meaningful. Despite promising outlook of VR, the initial India is among the top ten destinations for adoption rate in India will be low due to lack of analytics and analysts expects India to be VR content and awareness on the how to use among the top three in the world by 2025 with the technology. However, thought leadership 32% share in the global market. and trainings can prove useful for making the big shift towards adoption. Currently, there are around 600 analytical firms in India, with approximately 400 start-ups Analytics with more than 90,000 analytics professionals Across enterprises, ever-expanding stores of working across HR, marketing, risk & security, data remain unstructured and unanalyzed.19 healthcare, and other sectors — together There is still torrent of machine and sensor positioning India as an emerging market for information generated by the Internet of Things analytics.

32 Connecting the Next Billion | Propelling towards $5T economy

Figure 14: Key Drivers and Use Cases of Analytics

Growth of Mobile Data Storage costs going Higher Lowering costs Growth of Internet of Data Scientists becoming Customer data users down continuously Processing /server of Hardware Things data curators present everywhere speed

Big Data Predictive Deep Learning Hadoop Analytics in cloud Analytics Analytics

Consumer & Industrial BFSI Retail Healthcare Products

Supply Chain Analytics- The Online Bank Fraud Detection- Customer Profiling- Using Optimized Patient Care- solution provides a hosted Big Data and analytics tools social media analytics and Optimized customer service/ platform capability to conduct are being used to analyze and integrated web intelligence, treatment through analysis of inventory diagnostics to identify detect fraud on real time basis customer profiling can be done patient data drivers of high inventory for personalized marketing levels. SQL is the back end and Customer Segmentation- Insurance Optimization- After Tableau is the front end SoLoMo (Social, Location, Analyzing patient information Mobile) customer data as well better insurance options can be Business Decision Modelling- as Social Network Analysis provided to the customer. Also, Ability to make decisions with (SNA) is used to effectively insurance providers would be optimal results based on segment customers and able to save money scenario modeling target marketing to improve profitability

33 Connecting the Next Billion | Propelling towards $5T economy

Government has proposed using analytics precision farming emerging as the need of provided a legal framework for enabling the for social and financial profiling of taxpayers the hour, and farm equipment organizations implementation. With access to this online to generate valuable and actionable insights. investing heavily into R&D, analytics is set to authentication platform, multiple Industry Here the government is planning to use change the face of Indian agriculture. segments are expected to move towards advance tools for both structured and biometric authentication for various use unstructured data and can analyze and Also the Indian Space Research Organization cases like customer on boarding, identity establish relationship between different (ISRO) is encouraging young entrepreneurs to verification and security. entities or people going up to 16 levels utilize massive amounts of geo-spatial data deep, based on different set of data such procured through its series of earth-mapping The usage of biometric authentication in as addresses, phone calls, social media satellites to launch start-ups. Geospatial India is likely to rise dramatically in 2017, interactions, travel trends, and I-T returns.20 data is information about physical objects with Aadhaar driving majority of the Deploying data analytics is the future of the (in terms of land, crops, water resources, initiatives. While fingerprint authentication tax administration, which will effectively agricultural information, etc.) that can has traditionally dominated the biometrics increase the tax, positively impacting the GDP be represented by numerical values in a market, IRIS recognition is slowly gaining ratio. With GST in place, analytics will play a geographic coordinate system. These data popularity because of better accuracy and key role in helping reduce tax evasion.21 have been collected using 21 remote sensing performance. While the adoption of biometric satellites.22 technology has been restricted due to limited Another emerging use case is social number of device options in India and high sentiment analysis for governance, which can Another area to look out for would be Fintech price point, the launch of new Integrated be useful in designing political campaigns, analytics with the regulatory challenges (RBI IRIS/Fingerprint tablets and smartphones in identifying anti-social elements. Agriculture guidelines, Aadhaar) largely resolved for the 2017-18 is likely to significantly improve the is also a promising area where analytics can industry. situation. prove to be a game changer. Although state governments are taking start small, scale fast Biometrics initiatives but a holistic, centralized approach India is one of the very few countries in the is indispensable to improve the farmer world that have a digitally verifiable identity ecosystem, in full-fledge. of its citizens. As on July 2017, more than 1.17 billion residents of India possess an Aadhaar The change has begun with the Government number—a unique digital identity mapped of , adopting cloud analytics with their biometrics. The statutory backing to increase crop yields for farmers. With provided to Aadhaar last year has also

34 Connecting the Next Billion | Propelling towards $5T economy

Aadhaar Enabled Services advised the states to use Aadhaar-based DBT The section provides that the Centre/state The government has set 31 March, 2018 platform for delivery of state-level benefits as may require individuals getting government deadline to fully rollout Aadhaar-enabled provided in Section 7 of the Aadhaar (Targeted benefits to undergo authentication or furnish Direct Benefit Transfer (DBT) for food, fertilizer, Delivery of Financial and other subsidies, Aadhaar number. and kerosene subsidies. The Centre has also benefits and services) Act, 2016.

Aadhaar Enabled Services

Attendance Tracking

SSA (Teachers & Students), NREGA – where wages are linked with working no. of days Confirming Beneficiary

Social Sector programs where Social Networking & beneficiaries need to be E-Commerce Websites confirmed before delivery of service (PDS, MNREGA) Enhance the existing platform to take all the necessary actions Financial Transactions

Financial Inclusion Segment, Micro-ATM devices Banking & Telecom

Biometric Confirmation to add new users, eKYC Security Related Requirements

Entry to airport, hotels etc. ID Proofs for Examinations

Medical, Engineering Exams Demographic & Address Verification

Telecom & Banking, Date of Birth

35 Connecting the Next Billion | Propelling towards $5T economy

Instant Digital LPG Passport Monthly Student Provident MNREGA Bank Locker Subsidy in 10 Days Pension Scholarship Fund Accounts It relieves As the sign It helps in Aadhaar All the Scholarships PF money Wages the up Process getting the card helps pensioners money is is given to under this headache of the LPG subsidy one to get a will have disbursed account scheme are to show DigiLocker amount passport in to register only if holder only credited bunch of account directly in 10 Days their the bank Aadhaar directly to documents is linked the bank Aadhaar account is in number is the bank to the bank to the account card name of the registered account of for opening Aadhaar under DBTL number student and with EPFO the workers the account number, it scheme to receive has Aadhaar linked with is a must PAHAL their card linked Aadhaar pension to it card

Other areas which use biometrics include India Stack & JAM The India Stack, which is a set of APIs, allow attendance tracking in MGNREGA, financial The Indian government is moving forward governments and companies to deploy cashless transactions, security, banking & telecom, with the world’s largest biometric identity and paperless technology products. The stack address verification, e-KYC, etc. Aadhaar is also database, which will be available for use by comprises of APIs that are independently playing a crucial role in providing citizens with tech companies, health care providers, and app maintained by their owners, but the India Stack greater and more efficient access to financial developers. as a whole drives adoption by developers by services. organizing events. The Indian Software Product India Stack is aiming to standardize how data Industry Round Table (iSPIRT) helps with the Its sustainability and scalability will depend is exchanged digitally in order to attain jobs, creation of the APIs by suggesting the technical on service providers’ ability to establish facilitate financial transactions, or access standards to be followed and advising the and maintain a deep level of trust with their government services.23 The “presence-less layer” creators of the APIs on the specifications. iSPIRT customers. It is important that government of India Stack allows universal biometric digital helps with the popularization, evangelization, establishes and enforces legal frameworks identity that enables people to participate in any and adoption of India Stack.25 that ensure an individual’s right to privacy is service from anywhere in the country.24 Post protected, especially if services are to reach the demonetization of high value currency notes, the Recently, the Indian Finance Ministry announced individuals who feel most at risk of exploitation government has been working towards making that India is within the reach of '1 billion-1 . India a cashless economy. billion-1 billion' vision of financial inclusion, 36 Connecting the Next Billion | Propelling towards $5T economy

recounting the success of three-year old plan numbers are linked to 736.2 million accounts Internet of Things (IoT) that began with an ambitious attempt to bring in India.26 Besides, the government now IoT is surely becoming reality and by 2020 formal banking to every household. Which makes direct transfer of ` 740 billion to the there will be over 14 billion network-enabled means 1 billion unique Aadhaar numbers financial accounts of 350 million beneficiaries devices according to the International Energy linked to 1 billion bank accounts and 1 billion annually, at more than ` 60 billion per month Agency. This compares to approximately mobile phones. According to the ministry for the various government anti-poverty and 3.2 billion people using the Internet. IoT in once that is done, all of India can become part support schemes such as PAHAL, MNREGA, revolutionary way widens the internet’s scope of the financial and digital mainstream. old age pensions, student scholarships,27 etc. from people-operated computer towards autonomous smart devices.28 JAM (Jan Dhan, Aadhaar, and Mobile) which Leveraging on JAM and Unified Payment is introduced by the Government of India Interface (UPI), the Government of India IoT solution deployment for Digital Utilities/ three years back is aimed to bring in a social also launched BHIM application with the Smart Cities and in the Manufacturing, revolution by bringing together financial objective to allow poor to become part of Transport & Logistics and Automotive inclusion (PMJDY), biometric identification digital mainstream through this secure and industries would drive the demand for (Aadhaar), and mobile telecommunications. seamless payments infrastructure. Industrial IoT applications going forward.29 As of today about 524 million unique Aadhaar

37 Connecting the Next Billion | Propelling towards $5T economy

The Indian Government's plan of developing operate traditional businesses such as Smart Also, to promote M2M communication in 100 smart cities in the country, for which ` Metering, Tracking, by virtue of ultra-low-cost India, the Telecom Regulatory Authority of 70.6 billion have been allocated in the current modules and super connectivity, also opens India (TRAI) is conducting a consultation budget could lead to a massive and quick up more industry opportunities, for example, process that also include delicensing a centric expansion of IoT in the country. Also, the Smart City, eHealth. NB-IOT makes it possible portion of 10 MHz in the super-efficient launch of the Digital India program of the for more things to be connected, but also 4G airwaves in the 700 MHz band for M2M government, which aims at ‘transforming managing the commercial value of the communications. India into digital empowered society and resulting Big Data is a big task, operators can knowledge economy’ will provide the carry out cooperation with related industries, Growing adoption of Cloud in IoT services, required impetus for development of the IoT in addition to selling connections, they can shifting focus over industrial IoT (IIoT), industry in the country. also sell data. rising market of M2M communication and increasing trend of wearable technology Various other initiatives have been proposed In October 2015, DeitY invited public opinion applications would be the major factors to be taken under the Smart City concept on how to improve the draft policy to create driving IoT market in India. and the Digital India Program to setup Digital ecosystem for IoT industry in India. The Infrastructure in the country. objective of the policy was to create an IoT Moreover, government has launched the In the next 2 years, Indian operators are industry in India worth $15 billion by 2020 International IoT Research Collaboration likely to unveil new IoT strategies or stretch and to increase the connected devices from Scheme (IIRC), which aims to attract the existing one in order to have higher level around 200 million to over 2.7 billion by 2020. private investments in IoT related R&D. The of participation in the overall end-to-end The policy also talks about assisting the government also focuses on identifying IoT ecosystem and economy than merely 'Swachh Bharat' initiative. The government domain specific applications/ prototypes being satisfied with providing SIMs and will setup projects to create products, which which are of highest priority and inclusive connectivity.30 Though initial focus would are solar-powered trash receptacle and trash in benefits to usher this growth. To achieve be on providing SIMs for IoT devices and compactor that alerts sanitation crews of this it has allocated ` 1.25 billion on PPP solutions, which in 2017 is expected to take municipal authorities, when it is full. mode as 50% funding for at least 5 projects off, leading to over a billion additional SIM each will be from different categories of IoT sales in the next 3 years. However, some of The policy framework of the IoT Policy applications/projects over a period of 3 years. the leading operators, as part of the long has been proposed to be implemented term play, would spin-off new IoT entities via a multi-pillar approach. The approach In addition to this, various Indian companies that would provide them with the flexibility comprises of five vertical pillars have also been increasing their focus and and reason to focus on being an end-to-end (Demonstration Centers, Capacity Building & collaborating with other companies for IoT solution provider than just a connectivity Incubation, R&D and Innovation, Incentives developing new IoT and M2M solutions provider. and Engagements, Human Resource towards building a smarter and connected Development) and 2 horizontal supports India. In line with global IoT telecom trends, (Standards & Governance structure. some operators in India in the next two years will begin rolling out Narrowband IoT (NB-IoT). 31 NB-IOT enables operators to

38 Connecting the Next Billion | Propelling towards $5T economy

Figure 15: Initiatives and Application areas of IoT

Smart Health Smart City

•• Monitor various vital parameters of patients like subtle changes in •• Smart Lighting, Smart traffic management, Smart building, Smart pulse, respiration, heart condition, temperature, inside hospitals and at parking, Wi-Fi Internet access & City Surveillance, Solid Waste remote patient location including old people's home and ambulance Management are some of the concepts of IOT to be used in Smart City

•• Use IOT sensors for supporting dementia and other mentally unhealthy patients from getting lost Smart Agriculture

Smart Workplace •• Precision farming which uses data analysis to customize operations like monitoring of soil moisture, vibrations, earth •• Enables organizations to create their own digitally connected density and pests to detect dangerous patterns in land workplace, connecting employees to both their work and conditions and create an online update mechanism for farmers colleagues no matter where they are physically located in the world •• Farmers can monitor online the temperature of grain bins and Smart Water receive an alert if the temperature rises outside of an acceptable range to help them preserve grains in storage areas. This also •• Potable water monitoring tools can be setup to can be extended to alerts for pest controls requirements monitor the quality of tap water in all government owned education institutes and public places Smart Supply Chain & Logistics •• IOT can be implemented to detect real-time leakages and wastes of water in factories •• IOT sensors can be used to enable logistics chain managed by government for essential food items to •• IOT can be used for monitoring of water level variations ensuring need-based re-filling and reduction in wastage in rivers, dams and reservoirs, for proactive disaster of food items management •• Using IOT sensors can enable universal ambulance service at any place resulting into efficient services

39 Connecting the Next Billion | Propelling towards $5T economy

4. Smart Economy: Uniting billions

40 Connecting the Next Billion | Propelling towards $5T economy

Economic growth of any nation is incomplete emergency response, intelligent traffic & solid without the wellbeing of its citizens and waste management, law & order etc., and These 90 cities are thus equitable access to income, health, most Smart Solutions have been conceived education and basic services play a crucial relying heavily on internet. The mission also likely to spend ` 1850+ role in overall development of an economy. A converges the offerings of Digital India, Make "Smart Economy" brings together innovative, in India and Skill India. Digital India envisages billion ($28 billion) sustainable and eco-friendly approach digital empowerment of all citizens and has towards ensuring economic prosperity, earmarked approximately ` 1352 billion over next five years innovation, sustainable jobs and promoting for the same. Make in India shall enhance a digital economy. Integration of Information capacity of large OEMs for catering to smart for implementing and Communication Technology (ICT) and solutions while Skill India shall be leveraged adoption of Internet of Things (IoT) plays a to provide for skilled workers in the private Smart City Plans. crucial role in building a smart economy and sector as well as training of municipal staff. development is focused across the pillars of Smart City, Smart Money, Smart Healthcare, Emerging opportunities Smart Education, Smart Energy and Smart Through use of ICT the cities intend to Agriculture as discussed in details below: curb the deployment of resources and also The app based increase the points of interface for G2C, G2B and G2G services. Telecom is expected to projects in the first Smart City be the single largest catalyst for achieving The landmark , has this transformation and the telecom 60 cities itself have an completed two years and heralded a infrastructure shall be a fundamental support complete transformation of the aspirations system for the Smart Cities. expected investment of the cities, to not only develop physically but grow as inclusive, efficient and most of ` 20.22 billion importantly, connected habitats, enabled by technology. Urban regions in India account for 57.6% share in the overall telecom subscriptions in the country and city administrators are liberally adopting communication technology to enable them in administration and citizen service delivery.

The Smart City Mission has been the biggest boost to promotion of ICT based solution. The proposed solutions in the Smart City Plans straddle key components of city service delivery, including taxes & licenses,

41 Connecting the Next Billion | Propelling towards $5T economy

Figure 16: Various Components of Smart Public Transport System

Smart Public Transport System Objective : Facilitate access to public Mobile app for ETA transport modes, Fleet management or availability info assist in navigation, Vehicle from Command Public Charging parking, road Tracking and Control Centre Information conditions e-bus e-rickshaw Stations System

Components: •• GPS tagged Vehicles •• Mobile Apps for Smart Traffic Management System aggregation •• Emergency Street Emergency Live Traffic Smart Adaptive response system Signage response Monitoring Parking Traffic Signals •• Electronic payment gateways

••Navigation ••Direction and guidance to assistance find parking spots ••Road ••Parking fees through conditions e-payment or cash

42 Connecting the Next Billion | Propelling towards $5T economy

Some popular solutions, their scope of work, Based on the Smart City Proposals, the and components are illustrated below possible opportunities, their scope, and the strengths and challenges offered by the current scenario of Indian cities and ULBs is discussed below.

Figure 17: Various Components of Smart Governance Smart Governance Feedback Delivery agents Objective : Delivery 24x7 phone Common Enhanced Online helpline Mobile App Service Centre Online citizen service Channels delivery through City Gov Project multiple delivery City gov intelligent governance system Dashboard channels

Components: •• Registration •• Mobile app Modules •• Milestones City City City City City City and web •• Fund Disbursement Voice Safety Mobility Living Gov Biz portals and Utilization Grievance Incident Bus Health and Tax New Town •• Public •• Public and Pvt Redressal Reporting Locator Education Payment Employment Agencies kiosks with App Exchange •• Status Tracking internet, Wi- App for Portal Fi Hotspots •• Employee Toto and Utilization and Auto Park and Gateways •• 24X7 Payroll Recreation to Other telephone App facility App Relevant helplines for Car Business •• Electronic Pooling Portals payment Single gateways Window Clearance

43 Connecting the Next Billion | Propelling towards $5T economy

Oppurtunity Scope Strengths Challenges •• Wi-Fi Corridors and •• Laying of OFC cable networks in •• Increasing nos. of smartphone users •• Lack of monetization OFC infrastructure cities and providing additional •• Future-ready workforce, more than 0.15 models for funding Cap- •• App based Smart infrastructure million employees with SMAC (social, Ex and Opex Solutions •• Partnerships of ULBs or State mobile, analytics, cloud) skills •• Delay in integration of •• Specialized governments with network service •• Apps are comparatively low cost ICT solution with Physical handheld devices providers solutions for data collection and infrastructure •• App based solutions which may services such as grievance redressal •• Capacity constraint of later be integrated with the robust •• Precedence of apps such as Swachh municipal staff for rolling smart governance system. Bharat app out smart services •• 100% FDI is allowed in the ESDM

Way forward Digital Payments is key to the government’s Interface for Money (BHIM) / Unified Payment The increasing demands of an urban transformation program as it will benefit the Interface (UPI), Bharat QR. The growing center which needs to be addressed with poor, the middle class, the businesses and popularity of digital payments has helped minimum resources will promote digitization the overall economy. The recent exercise push the cashless initiative in a big way, processes, and machine to machine (M2M) of demonetization in India in 2016 has also paving the way for greater accountability and communications. The data collected by these accelerated the roll out of digital payments transparency in the system, besides curbing connected devices and M2M technologies and financial inclusion in the country. There the growth of the shadow economy. can aid immensely in development of smart was significant increase in new accounts and cities. The Internet of Things, connected deposits within 100 days of demonetization. Way forward devices and cars shall redefine a city’s Subsequently, the Indian government has also Growth in digital payments marks a operations and create an ecosystem which announced a series of incentives from free significant shift for the entire payments will shall eventually be sustainable in terms insurance to discounts on digital payments, infrastructure of India. There has been of gathering data, facilitating decision making which will continue to boost consumer a convergence of interest of various and enabling seamless service delivery. motivation to become and remain cashless. stakeholders, which has created an enabling environment for the development of digital Recent initiatives in smart money payments — the regulations on Payments Smart Money As part of the Digitization agenda, the Banks, the Central Government’s focus In the recent past, Government of India has government has recently introduced a on financial inclusion, the near universal initiated multiple initiatives to transform plethora of Digital Payment methods which coverage of Aadhaar as a digital identity, the the country from being a cash-dominated helped people to go cashless like – Aadhaar innovations across payment systems and the society to a less-cash society. Adoption of Enabled Payment Systems (AePS), Bharat rapid adoption of smartphones in India.

44 Connecting the Next Billion | Propelling towards $5T economy

Figure 18: Growth Drivers for Smart Money Government of India’s push •• Recommendations of the committee of Chief Ministers on Digital Payments •• Rationalisation of charges by RBI/NPCI to New Channels promote Digital Payments •• Commercial launch of new Payment Banks in 2017 likely to accelerate adoption of Digital Payments •• Branch Post offices, new Bank Innovative Payment solutions BCs to accelerate adoption of for India Micro-ATMS •• Unified Payments Interface (UPI) for P2P money transfer •• BharatQR for retail merchant payments •• Mobile Wallets (e.g. PayTM Citizen Awareness etc.) for easy micro-payments •• Increased awareness about •• Aadhaar Enabled Payment Digital Payments as a result System (AEPS) based on of Government of India’s Biometric Authentication Demonetisation exercise in 2016 •• Bharat Bill Payment System •• Training and capacity building for Bill Payments through events like Digidhan mela Financial Inclusion •• NITI Aayog’s incentive schemes like •• Simplified account opening Lucky Grahak Yojana and DigiDhan process through Aadhaar Vyapar Yojana based eKYC Improved Connectivity •• Low cost accounts and •• Improved internet availability doorstep services to drive through launch of cheaper Financial Inclusion (Payment 4G/3G services and affordable Bank accounts, Jan Dhan devices (e.g. JioPhone) to drive accounts) digital payments

45 Connecting the Next Billion | Propelling towards $5T economy

Smart Healthcare patient as well as consumer needs. In 2016, 16 out of 70 Smart Smart Healthcare on principle adopts the Government of India launched four an approach that shall maximize access services (m-Health) - Kilkari, Mobile Academy, City Plans have to affordable medical care, enhance the M-Cessation and TB Missed Call initiative, responsiveness and make consultations these are part of the government's Digital dedicated Smart available across various modes. This shall India program. These are mobile based promote, reducing the cost of consultation solutions which use audio messages or Health components with specialists, reasonably priced medicines ICT based learning material. Telemedicine of assured quality and affordable diagnostics Centers viz. State Telemedicine with a combined services. The mode of service delivery is Network Project with ISRO supported envisaged to be through mobile platforms by specialized hospitals have provided market outlay of or virtual social platforms and supported specialized medical consultation in remote by data analytics and cloud based access to areas. Vision Centre Project provides more than ` 2.5 technology and data. primary and preventive eye-care services in a decentralized manner through Community billion to be invested Both the government and private sector Information Centers (CICs) set up under has step forward with solutions catering National e-Governance Plan (NeGP). in next 2 years to the medical needs of various types of

Figure 19: Emerging Smart Health Solutions Illustrations

Jabalpur has proposed its solution as an New Municipal Corporation has earmarked Emergency Response System in the Area Based one of the highest budget among all cities (` Development for all the vulnerable groups in 24.75 Crores) for Integrate all public medical the area along with Smart Health Card facility facilities through Cloud-based e-healthcare and database for health care and control center system on Cloud provided by NIC under Digital to integrate with other citizen services through India. single window

46 Connecting the Next Billion | Propelling towards $5T economy

A fair share of the proposed Smart City Plans Emerging opportunities strategic partnering of the existing strengths have emphasized on Smart Health as an The future of Smart is and by identifying the right opportunities. The important component. The solutions range beyond telemedicine, and, shall be framed figure below further illustrates the same from emergency response system, cloud by how the government and private service based healthcare, information dissemination providers choose to communicate with the through e-medicine portals or other solutions end customers/patients and through what related to enhanced communication between medium is the service delivered. The initial patients and doctors. years shall present certain challenges but the

Oppurtunity Scope Strengths Challenges •• Online appointment •• Database of all the available hospital/ •• Availability of •• Poor IT infrastructure in services dispensaries, diagnostic centers and medicine alternative cost Government hospitals •• Mobile specialized shops, with geo-tagging effective health •• Lack of technical knowledge healthcare units •• Communication infrastructure linking Ambulance services among senior citizens •• App based service & medical facilities with Command & •• India developing as •• Delayed response time ambulance services Control Centre along with geo-tagging and on the a destination for •• O&M of specialized •• Mobile Healthcare move diagnostic facilities medical tourism equipments •• E-Medicine •• E-Commerce platform with Cash on Delivery and •• India’s booming start •• Wearable Devices Online Payment options. up culture

47 Connecting the Next Billion | Propelling towards $5T economy

Way forward to drive innovation in the education system Healthcare delivery constitutes 65% of the including education environment, method Comprehensive Online School overall Indian healthcare market. Since the and evaluation.32 Some of the key features Monitoring System (COSMOS) – A number of hospital beds and other healthcare of Smart Education includes securing high dedicated system to monitor online facilities are insufficient in the country, quality educational content and promotion of attendance of teachers and students in the focus has shifted towards developing its availability; development and application schools, transforming service books of opportunities for remote patient monitoring of digital textbooks and devices; revitalization teachers and administrative staff to and consultation. The future of healthcare of online classes and establishment of online E-Service Books, and allowing for shall depend heavily upon IoT, tele-monitoring assessment system; establishment of the systematic logistics of student time and monitoring through wearable devices. foundation for a cloud-based education table, salary, grant of online leave, Also, e-medicine is also expected to become service. The National Mission on Education school photo upload of any event. more robust in terms of its offerings, fueled through Information and Communication Currently under implementation in by prevalent schemes viz. Digital India Technology (NMEICT), a flagship mission platform to facilitate collaborations with launched by the Government of India to international organizations to enhance R&D, increase penetration of ICT in Education Make in India for manufacturing specialized aims to focus on appropriate pedagogy for mobile units and Skill India for training e-learning, providing facility of performing paramedics and employees of public and experiments through virtual laboratories, private hospitals alike. on-line testing and certification, on-line availability of teachers to guide and mentor learners, utilization of available Education Smart Education Satellite (EduSAT) and Direct to Home An education system designed to strengthen platforms, training and empowerment of the capabilities of 21st century’s learners teachers to effectively use the new method of by offering an intelligent and customized teaching learning etc.33 learning solution, Smart Education is an aim

48 Connecting the Next Billion | Propelling towards $5T economy

Technology in education

Pedagogy Course content delivery

“Pedagogy is the driver, Digital Podium, an advanced technology is the accelerator” lecture stand is all-in-one smart - Michael Fullan classroom equipment features a Touch Monitor, Document Camera, Digital textbooks, which Visualizer, PA System and UPS.34 combines the curriculum of the existing paper textbook Visualizers, also known as with various reference document camera, is a real-time resources and learning image capture devices that helps support functions, and can to display an object to large be run on any digital device. audiences. The device can magnify Digital textbooks can be used and project the images of actual, anytime and anywhere for the three-dimensional (3D) objects as convenience of students and well as transparencies. along with paper textbooks.

Assessment Data Analysis Modern technology offers Data Analytics to aid teachers to variety of tools that can help track student assignments and teachers track and assess also track their teaching plans. their students' - as well as their own - performance in the Learning analytics are a classroom. foundational tools for informed Software’s are designed to change in education, indicating the give teachers insight into academic practices which need a student's conceptual to be encouraged or discouraged. understanding of any subject The mass of data can be used to by asking a series of questions adapt to the needs of individual which instead of looking for learner. “In-process” assessment the right answers tries to offer valuable insights into student understand how the student performance. arrives at the answer.

Technologies which can be leveraged for the enhancement of the education sector 49 Connecting the Next Billion | Propelling towards $5T economy

Emerging technology based solutions in designed specifically for the education sector education are detailed below:teaching learning etc. Some of the major emerging ICT solutions

Oppurtunity Scope Strengths Challenges •• Adaptive Learning •• Uses machine-driven data to measure •• Visible improvements in student •• Limitations in institutional Technologies student progress and dynamically adjusts to success rates (Arizona University, 76% capacity the level or type of course content based on to 94%) •• Issues pertaining to limited an individual’s abilities or skill attainment •• Investment by donors, e.g. Bill & bandwidth of technology Melinda Gates Foundation penetration in Indian classrooms •• Mobile Learning •• Delivering knowledge or information through •• Increasing user base of smartphones •• Security and privacy issues mobile devices such as smart phones, tablet •• Convenience and easy access •• Screen size PCs, iPads, iPhones or other handheld devices •• Multiple bite size modules •• Risk of distractions •• Next Generation •• Growing convergence of elements, such •• Increasing number of organizations •• Technical Challenges Learning Management as gamification, social learning, content adopting cloud based LMS •• Integration of tool/content System (LMS) management, and collaboration tools •• Market expected to grow by more than 26% during 2016-2020 (Market study by Technavio)

Way forward help students’ development in an all-round and transmission sector are primarily focusing The objective of smart education is to improve way (affectively, intellectually, and physically).35 towards SAP/ERP implementation on various learner’s quality of lifelong learning. It focuses on Furthermore, better customize learning support operational and financial aspects, whereas contextual, personalized and seamless learning could be provided for students to improve distribution utilities which have direct interface to promote learners’ intelligence emerging learners’ expectation. It will now be important with consumers have smart grid vision. Smart and facilitate their problem-solving ability in to integrate the data of different scenarios grid is centric towards deployment of smart smart environments. With the development of in smart cities and build data-centric smart devices (meters, RTUs, etc.), communication technologies and within a modern society, smart education in order to provide seamless learning technologies (HAN-NAN-WAN), data education will confront many challenges, such experience and customized personalized service management and analytics, distribution system as pedagogical theory, educational technology for learners. automation (SCADA) and outage management leadership, teachers’ learning leadership, systems (OMS) which is supported by analytics/ educational structures and educational ideology. data analysis. Smart Energy The smart learning environments could decrease Smart energy revolves the entire value chain Further the technological advancements in learners’ cognitive load, and thus enable learners of generation, transmission and distribution Internet of Things (IoT), M2M (Machine to to focus on sense making and facilitate ontology systems with an overarching aim to ensure Machine) communication, big data, cloud construction. Also students’ learning experience sustainable, reliable and affordable power computing, large storage have acted as catalyst could be deepened and extended, and thus supply to the end consumer. The generation to the various objectives of smart grid. 50 Connecting the Next Billion | Propelling towards $5T economy

Recent initiatives for promotion of smart Mandatory installation of smart meters), as National Smart Grid Mission (NSGM- 15 energy in India R-APDRP for achieving 100% metering smart grid pilots across the country with Various initiatives have been taken during and SCADA/Distribution automation, IT funding support from MOP), EESL (distributed the last decade by Government of India and enablement (ERP Solutions, CBS, SCADA, approximately 230 million LED bulbs and public/private utilities. Central schemes Mobile and Web Applications for consumers), replacement of 2 million street lights with like Integrated Power Distribution System etc. Ministry of Power has been active in LED, about to float tender for procuring 5 (IPDS), Ujjwal Discom Assurance Yojna (UDAY- forming institutions for similar initiatives such million smart meters).

Figure 20: Interlinkages between ICT and Energy

Distribution Automation

SCADA & Distribution Automation • ABB • Schneider • Siemens Central Control • GE Room • Crompton Greaves • L&T Software Solutions • Chemtrols Prosumers • SAP • Oracle Smart Meters • Ferranti • Landis & Gyr • Siemens • Itron • Secure • Genus Communication Modules & • L&T Systems • Silver Spring • Sensus • Cyan Connode • Radio Craft • Landis & Gyr and • Mobile Communication Energy providers Storage 51 Connecting the Next Billion | Propelling towards $5T economy

Table 1: Smart grid components & key players

Key Components & Challenges Challenges Data Size and storage: To derive benefits of smart metering large data storage Big data, at regular intervals is required. Managing and analyzing such a huge volume Server farms, cloud storage of data is difficult Communication, transferring such amount of data at regular interval with Higher bandwidth, innovative communication architecture, RF maximum availability of communication system Canopy Analytics, data is useful only when it is converted into meaningful information Artificial Intelligence, machine learning and cloud computing Solar roof top installations Net metering

Electrical vehicle (Grid to vehicle and vehicle to grid) Real time data analytics, smart sensors

Distributed generation, near real time demand estimation Integration of various sub-systems scattered in entire value chain Open standards, SOA

Way forward user systems delivering real time/near real A pervasive and scalable communication time energy data at consumer fingertips. The Farm infrastructure is crucial in both development In addition, for the utility, ICT can enable and operation of a Smart Grid. To enable through the Intelligent Electronic Devices Mechanization market smart grid communication infrastructure (IEDs) to give a real-time “as operated view” of efficient and secure interconnected devices the power network. in India will grow at and systems are critical. As per Smart Grid Top Market Report, Update January In India, for the development of Smart Energy 8% between 2016 2017, U.S. Department of Commerce, India domain, there is huge potential but the captured 14th place out of 50 major countries market growth was at a slow rate. However, and 2020 considered for the market study. The with government’s initiatives the growth Government of India digitalization initiatives has been geared up that will transform as mentioned above has paved path for such our passive energy networks into smart last few years, the country has witnessed a market growth. responsive energy networks. planned interventions in the sector with an aim to improve the agriculture supply As we consider the power system from chain, comprising delivery of farm inputs, generation to distribution, the prior beneficial Smart Agriculture increasing productivities and input use area of development of smart energy lies The Agriculture sector in India, which ranks efficiencies through efficient management at in the power consumption line. The ICT second worldwide in terms of farm output, the farm level, lowering post-harvest losses as considered as the nervous system of is currently driven by the dual objective of in handling and storage, providing for storage so-called “Smart Grid”, it can encourage raising rural incomes as well as ensuring and transportation infrastructure and for more consumer participation for efficient long term sustainability of the natural processing farm outputs into higher value energy usage through smart interactive end resource base in the country. Over the foods. In all these interventions, information 52 Connecting the Next Billion | Propelling towards $5T economy

and communication technologies (ICTs) have Technology in agriculture and resources in the area, as well as variables played a crucial role in achieving the targeted IoT is changing the face of modern day such as acidity and temperature of the soil. outcomes. ICT linked agriculture practices, agriculture, with farmers employing high They can also access climate forecasts to also termed as Smart Agriculture, ranges tech farming techniques and technologies predict weather patterns in the coming from use of web-based interactive databases to improve the efficiency of their day to day days and weeks. Advent of smartphones for obtaining information on weather, work. Sensors placed in fields allow farmers to and mobile applications have made remote natural resources, agriculture credit, and obtain detailed maps of both the topography monitoring of equipment, crops, and government programs, as well as technical knowledge. Fueled by recent efforts by the Central Government, allowing 100% FDI across a host of Agriculture activities, the farm ITC’s e-Choupal: The model is centered mechanization market in India is slated to grow at 8% between 2016 and 2020.36 on a network of eChoupals, or village level information centers, each equipped with a computer with broadband internet connectivity through VSAT and by a trained local farmer. It leverages ICTs to aggregate operated demands for farm inputs, allow free access to knowledge on crop management and expert advice, weather forecasts, and information on prevailing prices in local and global markets. The model functions like a virtual producer’s cooperative by supplying farm inputs of good quality at relatively low cost, as well as

knowledge for their effective use. 53 Connecting the Next Billion | Propelling towards $5T economy

livestock, as well as obtaining stats on their sensor-based field and resource mapping, livestock feeding and produce easy. Drones remote crop monitoring through drones, have become an invaluable tool for farmers climate monitoring and forecasting, water to survey their lands and generate crop management & smart irrigation solutions to data. Many villages in India, especially in the name a few. states of and , are part of the climate-smart agriculture project with an aim Emerging ICT solutions for Indian to make agriculture sustainable and resilient agriculture market to climate changes. Some of the breakthrough Some of the major emerging ICT solutions IoT solutions in the Indian Smart Agriculture increasingly being adopted at the Indian space comprises of soil monitoring sensors, Agriculture sector is presented below:

Oppurtunity Scope Strengths Challenges Drones for Field •• GPS based remote controlled robot to •• Smooth scouting over farm fields, •• Limited applicability to Monitoring perform tasks like weeding, spraying, gathering precise information and reach the grassroots moisture sensing, bird and animal transmitting the data on real time •• High costs and scaring, keeping vigilance etc. basis capacity constraints for implementation Soil Monitoring Sensors •• Multilayer and multi point sensors •• Efficient cultivation process •• Cost and deployment of suitable for all types of soil to •• Increase crop yield sensors under the soil measure temperature, moisture and •• Improve soil research information •• Capacity constraints light Smart Irrigation •• Remote sensing and control irrigation •• Variable rate irrigation, •• Technical Challenges system using distributed wireless •• Real time in field sensing, •• Integration of tool/content sensor network aiming for smart •• Site specific precision linear move •• Capacity constraints control and intelligent decision irrigation system to maximize making based on accurate real time productivity with minimal use of field data water

54 Connecting the Next Billion | Propelling towards $5T economy

Way forward monitoring, integrating it with satellites for Connectivity, ICT infrastructure costs, The Ministry of Agriculture of Government large scale agricultural applications in the knowledge generation and policy support & of India has launched a collaborative future. This coupled with other attempts institutions are critical impact areas that will research project involving use of drone at modernizing Indian Agriculture are play a crucial role in effective integration of technology in farming sector. The project witnessing implementation of IoT at various ICTs into the SMART Agriculture development aims to implement Hyperspectral Remote scales. Further, ICTs offer a wide range of process in India. Sensing using drone systems and develop a opportunities for institutionalizing knowledge locally researched prototype for soil health management in agricultural development.

55 Connecting the Next Billion | Propelling towards $5T economy

5. Regulatory and Policy: Safeguarding billions

56 Connecting the Next Billion | Propelling towards $5T economy

It is well established that ‘Digital’ is the growth Figure 21: Regulatory & Policy framework for key technology and infrastructure initiatives mantra and the ecosystem has to come together to connect the billion plus India. Regulations and policy which will play a key Privacy role in this ecosystem development must target a sustainable, and equitable growth of Protection this ecosystem.

While it has significant social and economic benefits, it comes with its own challenges, especially around security and privacy. Emerging technologies such as M2M, IoT, and 5G give birth to new possibilities and use cases. To ensure security and privacy of data of individuals, society, organizations and even Data Facilitate Spectrum nations, it thus becomes critical to formulate Security availability a comprehensive policy through consultation with various stakeholders.

Regulatory & Policy Framework

Tackling new use- Facilitate cases Infrastructure roll-out

Fostering Skill Development

57 Connecting the Next Billion | Propelling towards $5T economy

Spectrum Figure 22: Global average spectrum holding per operator per service area India has extreme spectrum fragmentation 69 65 and a small average spectrum holding per operator in a licensed service area of 3.5-6.2 Global average MHz in any of the 800, 900, 1,800 and 2,100 spectrum holding per 49 operator ~50MHz* MHz bands. 39 Currently, the average spectrum holding per 28 28 operator per service area in India is pegged at ~28 MHz, which is much lower than the global average of 50 MHz.

Today, telecom operators continue to be saddled with high capex and operational ** costs, making it difficult to develop high- Africa Americas Asia Oceania Europe India (prior Oct- capacity networks to service India's growing 2016 spectrum mobile market. Besides profitability concerns, auctions) network inefficiencies have also resulted in *Only licensed Bands considered for calculation (MHz): 700, 800, 900, 1800, 1900, 2100, 2300, 2500 poor service across the board. Players have ** Asia excludes China complained that lack of affordable spectrum is the direct cause of the falling quality of service (QoS) standards and have raised demands for the release of additional spectrum in order to address this. of bands into contiguous blocks, leading to Beyond increasing spectrum among efficient utilization of spectrum. This uniform operators, DoT and TRAI have taken steps allocation of spectrum minimizes radio in the right direction by introducing ways interference, improves customer experience, and guidelines for better, efficient spectrum facilitates international roaming and reduces management – these include the guidelines the manufacturing cost of phone/devices. for spectrum sharing, spectrum trading and spectrum harmonization: DoT in 2016, made an attempt to harmonize the 1800 MHz band, leading to availability of Spectrum Harmonization is uniform 219.6 MHz in this band. Initially 67% of the allocation of radio frequency bands across band was fragmented, leaving only 1/3rd regions, especially in border areas where suitable for 4G. All mobile operators and the the Department of Defence (DoD) holds the DoD were asked to vacate unused spots in radio waves. The phenomenon leads to usage the band and then DoT harmonized it.

58 Connecting the Next Billion | Propelling towards $5T economy

Spectrum Sharing which refers to the the most important bands for LTE remained shared use of spectrum held by non-telco unsold primarily due to high reserve price of incumbents is becoming an important tool ~` 110 billion per MHz pan India. for managing demand for spectrum. The guidelines released by DoT and TRAI address Another enabling step that could be network efficiency concerns by allowing considered is the allocation of E and V Band. telecom operators to leverage non- linear These bands are important for providing gains in spectral efficiency, and among many backhaul capacities for 3G and 4G networks provisions allow spectrum sharing between for the spread of these technologies both in operators in regions where they both have urban and rural areas. spectrum in the same band Net Neutrality There are several definitions to Net Neutrality, Similarly, guidelines on spectrum trading but the term generally refers to the principle are a forward looking step which provide that: “Telecom service providers must treat flexibility to the operators. While they enable all internet traffic on an equal basis without players looking to get spectrum acquire regard to the type, origin or destination of the spectrum outside the auction process, they content or the means of its transmission. It also pave the way for struggling operators to therefore implies that all points in a network exit the business. should be able to seamlessly connect to all other options without any discrimination on However, affordability of spectrum is an aspects of speed, access or price”. area which may be seriously reviewed. In the auction held in 2016, 700 MHz, one of

Figure 23: Net Neutrality Debate Spectrum

"For'' Net Bandwidth Zero Rating Paid Data "Against'' Net Neutrality Throttling Data Fast Lanes Neutrality

59 Connecting the Next Billion | Propelling towards $5T economy

Countries (as in Table 2) around the measures to address Net Neutrality thus through legislations, regulations or voluntary world recognise Net Neutrality and have far), to “Tentative Refinement” (Light-handed guidelines). dealt with it differently thus far, ranging approach) to “Active Reforms” (Prohibit from “Cautious observation” (no specific certain behaviours by TSPs – these have been

Table 2: Countries with their approaches on Net Neutrality

Approach on Net Neutrality Description Cautious Observation •• Countries following this approach have observed Net Neutrality and choose not to take any specific measures to define them Tentative Refinement •• Countries adhering to this approach are following a light-handed approach with refinements to the existing regimes, but not going very far to prohibit certain behaviours Active Reforms •• Approach by these countries ranges from passing of legislation through parliamentary process (e.g. Brazil) to regulations (e.g. US, EU) to voluntary guidelines (e.g. Norway, Japan)

In the Indian context, TRAI has, through its by the Indian Regulator is appropriate. This •• To develop a coherent policy on the subject Prohibition of Discriminatory Tariffs for Data principle is also incorporated in the UASL, of Net Neutrality, there is a need for Services Regulations 2016, already barred which mandates that subscribers should have adopting a holistic approach rather than a service providers from directly, or indirectly unrestricted access to all content available on piece meal approach. imposing discriminatory prices for access to the Internet, unless it is restricted by law. •• Definition of Net Neutrality in the Indian data services based on the type of content context may be as enunciated by the DoT being accessed. Therefore, Indian position The regulator, with the release of a Committee. Further, there may be voluntary is quite clear that Internet access services comprehensive consultation paper in 2017, approach towards adopting the principles of should be provided in a non-discriminatory is now making headway in the net neutrality Net Neutrality Principles. manner and without any undue interference debate – exploring how to define core with user choice. principles, regulate traffic management •• Previous recommendations/ regulations on practices and monitor for violations. It is Discriminatory Pricing and free data have The proliferation of a vast variety of consulting to make a decision regarding the to be aligned with the holistic approach applications, websites, and other forms approach it should follow between “Wait and adopted for Net Neutrality in India. of content on the Internet, has enhanced Watch” and “Self-regulation”. •• Policy/Regulation could consider laying user choice and paved the way for greater down a principle based approach rather innovation and competition. Considering A regulatory proposal on Net Neutrality may than adopt a prescriptive approach – either that internet has paved greater innovation considering the following guidelines: in terms of what is permitted or what is which India needs to foster, the stance taken prohibited.

60 Connecting the Next Billion | Propelling towards $5T economy

•• Consider ex-post regulation vs. ex-ante Internet of Things growth of 31 times to reach 1.9 billion units regulation. For example, one option could India would be a rapidly growing hub for by 2020, from its current base of 0.06 billion. be an ex-post approach wherein TRAI can Internet of Things (IoT) solutions with market On the other hand, India IoT opportunity is examine tariff plans on a case by case basis value expected to be $9 billion, with an expected to grow ~7 times to move from $1.3 after giving a reasonable opportunity to the installed unit base of 1.9 billion by 2020. IoT billion in 2016 to $9 billion by 2020. operators of being heard. units in India are expected to see a rapid

Figure 24: IoT market in India and the split by Industry, expected as of 2020

10% 9%

8% 11% 3% 60% 55% 3%

13%

40% 45%

18% 25%

Units Revenue Retail Others* Transport & Logistics Agriculture Utilities Automotive Consumer Industry BFSI Manufacturing Health Care

To boost IoT uptake in India, the Government It is critical to recognize that this is an evolving Industry players have highlighted the concern of India has proposed a multi-dimensional field - the Regulatory policy is required of low technical competency, leading to approach in its draft IoT policy, to create a to learn from other countries, and evolve low employability of new entrants into the $15 billion Indian IoT market by 2020. India consistent guidelines on the Dos and Don’ts workforce. This is true especially for small- needs to continue to build capabilities across around these emerging areas. to-medium sized enterprises. This is partially technology areas of sensors (to adapt to because of lack of updated curricula at the rugged climate/ terrain in India) along with Skill Development colleges from which the employees are network infrastructure, standards, and The Electronics, IT, ITes and Hardware recruited. augmented intelligence and behavior. industries are one of the most emerging industries in India employing 6.2 million and expected to reach ~8.9 million by 2022. 61 Connecting the Next Billion | Propelling towards $5T economy

There has been increasing need of multi- However, the government along with bodies training and capacity building, each to skilled employees in the sector, resulting such as the National Skills Development train at least 50,000 persons over a 10- in huge investments to build skills in Center (NSDC) has been taking many year period. Additionally, to encourage manpower. New technologies such as Cloud initiatives including the Skill India program to distance learning, they launched a Skill Computing, Mobility are transforming the help the Skills ecosystem in India evolve. Development Management System (SDMS) technology sector in India. Companies require with 1400 training partners, ~28000 training professionals skilled in cloud management, The NSDC operates through partnerships centers, ~16000 trainers, 20 job portals, 77 remote infrastructure management and with multiple stakeholders such as assessment agencies and ~5000 empaneled mobile computing devices. But, there are given below: assessors. significant skill gaps that exist in the sector •• Private Sector – Areas of partnerships leading to shortage of skilled manpower In order to further narrow the gap between include awareness building, capacity supply. supply and demand of skilled manpower, creation, loan financing, creation and there are a few considerations as below: operations of Sector Skill Councils, assessment leading to certification, •• Private sector partnerships: A large employment generation, Corporate Social number of public-private partnership Responsibility, World Skills competitions programs can be initiated wherein funds and participation in Special Initiatives like are provided to private players interested in Udaan focused on J&K establishing institutes

•• Central Ministries – Participation in •• Establishing CoEs for R&D: Technology flagship programs like Make in India, domains need knowledge on strategic Swachh Bharat, Pradhan Mantri Jan Dhan electronic, industrial electronics Yojana, Smart City, Digital India and Namami -hence, new courses should be introduced Ganga, among many others on this. Courses on key emerging skills including Big Data, Analytics, VLSI should •• State Governments – Development of also be included programs and schemes, alignment to National Skills Qualification Framework •• Matching international standards: (NSQF) and capacity building, Designing of trainings, courses, etc. as per operationalization of program, capacity the international standards will help going building efforts among others forward in maintaining the quality of the manpower The efforts and initiatives have yielded significant achievements. There have been 235 private sector partnerships for

62 Connecting the Next Billion | Propelling towards $5T economy

Facilitate ease, efficiency and sustainability between 2002-03 and 2017-18, ` 498.52 fiber roll-out, deployment of judicial mix of of broadband infrastructure roll-out billion remained unutilized, representing overhead vs. underground, etc. Keeping in mind the need for advancing 57% of the USO levy collected. Further, iii. Refresh building codes: Mandating ubiquitous broadband, the National Telecom there are around 55,669 villages buildings by adding broadband to the Policy needs to be revised with deeper focus do not have mobile coverage and building codes to provide infrastructure on strategic direction, increased clarity around government is working to provide mobile for ensuring broadband readiness and policy actions to be implemented and a robust coverage in these villages through USO incentivizing other infrastructure providers governance framework. fund assistance. for facilitating Broadband Infrastructure c. AGR Definition and Calculations to be for Transforming India infrastructure, could Multiple workgroups, which include the simplified: encourage broadband growth. industry, with defined KPIs and timelines, can drive the broadband roll-out process. i. Definition of Revenue for License iv. Encourage use of utility corridors: For the Inter-ministerial involvement in defining the Fee (LF) and Spectrum Usage Charge establishment of utility corridors, players strategic direction is critical to the success of (SUC): The revenue, for the purpose such as NHAI may be asked to provide this policy document. of calculation of LF, could be from ducting for all new road projects. Specific the operation of the telecom license standards must be set by the Government i. Address regulatory and policy barriers: (activities for which an exclusive in concurrence with NHAI and other Indian Telecom sector remains one of license has been granted under Indian authorities responsible for State the most heavily taxed sectors when Telegraph Act, 1885). This would help highways, piped natural gas, water, compared to benchmark taxation, levies operators to identify newer aligned sewage and electricity as well. These and surcharges that are levied on telecom areas of revenue as currently they must be enforced with penalties for non- service providers in South Asia and ASEAN are constrained due to levy is on compliance. Policy should be laid down to countries. The estimated total levy on the gross revenue. Furthermore, consider secure fiber network by defining guidelines Indian telecom sector ranges from 29% to levying SUC only on the wireless such as ‘call before you dig’. 32% which is one of the highest. China on revenue from the use of licensed the other hand has just 11% as the total spectrum. Non-telecom incomes levy. Government /DoT may consider to could be removed from the purview address the following in this regard: of LF and SUC. A working group a. Rationalisation of Spectrum Usage comprising of members from DoT, Charge (SUC): The rationalization of SUC TRAI, ICAI and Industry to finalize the becomes more important for the Indian definition of revenues (GR/AGR) for telecom market where affordability of the purpose of calculation of LF and the service is paramount. SUC could be constituted.

b. Rationalisation of USO contribution ii. New RoW & tower policy: Policy aspects (License Fee): With improved rural include inter alia, a defined RoW and tower tele-density USO contribution may be policy (pricing, timelines), single window reduced. As per USOF data, out of the clearances, dig-once policy, awareness and ` 872.71 billion collected for the USOF guidelines on deployment standards for 63 Connecting the Next Billion | Propelling towards $5T economy

v. Create conducive environment for adequate participation from various private sector investments: Create ministries, private sector and experts to enabling policies to encourage private continually evolve the policy. sector investments for broadband. The Government needs to consider Cyber Security incentivizing private players to invest in Cyber security is becoming a rapidly evolving broadband infrastructure, allow Flexibility and complex issue that governments and of export of redundant active equipment, companies are contending with today. relax single borrower exposure limits Globally, cybersecurity has risen to the top on banks for credit-worthy telecom of the international priority list in virtually companies, allow Tax Free Bonds, all areas – from politics to national defence establish Telecom Finance Corporation / to smart homes. Ransomware damages are Infrastructure Bank to provide loans at predicted to hit $5 billion by the end of 2017, preferred rates to Telecom Companies. up 15 times since the last 2 years.

vi. Constitute governance framework: The Government could look at instituting an empowered government-industry joint working group to work on various aspects of the policy, including long to medium term direction, short term tactical fixes and quick wins. This team should have

64 Connecting the Next Billion | Propelling towards $5T economy

Figure 26: Global Cyber Security Index by International Telecommunications Union (ITU), 2017 1 #1 0.9 #7 0.8 #13 0.7 #23 #32 #37 0.6 0.5 0.4 0.3 0.2 0.1 0 Singapore Australia Republic India China Philippines of Korea #Represents Global Rank Global Cybersecurity Index

Owing to the increasing usage of mobile sensitive intellectual property. According to technology, cloud computing and data The Global Cyber Security Index released generated by enterprises, cases of security by the UN telecommunications agency breaches, loss of sensitive information and International Telecommunication Union (ITU) damage to technological infrastructure in 2017, only about half of all countries have have become increasingly common, thus a cybersecurity strategy or are in the process transforming the IT landscape at a rapid of developing one and urged more countries pace. Unlike the physical world, cyber to consider national policies to protect against space is unique in that it is borderless cybercrime. The index, which was topped by and asymmetrical. Increased internet Singapore at 0.925 saw India at 23rd position. penetration around the globe is leading India ranked fourth globally among the to the continuous growth of cyber space, countries most affected by ransomware, hence naturally increasing attacks targeting and India continues to be a hot destination

65 Connecting the Next Billion | Propelling towards $5T economy

for targeted cyber-attacks. Some of the key •• Focus on building deep cyber capabilities, developments could prove beneficial. India’s considerations for developing an effective developing various tools and software intelligence agencies should separately cyber security strategy are: designed to intrude, intercept and exploit provide their consolidated inputs to aid the digital networks – while not being a low cost operations of the NCSA •• Draft a cyber security vision in line affair, serves the key function of strategic with its Digital India mission to ensure •• Develop and harness skills in cyber defence deterrence strong growth and cyber security •• Currently, a top layer of agencies perform •• Build roadmap for a clear national cyber cyber operations — the National Technical Regulatory initiatives would include security infrastructure that parallels Research Organisation, the National defining guidelines and consulting to evolved systems in other developing and Intelligence Grid, and the National facilitate ease of execution and efficiency developed nations Information Board, to name a few but there in roll-outs, and defining the technology •• Foster Collaboration, collective initiative is also an additional layer of ministries considerations. Further, the success of and responsibility sharing between the performing governance functions. A the plan and identified initiatives depend government and the private sector to tackle policy wing with the Ministries of Defence, strongly on collaboration among key cybercrime Home, External Affairs and IT that provides stakeholders including the government, their assessments of local and regional industry bodies, and private players.

66 Connecting the Next Billion | Propelling towards $5T economy

About India Mobile Congress

India is marking its way towards a Digital showcasing new innovations, products & Revolution. The Mobile, Internet and services launches, disruptive technologies, Technology economy contributing a whopping experience zones, country pavilions and 6.5% to the National GDP, bringing $141.22 much more. billion worth investments and creating 2.2 million jobs, the world is looking towards The conference sessions will revolve around India as a potential market. To recognize this four major themes of Technology, Business, growth and opportunity in Mobile, Internet Policy and Digital Life, bringing together and Technology, India Mobile Congress has government officials, promoters, CXOs, been formed. India Mobile Congress aims technocrats, academicians, innovators and to position India the definite voice in Digital thought leaders to deliberate, discuss, debate Communication Forum with conglomeration and demonstrate outcome-based solutions. of thought leadership, knowledge decimation, With the gen-next cool trend to start working showcasing new products, technologies and on new and innovative ideas, India is all set innovations, promoting entrepreneurship to outperform all other nations on the world spirits and facilitating right policy and stage in the years to come. India is a home regulatory environment and recognizing the for almost 3100 start-ups starting per year contributions. standing just behind the US, UK, and Israel. India Mobile Congress 2017 (IMC 2017) aims Contributing to the Indian success story is IMC at “Connecting the Next Billion through will shape up as a platform to recognize and Mobile, Internet, and Technology”. The empower the start-up ecosystem. IMC 2017 mobile congress will comprise of exhibitions, would attract approximately 200 startups and conferences and awards in a single, unique & recognize a selected few for the unique role in distinctive global platform. The exhibition will “Connecting the Next Billion”. feature exhibitors from ICT, TMT, Government sector, Embassies, States etc. who will be

67 Connecting the Next Billion | Propelling towards $5T economy

About Deloitte

We believe that we’re only as good as the For us, good isn’t good enough. We aim to good we do. excel at all that we do—to help clients realize their ambitions; to make a positive difference All the facts and figures that talk to our size in society; and to maximize the success of our and diversity and years of history, as notable people. This drive fuels the commitment and and important as they may be, are secondary humanity that run deep through our every to the truest measure of Deloitte: the impact action. we make in the world. That’s what makes us truly different at So, when people ask, “what’s different about Deloitte. Not how big we are, where we Deloitte?” the answer resides in the many are, nor what services we offer. What really specific examples of where we have helped defines us is our drive to make an impact that Deloitte member firm clients, our people, matters in the world. and sections of society to achieve remarkable goals, solve complex problems or make In India, Deloitte member firms are spread meaningful progress. Deeper still, it’s in the across 13 locations with more than 40,000 beliefs, behaviors and fundamental sense of professionals who take pride in their ability purpose that underpin all that we do. to deliver to clients the right combination of local insight and international expertise. Our hard work and commitment to making a real difference, our organization has grown in scale and diversity—more than 245,000 people in 150 countries, providing multidisciplinary services yet our shared culture remains the same.

68 Connecting the Next Billion | Propelling towards $5T economy

Acknowledgments

We acknowledge the efforts put in by:

Strategic direction Hemant Joshi Abhishek V

Research Siddhartha Tipnis Anujesh Dwivedi Prakash Sayini Gunjan Gupta Debashish Biswas Anurag Saxena Satish Kumar Singh Riddhi Lahiri Amit Jain Vaibhav Mathur Aniruddha Abhyankar Gargi Sen Mazin Chakkarathodi Joel Abraham Prashi Badkur Navanit Namrata Ankita Singh Pratika Madhur

Project Management Office Anu Peisker, Manager 69 Connecting the Next Billion | Propelling towards $5T economy

Contacts

India Mobile Congress Deloitte Touche Tohmatsu India LLP Address: IMC Secretariat - 3rd Floor, Kailash-A, 7th Floor, Building 10, Tower B, Sumangalam Society, Bodakdev, DLF Cyber City Complex, , – 380054, India DLF City Phase - II Telephone: +91-7940048594 Gurgaon - 122 002, India e-mail: [email protected] Telephone: +91-0-124 679 2396 Website: www.indiamobilecongress.com e-mail: [email protected] Social Media Handle: #IMC2017 & #exploreimc Website: www.deloitte.com/in

70 Connecting the Next Billion | Propelling towards $5T economy

Recent Thought Leadership

The leap to 5G

Regulatory Sandbox: Making CSP 2.0: Operators’ digital TMT Predictions 2017 - India a Global FinTech Hub transformation with new India edition revenue opportunities

71 Connecting the Next Billion | Propelling towards $5T economy

References

1 India ranks 36th in Internet inclusiveness: Facebook-EIU | March 2017 | https://theinclusiveinternet.eiu.com/explore/countries/performance 2 Percentage of wireless internet/broadband subscribers | TRAI Report | July 2017 3 GSMA report | The Mobile Economy – India 2016 4 Forrester | eCommerce Trends And Outlook For Asia Pacific | June 2017 | https://www.forrester.com/report/Trends+In+Indias+eCommerce+M arket/-/E-RES78361 5 Forrester | eCommerce Trends And Outlook For Asia Pacific | June 2017 | https://www.forrester.com/report/Trends+In+Indias+eCommerce+M arket/-/E-RES78361 6 State Bank of India | “Ecoflash” Report | http://www.firstpost.com/business/digital-transactions-volume-leapfrogged-by-3-years-post- demonetisation-says-sbi-report-3809319.html 7 Most popular app install categories in India in 2015 | https://www.statista.com/statistics/509652/most-installed-app-categories-india/ 8 Deloitte TMT Predictions 2017 | https://www2.deloitte.com/in/en/pages/technology-media-and-telecommunications/articles/tmt-india- predictions-2017.html 9 Deloitte TMT Predictions 2017 | https://www2.deloitte.com/in/en/pages/technology-media-and-telecommunications/articles/tmt-india- predictions-2017.html 10 India ranks third in the world for most number of startups in technology | Feb 2017 | http://www.firstpost.com/tech/startup/india-ranks-third- in-the-world-for-most-number-of-startups-in-technology-3726255.html 11 9 tech trends that will make billions of dollars starting in 2017 | October 2016 | http://www.businessinsider.in/9-tech-trends-that-will-make- billions-of-dollars-starting-in-2017/articleshow/55040462.cms 12 Internet of Things (IoT) Market Worth 661.74 Billion USD by 2021 | April 2016 | https://www.telegraphindia.com/pressrelease/prnw/11748/ internet-of-things-iot-market-worth-661-74-billion-usd-by-20.html 13 Cognitive Technologies: The real opportunities for business | https://www2.deloitte.com/tr/en/pages/technology-media-and- telecommunications/articles/cognitive-technologies.html 14 Cognitive Technologies: The real opportunities for business | https://www2.deloitte.com/tr/en/pages/technology-media-and- telecommunications/articles/cognitive-technologies.html 15 Virtual, Augmented, and Mixed Reality| May 2017 | http://deloitte.wsj.com/cmo/2017/05/18/virtual-augmented-and-mixed-reality/ 16 Virtual, Augmented, and Mixed Reality| May 2017 | http://deloitte.wsj.com/cmo/2017/05/18/virtual-augmented-and-mixed-reality/ 17 India AR & VR Market to Grow 55% by 2021 - Increasing AR Usage For Enhancing Gaming Experience - Research and Markets | July 2016 | http:// www.businesswire.com/news/home/20160719006080/en/India-AR-VR-Market-Grow-55-2021 18 VR headset market reaches $3.4 million in India | May 2016 | http://economictimes.indiatimes.com/articleshow/52466698.cms?utm_ source=contentofinterest&utm_medium=text&utm_campaign=cppst

72 Connecting the Next Billion | Propelling towards $5T economy

19 Tech Trends 2017: An Overview | Feb 2017 | http://deloitte.wsj.com/cio/2017/02/08/tech-trends-2017-an-overview/ 20 This is how I-T department is using data analytics to catch tax evaders | August 2017 | http://economictimes.indiatimes.com/ articleshow/59889309.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst 21 This is how I-T department is using data analytics to catch tax evaders | August 2017 | http://economictimes.indiatimes.com/ news/economy/policy/data-analytics-helps-i-t-department-to-track-benami-deals/articleshow/59889309.cms 22 Chance to make millions using ISRO’s data | Jan 2017 | http://timesofindia.indiatimes.com/trend-tracking/isro-data-app-startup/ articleshow/56388762.cms 23 India Stack | http://indiastack.org/about/ 24 India Stack is the key technology platform that could transform India into a cashless economy| December 2016 | http://www. firstpost.com/tech/news-analysis/india-stack-is-the-key-technology-platform-that-could-transform-india-into-a-cashless- economy-3694019.html 25 India Stack is the key technology platform that could transform India into a cashless economy| December 2016 | http://www. firstpost.com/tech/news-analysis/india-stack-is-the-key-technology-platform-that-could-transform-india-into-a-cashless- economy-3694019.html 26 JAM revolution to end financial exclusion: | August 2017 | http://economictimes.indiatimes.com/news/economy/ policy/jam-revolution-to-end-financial-exclusion-arun-jaitley/articleshow/60249988.cms 27 JAM revolution to end financial exclusion: Arun Jaitley | August 2017 | http://economictimes.indiatimes.com/news/economy/ policy/jam-revolution-to-end-financial-exclusion-arun-jaitley/articleshow/60249988.cms 28 The Internet Of Things Generates Trillions In Revenue By Connecting Billions Of Devices| March 2015 | https://www.forbes.com/ sites/teradata/2015/03/17/the-internet-of-things-generates-trillions-in-revenue-by-connecting-billions-of-devices/#6369aeb67fda 29 Deloitte Analysis, NASSCOM IoT Study 30 Deloitte TMT India Predictions 2017 | https://www2.deloitte.com/in/en/pages/technology-media-and-telecommunications/ articles/tmt-india-predictions-2017.html 31 Deloitte TMT India Predictions 2017 | https://www2.deloitte.com/in/en/pages/technology-media-and-telecommunications/ articles/tmt-india-predictions-2017.html 32 What is Smart Education? | MyGov https://www.mygov.in/sites/default/files/user_ submission/21b320fed4daf418e5c086edec7c927f.pdf 33 National Mission in Education through ICT | April 2016 | http://mhrd.gov.in/technology-enabled-learning-0 34 Is Smart Education the Future? | July 2016 | http://www.edsys.in/is-smart-education-the-future/ 35 A research framework of smart education | March 2016 | https://slejournal.springeropen.com/articles/10.1186/s40561-016-0026-2 36 Farm Mechanization Market in India 2016-2020 | July 2016 | https://www.technavio.com/pressrelease/ smartfarminginitiativesmakeagriculturalpracticesindiamoresustainablethrough

73 www2.deloitte.com/connectingthenextbillion

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. Please see www.deloitte.com/about for a more detailed description of DTTL and its member firms.

This material is prepared by Deloitte Touche Tohmatsu India LLP (DTTILLP). This material (including any information contained in it) is intended to provide general information on a particular subject(s) and is not an exhaustive treatment of such subject(s) or a substitute to obtaining professional services or advice. This material may contain information sourced from publicly available information or other third party sources. DTTILLP does not independently verify any such sources and is not responsible for any loss whatsoever caused due to reliance placed on information sourced from such sources. None of DTTILLP, Deloitte Touche Tohmatsu Limited, its member firms, or their related entities (collectively, the “Deloitte Network”) is, by means of this material, rendering any kind of investment, legal or other professional advice or services. You should seek specific advice of the relevant professional(s) for these kind of services. This material or information is not intended to be relied upon as the sole basis for any decision which may affect you or your business. Before making any decision or taking any action that might affect your personal finances or business, you should consult a qualified professional adviser.

No entity in the Deloitte Network shall be responsible for any loss whatsoever sustained by any person or entity by reason of access to, use of or reliance on, this material. By using this material or any information contained in it, the user accepts this entire notice and terms of use.

©2017 Deloitte Touche Tohmatsu India LLP. Member of Deloitte Touche Tohmatsu Limited