STUDY PAPER

ON

SUSTAINABILITY ASSESSMENT OF BHARATNET PROJECT

By:

ABDUL KAYUM

DIRECTOR (FIXED ACCESS DIVISION), TELECOM ENGINEERING CENTRE, NEW DELHI

TABLE OF CONTENT TABLE OF CONTENT ...... i ABSTRACT ...... iii LIST OF TABLES ...... iv LIST OF FIGURES AND GRAPHS ...... iv LIST OF SYMBOL/ABBREVIATION ...... vii

CHAPTER - 1 INTRODUCTION ...... x 1.1 Objectives ...... xiii 1.2 Methodology and Approachs ...... xiv 1.3 Document Review and Analysis ...... xiv 1.4 Informal Interviews ...... xiv 1.5 Field Research ...... xv 1.6 Questionnaire Surveys ...... xv 1.7 Observations ...... xv 1.8 Synthesis and Analysis ...... xvi

CHAPTER 2 HISTORICAL ANALYSIS OF TELECOM POLICIES IN ...... xvii 2.1 Government Telecom Policies ...... xviii 2.2 National Telecom Policy 1994 ...... xviii 2.3 National Telecom Policy 1999 ...... xviii 2.4 Policy 2004 ...... xlx 2.5 National Telecom Policy-2012 ...... xx

CHAPTER 3 GOVERNANCE/ORGANISATIONAL ARRANGEMENT FOR BHARATNET PROGRAMME ...... xxvi 3.1 BharatNet Concept Frame Work ...... xxvii 3.2 BharatNet Concept diagram ...... xxvii 3.3 Actors of BharatNet Programme ...... xxx 3.4 Technology ...... xxxv 3.5 Testing of CDOT GPON System for Stated Delivery: ...... xl 3.6 Physical Delivery ...... xl 3.7 Economy ...... xliii 3.8 Social Impact ...... xlvii 3.9 Sustainability ...... lv Chapter 4 SURVEY ...... lx 4.1 Need for Survey and Methodology ...... lv

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CHAPTER 5 CONCLUSION AND POLICY RECOMMENDATIONS ...... lxxxviii 5.1 Analysis and Synthesis ...... lxxxviii 5.2 Policy Recommendations:...... xci 5.3 Observation ...... xcii

Bibliography ...... xciii

Annex I: Statements from Respondents/Key Stake holders ...... Ai Annex II: ITU Recommendations for Enabling Digital Inclusion...... Aiii Annex III: Networked Readiness Index 2017 ...... Av Annex IV: IDI Ranking 2017 ...... Avi

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ABSTRACT

BharatNet erstwhile NOFN is a Government of India flagship programme to overcome between rural and urban areas. Under BharatNet programme 2,50,000 villages panchayats are to be connected through optical fibre network to deliver 100mbps bandwidth at Gram Panchayats with an investment of Rs.45,00,00 crores.

The purpose of this research was to evaluate BharatNet programme by using a sustainability framework with elements of policy, governance, technology, socio-economic impact and overall sustainability. The study employs both qualitative and quantitative research methodologies such as textual analysis, informal interviews, questionnaire surveys and simple statistical tools to analyse and interpret the results. The findings of the study are quite revealing. BharatNet programme appears to be an ‘add on’ as a strategy whose policy and plans are not fully integrated and aligned with other stakeholders to achieve the policy objectives. There is no linkage between GP point of interconnect and customer and similarly between Block HQ POI and TSP/ISP/Content providers. The design principle was based on the premise that market forces will establish these linkages over time. However, the study finds that this is one of the weakest links in the sustainability of the project operation and management. Private entrepreneurs were not enthusiastic about investing in last mile without viability gap funding. BharatNet programme does not appear to be financially self-sustaining at least up to year 2024. It may achieve breakeven if atleast 50% of village population subscribe to this programme at current tariff which is unlikely in near future under prevailing eco system. However, strength of the programme lies in the selection of indigenously developed CDOT’s field proven GPON technology – one of the proven technologies in this domain. The emphasis on technology is well prioritized as choice and selection of inappropriate technology was found to be one of major culprits leading to failure of all previous experiments carried out earlier in rural India.

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List of Tables

Table 1: National Telecom Policy 1994 ...... xviii

Table 2: National Telecom Policy 1999 ...... xix

Table 3: Targets of Broadband Policy for Internet and Broadband Users ...... xx

Table 4: Telecom policy 2012 Objectives and Outcome ...... xxii

Table 5: Saving of Rs. 4,608 per former on account of reduction in transaction cost...... xlvi

Table 6: How ICTs can help in achieving other MDGs ...... xlvii

Table 7: Status of the targets shows we have to cover a long distance ...... xlviii

Table 8: Summary of demand estimates ...... lvii

Table 9: BBNL has notified tariff plan in September 2017 ...... lvii

Table 10: Market rate of broadband connection in from cable operators ...... lviii

Table 11: Viability Analysis ...... lix

Table 12: Tariff APSFL ...... lix

List of Figures and Graphs

Figures 1: Performance Indicator Report ...... xxiii

Figures 2: BharatNet Concept Diagram ...... xxvii

Figures 3: BharatNet Phase I ...... xxviii

Figures 4: State Led Model Phase II ...... xxix

Figures 5: BBNL Led Model Phase II ...... xxx

Figures 6: Cumulative Effect of Flows on USO Funds ...... xxxiii

Figures 7: Access Technology Evolution for Speed ...... xxxvi

Figures 8: Trend in optical Access Technology Adoption World Wide ...... xxxvi

Figures 9: GPON Architecture...... xxxviii

Figures 10: Status of BharatNet ...... xlii

Figures 11: Broadband Active Gram Panchayat ...... xlii

Figures 12: ICT Development Index, 2017 ...... xlviii

Figures 13: Figure Showing GPON System with no Computer ...... li iv

Figures 14: Purpose of in Rural and Urban Areas ...... lii

Figures 15: Reasons for not using Internet in Rural & Urban Areas ...... liii

Figures 16: Networked Readiness Index ...... liv

Figures 17: BharatNet as an Island www. Network ...... lv Figures 18: Low uses of data/video services in rural areas ...... lxii Figures 19: Low uses of data/video services are due to lack of affordability ...... lxiii Figures 20: Low uses of data/video services due to high data tariff ...... lxiv

Figures 21: Low uses of data/video services are because there is no use of services...... lxiv

Figures 22: BharatNet programme will be able to fulfil stated objectives of NTP-2012. .. lxvii

Figures 23: BharatNet programme fits into policy framework of NTP-2012 ...... lxviii

Figures 24: BharatNet programme close the gap between Rural Urban Digital Divide .... lxix Figures 25 Clear Roadmap for stake holders ...... lxx Figures 26: No Single Window Service from BBNL ...... lxxii

Figures 27: Non-visibility of BBNL reason for non-utilisation of services ...... lxxii

Figures 28: Last mile Connectivity is Important ...... lxxii

Figures 29: Implication of State led model and Private Sector led model...... lxxiii

Figures 30: Engagement of private entrepreneurs or states to deliver services to citizens. lxxiv

Figures 31: Efficiency of organization arrangement of the BharatNet Programme ...... lxxv

Figures 32: Splitting of responsibility hindering the pace of project delivery ...... lxxv

Figures 33: Efficacy of arrangement the project by the single entity BBNL ...... lxxvi

Figures 34: No delay due to RoW...... lxxvii

Figures 35: BharatNet Project Self Supporting? ...... lxxviii

Figures 36: Technology choice for the project was appropriate ...... lxxix

Figures 37: The chosen technology can meet the minimum requirement of 100 mbps ..... lxxix

Figures 38: The Chosen Technology is Robust...... lxxx

Figures 39: The chosen technology is scalable ...... lxxx

Figures 40: Chosen technology is adequately green ...... lxxxi

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Figures 41: Chosen technology is sustainable ...... lxxxii

Figures 42: Local content of interests is available to the intended beneficiary ...... lxxxii

Figures 43: Broadband has the potential to create sustainable livelihood options ...... lxxxii

Figures 44: Broadband facility impact on poor’s in terms of various e-services ...... lxxxii

Figures 45: Broadband Services can strengthen the local Education Service ...... lxxxiii

Figures 46: Broadband services and Mainstreaming the underserved groups ...... lxxxv

Figures 47: Broadband services and its impact of socio-economic equality ...... lxxxv

Figures 48: Broadband services and environmental implications ...... lxxxvi

Figures 49: Overwhelmingly support for BharatNet ...... lxxxvi

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Acronyms Abbreviations ADSL Asymmetric AGR Adjusted Gross Revenue AP A-PON A Passive Optical Network APSFL Andhra Pradesh State Fiber Net Limited ATM Asynchronous Transfer Mode BB Broadband BBNL Limited BDO Block Development Office B-PON Broadband Passive Optical Networking BSNL Bharat Sanchar Nigam Limited CAPEX Capital Expenditures CDOT Centre for Development of Telematics CGM Chief General Manager CoE Centre of Excellence CPSU Central Public-Sector Undertaking CSC Common Service Centers CVO Chief Vigilance Officer DOT Department of Telecommunications DPR Detailed Project Report DSLAM Digital Subscriber Line Access Multiplexer DWDM Dense Wavelength Division Multiplexing EMS Element Management System ERNET Education and Research Network FDI Foreign Direct Investment FTTB Fibre to The Building FTTH Fibre to The Home FUP Fair Usage Policy GB/s Gigabits/s GBPS Gigabits Per Second GDP Gross Domestic Product GEPON Gigabit Passive Optical Network GIS Geographical Information System GM General Manager GPON Gigabit Passive Optical Network GPs Gram Panchayats GR Generic Requirement GSM Global System for Mobile HD High Definition HQ Head Quarters ICT Information and Communication Technologies IEEE Institute of Electrical and Electronics Engineers IFPON Interface PON IIT Indian Institute of Technology IN Intelligent Network INR Indian Rupee

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IP Internet Protocol IPTV Internet Protocol Television ISD International Subscriber Dialing ISDN Integrated Services Digital Network ISP Internet Service Provide ITI Indian Industries IT Information Technology ITU-D International Telecommunication Union (Development) ITU-T International Telecommunication Union (Telecommunication) LEA Local Enforcement Agency LWE Left Wing Extremist MARR Multiple Access Relay MBPS Megabits Per Second MDU Multi Dwelling Unit MEITY Ministry of Electronics and Information Technology MoU Memorandum of Understanding MPCE Monthly per capita Expenditure NFON National Fiber Optic Network NGN Next Generation Network NGPON2 Next-Generation Passive Optical Network 2 NHAI National Highways Authority of India NMS Network Management System NOC Network Operations Centre NOFA National Optical Fibre Authority NOFN National Optical Fibre Network NSSO National Sample Survey Office NT Network Termination NTP National Telecom Policy O&M Operations and Management ODN Optical Distribution Network OLT Optical Line Terminal OM Office Memorandum ONT Optical Network Terminal ONU Optical Network Unit OPEX Operational Expenditure OSINT Open Source Intelligence PC Personal Computer PCO Public Call Office PGCIL Power Grid Corporation of India Limited PMU Project Management Units PoI Point of Interconnect PON Passive Optical Network POP Point of Presence PSTN Public Switched Telephone Network PSU Public Sector Undertakings PWC Price Waterhouse Coopers R&D Research & Development RF Video Radio Frequency Video

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RoW Right of Way S/R Send /Receive SNI Service Network Interface SOFA State Optical Fiber Authority SPV Special Purpose Vehicle TDM Time-Division Multiplexing TEC Telecommunication Engineering Centre TERI The Energy and Resources Institute TPON Telephone Passive Optical Network Technology TRAI Telecom Regulatory Authority of India TSP Telecom Service Provider TSTP Test Schedule Test Procedure UAL Universal Access Levy UNI User Network Interface US Universal Service USB Universal Serial Bus USL Universal Service Levy USO Universal Service Obligation USOF Universal Service Obligation Fund UTI Unit Trust India VDSL Very-High-Bit-Rate Digital Subscriber Line VDSL2 Very-High-Bit-Rate Digital Subscriber Line 2 VOIP Voice Over Internet Protocol WDM Wavelength-Division Multiplexing WLL Wireless Local Loop XGPON 10 Gigabit Passive Optical Network XGSPON 10 Gigabit Symmetrical Passive Optical Network

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CHAPTER 1

INTRODUCTION

Indian Government programs (Digital India1) that surrounds rural population in India such as e-education, telemedicine, e-health, e-commerce, e-banking and e-Governance need a strong broadband network to ride on. As high capital cost and low return on investment inhibit private investment in rural areas, Government, perhaps, has hardly any choice but to step in, if it has to fulfil its stated objectives of bridging digital divide which exist even today for the benefit of 70% of its population living in rural areas. This is not only case in India, but also remains a fact around the world. Scholarly debates on the role of internet in driving the GDP has been well established. For instance, Andres2 et al, 2010 demonstrated a correlation between internet diffusion and GDP in low income countries and found that increase in the number of internet users per capita is followed by higher increase in GDP. A similar exercise carried out by Shahram Amiri3 et al in their analysis of Internet Penetration and its Correlation to Gross Domestic Product (2013) further substantiated the findings of Andres et al (2010) by carrying out a study for Nordic countries between 2000 and 2010. It demonstrates that there exists a strong correlation between growth in internet adoption and growth in GDP. The results of the study clearly bring out the connection between GDP and growth of internet penetration and states that the growth in internet precedes that of the GDP growth. They concluded that, for countries which are lagging behind in internet adoption, a supportive government, initial investment in ICT infrastructure and enactment of policies which drive growth of Internet usage can help to create an ecosystem which fosters economic development as well. So, the above argument builds a strong case to see whether India is has experienced such kind of a trend. The focus of this piece of research is to carry out a holistic analysis of a recently launched programme of government of India named BharatNet programme, to bridge the digital divide that continues to derail the Indian growth story.

Worldwide countries like Australia, Canada, Finland, Germany, Japan, Portugal, Singapore, South Korea, and the US, have categorised broadband as infrastructure akin to road and electricity etc. enabling economic & social growth and have already developed and executed national plans for creating nationwide broadband network reaching the unconnected areas.

1 frame work - http://negd.gov.in/digital-india 2 Andres2, Cuberes, Diouf, & Serebrinsky, 2010 The diffusion of Internet: A cross-country analysis (Period 1994-2004) 3 Shahram Amiri et al and Brian Reifin in their analysis of Internet Penetration and its Correlation to Gross Domestic Product (2013) (Period 2000-2010) x

Historical analysis of the internet growth in India could be traced back to the declaration of Broadband Policy 2004. However, in India despite Broadband Policy 20044, broadband growth was not commensurately taking place in villages at the pace envisaged in Policy, TRAI submitted a proposal to cabinet secretary on 16th July 2009 for extending broadband services to rural areas. Government constituted an inter-ministerial committee on 4th august 2009 headed by administrator, Universal Service Obligation Fund (USOF) to prepare an action plan to provide broadband connectivity to rural areas. The committee submitted its report to DOT in January 2010. Meanwhile, Shri Sam Pitroda then adviser to PM also submitted a white paper on ‘Broadband Connectivity to Panchayats5’. TRAI continued its initiative and called a Consultation paper on and deliberated with all stake holders and gave its recommendation (TRAI recommendation 20106) to DOT on 8th Dec 2010.

TRAI had recommended formation of two layers of agencies one at national level named National Optical Fibre Authority (NOFA)and other at state level, named as State Optical Fiber Authority(SOFA). As per recommendation, NOFA would be a holding company of all SOFAs. Whereas NOFA would be a 100% central government owned, SOFAs would be a jointly owned company by state (51%) and NOFA (49%). The SOFA would be given a National Long Distance(NLD) licenses with conditions that they would not access the subscriber directly for providing any service permitted to NLD licensees. Power to fix tariff will lie with TRAI, says the recommendation.

Besides rural area where 2,50,0000 GPs were to be covered under NOFA, TRAI had recommended that NOFA would also established networks in all 63 cities covered under Jawaharlal Nehru National Urban Renewal Mission (JNNURM). TRAI recommendation suggested for establishment of optical fiber backhaul network beyond block headquarters to carry aggregated traffic from block headquarters to the district headquarter or to the nearest city for handing over the traffic. TRAI had recommended triple play services as well considering the revenue potential of video services based on international experience. In order to make services affordable, it had also recommended to reduce cost of customer premises equipments by reducing duties on these products and 100% depreciation of these equipment in the first year.

4 Broadband Policy 2004, http://www.dot.gov.in/ 5 http://initiatives.sampitroda.com/iii/images/stories/innovation/Whitepaper_BB_to_Panchayat.pdf 6 http://www.trai.gov.in/sites/default/files/FINALRECOMENDATIONS952012.pdf xi

As Universal Service Obligation Fund (USOF) would not be funding JNNURM areas broadband network because of its legal limitations, TRAI had suggested for loan to be taken by NOFA to fund such work in its report.

TRAI visualised that Right of Way (RoW) is going to be a possible bottleneck in project execution, its recommendation had suggested for notifying charges for RoW by central government in consultation with state government on priority basis to avoid delays on this account.

As per recommendation, cost of project would be 60,000 crores which would be financed by USO fund and the loan given by or guaranteed by central government and the timeline for completion of project would be 3 years (by 2013).

TRAI recommendation on coverage to JNNURM cities, creation of backhaul bandwidth, creation of SOFA and RF Video services were not accepted by DOT and proceeded with rest of recommendations. Based largely on the recommendation of TRAI, government formed National Optical Fibre Network (NOFN) which was latter on converted into a SPV named BBNL.

A pilot project 7under NOFA was launched under three Blocks covering 59 Gram panchayats (GP) covering the different regions of the country to capture diversity of the project in the march 2012. CDOT developed technology (GPON system)8 was deployed in the pilot project for testing. Pilot project was completed on 15th October 2012. Execution of Fibre network under Pilot Project as well as subsequent project was allocated to BSNL, RailTel and PGCIL. After completion of pilot project, work allocation to BSNL, RailTel and PGCIL was done in the ratio of 84%, 8% and 7% respectively on notional basis. First phase of project has been completed by BSNL & PGCIL and about 17% work is pending in case of RailTel at the end of December 2017.

Although physically terminal equipment (ONT) have been installed in GPs but services are yet to be launched and made available in GPs in absence of any interest (except tokenism) from telecom service providers in providing service in GPs. CSC9 programme of MIETY which was supposed to act as facilitation centre in GPs is running far behind schedule. Recently

7 http://www.bbnl.nic.in/index1.aspx?lsid=252&lev=2&lid=24&langid=1 8 http://www.cdot.in/solution_products/gpon.htm 9 http://meity.gov.in/DeitY_e-book/csc/index.html xii

(Oct’2017) BBNL10 and BSNL have entered into an agreement for operation and maintenance of ‘extended’ BBNL bandwidth and marketing of each other’s dependent product.

Since the time of conception project, project has undergone many changes but unfortunately all the lessons11 learned during pilot project have not gone into the implementation of the first phase of the project. However, two important changes that took place may be good for the sustainability of project. One that volunteering states (at present seven) have been given full freedom to implement the project the way they want including coverage in urban areas, creation of backhaul bandwidth, RF Video12 and other eco system (e.g. Unified Telecom License) apart from mandate under BharatNet (NOFN). However, funding to States will be limited the cost of the items covered in cost of BharatNet project. This change is partially in line with TRAI recommendation and some in contradiction with it. The other change is extension of broadband network upto the last mile.

As BharatNet project13 is still under implementation, hence a full-fledged impact analysis is difficult to carry out. The findings are more indicative in nature and offers way forward to carry out some mid-course corrections in the process of implementation.

1.1 Objectives

Prior to BharatNet programme, Government of India had introduced many rural telecom schemes like Village Panchayat (VPT) through various technologies like open wire, underground copper cabling, Multiple Access Radio Relays (MARR) and Wireless in Local Loop (WLL) for providing affordable basic telephony to villages. However, these schemes failed to yield desired results. BharatNet programme is a similar scheme with an objective to provide not only basic telephony but high speed internet and video services to villages. Considering previous failures of rural telecom schemes, objective of the study was to find out (a) whether BharatNet programme was required at all? (b) whether it was on its course to meet its stated objectives? (c) if any course correction is required.

10 http://www.bbnl.nic.in/WriteReadData/LINKS/OM_agree_061017bfd461cb-0521-49e7-b9d4- b10d7d1e9034.pdf 11 http://www.bbnl.nic.in//admnis/admin/showimg.aspx?ID=105 12 It is a Cable TV feed as an overlay on GPON System 13 http://www.bbnl.nic.in/index1.aspx?lsid=570&lev=2&lid=467&langid=1, Dated: 31st.Dec.2017 xiii

1.2 Methodology and Approach

Since this exercise lays emphasis on assessing the project performance of one of ambitious programme of Government of India (GoI) i.e. BharatNet Programme, one of the methodological challenge is to find out an appropriate framework to carry out such as assessment. Given the thrust on policy, governance, technology, socio-economic and overall sustainability of the project, it adopts the sustainability assessment methodology as proposed by Brent and Rogers14 (2010). The chosen dimensions were also validated through peer group and stake holder’s interactions, the reason for choosing these dimensions is explained in further clarified chapter no 3 SURVEY. To undertake the study of BharatNet programme, a blended research methodology was adopted. This included both qualitative and quantitative research methodologies such as textual analysis, informal interviews, questionnaire surveys etc.

1.3 Document Review and Analysis

15National Telecom Policy 1994, 16National Telecom Policy 1999, 17Broadband Policy 2004, 18National Telecom Policy 2012 and policies and documents related to BharatNet with the mission to ensure bridging the gap between urban and rural areas were selected for this exercise. However, the official ‘Digital India’ framework was also included for this analysis as Digital India framework will be riding on success of BharatNet programme as for rural area is concerned.

To establish a baseline across all documents, policy review was limited to the objectives of the policies which dealt with the policies related to rural telecom development. Sustainability framework was used to carry out the review. Along with the above several peer reviewed papers were also part of this review.

1.4 Informal Interviews

To allow for comprehensive and meaningful discussions with key strategic stakeholders, a series of informal interviews were held with people from DOT, CDOT, BBNL, BSNL, TEC and users. The interviews were carried out with open ended questions to enable a better

14 Brent, A C and D E Rogers (2010) ‘Renewable rural electrification: sustainability assessment of mini-hybrid off- grid technological systems in the African context’, Renewable Energy 35: 257-265. 15 http://www.dot.gov.in/national-telecom-policy-1994 16 http://www.dot.gov.in/new-telecom-policy-1999 17 http://www.dot.gov.in/broadband-policy-2004 18 http://www.dot.gov.in/relatedlinks/national-telecom-policy-2012 xiv understanding of the specific organisational challenges, issues and roadblocks and discover any areas that were impeding BharatNet programs and most importantly, extract specific recommendations to overcome barriers, if any.

1.5 Field Research

Field research was used to closely examine the implementation aspect of policy, governance structures prevalent at ground, capability of technology and level of use and impact of ICTs on rural people in their local setting and natural rural environments. This was only undertaken on a small sample of teachers of three primary schools and officials of telephone exchange and BDO office where technology was provided under field trial.

Field visits were jointly coordinated by the Telecom Engineering Centre (TEC) and the Centre for Development of Telematics (CDOT). CDOT, who planned, organised and facilitated with the BBNL and BSNL.

1.6 Questionnaire Surveys

A unique questionnaire survey was designed which focused on related policies, governance structure of programme, technology used for implementation, sustainability aspect of programme and impact on economy and society to assess the level of familiarity with respect to BharatNet programme and get the feedback. This allowed for a quantitative data collection. The survey was given to all the stake holders of the programme. A total of 22 responses were received.

1.7 Observations

Throughout the field research and informal discussions general observations were taken at every opportunity to allow for reflection that would complement the formal data collection methods. The observations were also used to create practical recommendations for the follow up actions.

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1.8 Synthesis and Analysis

The findings from the document review, stakeholder engagement and field research were synthesized and analysed to derive insightful nuances on the implementation of BharatNet Programme.

The primary objective was to identify specific gaps and actionable recommendations to accelerate and bridge the digital divide along with providing practical recommendations that would have a high impact on the success of the programme and subsequently on livelihood of rural people.

In addition, comprehensive research was conducted over a cross section of literature (academic papers, reports and generals) to identify and uncover current and the future problems that may come on the way to success of the BharatNet programme. This process allowed for valuable, practical and actionable recommendations to be developed for this paper.

The report has been divided into five chapters. The second chapter covers development of Telecom Polices leading to BharatNet project and policy outcome. The third chapter deals with Governance structure to support BharatNet programme and discusses details of BharatNet programme as such and other important variables like vehicle of programme i.e. Technology, status of physical delivery of programme, sustainability and its impact on economy and society. Fourth chapter is survey which capture perception of stakeholders on variables like Policy, Governance, Technology, Economy and Social impact. The last chapter covers analysis and synthesis of the programme to conclude and make a clear recommendation.

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CHAPTER 2

HISTORICAL ANALYSIS OF TELECOM POLICIES IN INDIA

Efforts have been taken from time to time by the Department of Telecommunication (DoT) of Government of India to strengthen the rural communication systems. This is manifested through various policy pronouncements made from time to time. The idea behind such policy push was based on the premise that telecommunication is an engine of growth and ultimately making it as a right of an individual which gets reflected in a series of policy changes. The thrust on policy was to minimise the digital divide which is termed as unavailability of affordable and reliable broadband service in rural areas compared to urban areas. Attempt is made here to extract the relevant portion of various telecom policies to understand the objectives of policy intervention.

2.1 Government Telecom Policies

The telecom services have been recognized the world-over as an important tool for socio- economic development for a nation. It is also an effective tool for undertaking social initiatives of the Government such as e-education, telemedicine, e-health and e-Governance (pwc- 201719). It is one of the prime support services needed for rapid growth and modernization of various sectors of the economy (Shahram Amiri et al 2013). Indian telecommunication sector has undergone a major process of transformation through significant policy reforms, particularly beginning with the announcement of NTP 1994 and was subsequently re- emphasized and carried forward under NTP 1999, Broad Band Policy 2004 and NTP 2012. A new telecom policy is under way. Driven by various policy initiatives, the Indian telecom sector witnessed a complete transformation in the last decade. It has achieved a phenomenal growth during the last few years and is poised to take a big leap in the future also. This rapid growth is possible due to various proactive and positive decisions of the Government and contribution of both by the public and the private sectors. The rapid strides in the telecom sector have been facilitated by liberal policies of the Government that provides easy market access for telecom equipment and a fair regulatory framework for offering telecom services to

19 https://www.pwc.in/assets/pdfs/publications/2017/digital-india-targeting-inclusive-growth.pdf xvii the Indian consumers at affordable prices. However, growth of broadband in rural area is not commensurate.

2.2 National Telecom Policy 1994

In 1994, the Government announced the National Telecom Policy which defined certain important objectives, including availability of telephone on demand, provision of world class services at reasonable prices, improving India's competitiveness in global market and promoting exports, attractive FDI and stimulating domestic investment, ensuring India's emergence as major manufacturing / export base of telecom equipment and universal availability of basic telecom services to all villages. None of the target in respect of services could be met due to technical and limited financial resource allocations.

Targets Achievement

Telephone on demand by 1997 Not realised

Telecom coverage to all Villages by 1997 50% by March 1997

In the urban areas a PCO should be 277,000 in March 1999, though not met yet provided for every 500 persons by 1997 better performance than others

All Internationally used value-added Not realised services to be introduced in preferably by 1996

Tele- density .8 per 100 persons Not realised (.4%)

Table (1) (Source: NTP-1994)

2.3 National Telecom Policy 1999

The National Telecom Policy (NTP) 1999 had Universal Service as one of its main objectives, to strive to provide a balance between the provision of Universal Service to all uncovered areas, including the rural areas, and the provision of high-level services capable of meeting the needs of the country's economy and encourage development of telecommunication facilities in remote, hilly and tribal areas of the country through resources for meeting the Universal Service Obligation (USO). This was to be generated through a Universal Access Levy (UAL), at a prescribed percentage of the revenue earned by the telecom licensees. Further, NTP 1999 xviii envisaged the implementation of USO Obligation for rural and remote areas which would be undertaken by all fixed service (Now mobile service providers also) providers who shall be reimbursed from the USOF. Other service providers would also be encouraged to participate in USO provision subject to technical feasibility and would be reimbursed from the USOF. Another major outcome of this policy was to set up the Universal Service Obligation Fund with effect from April 1, 2002. Target and achievement of policy is given below which shows better improvement in outcome compared previous policy except in the area of internet penetration.

Target Achievement20

Telephone on demand by the year 2002. Achieved

Teledensity of 7 by the year 2005 and 15 by the year 2010 70.89 by March 2011

Rural Teledensity of 4 by the year2010, reliable transmission 33.79 by March 2011 media in all rural areas.

Telecom coverage of all villages and provide reliable media 98% by to all exchanges by the year 2002 March 2011

Internet access to all district headquarters by the year 2000. Not achieved

High speed data and multimedia capability using technologies Not achieved including ISDN to all towns with a population greater than 2 lakh by the year 2002

Table (2) 2.4 Broadband Policy 2004

21Penetration of Broadband, Internet and Personal Computer (PC) in the country was 0.02 percent, 0.4 percent and 0.8 percent respectively at the end of December, 2003. In the backdrop of above and recognizing the potential of ubiquitous Broadband service in growth of GDP and enhancement in quality of life through societal applications including tele-education, tele- medicine, e-governance, entertainment as well as employment generation by way of high- speed access to information and web-based communication; Government announced Broadband Policy in October 2004. The main emphasis was on the creation of infrastructure through various technologies that could contribute to the growth of broadband services. The prime consideration guiding the Policy included affordability and reliability of Broadband services, incentives for creation of additional infrastructure, employment opportunities,

20 http://www.trai.gov.in/sites/default/files/Indicator_Report-Mar-11.pdf 21 http://shodhganga.inflibnet.ac.in/bitstream/10603/96536/16/16_chapter-9.pdf xix induction of latest technologies, national security and brings in competitive environment so as to reduce regulatory interventions.

The role of other facilitators such as electricity authorities, Departments of ITs of various State Governments, Departments of Local Self Governments, Panchayats, Departments of Health and Family Welfare, Departments of Education is very important to carry the advantage of broadband services to the users particularly in rural areas. Target was set for providing Broadband connectivity to all revenue villages, secondary and higher secondary schools, public health institutions and panchayats. DOT will be subsidizing the infrastructure cost of Broadband network through support from USO Fund to ensure that Broadband services are available to users at affordable tariffs.

Targets of Broadband Policy for Internet and Broadband users are given below.

Year Internet users Broadband users

2005 6 millions 3 millions

2007 18 millions 9 millions

2010 40 millions 20 millions

Table (3)

22“It is of concern to note that we have just 8.75 million broadband connections in the country at the end of March 2010, as against the target of 20 million broadband subscribers by 2010, set by the Broadband Policy 2004,” said TRAI

Utter failure of broadband policy led to a consultation paper on the subject by TRAI. TRAI recommendation on the subject was incorporated in NTP-2012.

Seeds of BharatNet programme can be traced to this policy. Unfulfilled objectives NTP-1994, NTP-1999 and Broadband policy 2004 and policy shortcomings which were noticed during implementation of these policies were addressed in NTP-2012 to a large extent.

2.5 National Telecom Policy-2012

Extract of NTP-2012 is reproduced here, “National Telecom Policy-2012 is designed in a manner to ensure that Government play this role effectively and transforms the socio-economic

22 TRAI-Consultation-Paper-On-National-Broadband-Plan, 2010 xx scenario through accelerated equitable and inclusive economic growth by laying special emphasis on providing affordable and quality telecommunication services in rural and remote areas”. Thrust of this policy is to underscore the imperative that sustained adoption of technology would offer viable options in overcoming developmental challenges in education, health, employment generation, financial inclusion and much else. NTP-2012 is an initiative to create a conducive policy framework to address these issues and to touch lives of all citizens and transform India. ‘Right to broadband’ enshrined and envisaged provisioning of converged communication services in commercially unviable rural & remote areas using USO Fund.

Objectives of policy intervention are to reduce Rural Urban Digital Divide to reach out to masses to provide to the people of India, reliable and affordable tele-connectivity capable of delivering tele-services anytime, anywhere. In the deregulated competitive sector, the US obligation of the State towards the excluded sections, un-served or the underserved areas remains of paramount focus of the State. Universal service (US) is when every individual or household can have service or adequate proportion of the population can have. The objective set forth in the policy for universal service can be categorised to meet the followings;

Economic: Stimulate uptake of the ICT services by extending it to door step Social: Mainstreaming the underserved & un-served areas by bridging the digital divide Political: To enable citizens aware to exercise their political rights in an informed way Constitutional: To make Equitable distribution of the fruits of development and fair allocation

Telecom policy 2012 objectives and outcome related to our study is tabularised below TARGET ACHIEVEMENT23 Increase rural Tele-density from the current 92.98 % March 2017, achievement exceeds the level of around 39 to 70 by the year 2017 and target 100 by the year 2020. Provide affordable and reliable broadband- Target for affordable Broadband on demand on-demand by the year 2015 and to achieve has not been met in rural areas however target 175 million broadband connections by the for total no. of connections has exceeded the year 2017 and 600 million by the year 2020 target by 100 million. (276.52 Million, March at minimum 2 Mbps download speed and 2017) however reliability is yet to be achieved. making available higher speeds of at least (TRAI) 100 Mbps on demand Provide high speed and high quality 136.52 Million Internet user mainly on narrow broadband access to all village panchayats band wireless at the end of March 2017. 2014 through a combination of technologies by the target is totally missed however 2020 target is

23 http://www.trai.gov.in/sites/default/files/Indicator_Report-Mar-11.pdf xxi year 2014 and progressively to all villages likely to be achieved (BBNL Strategic doc and habitations by 2020. 2017)

Table (4)

Assessment of the above policies brings out some interesting facets of telecom revolution in India. Telecom policies in India has been striving to achieve universal telecom coverage, affordability and reliability as the hall mark of all the telecom policies. Whereas focus of NTP 1994 was to make telephone on demand and ensure at least one phone in every village, NTP-99 moved beyond just a phone to a satisfactory level of penetration of telephony and make availability of internet and value-added services available as well. Focus of Broadband policy 2004 was to make broadband available like telephony but it did not succeed much. The reason for its failure was lack of desired eco system required for growth of broadband services. Affordability was a major issue. ICT devices were expensive and tariffs were unaffordable. There was also an issues with the content. Content of interest was not provided. In addition, there were technological and financial constraints at the end of Telecom operators. Focus of the operators were on voice telephoney from where they were making money. Online services from government and institutions were not available. Most of the objectives of NTP-94 and NTP-99 were met out by 2011 except that of internet so the main focus of NTP-2012 was on making internet and broadband available including in rural areas. Trends in telecom development indicators (Figure 1) speaks volume and points where focus should be. Total telephone subscribers are almost three times of total internet subscribers. Although broadband subscribers are too small to be compared to telephone subscribers but pace of growth is much higher than that of telephone subscribers but internet growth in rural area is almost flat in contrast to growth in rural telephony which implies that a lot of activities are happening on broadband front but in urban areas. Impact of BharatNet will be visible once scheme is completed and services to customers are made available.

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TRENDS IN TELECOM DEVELOPMENT INDICATORS (IN MILLIONS)

Total Subscribers Urban Subscribers Rural Subscribers Total Internet Subscribers Urban Internet Subscribers Rural Internet Subscribers Broadband subscribers

1,195

1,059 996

693

610 577 502 449 419 422

343 286 302 231 277 191 150 137 112 112 99

2014-15 2015-16 2016-17

Figure (1) (Source: TRAI24, performance indicator report of corresponding years)

242014-2015 http://www.trai.gov.in/sites/default/files/Indicator-Reports-Mar12082015.pdf 2015-2016 http://www.trai.gov.in/sites/default/files/Indicator_Report_05_August_2016.pdf 2016-2017 http://www.trai.gov.in/sites/default/files/Indicator_Reports_05_Jul_2017.pdf xxiii

Target of providing high speed and high-quality broadband, as envisaged in NTP-2012, to all Gram Panchayats is to be implemented through BharatNet programme. Project implementation is through special purpose vehicle called Bharat Broadband Network Limited (BBNL) under Department of Telecommunication. The project is funded from USOF. Department of Telecommunication, USOF, BBNL, BSNL, CDOT, POWERGRID, RAILTEL, MEITY and state governments form the structure of governance to operationalise the project. Policy formulation lies with DOT, USOF does the role of funding and monitoring on behalf of government, it does not have an independent infrastructure of its own, and is heavily dependent on DOT for support. It is difficult to distinguish between DOT and USOF functions. CDOT is a R&D institution under DOT and provides technology support to the project. GPON system and NMS developed by it is extensively used in the project. BSNL, POWERGRID and RAILTEL execute project on the ground, also BSNL is the first TSP to use BharatNet bandwidth to make broadband services available in GPs. Role of BBNL is more of a Project Monitoring Unit. It is heavily dependent on BSNL for providing its fibre to be used between BHQ and villages for connectivity and for utilising bandwidth created under BharatNet. Role of MEITY is to make IT gadgets and contents available to village institutions to increase the uptake of broadband services. State governments are to put citizen centric services on the 100mbps bandwidth which is provided free of cost out of BharatNet. States governments provide Right of Way (RoW) for laying of fibre on the lands falling under their jurisdiction.

One of the major constraints that come in the way of construction of wireline is getting right of way (RoW) permissions from state governments, Railways, National Highways, forest and defence establishments etc. It won’t be out of place to discuss, policy changes that took to address this important problem.

In this regard, the Central Government has notified the Indian Telegraph Right of Way Rules25, 2016 to regulate underground infrastructure (optical fibre) and over ground infrastructure (mobile towers). This rule is applicable to all telecom service providers holding a licence issued under sub-section (1) of section 4 of the Indian Telegraph Act, 1885.These rules have simplified the grant of right of way permissions for creation of telecom infrastructure by making it transparent and time bound manner. Under the new Rules, applications for laying fibre underground cable as well as for setting up telecom towers have to be accepted or rejected within a period of 60 days failing which application will be deemed to have been approved. All Government agencies and municipal bodies will also have to establish an

25 http://www.dot.gov.in/circulars/gazette-notification-indian-telegraph-right-way-rules-2016 xxiv electronic interface to receive and process Right of Way permission within one year from coming into force of these Rules in November, 2016. Further, telecom infrastructure cannot be shut down without following due process. This measure is expected to facilitate increasing the pace of creation of infrastructure both in urban and in rural areas (DOT Annual report 2016- 17)26.

Organisations having impact on implementation of BharatNet programme shall be discussed in next chapter under governance structure of BharatNet programme.

26 http://www.dot.gov.in/sites/default/files/Annual%20Report%202016-17.pdf?download=1 xxv

CHAPTER 3

GOVERNANCE/ORGANISATIONAL ARRANGEMENT FOR BHARATNET PROGRAMME

For the deeper digital penetration in rural areas, the Government has taken up BharatNet, in mission mode to link each of the 2.5 lakh Gram Panchayats of India through Broadband optical fibre network. On its completion, BharatNet would facilitate Broadband connectivity (with a 100 Mbps of bandwidth) for over 600 million rural citizens of the country. This is the largest rural connectivity project of its kind in the world, and is the first pillar of Digital India Programme. It will facilitate the delivery of various e-Services and applications including e- health, e-education, e-governance and e-commerce in the future (DoT-Annual report 2016-17).

As per the BBNL vision and mission document, BharatNet programme was created with an aim of helping growth of internet uses which in turn will foster economic and social development of rural areas apart from meeting other objectives.

Programme at glance Project Deliverables: Services: High speed internet, Video/Voice calling, Video Entertainment and e-services (e- education, e-health, e-commerce, e-banking, and e-governance) Infrastructure: 100 Mbps speed through Wi-Fi/Ethernet on Gigabit Passive Optical Network (GPON) based access Network called as National Optical Fibre Network (NOFN)

No of GPs to be covered: 2, 50,000 Gram panchayats in two phases

Phase I: One Lakh GPs at the cost of Eleven thousand crores. (Rs. 11,200 crores utilised so far)

Phase II: One Lakh Fifty thousand GPs at the cost of Thirty-four thousand crores. Total Project cost: 45,000Crores (Initial) Completion period: 2 years (Initial) (Project conceived in 2011) Revised Completion Target: March 2019

Funding Agency: Universal Service Obligation Fund (USOF)

Original Executing Agency: Bharat Broad Band Network Limited (A Special purpose vehicle) through (BSNL, RAILTEL and PGCIL)

Revised Executing Agencies: Private led under BBNL and State led agencies

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Users: Central/State Government, Telecom Service Providers (TSPs), ISPs, Cable TV operators and Content providers can launch various services in rural areas for consumption of public at large.

3.1 BharatNet Concept Frame Work

It was believed that optical fibre is available at each Blocks in the country from Telecom Service providers which can be tapped for connecting downward streams to GPs. Accordingly, BBNL planned to construct network from Block headquarters to villages in star topology using fibre splitters. Bharat Broadband Network Limited restricted itself to just providing bandwidth from Block HQ to villages. It planned to sell its bandwidth to the retail service providers/TSPs/ISPs etc. at village level who will erect access network for ultimate users in the first phase of deployment.

Service provision to customer is not a part of this programme; it merely makes fibre and bandwidth available to TSPs/ISPs/MSOs/LCOs/State. Service provisioning to GPs and other customers shall be taken up by ISPs/TSPs etc. Network is equipped to provide, telephone, high speed broadband and IPTV services. RF TV service is not included in BharatNet project. As a part of an agreement between DoT and States, 100mbps bandwidth shall be provided to state governments for their exclusive use in lieu of ROW.

Network topology of BharatNet programme is as given below (fig 2).

3.2 BharatNet Concept diagram

Figure (2) (Source: BBNL)

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In the first phase (Figure 3), Execution of programme was entrusted to CPSU namely BSNL (84%), RailTel (8%) and Power Grid (7%). Initially, survey, supply of pipe and laying was to be done by CPSUs and procurement of fibre and equipment was to be done by BBNL. However, fibre procurement was also delegated to CPSUs citing delay as the reason. Equipment GPON technology developed by CDOT was chosen to be deployed in the network. Equipment procurement was done centrally by BBNL to get competitive price due to scale effects. Supply as well as subsequent maintenance of network equipment is the responsibility of suppliers as per the contract conditions. Overall project monitoring is the responsibility of BBNL.

However, off late, DoT realised that no access network service provider is forth coming to invest in access network and therefore decided to deploy 'hotspot' and other broadband devices beyond PoI at all GPs. Now Point of Interconnect (PoI) at all GPs will have access network in place as well including those deployed in phase I. It is proposed to have 3 to 5 'hot spots' depending upon the size of the GPs to provide coverage to entire village

Figure (3) (Source: BBNL)

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In the second phase of programme, government of , , Chhattisgarh, Andhra Pradesh, , and Jharkhand will be executing the programmes with fiscal support out of this programme. (Figure 4)

Figure (4) (Source: BBNL)

The other changes in the programme are that BBNL can get the programme executed through private agencies in addition to CPSU (DOT). In this case, role of BBNL will enlarge.

Last mile connectivity issue was not properly addressed in BharatNet programme. It was assumed that no sooner bandwidth is available in GPs, TSP/ISPs etc. will use it for offering end services to customers. But this did not happen as expected. So, DOT approved the following projects to be implemented on a pilot basis (DOT Annual Report-2017-18):

• BSNL is to provide last mile connectivity to provide broadband services through Wi-Fi in 200 Gram Panchayats (GPs) • RailTel is to setup Wi-Fi hotspot at 200 rural railway stations • IIT Bombay is to setup pilot Wi-Fi hotspots in 50 GPs leveraging BharatNet connectivity to provide broadband services to the villages and assess the feasibility aspects of scaling such deployment in all GPs to be covered by BharatNet.

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In addition to above now scope of BharatNet has been extended to cover last mile connectivity also.

Figure (5) (Source: BBNL)

Organizations engaged in BharatNet programme depicted in (Figure 3,4 & 5) are briefly discussed below;

3.3 Actors of BharatNet Programme

Department of Telecommunication: It falls under Ministry of communication, Government of India. Policy formulation is the sole domain of the Department attaining finality. Inter- ministerial and intra ministerial consultation takes place through it. It is solely in- charge of BharatNet programme. BBNL, BSNL, and CDOT report to it for administrative functions. The office of the Administrator USOF is an attached office of the Department of Telecommunications (DOT). Detail function of DOT has already been discussed in chapter one “Policy”.

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Bharat Broadband Network limited: A Special Purpose Vehicle (SPV), namely, Bharat Broadband Networks Limited (BBNL) fully Government owned, has been incorporated on February 25, 2012 under the Indian Companies Act, 1956 for implementation of the BharatNet for connecting 2.50 lakh (approximately) Gram Panchayats (GPs) (DOT Annual Report 2016- 17).

Organisation of special purpose vehicle BBNL, responsible for execution of BharatNet is very slim, is headed by Chairman and Managing Director (Generally USOF administrators hold this position as additional charge) and assisted by three board of directors, one executive director, CVO and Company secretary. CGMs of respective verticals are assisted by GMs of the concerned vertical. Organisation below GMs is non-existent which make it very vulnerable and completely dependent on vendors and other organisation for its functioning. All managerial staff are borrowed from other Organisations and lower rang staff is on contract. Project Management Units (PMU) setup of BBNL are limited to state capitals and a few big cities only whereas actual work of this programme is below Block headquarters i.e. in villages. This kind of setup raises serious doubt of efficacy of organisation to deal with implementation and maintenance of programme of such a mammoth scale. Even monitoring and operational issues may pose a challenge to a poorly staffed organisation.

Universal Service Obligation Fund27: The Universal Service Support Policy came into effect from 01.04.2002. The guidelines for universal service support policy were issued by DoT on 27th March 2002.The Indian Telegraph (Amendment) Act, 2003 giving statutory status to the Universal Service Obligation Fund (USOF) was passed by both Houses of Parliament in December 2003.

The Rules for administration of the Fund known as Indian Telegraph (Amendment) Rules, 2004 were notified on 26.03.2004. As per the Indian Telegraph Act 1885 (as amended in 2003, 2006), the Fund is to be utilized exclusively for meeting the Universal Service Obligation.

The Fund is to be utilized exclusively for meeting the Universal Service Obligation and the balance to the credit of the Fund will not lapse at the end of the financial year. The resources for implementation of USO are raised through a Universal Service Levy (USL) which has presently been fixed at 5% of the Adjusted Gross Revenue (AGR) of all Telecom Service

27 http://www.usof.gov.in/usof-cms/home.jsp xxxi

Providers except the pure value-added service providers like Internet, Voice Mail, E-Mail service providers etc. In addition, the Central Govt. may also give grants and loans if required.

The office of the Administrator USOF is an attached office of the Department of Telecommunications (DOT). The Office of the Administrator shall be responsible for;

(i) Implementation of the guidelines laid down by Government for providing Universal Service Support

(ii) Suggesting such changes in policy as may be deemed necessary for implementation of Universal Service Support.

(iii) Forecasting the requirement of Universal Service Funds for each financial year and obtaining approval of Government through Department of Telecom.

(iv) Ensuring that the prescribed Universal Service Levy is credited to the appropriate Universal Service Fund on a regular basis.

Within the overall approved budget and in accordance with contracts/agreements with Universal Service providers, the Administrator shall have full powers for implementation of Universal Service Support Policy. However, for operational, technical and financial matters, the Administrator may consult Department of Telecom whenever deemed necessary (USOF).

The following Figure (6) shows the status of fund so far since inception. BharatNet programme is funded from USOF. One can see from the chart that there is no dearth of fund to support the programme. Status of USO fund (in Crores INR) as on 31.10.2017 is shown the chart.

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Figure (6) (Source: http://www.usof.gov.in/usof-cms/home.jsp)

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Bharat Sanchar Nigam Limited (BSNL)28: It is a fully Government of India owned company under Department of Telecommunication. It has a very strong physical presence in every nook and corner of country. It provides telecom services across the length and breadth of the country excluding Delhi and . BSNL is providing all types of telecom services namely telephone services on landline, WLL and GSM mobile, Broadband, Internet, leased circuits and long-distance telecom services. Rural telephony is one of its focus areas. BSNL also pays special emphasis on development of telecommunication facilities in North-Eastern region and in tribal areas as well as in the Left Wing Effected (LWE) affected areas. It has executed many USOF funded project. BSNL has been allocated 84% of work of BharatNet programme for construction of fibre network solely on the basis of its strong presence in rural areas. It has signed an agreement with BBNL for operation and maintenance of BBNL fibre network as well market BBNL product on revenue sharing basis.

Centre for Development of Telematics (C-DOT)29: It is an autonomous body under DoT. The organisation is committed to providing a wide range of cost-effective, indigenously developed and state-of-the-art total telecom solutions. C-DOT has grown to the level of a national centre for R&D in communication technology in many areas –Satellite communications, IN, ATM, DWDM, NMS, Wireless Broadband, GPON, NGN and Mobile Cellular systems. C-DOT is also entrusted with the projects of national importance, like Central Monitoring System for telecom security and Secure Network for strategic applications. (DoT Annul Report 2016-17). CDOT is providing technology support to BharatNet programme through its manufacturers.

Ministry of Electronics and Information Technology (MEITY)30: Role of MEITY is to make effective use of Broadband services offered at GPs for delivering e-services to citizens through Common service Centres (CSC). CSCs shall function as facilitation centre. The other role of it includes capacity building and service delivery in coordination with other central programme and state government programmes.

State Government: Role of state governments and MEITY is quite overlapping. In addition, states are expected to promote and move its public interface function to digital platform so that utility of broadband service can be underscored and citizen find practical use of it. States governments have entered into an MoU for providing hassle free of ROW for creating fibre

28 http://www.bsnl.co.in/ 29 http://www.cdot.in/ 30 http://meity.gov.in/ xxxiv infrastructure. In lieu of ROW, they have been provided 100mbps bandwidth for their exclusive use. Some of the states have even taken over complete project of BharatNet.

Seer larger number of stakeholders have their share of problems due to ambiguity and overlapping roles. There is handholding problem among DOT/BBNL/BSNL etc. on one hand and MEITY and State Government on the other hand.

3.4 Technology

Evolution: Providing tele connectivity to rural areas has always been a challenge. However, challenges are not new; it has just got different name with arrival of newer technology. Earlier to meet telephone requirement in rural areas, Gram Sabha PCOs were tried on open wire and underground copper wire lines, then came wireless PCOs through MARR and WLL technology. Finally, with the arrival of GSM services in villages, wireline and MARR/WLL wireless technology were given a cruel burial. As the reach of GSM mobile services spread quickly, PCOs became a thing of past as individual could afford to own a mobile phone. Human needs are never satiated forever; they demand newer and better technology to solve their day today problems. With the demand of rising data/video services, now GSM technology find itself on death bed akin to what it did to previous technologies.

Despite digital literacy issues with older generation, demand for data communication is rising at breakneck speed which could not be met fully with currently available wireless technology alone at affordable cost because of scarcity of spectrum and high cost of spectrum charges. Wireline has made a great come back with Optical fibre technologies which are the new heroes that are capable of providing almost unlimited bandwidth at the fraction of the cost of wireless technologies. It has now been realised that we have to go back to wireline if we have to meet current and future digital demands. The (Figure 7) shows technology evolution in wireline.

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Access Technology Evolution for Speed

Figure (7) (adopted from ZYXEL, 2017)

Availability of Electricity is pre-requisite for functioning of telecommunication services. Ideally electricity should be available through grid to keep energy cost low else alternative to grid supply has to be thought off in form of non-renewal energy.

Selection of technology is a very tricky issue. It has many dimensions. CAPEX/OPEX of technology, power consumption, feasibility of deployment in a diverse country like India, compatibility with other deployed technology, scalability, maintenance support and obsolescence of technology etc. are the variables to select a technology. “GPON be the Technology of choice owing to architecture and ground conditions of minimal power consumption etc.” says the para 7 of DOT OM dated 14.06.2012. (Figure 8) demonstrate and supports the choice of technology for the BharatNet programme is which in sync with worldwide use of the technology.

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Figure (8) Trend in optical Access Technology Adoption World Wide

CDOT was asked to develop a suitable technology for deployment in BharatNet programme and finally GPON was selected as technology to be used in this programme. However, it is not to be confused that only CDOT developed GPON technology shall be used in the network. Other GPON technology manufacturers are also participating in this programme to some extent. As technology is at the core of programme, a brief of GPON technology is described below for better understanding.

GPON: A passive optical network (PON) is a network architecture (Figure 9) that brings fibre cabling and signals to the home using a point-to-multipoint scheme that enables a single optical fibre to serve multiple customers. The architecture uses passive (unpowered) optical splitters, reducing the cost of equipment compared to point-to-point architectures. The GPON standard differs from other PON standards in that it achieves higher bandwidth and higher efficiency using larger, variable-length packets. Encryption maintains data security in this shared environment. The main components of GPON technology are OLT, ONT/ONU, Splitters, Optical Fibre cables etc. It can deliver a download speed upto 2.488 Gigabits/s and up to upload speed of 1.244 Gigabits/s.

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GPON Architecture

Figure (9)

Optical Line Terminal (OLT): An OLT provides aggregation and switching functionality between the core network (Service side) and PON interfaces. It offers PON interfaces (towards ONU/ONTs) & Service interfaces (towards core network). The interfaces towards ONU/ONTs are called PON interfaces (IFPON) and the interfaces towards core network are called Uplink interfaces (SNI). All service like IPTV, internet, phone lines etc. are connected to SNI port.

Passive Optical Splitter:

This is the most important component of PON. It should be capable at least up-to 1: 128 optical splits, on end to end basis, per PON interface on OLT. There shall be various options provided to purchaser such as m: N where m = 1 or 2 and N = 2,4, 8, 16, 32,64 and 128.

ONU/ONT:

The ONU/ONTs are customer premises or near customer premises equipment. It shall provide 1) User-interfaces (UNI) towards the customers and 2) Uplink (IFPON) interfaces to uplink local traffic towards an OLT.

ONTs are deployed in Fibre to The Home(FTTH) and Fibre to The Business (FTTB) architectures, where the fibre termination shall take place at the premises. The UNI are integrated in the ONT box to provide data, voice, RF video and Wi-Fi (in-built) interfaces. ONUs is deployed in MDU, cabinet and at curb site. ONU shall provide PON interface towards xxxviii the OLT to connect IP backhaul to the additional network termination (NT) and UNI interface towards the customer of high density living or working areas and as such it may comprise of two separate devices. Both of them may be provided as an integrated solution or the NT device such as DSLAM (VDSL2) may be implemented as a separate box in case it is a third-party item

WDM couplers.

Multiple dedicated wavelengths may be used for various applications e.g. voice, video, internet, data etc. WDM couplers enables combined optical transport through a single fibre. If RF video is not used, the WDM coupler may not be necessary.

Fibre plant for PON

ITU-T Rec.G.652 fibre shall primarily be used between OLT and ONUs/ONTs. Special access fibre e.g. ITU-T Rec. G.656 fibre may also be used for FTTB/FTTH intra-building, campus etc. applications.

Service support by ONU and ONT:

 High speed data/Internet  Voice  RF video  E1 through TDM over IP External Gateway  IP Video  In-built WIFI support as per IEEE 802.11g/n/ac  USB Interface for monitoring ONU user interface may also have G. Fast/G.hn interface

Scalability of GPON System:

It has scalability in terms of capacity as well as reach. The next generation access optical technologies are XGPON, XGSPON and NGPON2 which can use the same outdoor network (ODN) as that being used by GPON for increasing the capacity of network as well as upload/down load speed of the customer. Network coverage can be increased using reach extender. It can be said that it is a future proof technology.

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3.5 Testing of CDOT GPON System for Stated Delivery:

GPON system developed by C-DOT is key to deliver promised bandwidth to achieve stated objective of the government of India. It becomes lot more important to thoroughly test the equipment as it has no previous history of deployment at such a large scale. First GPON system developed by CDOT was initially tested in the year 2014. With some more advancement in the system CDOT again offered its system to TEC for lab, environmental and field trial tests.

Focus of testing team (author was chairman of testing team) was to test the system in multiple ways to see the performance of system on multiple parameters based on the template developed by TEC (TSTP NO. TSTP/TEC/TEC/GR/PON-01/03 MARC.2017).

Testing of system commenced on 11.05.2017 and continued up to 30.11.2017. Interim observation on the system was shared with C-DOT for their comments. C-DOT commented on the observation and offered retest of the system. GPON system has passed all requisite tests in lab as well as in field test trial as prescribed by TEC31.

Having dealt upon policy, programme and agencies involved in implementation, let’s examine status of physical delivery of programme.

3.6 Physical Delivery

Planning for NOFON project started in October 2011 and was to be completed in two years’ time period. The pilot project of NOFN was completed on 15th October 2012 at 3 Blocks namely Arian in Rajasthan, Panisagar in Tripura and Parvada in Andhra Pradesh covering taken up in 59 GPs. Project was validated by Telecom Engineering Centre, as an independent Technical body for its delivery and robustness in rural environment (Pilot project report).

CPSU BSNL, POWER GRID and RAILTEL were nominated by DOT to execute constructions of duct laying, fibre pulling and termination at both ends on cost plus basis model under overall monitoring of BBNL. Schedule rate for works was decided by BBNL without due diligence. For more than a year no tender could be finalised as bidders were quoting very high above schedule rates. Tendering and retendering continued for a much longer period. After the anomalies in schedule rate were addressed, tender success rate increased tremendously. As DOT had signed agreement with state governments regarding ROW, there was not much

31 TEC: Technology Approval of GPON System developed by C-DOT,2017 xl problem in this regard however failure to have any national level agreement between DOT and central agencies like NHAI, RAILWAYS and Environment & Forest resulted delays extending to several months.

Procurement of fibre and equipment was to be done centrally by BBNL, however BBNL being a new organisation was ill equipped to handle the procurement with speed that was needed for faster role out of project. Latter on fibre procurement was also given to executing agencies so that at least their work of fibre laying and termination was not delayed. Successful installation of GPON equipment depended upon availability of fibre and power source. Solar power was made part of terminal equipment irrespective of availability of grid power supply at each GPs thereby avoiding delay and operational issues latter on due to non-availability of power. However, there were/are some problem with respect to availability of proper public space for installing terminal equipment.

The most daunting task for planners was to bring stakeholders to the table. The services to be delivered to villagers riding on this project are in the hands of TSPs/ISPS and content of villager’s interest are in the hand of states and its institutions. Job of the central government under this project is just of a carrier or even less. Both TSPs/ISPs and State and MYEIT are indifferent to the utilisation of BharatNet infrastructure and therefore no pulling effect appears to be generated. No immediate use of infrastructure is resulting into different kind of problem like fibre fault getting unnoticed, theft of equipment etc.

Total deployment (Figure 10 & 11) of broadband equipment so far has been sixty-nine thousand five hundred twenty-five in last six years. Pendency is still quite large. Claim of BBNL to complete first phase of programme by December 2017 will be watched with scepticism. 2445 no of GPs covered by government of Andhra Pradesh has not considered here for study. Break up of work in different stages and numbers of actually working broadband devices are given in below.

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Status of Delivery under BharatNet programme

STATUS OF BHARATNET

Service Ready GPs Under execution GPs Execution yet to start

58,913 , 23% 69,525 , 28%

1,21,562 , 49%

Figure (10) (Source BBNL Website accessed on 31.10.2017)

State wise break of active GPS

BROADBAND ACTIVE GRAM PANCHAYATS

WEST BENGAL 935 1120 UTTAR PRADESH 19548 245 TELANGANA 1504 6830 PUNJAB 2883 100 ODISHA 1104 14 MANIPUR 24 7411 MADHYA PRADESH 6203 1129 6053 1200 JAMMU & KASHMIR 123 122 HARYANA 4643 2730 CHHATTISGARH 2190 12 BIHAR 2824 563 ANDHRA PRADESH 15 0 5000 10000 15000 20000 25000

Figure (11) (Source BBNL Website accessed on 31.10.2017)

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As project is still under execution no direct meaningful socio-economic impact assessment could be done yet some discussion has been tried based on literature review, informal interviews and observations in subsequent sections.

3.7 Economy

ICTs, broadband in particular is very powerful tool for inclusive growth. With improving broadband access, a larger population hitherto unconnected shall become a potential customer. If planned and executed well, underprivileged section of society offers an unlimited opportunity to industry to grow. South Korea is a living example of it. In 2000, South Korea had just 1% broadband penetration. South Korean government launched an IT Programme named ‘Cyber Korea 2132’ to offers affordable IT education to marginalized groups which was backed by a strong broadband plan launched in 1995. Today, Korea is most advanced broadband market in the world well ahead of US, China and all European countries33 except one.

Andres34 et al, 2010 demonstrated a correlation between internet diffusion and GDP in low income countries and found that increase in the number of Internet users per capita was followed by higher increase in GDP.

Shahram Amiri35 et al in their analysis of Internet Penetration and its Correlation to Gross Domestic Product (2013) substantiated Andres et al study and found a strong correlation between growth in Internet adoption and growth in GDP (Nordic countries, 2000-2010).

Once all the 2.5 lakh CSC becomes functional and all the e-services are made available, society will find it useful and likely to spur many economic activity and even may stop migration to cities to some extent.

Migration to cities mainly occurs due to better access to market, information, banking, education, health care, water and sanitation apart from job opportunity. With launch of e- retailers in almost every field, shopping has become a lot easier. Even a field like banking has under gone tremendous transformation. Mobile companies have been given license to banking.

32 ITU Broadband Korea: Internet case study March 2003 33 http://www.itu.int/net4/ITU-D/idi/2017/index.html 34 Andres, Cuberes, Diouf, & Serebrinsky, 2010 The diffusion of Internet: A cross-country analysis (Period 1994-2004) 35 Shahram Amiri et al and Brian Reifin in their analysis of Internet Penetration and its Correlation to Gross Domestic Product (2013) (Period 2000-2010) xliii

Instead of bank having a regular kind of banking branch, it is being run by a mobile retailer. Education too has moved beyond class room. National and International college and universities are offering many courses online. Entertainment too has moved from conventional TV and Cinema Halls to personal viewing. Even for availing many public services, physically moving from place to place is no more required. There is not a single area where ICT is not disrupting conventional way of doing the things. Availability of Online resources are making travelling unnecessary. So, ICT is not only saving time, ease of doing things but has increased productivity as well as a person can do many other activities in the extra available time.

In addition to the above, useful content to villagers are going to increase further as many big players are eying rural areas as a new big opportunity. Reliance has given Rs. 13 Crores as an advance subscription to BBNL for using its bandwidth wherever it has been made available and has consented for using the upcoming bandwidth at new locations as well. It will be foolish to assume that Reliance is doing this just to provide telecom service in villages and compete with local Wi-Fi service providers who may charge as low as Rs.50/month from customers. Reliance is clearly eying something beyond telecommunication. It could be entertainment, commerce, education, banking, health or direct sourcing of agriculture produces etc. Possibilities are immense and unlimited.

The above activities shall definitely give a flip to economic activities akin to in urban areas and generate some local employment apart from increasing access to goods and services which a villager may not be getting without access to ICT. Many barriers to access market will get demolished with advent of ICT which shall be mutually beneficial. However, the biggest beneficiaries will be the marketers who could now reach to customers directly and sell their goods and services.

As volume of business is likely to increase with increased access to market, GDP should rise. The direct impact on economy is on account of public expenditure to the tune of 45,000 Crores which will have cascading effect far beyond BharatNet programme. BharatNet programme alone will generate employment to the tune of 127259036 Mandays of work.

Reduction of transaction cost due ease of information search and contracting is a vivid example of how ICT is going to change the way a former conduct his business. An illustration given

36 TRAI Broadband Plan Recommendation 2010 xliv below (Table 5) shows a saving of Rs. 4,608 per former on account of reduction in transaction cost.

Assumptions: 1 Access to telephone call/SMS/internet costs @ Rs.50/ transaction 2 Average distance of 30 km a farmer has to travel to get seed/fertilizer/pesticide/machinery or sell his harvest for advisory 3 At Most of the villages public transport are not available and farmers have to travel by Bike and incur expenditure @ Rs 2/km 4 A farmer has access to ICT 5 A farmer spends about Rs.50 on food and beverages etc. per day on travel to town

S. Activities No of Distan Person Cost Cost Remark No transact ce al incurr incurred .. ion travell expens ed using ICT ed es on witho @.50/transa food & ut ction bevera using ges etc. ICT 1 Soil testing 2 60 100 340 1 farmer has to go to soil process testing agency to ask for testing of soil, collection of test report

2 Crop & 3 60 150 510 1.5 farmer has to go to fertilizer visit agriculture office selection for counseling process regarding selection of crop, fertilizer according to soil test report, many time officials concerned may not be available

3 Seed, 6 60 300 1020 3 farmer has to go to fertilizer & visit market to survey pesticide different shops for purchase better quality and best decisions price which may involve more than one visit/ also visit advisors 4 Banking 6 60 300 1020 3 farmer has to go to bank for drawing money for payment to soil testing agency/for purchase of seed/fertilizer/pesticide / for payment to excavator/harvester/tra nsporter etc. on average he has to make xlv

at least 6 visits.

5 Hiring of tools & Machines 5a Excavation 2 60 100 340 1 5b Irrigation 3 10 150 210 1.5 5c Pest 2 60 100 340 1 &Disease control 5d Harvesting 2 60 100 340 1 5e Transportatio 1 60 50 170 0.5 n 6 Labour 3 10 0 60 1.5 search at the time of soil preparation 7 Labour 3 10 0 60 1.5 search at the time of sowing/plant ation 8 Labour 3 10 0 60 1.5 search at the time of irrigation 9 Labour 3 10 0 60 1.5 search at the time of disease control 10 Labour 3 10 0 60 1.5 search at the time of harvesting 11 Labour 2 10 0 40 1 search at the time of transportatio n to mandi/wareh ouse 4630 22 Cost benefit of using ICT in agriculture 4608 per farmer Table (5)

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3.8 Social Impact

ICTs37 are part of millennium development goal which impacts other MDGs as well. The table below shows how ICTs can help in achieving other MDGs38.

MDG Goal Role of ICTs

1. It eradicate extreme poverty and ICT reduces transaction cost for poor farmers hunger and traders through increased market access

2. Achieve universal primary education ICT enabled education services are helpful in providing better education in far-flung areas where availability of trained teacher is difficult

3. Gender equality and women As access to information is unhindered, ICT empowerment is a better tool for promoting specific information targeting poor girls and women.

4. Reduction of child mortality e-Health will revolutionise health care services especially in rural areas where 5. Improvement in maternal health delivery of physical health services is most difficult due to non-availability of trained 6. HIV/AIDS and other disease workers. Monitoring and information sharing are easiest things to with ICTs regarding spread and control of host of contagious diseases

7. Environment Sustainability ICTs reduces carbon footprint by reducing requirement of travelling through use of communication medium like voice and video conferencing. It increases productivity and reduces resource consumption by effective monitoring and resource management

Table (6)

37 ITU: http://www.itu.int/ITU-D/itc/publications/wtdr_03/material/ICTs%20&%20MDGs.pdf 38 United Nations: The Millennium Development Goals report 2010 xlvii

Broadband is a carrier to ICTs and to make ICTs grow, The ITU Broadband Commission 39 fixed five targets which are to be met by all countries around the world. Status of the targets given below which shows we have to cover a long distance. (Table 7 & Figure 12) Target Objective Status in India

I Universal Broadband Policy Made broadband policy in 2004 but targets III, IV,V not achieved40

II Making Broadband Affordable Achieved wherever available

III Connecting Homes to 15.49 per 100 population in rural area Broadband 70.83 per 100 population in urban area

IV Getting People Online 422.19 million out 134 crore which is quite low

V Achieving Gender Equality in There are some socio-economic issues41 in Access to Broadband by 2020 regard to Gender inequality

Table (7)

Figure (12) (Source: ITU-D: ICT Development Index, 2017)

Target III in respect of rural area is proposed to be met through BharatNet. Meeting Target no IV and V shall require a massive awareness campaign regarding benefit of uses of broadband,

39 http://broadbandcommission.org/targets/Pages/default.aspx 40 http://www.trai.gov.in/sites/default/files/PIR_July_Sept_28122017.pdf 41 ITU: Use of ICTs for Women Empowerment in Rural Areas, India, March, 2015 xlviii once target II and III are realised through BharatNet project. Simultaneously development of content in local languages should be given priority as literacy42 and Digital Literacy43 is an issue to address target number 4 & 5 completely.

In one of the study conducted in India by Abbasi, (ITU-D, 201544) (coordinated by the author) which was exclusively for assessing women empowerment using ICT, found that women were mostly unaware about different ICT tools and its benefits and a few who were aware, understood that it has something to do with computers. A small percentage of women do have computers (.9%) and laptops (6.3%) at home. The women who were completely unaware of the benefits and information they could obtain from the computer asked a very pertinent question, i.e.

“How can the computer help me in my daily life? As I have not time to learn how to use this complicated thing and put food on the table for my children”

Nonetheless, 98.3% of the women confirmed that they used mobile phones to keep in touch with family and relatives. One thing that was clear from the ITU study was that given the availability of affordable service and its usefulness, even lowest educated person in rural areas can develop temper for using the services.

To break the cycle of poverty and unleash potentials of rural population, students can be used as a vehicle of change to make their parents ‘digitally literate’. In creating change in students and the society they live in, multi-pronged approach is need of the hour. ICTs could be one of the focus areas as it may not interfere with normal schooling of the students. Students are the one who not only learn technology faster but can educate and assist in use of technology to their parents. However, ICT alone may not be enough; mechanisms that facilitate student action, support their learning and help them mobilize resources are also needed.

In India, Government intervention has really worked very well as for as spread of telecommunication services (mainly voice) are concerned. Penetration of telecommunication has been so wide that this service is available even at those places where no other developmental activities like road, electricity etc. could reach. TRAI45 report suggest that less than 10% of population is uncovered by any kind of telecommunication service that too due

42 http://censusindia.gov.in/2011-prov-results/data_files/mp/07Literacy.pdf 43 The digital literacy refers to the ability to effectively and critically navigate, evaluate and create information using a range of digital technologies http://www.itu.int/en/ITU-D/Digital-Inclusion/Youth-and-Children/Documents/YouthReport_2014.pdf 44 Use of ICTs for Women Empowerment in Rural Areas in INDIA, Page No. 17 45 http://www.trai.gov.in/sites/default/files/PIR_July_Sept_28122017.pdf xlix terrestrial reason than commercial one. The benefits which were to come through voice telephony have already been realized. As world is moving towards virtualization whose backbone is broadband and lack of it will hurt the poor the most. Biggest benefit of ICT will come from broadband which is the bearer of ICTs. However, TRAI report 2017 suggest that broadband penetration in rural area is still poor and far behind as compared to urban areas. As BharatNet project is still in implementation stage, its impact is not visible. Analysis of TRAI report (TRAI report May 2017) reveals the following;

Tele-density in India increased from 5.11% in 2003 to 92.98 % in March 2017. In the rural area tele-density increased from 1.49% in Mar 2003 to 56.91% in March 2017 and in the urban areas it is increased from 14.32% in Mar 2003 to 171.8% in March 2017. Share of urban subscribers is 58% and share of rural subscriber is 42% in voice services.

Whereas in case of internet/broadband users, only 15.49 per 100 populations in rural area uses internet service compared to 70.83 per 100 population of its urban peers with overall uses by 32.86 per 100 of population. Only 15.49 per 100 population uses internet service compared to 56.91 per 100 population use of telephony in rural area. The TRAI data indicates sharp digital divide between urban and rural areas.

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Figure (13) Asalat Nagar P.S, UP: GPON System in the background but no computer

For effective utilisation of BharatNet programme and for creating maximum impact on society a number of recommendations were submitted by ITU (ITU, 201546) to DoT. Relevant portion of recommendation is attached as annexure-II.

Some of the recommendation seems to have found place in revised BharatNet programme specially extension of services beyond GPs through ‘hot spot’ and other broadband technologies. For better integration and alignment of policy and outcome, a choice has been given to states for implementing BharatNet programme.

46 Use of ICTs for Women Empowerment in Rural Areas, India March, 2015, Page No. 8 & 9 li

Even though BharatNet programme is lagging behind and its full impact on the society may not be possible to judge at this stage however glimpse of ‘cheap’ and reliable broadband as enabler is quite visible with availability of Reliance JIO broadband services in some of the rural areas. During the field visits of Asalat Nagar Primary School, Jalalpur Primary School, Mohammedpur Dedha Primary School, Telephone Exchange Murad Nagar and BDO Office Murad Nagar, Villagers have been found using JIO extensively for information search, education and entertainment. It was revealed that use of broadband for entertainment accounted for more than others services. People to people contact through apps like WhatsApp and Facebook has been found increased with availability of broadband as user experience increased. Particularly females find more liberated. They were able to search the information they needed which they could not have asked from their parents, family and friends.

As per IMRB I-Cube 2016 47report (Figure 14) there is interesting behaviour pattern distinction in uses of internet between urban and rural internet users. whereas online communication is the first choice followed by social networking and entertainment, in rural areas entertainment is the first choice followed by the social networking and communication. BharatNet programme has actually missed this point by not including RF video services in provisioning of services in project design.

Figure (15) depicts the behaviour of Non users of internet in rural and urban areas. In both cases low awareness on the benefit of the internet is the main contributor. (76% urban areas & 80% rural areas). Therefore, the population that are not using the internet should be made

aware about the benefit that uses of internet may accrue to them.

Figure (14)

47 IMRB I-Cube Estimate, Internet in India 2016 lii

Figure (15)

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Despite Government of India’s push to digital India programme, India has slipped to 91th position in Networked Readiness Index 201748 (Figure 16 & See Annexure 3) and same way it has slipped to 134th position in IDI Ranking49 (See Annexure 4). In 2010 India ranked 43rd on Networked Readiness Index and 75th on ICT Promotion Index. The above numbers show as if India has slipped despite government push but actually India has improved on many indices however other countries moved faster than India that’s why its ranking has relatively gone down. Affordability is the one area where India has scored the highest point but individual uses is of ICT very low. Weakest area is the infrastructure where it has scored the least point out of 10 indices. Economic impact of ICT is also low whereas social impact is comparatively high.

Figure (16) Networked Readiness Index6

Objective of study will not get completed without examining sustainability of programme. A question always creeps in the policy corridors as how long programme will need assistance (funding) and how can it become self-sustaining? Parameter affecting sustainability of project has been examined at length with limited available data.

48 , Global Information Technology Report 2016 49 ICT Development Index (IDI 2017) liv

3.9 Sustainability

Under the sustainability, critical aspect of the Policy, Governance, Technology, Social and Economic aspect have been examined.

It was planned to connect 2,50,000GPs approximately in the country through optical fibre utilizing exiting fibre of the PSUs viz. BSNL, RailTel and PGCIL and laying only incremental fibre to connect GP wherever necessary, i.e. to bridge the gap in the Aggregation Layer under BharatNet programme. So far only 69,525GPs have been connected to the network.

It was assumed that there is fibre in upstream which BBNL or any interested agencies can hire however during pilot phase of BharatNet, RailTel and PGCIL did not provide any fibre, only BSNL extended its fibre to BBNL POI. So, when presumption itself fails, it introduces an element of uncertainty. The other prominent user feedback from the pilot project was difficulty in access of services. Users found going to multiple agencies like TSP/ISP and BBNL for availing a service most difficult and impractical. The same problem was noticed with respect access service and content service providers as missing link (Figure 17) has not been properly addressed in policy design and has been left to market forces. This brings a policy defect to fore.

Figure (17)

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For implementation of the BharatNet project, it was also planned by DOT to leverage strengths of other PSUs and organizations, i.e. partnership with BSNL, RailTel, PGCIL, TCIL, CDOT, NIC etc. and for operation and monitoring it was planned to Leverage Technology, i.e. Network Operations Centre (NOC) to monitor and manage the whole network centrally, Geographical Information System (GIS) to be used for asset mapping and tracking centrally. However, involvement of huge number of agencies without clear role assignment made BharatNet programme as “no one’s baby”.

Revised strategy to implement BharatNet has been approved by Cabinet wherein states have been given choice to implement BharatNet programme. Seven states have shown their willingness to execute the project of their own with partial funding from DOT. BBNL has also been allowed to implement the scheme with the help of Private sector in addition to three CPSUs who are already implementing it. There is likely to be disruption due to change of implementation model.

The most striking feature of revised strategy is recognition of last mile as an important ingredient of network topology which was earlier left to village entrepreneur/TSP/ISP to provide it. So, now BharatNet programme has been extended up to access network for service provisioning through Wi-Fi hot spot or any broadband technology. Revised strategy appears to have taken into account shortcomings of first phase and trying to address it to some extent.

GPON Technology has hardened with time and no change in technology in second phase means there is no uncertainty in regard to it as for as technology is concerned. So, continuation of previous technology in the next phase should reduce O&M issues and capital cost as well.

As per BBNL Corporate strategy document 2017 the work of implementation of laying OFC to connect GPs is in progress and once broadband connectivity is provided to the GPs, BharatNet would be utilized by Government, Service Providers, Institutions and Citizens, leading to the generation of revenue. However, nothing concrete is visible on the ground at the moment.

As per BBNL Corporate strategy document, main streams of revenue generation are expected to be from bandwidth and dark fibre leasing to the Service Providers. Revenue generated after 5 years of completion of project is expected to make BharatNet OPEX neutral, i.e. the cost of operation and maintenance is expected to be met out of revenue generated. However, neither there is a clear road map from BBNL as to how this will be achieved nor there has been any primary study on it.

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M/s pwc (BBNL DPR Feb’2014) prepared a bandwidth demand analysis for BBNL on the basis of secondary data using Services based demand estimation approach, Monthly per capita expenditure (MPCE) approach and Comparable country approach. The table (8) provides a summary of demand estimates.

Approach 2018-19 (in Mbps) per GP 2023-24 (in Mbps) per GP Services based approach 50-89 73-130 MPCE approach 17-19 39-49 Comparable country 33-46 35-120 approach Table (8)

BBNL has notified following tariff (Table 9) plan in September 2017 which is available at http://www.bbnl.nic.in. Bandwidth (Asymmetric)(Mbps) Tariff per Annum (Rs) Remarks Upton 10 700/Mbps 10 7000 100 38,000 200 56,000 300 74,000 400 92,000 500 1,10,000 1000 2,00,000 Fibre leasing Dark fibre 2250/per km/fibre Table (9)

Currently BSNL has deployed 5MBps bandwidth per GP over the BBNL network. So BBNL income from sale of bandwidth should not be more than Rs. 38,000 per GP even against the best bandwidth requirement estimates (73-130 MBPS) up to 2024.

To illustrate (a self-sustaining model) what could be future pricing of bandwidth in rural areas, market rate of an affluent urban centre has been considered here for study. A 100Mbps bandwidth is available for Rs. 8/GB to Rs.1/GB in Bangalore from open source cable operators. Details of tariff are given in table (10).

Current broadband tariff of BSNL for rural area is Rs. 99/150 depending upon bandwidth which itself is not self-sustaining despite the fact it is costlier Rs.150/GB compared to Rs.1 per GB in some urban areas for a rental of Rs.1000/month (as given in Table 10), the difference is perhaps on account of higher rental charges. So, both rental and data consumption goes hand in hand and per GB data cost falls. So, catch of sustaining this programme lies in usability of infrastructure through creation of content of interest to the villagers so that they consume good

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amount of data. Current use of broadband must go beyond entertainment and improve finances of users so that he can spend on his uses.

Market rate of broad band connection in Bangalore from cable operators Plan Name Kithna Mileage Kithna Mileage Kithna Mileage Rental/ Month (Rs.) 400 700 1000 Speed/Bandwidth 100 Mbps 100 Mbps 100 Mbps Download 25 GB 75 GB 1000 GB Upload 25 GB 75 GB 1000 GB After Post None None 512 Kbps Cost per GB 8 5 1

Table (10) (Source web site: bbnl.co.in dated 10.11.2017)

If current rural tariff of BSNL broadband using copper technology is taken as reference for future broadband plans on BharatNet bandwidth, then minimum penetration of 53% as given in the Table (11) is required for broadband uses (same as current penetration (56.91%) of voice telephony in rural areas) to make the project break even. Apart from penetration data consumption too must increase well beyond 1GB per month.

So even if we take highest range of data demand, it will be difficult to meet the average OPEX of Rs.21.62 Lakh/Annum/GP (source pwc DPR dated February 2014, ver 5.0) from sale of bandwidth in next five years. So, it goes without saying that without Government support, BharatNet programme does not appears to be self-sustaining at least up to year 2024. The same has found an echo in Telecom Secretary Aruna Sundararajan interview.

“India at present has 38,000 Wi-Fi hotspots. Under BharatNet phase 2, around 6-7 lakh Wi-Fi hotspots will be added with 2-5 “hotspots” in each panchayat. Some of the Wi-Fi hotspots may not be commercially viable initially. So (we) will provide viability gap funding of around Rs 3,600 Crores to telecom operators,” Telecom Secretary Aruna Sundararajan said in an interview.

Viability Analysis

Particulars BSNL Rural USOF BB Plans Remark 8 Mbps till 15 GB, 1 Bandwidth (Download Speed) 2Mbps 2Mbps Mbps beyond it Monthly Charges (Rs) 99 150 650 Download/Upload Limit (MB/ GB) per month 400 MB 1 GB Unlimited

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***Annual expenditure per GP Rs. 21,62,000 Minimum Number customer required to meet 1820 1201 277 the OPEX Average population per GP* 3418 No of house holds per GP 760 Mini % of population must have broadband to 53% 35% 8% support OPEX Current level of broadband penetration per 100 15.49% pop Max possible revenue with 100% broadband 40,60,584 61,52,400 266,60,400 Imaginary penetration Revenue If broadband penetration reaches to 23,10,878 35,01,331 151,72,434 Dream current level teledensity (56.91%) 13,67,200 Best Max possible revenue with 100% broadband 9,02,352 59,24,533 possible penetration per house hold scenario No of house holds per GP having TV50 (54% Realistic 4,87,270 7,38,288 31,99,248 Penetration) scenario

Table (11) (Source: BSNL Rural Tariff)

AP Government, which decided to take over BharatNet programme under its own arm has completed BharatNet rollout in 2445 GPs, took Unified Telecom License and has launched triple play services with tariff (Table 12) in August 2016. Revenue from these services could not be ascertained and therefore sustainability of AP BharatNet project could not be evaluated.

Table (12) Source: APSFL51

50 http://www.barcindia.co.in/index.aspx 51 http://apsfl.in/tariff/ lix

In order to validate assumptions, literature/document references, observation etc. a perception based survey was conducted on stakeholders. Survey was send to more than 200 people but only 24 responses were received over 3 days.

CHAPTER 4

SURVEY

4.1 Need for Survey and Methodology

A perception based survey was done on all stakeholders like officials from Department of Telecommunication, Telecom Engineering Centre, Bharat Broadband Network Ltd, Bharat Sanchar Nigam Ltd, Universal Fund Administrator, CDOT and Villagers. Questionnaire was based on five functional domains of sustainability having direct impact on BharatNet programme, namely, Policy, Governance, Technology, Economy and Social Impact to ascertain sustainability of programme. An important question arises as to why only these parameters were taken for conducting survey. Reasons for choosing these parameters are briefly explained below.

Policy for providing broadband to 2,50,000 GPs was framed in 2011 and in first phase 1,00,000 GPs were to be connected with broadband by 2013 whereas actual delivery has been delayed and only 69,525 GPs (up to 30.10.2017) have so far been covered. Second phase is to start from first December’17. Delays of programme implementation have bearing on sustainability of scheme, so the cause of delay too needs to be investigated. Policy parameter was included to know whether policy intervention was needed at all and whether policy frame work was right for this intervention and for creating good governance. Implementation of a policy has to be done through some mechanism called governance i.e. establishment of policies, and continuous monitoring of their proper implementation, by the members of the governing body of the organization as well as interconnection of all the stakeholders engaged in operationalising this. Even a good policy can fail without good governance arrangement. So, one of the causes could be poor governance structure apart from several other reasons like incoherent policy, technology and funds related constraints, social and economic barriers and finance related issues. As regard to fund, availability of fund was found to be more than required for completion of project (USOF Fund status report 2017) so no investigation was needed in this domain. Reason for considering technology as a test parameter arise from the

lx experience of previously failed schemes of providing telecom services in rural areas. Previously, Government had tried to provide telecom services in rural areas through technologies such as open wire lines, buried copper wire lines, Multiple Access Radio Relay and Wireless in Local Loop failed because of serious technological problems. So, robustness of technology working in dusty and natural environment along with scalability and desired through put must be tested. Power consumption, CAPEX/OPEX and content are the other parameters which need to be tested for sustainability of the project under technology domain. Scalability ensures product remains in longer use and thus reduces cost as well as protects environmental degradation. Contents provide usefulness to the user. Success of any technology depends upon these parameters. Uplifting of economy in rural areas, bridging digital divide in urban and rural population, enabling citizens aware to exercise their political rights in an informed way and making equitable distribution of the fruits of development and fair allocation of national resource are stated objectives of the policy so impact of Bharat Net programme on these parameters too needs to assessed in the domain of economy and social impact. A pilot questionnaire was prepared and circulated to stakeholders for their comments. On the basis of their inputs questionnaire was finalised to carry out the main survey.

Methodology used in the survey was to first provide information to the participant regarding current status of the matter under research and then know his/her opinion on it. As many of the questions were esoteric in nature, it was not expected that all the questions will be answered by the participant for example villagers were not expected to answer regarding Policy, Governance and Technology. Villagers were administered questions through informal interviews. Rest of the participant answered through online questionnaire. Answers were evaluated on multi criterion basis.

Questions and Response are given in the following pages. A Likert scale with rating scale ranging from 1 to 5 was used. It was used to evaluate the quantitative value for each dimension of sustainability. A five level Likert item, 1 representing strongly agree and five representing strongly disagree, and 2, 3 and 4 are mid-level decisions was used to map the decisions related to sustainability of BharatNet project. The next section maps the response in pictorial form and explain the reasoning for each response.

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Policy:

1. As per TRAI report, tele-density in the country increased from 5.11% in 2003 to 92.98 % in March 2017. In the rural area tele-density increased from 1.49% in Mar 2003 to 56.91% in March 2017 and in the urban areas it is increased from 14.32% in Mar 2003 to 171.8% in March 2017. Share of urban subscribers is 58% and share of rural subscriber is 42%.

Whereas in case of internet/broadband users, only 15.49% of rural population uses internet service compared to 70.83% of its urban peers with overall uses by 32.86% of population. Only 15.49% of rural population uses internet service compared to 56.91% use of telephony in rural area.

In this context, it is one of the interesting policy question to assess why there is very limited use of internet services in rural areas. It came out clearly from the discussion with stakeholders that low use of data in rural areas is primarily because of non- availability of data services. Interestingly, survey carried out to find out the reason for such low penetration due to unavailability is clearly suggests that non-presence of data services is the key reason for the low penetration (Fig. 18)

Figure (18) : Low uses of data/video services are due to non-availability of data services in rural areas

40.9% respondents agreed, 22.7% respondents strongly agreed and 36.4% somewhat agreed (Fig no. 18) that data /video service demand is low due to non-availability of broadband services which is also reflected in TRAI report. Non availability of

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broadband services in rural areas is because of the fact that broadband is capital intensive and rate of return is low in rural areas which does not make a business case for telecom players. This could be a strong reason for policy intervention.

2. It was also interesting to assess whether affordability is an issue for such low scale penetration of broadband services. Majority of respondents (almost 50%) have the opinion that affordability is acting as a constraint.

Figure (19) Low uses of data/video services are due to lack of affordability of mobile handsets/computers in rural areas

50% of respondents agree and 9.1% strongly agree (Fig no. 19) that low use of data services is because of costly ICT devices. Multimedia devices are still in the range of Rs5000 and above which is beyond the means of many villagers whose monthly income is in the range of Rs.3000/. Government has understood this problem and is trying to address this problem through common service centres at each GP.

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3. A related question which has strong policy implication is about tariffs (Fig no. 20).

Figure (20) : Low uses of data/video services in rural areas is due to high data tariff.

36.4% of respondents agree and 22.7% strongly agree that high tariff is a barrier for growth of data and video services in rural areas. Though, the response is in line with previous response, however, still a significant chunk feels that high tariff is not a major constraint. At the same time, it also came out from the discussion that rural people with low income can not afford high tariff. Low consumption of data by rural people discourages investment in rural areas by telecom players. BharatNet Programme is taking care of this issue through providing bandwidth to the service provider at nominal rate. It appears from the above that broadband services could be considered both as a marketable service for those who can pay for it and could be offered as a discounted rate for those for whom the service comes as a merit good.

4. All of the above questions are also related to the usability of broadband services. Hence, assessing the use case was an important dimension.

Figure (21) Low uses of data/video services are because there is no use case of these services in rural areas

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Almost 50% (18.2% strongly agree or 18.2% agree and 22.7% somewhat agree 31.8% disagree and 9.1% strongly disagree Fig no.21) of respondents believes that there is no use case for broadband services in the rural areas. The respondents are not entirely wrong in their observation. Broadband uptake requires an eco-system comprising of economic and social activity backed by low tariff and affordable ICT devices. As revealed from above questionnaire it is noticed that low use of broadband services is due to costly ICT devices and high tariff. Therefore, an eco-system has to be created where users can find value in the broadband services. Digital India Framework has focused to make all institutional/ Government services available online to the GP which will create a value proposition for the villagers. There was an open ended question to capture other perspective of low use of data services. Responses are listed below which are self-explanatory and need no explanation. Respondents gave many other valuable reasons for low penetration of broadband in rural areas. If all these reasons are summarized and put together it may be called missing eco system required for growth of broadband services.

Is there any other reason than the above? Responses to this question are given below

Accessibility to broadband at affordable tariff is also a key driver for data/video services in general and rural area in particular. Availability of content/applications and e-governance services in local language is essential. Data / video services shall get popularised only if they are able to change socio-economic conditions of people Low use is because of less education, less dependence on gadgets, power problems, in some areas non-availability of data speed. Reliable and high-speed connectivity is required first before jumping to affordability and low uses assumptions. State Govt. must provide citizen services through digital media so that people are compelled to use data and also see value in digital transactions All service providers should be given some financial concessions in rural areas. And same time there should be strong regulations to watch minimum service obligation to cover whole rural areas / far flung area. Lack of computer literacy is also one of the many factors responsible. Rural centric content/ application need to be developed. lxv

Accessibility to broadband at affordable tariff is also a key driver for data/video services in general and rural area in particular. Availability of content/applications and e-governance services in local language is essential. Data / video services shall get popularised only if they are able to change socio-economic conditions of people Low use is because of less education, less dependence on gadgets, power problems, in some areas non-availability of data speed. Reliable and high-speed connectivity is required first before jumping to affordability and low uses assumptions. State Govt. must provide citizen services through digital media so that people are compelled to use data and also see value in digital transactions All service providers should be given some financial concessions in rural areas. And same time there should be strong regulations to watch minimum service obligation to cover whole rural areas / far flung area. Lack of computer literacy is also one of the many factors responsible. Rural centric content/ application need to be developed.

5. National Telecom Policy-2012 is designed to ensure that India plays this role effectively and transforms the socio-economic scenario through accelerated equitable and inclusive economic growth by laying special emphasis on providing affordable and quality telecommunication services in rural and remote areas. Thrust of this policy is to underscore the imperative that sustained adoption of technology would offer viable options in overcoming developmental challenges in education, health, employment generation, financial inclusion and much else. It is interesting to map the perception of people about whether BharatNet Programme has the potential to address the goals set in NTP 2012.

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Figure (22) BharatNet programme will be able to fulfil stated objectives of NTP-2012.

50% respondents agree and 40.9% strongly agree and 9.1% somewhat agree (Fig no 22) that policy objectives of NTP 2012 shall be fulfilled through BharatNet Programme. Respondents believe that provision of bandwidth from block to villages on non- discriminatory basis to TSP/ISP at nominal rate shall enable them to provide affordable and reliable service in rural areas as there will be no capital cost involved. This will result into sustained adoption of technology by stakeholders, thereby removing barrier to developmental challenges in education, health, employment generation, financial inclusion and much else.

6. NTP-2012 is an initiative to create a conducive policy framework to address the issues that touch lives of all citizens and transform India. "Right to broadband” enshrined and envisaged provisioning of converged communication services in commercially unviable rural & remote areas using USO Fund. The organisation arrangement to create a special purpose vehicle BBNL for implementing the BharatNet Programme was one of the key components of the programme. It is in order to elicit views on this organisational innovation.

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Figure (23) Creation of special purpose vehicle BBNL for implementing BharatNet programme fits into policy framework of NTP-2012

42.9% of respondents strongly agree, 47.6% agree and 9.5% somewhat agree (Fig no 23) that creation of SPV, BBNL is in line with NTP 2012 objectives. Creation of BBNL was to implement BharatNet Programme and offer Bandwidth to TSP/ISP etc. on non- discriminatory basis. Respondents appears to believe that private telecom players shy away from investing in non-remunerative areas, therefore policy intervention was needed in some form which perhaps led to creation of BBNL to fulfil right to broadband objective of NTP-12. Suggestions were also invited with respect to this question but responses are not in context to the question. Responses are listed below.

Suggested alternative to BharatNet programme, if any---

Right to livelihood, fulfilment of basic necessities of life are dearer to populace in rural India. Right to broadband are not that important at this stage unless they have visible impact on socio-economic conditions. The service fulfilment by all stake holders should be properly watched by regulation authority / field units of DoT & there should be every year population coverage with some strong penalty clauses for non-covering the Rural areas. BBNL, must tie up with content providers in local vernacular languages to make broadband really worthwhile.

It must be ensure that faster decision and fund flow through BBNL.

7. Objectives of policy intervention are to reduce Rural Urban Digital Divide to reach out to masses to provide to the people of India, reliable and affordable tele-connectivity capable of delivering tele-services anytime, anywhere. Survey also aimed to map whether this thinking is alluded amongst the policy makers.

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Figure (24) Government intervention through BharatNet programme is to close the gap between Rural Urban Digital Divide

This question was reiteration of the previous question and wanted to assess conformity of the respondents to previous question. Almost all respondents (40.9% strongly agree and 54.5% agree (Fig no 24) believe that BharatNet Programme will close the gap between urban and rural population which is exactly the objective of the policy intervention. Responses to this question confirms the responses in the previous question.

8. Broadband is an infrastructure which needs a strong ecosystem to take off. Indian eco system is characterised by its seer linguistic, cultural, geographical and digital literacy diversity apart from affordability factor. This would mean that all the stake holders (Central/State Governments, TSPs, ISPs, content providers etc.) come on the board and synergies individual effort to develop an ecosystem which are complementary to each other. Mapping whether there exists an eco-system for such a programme was crucial. Several crucial dimensions related to eco-system mapping was surveyed. The first such assessment is to evaluate the role and importance of DoT/BBNL in their effort to create a right growth trajectory for the sector. The findings are revealing.

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Figure (25) Clear Roadmap for stake holders

On the question of handshaking with other stake holders under this programme by DoT/BBNL, majority opines that there is a clear roadmap laid down by DoT/BBNL in connecting with a variety of stakeholders such as state governments, TSPs, ISPs and content providers etc. Only less than 1/5th interviewers (about 18.2% respondents (Fig no 25) think that DOT/BBNL has no clear road map as to how they are going to bring all the stake holders together to provide services to citizens. 22.7% respondents strongly agree, 40.9% agree and 18.2% somewhat agree that DOT/BBNL have clear roadmap as to how they are going to rope in the other stake holders for creating necessary eco system for growth of broadband services. Rosy picture about this question of respondent could be because of their faith in government that something must have been planned. However, the survey result is at variance with study findings and suggestions of respondents itself. There appears to be a disconnect between the programme and people (user/service providers) which was found during the course of study.

9. Emphasis on creating an eco-system also requires that not only networking within the system also a well-designed networking arrangement with other stakeholders often tagged as facilitators such as electricity authorities, Departments of ITs of various State Governments, Departments of Local Self Governments, Panchayats, Departments of Health and Family Welfare, Department of Education is very important to carry the advantage of broadband services to the users particularly in rural areas.

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Figure (26) : No Single Window Service from BBNL

On the question of single window for accessing the services, respondents were of unanimous opinion (50% strongly agree, 40.9% Agree and 9.1 somewhat agree Fig no 26) that BBNL should move beyond bandwidth provider to full-fledged service provider as many entities may not be having POI at block level and may be interested in end to end service and not in piece meal bandwidth. However, despite similar learning in the Pilot project, BBNL has no plan to move beyond National Long Distance (NLD) service provider to full-fledged service provider. It is sticking to its initial mandate of providing bandwidth from block to GP irrespective of project outcome.

10. BBNL is not a full-fledged telecom service provider as other TSPs and has no point of presence in the form of marketing agent. Is the reason for non-utilisation of services even where services have been made available?

Figure (27) Non-visibility of BBNL is the reason for non-utilisation of services

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18.2 % strongly agreed and 31.8% agreed and 27.3% disagreed (Fig no 27) that Non visibility of BBNL is the reason for poor uptake of services even though bandwidth has been made available. The mix response is perhaps due echo system required for growth of broadband services. TSP/ISP are perhaps waiting for considerable size of broadband deployment by BBNL before they buy bandwidth from BBNL. BBNL has to take a lead to create required echo system, mere creation of bandwidth may not lead to services at the door of citizen.

11. There was discussion Policy corridor weather absence of last mile connectivity was creating barrier to uptake of BharatNet Programme like Mid-mile/backhaul connectivity. So it became important to understand significance of last mile connectivity on the success of programme

Figure (28) :Last mile connectivity is important

There has been a policy change with respect to last mile connectivity where provisioning of last mile broadband network has been made compulsory outcome of project, only 9.1% disagreed with the policy change rest 86.9% (40.9% strongly agreed and 45.5% agreed Fig no 28) supported the policy change. However, in response to another question (question no 12) responded supported last mile solution by private entrepreneurs as a good policy decision. Perhaps flip flop by respondents may be due to poor understanding of the context of the question.

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12. In the Phase II of project, State led model and Private Sector led model are also proposed for implementation of the Project in already multiple agencies DOT, BBNL, CPSUs / Central / State Agencies / contractors etc. environment.

Figure (29) Implication of State led model and Private Sector led model on the project performance

Majority view (almost 50% of respondents Fig no 29) that the introduction of new operational arrangement will have positive effect on the performance of the project. As infrastructure projects face many ground level challenges like ROW, Electric connections etc. (Under this project main interest of the villagers is the content delivery from state governments as well). Perhaps considering these aspects respondents must have thought States led project could speed up the delivery of the BharatNet programme as many items which holdup the project, are under direct control of states where it will become their internal matter. Same thing applies to private led approach through BBNL where one layer of intermediatory (BSNL/PG/RAILTEL) will be removed thereby speeding up the project as role gets clearly defined.

13. Who (Private Entrepreneur/ States) shall be able to deliver actual service to citizen was one of the questions perplexing the policy makers as no business case was getting realised even where BBNL had rolled out its equipments. It has become a teething trouble in absence of poor response from TSP and ISP. So it was important to test what could be the choice for the BBNL

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Figure (30) Engagement of private entrepreneurs or states to deliver services to citizens

Close to 60 % more or less agree (Fig no 30) that it is a good policy decision to allow private entrepreneur and states to manage the last mile connectivity. Perception of the respondents is in line with general perception of people that where delivery of a service is concerned, private entity is believed to be better in delivery of services over government machinery. Survey result of two questions (question no 11 & 13) contradict each other, on one hand respondents think that private entrepreneur in service provision is a good policy decision on the other hand they thing restricted BBNL to mere bandwidth provider is not a good policy. Probable reason for this response is explained in question 11.

Governance:

1. Organisation structure of special purpose vehicle BBNL, responsible for execution of BharatNet is very slim, is headed by Chairman and Managing Director and assisted by three board of directors, one executive director, CVO and Company secretary. CGMs of respective verticals are assisted by GMs of the concerned vertical. Organisation below GMs is non-existent which make it very vulnerable and completely dependent on vendors and other organisation for its functioning. All managerial staff are borrowed from other organisations and lower rung staff is on contract. PMU setup are limited to state capitals and a few big cities whereas actual work of this programme is below Block headquarters i.e. in villages.

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Figure (31) : Efficiency of organization arrangement of the BharatNet Programme

In regard to governance structure, 92% respondents think that (31.8% strongly agree, 36.4% agree, 13.6% somewhat agree and 18.2% disagree Fig no 31) that structure of BBNL is weak for the task at hand. Slow pace of delivery of the project could have been due to lean nature of organizational arrangements compared to the complexity and magnitude of the task at hand.

2. CPSU BSNL, Power grid and Railtel were selected as agencies on nomination basis for laying optical fibre networks. Equipment procurement was to be done by BBNL.

Figure (32) \: Splitting of responsibility hindering the pace of project delivery

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Only 31.8% respondents (Fig no 32) were of opinion that delay in project execution should not be attributed to splitting of responsibility between BBNL and executing agencies BSNN/POWER GRID/Railtel. On the question of executing the project by BBNL of its own in the question no 3, 33% said it won’t have mattered as regard to speed of delivery is concerned. It implies that some of the causes of delays were organisation agnostic. However, during study it was found that there was considerable delay on the part of BBNL in not procuring fibre timely and ultimately procurement of fibre was handed over to executing agencies BBNL/PG/RAILTEL after BBNL had failed to procure it.

Figure (33) : Efficacy of alternative arrangement to manage the project by the single entity BBNL

On the question of executing the project by BBNL of its own, 33% said it won’t have mattered as regard to speed of delivery is concerned. It implies that some of the causes of delays were organisation agnostic. However, 9.5% strongly agree, 38.1% agree and 19% somewhat agree Fig no 33 that execution by private agencies under BBNL leadership shall deliver the project faster as responsibility will be on BBNL and no one else. But to achieve faster roll out through BBNL, it must be adequately staffed.

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4. As project is running behind schedule, reason for the delay was needed to be probed for suitable recommendation. One of the important impediment for faster rollout is Right of Way.

Figure (34) : No delay due to RoW

Except 18% (Strongly disagree) of respondent, rest (18.2% strongly agreed, 36.4% agreed and 27.3% somewhat agreed Fig no 34) were of opinion that RoW issues had been properly addressed in design of the of project, Indian Telegraph Right of Way Rules, 2016 to regulate underground infrastructure (optical fibre) and over ground infrastructure (mobile towers) and agreement between DOT and states are a testimony to it, however a bit late. However, study revealed that though DOT had MOU with States for RoW but none with Railways, National Highways, forest and defence establishments which resulted into considerable delay.

5. As per BBNL plan, the main streams of revenue generation are expected to be bandwidth leasing and dark fibre leasing to the Service Providers.

Revenue generated after 5 years of completion is expected to make BharatNet Opex neutral, i.e. the cost of operation and maintenance is expected to be met out of revenue generated.

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On the BBNL revenue front, 87% respondents (40.9% agree, 40.9% somewhat agree and 13.6%disagree) were quite optimistic that BBNL would be able to break even after 5 years, however this is contrary to findings of this study. As per sustainability study BBNL may not break even before 2024. Respondents are perhaps swayed by the glitz around digital India.

Figure (35) BharatNet Project Self Supporting

Technology:

1. Gigabit passive optical network (GPON) is a network architecture that brings fibre cabling and signals to the home using a point-to-multipoint scheme that enables a single optical fibre to serve multiple customers. The architecture uses passive (unpowered) optical splitters, reducing the cost of equipment compared to point-to-point architectures. The GPON standard differs from other PON standards in that it achieves higher bandwidth and higher efficiency using larger, variable-length packets. Encryption maintains data security in this shared environment. It is capable of delivering a speed of 2.5 Gb in downstream and 1.25 Gb in upstream up to a distance of 20 Km.

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None (14.3% agree, 76.2% agree and 9.5% somewhat agree) (Fig no 36) of the responded disagreed that GPON was a right technology for BharatNet programme. Response is in line with global trend on GPON adoption.

Figure (36) Technology choice for the project was appropriate

Barring 9% responded, rest agreed (Fig no 37) that GPON system was delivering a speed of 100mbps at GPs, which has also been proven during lab and field trials of GPON as well. Peak download speed of 2.5Gb/s and upload speed of 1.25Gb/s have been tested in the lab

Figure (37) The chosen technology has the ability to meet the minimum requirement of 100 mbps

3. BharatNet Project is for rural area and the technology to be deployed must be capable of working in non-air-conditioned environment i.e. under high/low temperature, high humidity and extremely dusty environment.

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All the respondents (9.5% strongly agreed, 61.9% agreed and 28.6% somewhat agreed) were of the opinion that GPON is fit to be used in rural environment as it is robust enough to withstand harsh condition of rural area. The technology has passed all the thermal and dust test during field trial of one month.

Figure (38) : The chosen technology is robust.

4. BharatNet Programme is Capital intensive and fully technology dependent therefore it is important that investment doesn’t go waste in short time which can be ensured if technology is future proof that is scalable which implies that with incremental investment technology should last long.

71.4% agreed and 23.8% somewhat agreed that GPON is a scalable technology. The next generation PON like XGPON, XGSPON and NGPON2 are backward compatible to GPON so in case higher bandwidth is required existing ONT/ONUs shall remain compatible.

Figure (39) The chosen technology is scalable

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In India, rural area is marred by poor or non-availability of stable power supply. So the choice for the programme was two pronged one the equipment to be deployed should consume least power for delivering same throughput and secondly input power supply should be sourced through non-conventional energy.

Except for a few (10.5% strongly agree,57.9% agree, 26.3% somewhat agree) GPON is believed to be a green technology. As it is passive optical technology, it consumes very small power of say 2 to 5watts at consumer premises which can be easily solar powered.

Figure (40) Chosen technology is adequately green

5. If sustainability of a product is defined as a product which costs less, requires low maintenance, consumes low power and that can work in rough environmental condition, thereby keeping CAPEX and OPEX low. Then,

Efficient use of energy and other resources is usually advantageous as wasting less energy is typically cheaper than producing more, this is what we can say in reference to the GPON System which will last longer than many contemporary technologies.

63.2% agreed and 31.6 somewhat agreed that GPON was a sustainable product. So selection of GPON as a technology to BharatNet appears to be a right choice.

Figure (41) Chosen technology is sustainable

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Figure (42) Local content of interests is not available to the intended beneficiary

57.9% of respondent disagree that there is enough local content of interest to a villager. Responses are in line with other study conducted on availability of local content. There has been suggestion to fund organisation through USOF to create content of interest keeping in mind the literacy and digital literacy of country side in mind.

Economic &Social Impact:

1. Broadband can be effectively used as a tool/means to strengthen capital assets and convert assets into means of livelihood means/ empowerment.

Figure (43) : Broadband has the potential to create sustainable livelihood options

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33.3% strongly agreed and 42.9% agreed and 23.8% somewhat agreed that broadband can be a means to improve livelihood and empowerment. The responses are in line with established connection between broadband penetration and GDP specially in developing countries.

2. e-education, telemedicine, e-health, e-commerce, e-banking and e-Governance necessitated government intervention in rural telecommunication because of the benefit it may accrue to poorest of poor.

Figure (44) Broadband facility can have definite impact on poorest of poor in terms of various e-services

This question was in fact reiteration of the previous question. It is widely believed that transaction cost is not same for everyone e.g. to access a medical service for a person living in city, he may have to travel just a few km whereas for a person living in a village has to travel several km therefore e- services may be more beneficial to a person placed at geographically disadvantage position. 38.1% strongly agreed, 14.3% agreed, 38.1% somewhat agreed and 9.5% disagreed that availability of broadband will lead to prosperity of poorest of poor. E- services are greatest leveller, it does distinguish among who are approaching for it.

3. Availability of broad band services will lead to improvement in education.

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Figure (45) : Broadband services can strengthen the local education service

Again it is a part of the previous question, taking education in particular. 38.1% strongly agreed, 38.1% agreed and 19% somewhat agreed that broadband services will lead to improvement in education. The views of respondents appear to be in sync with global trends. On line course and free educational material is in abundance on the web. It becomes much easier and cheap to get resource material on line. Availability of affordable and reliable broadband is likely to prove beneficial in rural areas where physical infrastructure of education is in shambles.

4. Availability of broad band services will lead to Mainstreaming the underserved & un-

served areas/groups by bridging the digital divide.

Figure (46) Broadband services and Mainstreaming the underserved & un-served areas/groups

So far broadband penetration is limited to urban areas and adjoining rural areas. Primary reason for this is attractive business proposition for private telecom players. Broadband services are capital intensive, as population density and affordability both are low in far flung rural areas, private players find it non remunerative. These areas have been perpetually denied benefit of technology revolutions. Perhaps because of these reasons, 38.1% respondents strongly agreed, 42.9% agreed and 19% somewhat agreed that BharatNet project shall go long way in to the mainstreaming of unserved areas.

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5. Availability of broad band services will make Equitable distribution of the fruits of development and fair allocation of national resource (pooled USO levy) via targeted subsidies thus fulfilling constitutional objectives.

Figure (47) Broadband services and its impact of socio-economic equality

This question is reiteration and extension of previous question. In this question respondents were asked whether expenditure of collected levy(UL) on this programme is constitutional and whether it will lead to equitable distribution. 23.8% strongly agreed, 42.9% agreed and 28.6% somewhat agreed that BharatNet project shall lead to fulfilment of constitutional objectives.

6. Availability of broad band services will have environmental impact (minimum travel)?

Figure (48) Broadband services and environmental implications

More than 80% (33.3% strongly agreed, 38.1% agreed, 9.5 somewhat agreed) think that broadband to rural area will be bring positive environmental impact (reduction in

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travelling frequency). Broadband leads to virtualization and virtualization avoids need for travelling.

7. Spending money on BharatNet programme v/s other pressing needs of Citizens

Figure (49) Overwhelmingly support for BharatNet

Overwhelmingly 66.7% disagreed and 28.6 strongly disagreed that BharatNet programme is seer wastage of money. It appears that stakeholders are solidly supporting the programme however with some suggestions as listed below.

8. Suggestions on – If you believe something went wrong. Please suggest for course correction-.

Creation of SPV BBNL in place of the NOFA (Authority) in line with NHAI was a basic mistake. Monitoring of project should be directly from DoT instead of BBNL since three PSU's are to be monitored by one more PSU is of no use. Now DoT field units set up is there at each state who can deliver more & effectively. Only requirement is to strengthen the field DoT units. Intent of BharatNet is inclusive digital growth i.e., to bridge the digital divide. To do that government push to plan, execute, operationalize the broadband upto doorstep of remotely located users is a pre-requisite besides make the content available for the interest of the end users. To what extent BharatNet gets successful in this objective is to be seen once all 250000 gram panchayat gets operationalize n fully functional. BharatNet is good project with good objective but lacks proper implementation. BBNL structure is not well aligned with the policy objective.

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Only a miniscule percentage of responded believed that expenditure on BharatNet programme is seer wastage of money and suggested that it could be well used for more pressing need of rural people like food, housing and sanitation etc. Responded of these categories appears to have forgotten that mandate of USOF is only to spend collected levy from telecom service on a telecom services only in few deserving areas.

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CHAPTER 5

CONCLUSION AND POLICY RECOMMENDATIONS

5.1 Analysis and Synthesis

Policy:

It clearly emerged from the policy analysis and stakeholders survey that there exist key policy issues which require structured attention. One of the key findings of the survey is that uptake of broadband services in rural areas requires some attention to understand the affordability of rural populace for ICT devices, hence requires some sort of tariff restructuring. Digital literacy and content of interest too are important, for uptake of broadband services. In sum, survey suggests that there was a need for a policy intervention to increase broadband penetration in the rural areas.

All the respondents believed, although in varying degrees, that BharatNet programme will fulfil the stated objectives of NTP-2012 and has the potential to bridge the digital divide which exists between urban and rural areas.

On the question of utilization of assets created under this programme, a meagre (only 18% respondents) think that DOT/BBNL has no clear road map as to how there are going to bring all the stake holders together to provide services to citizens. The survey result is at variance with study findings because had there been clear road map equipment installed by BBNL at large number of GPs would had been put to be use and services offered to citizens.

On the question of single window for accessing the services, respondents were of unanimous opinion that BBNL should move beyond bandwidth provider to service provider as many entities may not be having POI at block level and may be interested in end to end service.

There has been a policy change with respect to last mile connectivity where provisioning of last mile broadband has been made compulsory outcome of project, only 9% disagreed with the change of policy rest supported the policy change. However, in response to another question responded supported last mile solution by private entrepreneurs as a good policy decision.

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So, survey result of two question contradict each other, on one hand respondents think that private entrepreneur in service provision is a good policy decision on the other hand they thing restricted BBNL to mere bandwidth provider is not a good policy.

Two finding of the study is at variance with survey outcome. Survey opinion goes in favour of continuation of keeping service provisioning to private entrepreneur despite the fact are not forthcoming at the places where bandwidth from BBNL is available. Barring 9% respondent, all were of the opinion that provisioning of last mile access and broadband services should be mandatory outcome of the project and also believe that DOT/BBNL has clear roadmap for doing it, however no clear policy decision has been found in respect of a sustainable business model during the study, perhaps too much is left for trial and error for doing it through unknown governance mechanism. Off late, BBNL and BSNL have entered into an agreement for marketing of BBNL bandwidth, fibre and O&M of BharatNet network. All the organisations involved in the project have been found working in silos.

Majority are of the opinion that policy of handing over of BharatNet project to those states who are interested could lead to early completion of project however 18% believe that it may not happen so. In the state led model technology choices and fibre laying methodologies have been left to states, which may appear as a freedom to states but it may not be in overall interest of the project as proven technologies and methodologies should have been insisted upon. It may actually delay the project or create unintended problems, like theft/cut of Arial optical fibre cables which some states are planning to lay overhead on electric poles. Arial optical fibre cables were laid on electric poles by Reliance telecom in big way but today none of them are available due to theft and cut.

Governance:

Overall, the survey responses are suggesting a weak governance structure for the management and operation of the programme. It clearly emerged that BBNL is a weak body for the task at hand. This requires some well-designed policy direction or policy level mid-course correction.

Survey results also indicate that splitting of responsibility across a set of organizational entities and assigning the responsibility of project execution by BBNL may hinder the project pace and slow down the project operation and completion.

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Except 18% of respondent, rest were of opinion that RoW issues had been properly addressed in design of the of project, Indian Telegraph Right of Way Rules, 2016 to regulate underground infrastructure (optical fibre) and over ground infrastructure (mobile towers) and agreement between DOT and states are a testimony to it, however a bit late.

On the BBNL revenue front, respondents (87%) were quite optimistic that BBNL would be able to break even after 5 years, however this is contrary to findings of this study.

Technology:

The aspects on technology is one of key strengths of the BharatNet Programme. This was also reiterated in the survey itself. None of the responded disagreed that GPON was a right technology for BharatNet programme. Barring 9% responded, rest agreed that GPON system was delivering a speed of 100mbps at GPs, it has also been proven during lab and field trials of GPON as well. All the respondents were of the opinion that GPON is fit to be used in rural environment as it is robust enough. Except for a few, GPON is believed to be a green technology and scalable.

58% of respondent believe that content of interest to a villager is not there as of now, this is in line with literacy and digital literacy status of rural population.

Economy & Social Impact:

Results of the survey overwhelmingly concurs the economy and social impact analysis in this paper. Survey (90%) supports that BharatNet programme will push the digital India programme to the fore and rural population will be the biggest beneficiary because of the inclusion it brings with it, which in turn will usher prosperity to the people due increased socio- economic activities and capacity building and employment generation potential of ICTs.

More than 80% think that broadband to rural area will be bring positive environmental impact (reduction in travelling frequency).

As regard to meeting social objectives, there was no opinion otherwise. All believed this affirmative action will help equally to disadvantageously placed rural population.

Only a miniscule percentage of responded believed that expenditure on BharatNet programme is seer wastage of money and suggested that it could be well used for more pressing need of rural people like food, housing and sanitation etc. Responded of these categories appears to

xc have forgotten that mandate of USOF is only to spend collected levy from telecom service on a telecom services only few deserving areas.

5.2 Policy Recommendations:

Broadband is an infrastructure which needs a strong ecosystem to take off. Indian eco system is characterized by its seer linguistic, cultural, geographical and digital literacy diversity apart from affordability factor. This would mean that all the stake holders (Central/State Governments, TSPs, ISPs, content providers etc.) come on the board and synergies individual effort to develop an ecosystem which is complementary to each other.

As BharatNet programme appears to be an ‘add on’ as a strategy whose policy and plans are not fully integrated and aligned with other stakeholders to achieve the policy objectives, an integrated policy and governance structure is required to meet the following;

a. Missing link between GP POI and customer should be addressed with objective of providing telecom service and not just bandwidth under the Programme. b. Missing link between Block HQ and TSP/ISP/Content providers should be addressed in the design of project and not left to market forces. This is the weakest link in the sustainability of the project. c. Fibre architecture used in Phase-I of project makes it impossible for any other agency to use fibre of BBNL as BBNL owned fibres are in patches. It should be corrected along with phase II of the programme by laying new fibres from block to GPs. d. As of now, it appears that providing broadband services by private entrepreneurs are not economically feasible in the GPs, a mechanism for viability gap funding should immediately be brought into. e. Many of the villagers may not be in position to buy a handset supporting multimedia, a handset supporting multimedia in local languages may be provided in the scheme to start with as a bundled service. It may be of a great help to students of poor households. f. Creation of villager centric content of interest in their language is another important aspect which should be looked into to kick start off take of services and to sustain it.

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It may also be required to be funded through USOF and not just left to state government or MEITY. g. CSC2.0 Scheme 52under MEITY for opening facilitation Centres in GPs is not taking off to commensurate with progress made in BharatNet programme. Alignment in both the policies is required. h. Due care of O&M of the assets has not been taken in the policy and existing governance structure though an agreement between BBNL and BSNL has been done in Oct 2017 for O&M of BBNL infrastructure. i. BBNL should be strengthened to handle post deployment issues. j. In regard to State led model under phase-II, as States do not have the requisite experience in rolling out telecom projects, BharatNet Programme should not be pushed in many states without ascertaining the outcome from at least some states as inexperience may create many unintended problems and uncertainty and may derail the whole project as such. And at the same time, learning from state led project should be bought into BharatNet project. k. Give freedom to BBNL to take Unified Telecom License on the lines of state fibre net companies to make it single stop solution for villagers for their entertainment, education, internet and telephone needs. l. State Govt. must provide citizen services through digital media so that people see value in digital transactions.

5.3 Observation

Observation recorded during informal interviews with stake holders, survey and relevant document review is given in Annexure I which may be very useful information for policy makers.

52 http://meity.gov.in/DeitY_e-book/csc/index.html xcii

BIBLIOGRAPHY

Abbasi, (ITU-D, 2015): Use of ICTs for Women Empowerment in Rural Areas in INDIA Andres, Cuberes, Diouf, &Serebrinsky, 2010: The diffusion of Internet: A cross-country analysis (1990-2004) Agreement between BBNL & BSNL BBNL DPR Feb’2014 BBNL Strategic doc 2017 BBNL Website accessed on 31.10.2017, and 31.12.2017 bbnl.co.in accessed on dated 10.11.2017 BharatNet (DOT-2011) Broad Band Policy 2004 Digital India frame work DOT Annual report 2016-17 National Telecom Policy 1994 National Telecom Policy 1999 National Telecom Policy 2012 Pilot Project Report, BBNL PWC-2017 Shahram Amiri and Brian Reifin, Internet Penetration and Correlation to Gross Domestic Product (International Journal of Business, Humanities and Technology Vol. 3 No. 2; February 2013) TRAI performance indicator report May 2017 TRAI recommendation-2010 TRAI- performance indicator report 2012 www.bbnl.nic.in www.dot.gov.in www.usof.gov.in

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ANNEXURE-I

Statements from Respondents/Key Stake holders  Monitoring of project require direct from DoT instead of BBNL since three PSU's are to be monitored by one more PSU is of no use. Now DoT field units set up is there at each state can deliver more & effectively that is what I believe. Only requirement is to strengthen the DoT field units. (2)  Creation of SPV BBNL in place of the NOFA (Authority) in line with NHAI was a basic mistake.  Intent of BharatNet is of inclusive digital growth i.e., to bridge the digital divide. To do that, govt. push to plan, execute, and operationalize the broadband up to doorstep of remotely located users is a pre-requisite besides making the content available for the interest of the end users. To what extent BharatNet gets successful in this objective is to be seen once all 250000-gram panchayats gets operationalize and fully functional.  BharatNet is good project with good objective but lacks proper implementation. BBNL structure is not well aligned with the policy objective.  It must be ensuring that faster decision and fund flow through BBNL.  BBNL, must tie up with content providers in local vernacular languages to make broadband really worthwhile.  The service fulfillment by all stake holders should be properly watched by regulation authority / field units of DoT & there should be every year population coverage with some strong penalty clauses for non-covering the Rural areas.  Right to livelihood, fulfillment of basic necessities of life is dearer to populace in rural India. Right to broadband is not that important at this stage unless they have visible impact on socio-economic conditions.  Accessibility to broadband at affordable tariff is also a key driver for data/video services in general and rural area in particular.  Availability of content/applications and e-governance services in local language is essential. Data / video services shall get popularised only if they are able to change socio- economic conditions of people  Low use is because of less education, less dependence on gadgets, power problems, in some areas non-availability of data speed.  Reliable and high-speed connectivity is required first before jumping to affordability and low uses assumptions  State Govt. must provide citizen services through digital media so that people are compelled to use data and also see value in digital transactions  All service providers should be given some financial concessions in rural areas. And same time there should be strong regulations to watch minimum service obligation to cover whole rural areas / far flung area.  Lack of computer literacy is also one of the many factors responsible.  Rural centric content/ application need to be developed.  Most users found going to TSP/ISP and BBNL inconvenient and impractical. They wanted a single window service which is not available even now for retail as well as enterprise Ai

customer. A proposed Government user network to provide point of interconnects at district level to provide single window service is yet to see the light of the day.  TSP, ISP and MSO are not willing to offer services due to commercial consideration and non-availability of seamless bandwidth from GP to their point of interest.  Poor network availability is mainly on account of poor power availability and switching of power of ONTs knowingly and unknowingly and linear architecture and longer time to repair OFC faults adds to woes. There is a need to provide fibre protection where higher level of SLA is required.  Dust in connectors result in low speed, a technical solution is required to be made as ONTs are kept in open where dust is a common phenomenon. Proper physical security of assets is also required as they are prone to theft. Proper arrangement of custodian at GP level needs to be worked out.  Signal from Wi-Fi service is not sufficient enough to cover a distance beyond 50 meters for a desired download speed, so if WiFi is being considered as possible last mile connectivity a careful planning must be done to cover entire village not just 3 to 5 ‘hotspot’ as planned by BBNL as of now.  As maintenance aspect is yet to be taken care in the Programme, missing first line maintenance is resulting into poor network availability which may give a bad name to the Programme itself.

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ANNEXURE-II: (I had coordinated the field visits with Dr Abbasi, writer of this report)

S/N Immediate Recommendations for Enabling Digital Inclusion

1. Enhance Gender Sensitization in all relevant Policies Create comprehensive multi-dimensional policy framework to align, integrate and i. ensure effective implementation. Gender sensitization for rural women and women in general to form the pillars of ii. digital India and development in rural India of digital inclusion. Revise the USOF policy to take a more flexible approach to its use, and it should not iii. only be used for connectivity to rural areas, but also to anchor institutions where training for women, girls, youth and persons with disabilities is being provided. Create a framework for Digital Literacy policy and collect sex segregated data on ICT iv. access, use and impact. Invest in text to speech engines in the local languages to enhance the use of ICTs for v. illiterate users and enable the blind to send and read texts messages aloud. 2. Alignment of Key Organisations i. Create a matrix by ministry/agency to identify gaps in the current delivery model. Use the ‘Broadband’ network ‘NOFN’ effectively and monitor incremental progress ii. and use across ministries at the National, State, District and Block levels. Create a holistic framework across ministries for rural women initiatives identify iii. possible ICT interventions for acceleration and effectiveness. Organise a workshop in New Delhi with all key Ministries that are responsible for iv. service delivery at the grassroots level through the Gram Panchayat scheme to rural women. Create a multi-dimensional dashboard of the current readiness level and program rollout v. plan driven and guided by NRLM and the States’ SERPs. 3. Fast Track Practical ICT Skills through Innovation i. Develop a sustainable capacity building strategy. ii. Develop comprehensive ICT capacity building roadmaps (National and States). iii. Develop a holistic implementation plan for NRLM in collaboration with the SERPs. Introduce innovative learning techniques (blended, self-directed and collaborative iv. learning). Use ICTs to provide village youth capacity building and training to obtain a decent v. livelihood. 4. Practical and Sustainable ICT Training Models for Rural Women i. Make ICT education for primary school children in rural areas compulsory. ii. Make a formal parallel ICT support circle of the ‘girl child’ of SHG members. Train daughters of SHGs on ICT skills in parallel with their mothers as they can be iii. mentors at home.

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S/N Immediate Recommendations for Enabling Digital Inclusion Support ‘train the trainer’ model and mentorship programs at the grassroots to ensure iv. sustainability. v. Use ICTs to provide distance training and learning methods and mentoring.

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ANNEXURE-III

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ANNEXURE-IV

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