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Telecom Regulatory Authority of India (IS/ISO 9001: 2015 Cer�fied Organisa�On) Telecom Regulatory Authority of India (IS/ISO 9001: 2015 Cerfied Organisaon) Annual Report 2017-18 Mahanagar Doorsanchar Bhawan, Jawahar Lal Nehru Marg, (Old Minto Road), New Delhi-110002 Telephone : +91-11-23664147 Fax No:+91-11-23211046 Website:hp://www.trai.gov.in LETTER OF TRANSMITTAL To the Central Government through Hon’ble Minister of Communicaons and Informaon Technology It is my privilege to forward the 21st Annual Report for the year 2017-18 of the Telecom Regulatory Authority of India to be laid before both Houses of Parliament. Included in this Report is the informaon required to be forwarded to the Central Government under the provisions of the Telecom Regulatory Authority of India Act, 1997, as amended by TRAI (Amendment) Act, 2000. The Report contains an overview of the telecom and broadcasng sectors and a summary of the key iniaves of TRAI on regulatory maers with specific reference to the funcons mandated to it under the Act. The Audited Annual Statement of Accounts of TRAI is also included in the Report. (RAM SEWAK SHARMA) CHAIRPERSON Dated: September 2018 III TABLE OF CONTENTS Sl.No. Parculars Page Nos. Overview of the Telecom and Broadcasng Sectors 1-8 Policies and Programmes 9-60 A. Review of General Environment in the Telecom Sector Part – I B. Review of Policies and Programmes C. Annexures to Part – I Part – II Review of working and operaon of the Telecom 61-130 Regulatory Authority of India Part – III Funcons of Telecom Regulatory Authority of India in respect of maers 131-150 specified in Secon 11 of Telecom Regulatory Authority of India Act Part – IV Organizaonal maers of Telecom Regulatory Authority of India and 151-220 Financial performance A. Organizaonal maers of Telecom Regulatory Authority of India B. Audited Accounts of TRAI for the year 2017-18 C. Audited Contributory Provident Fund Accounts of TRAI for the year 2017-18 V OVERVIEW OF TELECOM & BROADCASTING SECTORS 1 2 OVERVIEW The Telecom Regulatory Authority of India (TRAI) was established in the year 1997 and has been regulating the telecom sector for more than two decades. The broadcasting sector was brought under the ambit of TRAI since 2004. During these two decades of existence, TRAI has performed with a mission to create and nurture conditions for growth of telecommunications in the country in a manner and at a pace which will enable India to play a leading role in emerging global information society. During the year 2017-18, a number of iniaves were taken by TRAI to connue its mandate for creaon of conducive environment for the growth of telecommunicaons, broadcasng & cable sectors resulng in healthy compeve markets and recognion of India as one of the leading players in the emerging global informaon society. The various measures taken by the Authority have helped in promong the growth and development of the telecom and broadcasng sectors during 2017-18. These measures have also resulted in the overall benefits to the consumer in terms of choice of services, affordable tariff, beer quality of services etc. This is evident from the exponenal growth which could be achieved in these sectors. These growth stories have been further fuelled by a mix of several important factors, which include the emergence of new growth opportunies; healthy investments in the sectors and rapid development of technology. The resulng vibrant compeon among players has led to affordable prices for users. At the same me, increasing awareness about the availability of telecom and broadcasng services has connued to fuel the user demand for more and beer services. The detailed account of this growth story is elaborated in the following chapters. 3 The growth of data usage by wireless “Net Neutrality”, “Ease of Doing Telecom subscribers has reached a new level showing an Business”, “In-flight Connecvity”, “Inputs for unprecedented growth of the sector. There has framing Naonal Telecom Policy” etc. As far as been an increase in the overall mobile coverage the Tariff policy is concerned, TRAI connued with and data usage in the country adding more the general approach of forbearance in respect of rural areas to the coverage map. With increased most of the services. Important Amendments in availability of smart phones at much affordable Telecom Tariff Order (TTO) were made to ensure prices, mobile phone has become more than a Transparency, Non-discriminaon and Non- communicaon device, and services are becoming predaon in telecommunicaon services increasingly linked through mobile, Internet and Broadcasting sector has also been going through other digital modes of delivery. The growth of transition from analogue to digital era. TRAI has 4G services has added a large number of first made efforts to meet the regulatory challenges me subscribers who experience the advent of which are being faced by broadcasting sector. data revoluon using these services. The mobile In the year 2017-18, TRAI has taken several network is serving as a major backbone on which effective measures in the interest of consumers the important sectors of economy like banking, of broadcasting services. For instance the health and educaon are riding and therefore, this digitization of the cable sector was one of the sector is a great enabler in the overall economic important measures taken by TRAI which will growth of the country. empower the consumer and provide him with Telecom sector is a fast evolving sector due to better service quality and enhanced choices. technological advancement which facilitates This digitization process was continuously introducon of new types of services. During the pursued and monitored against various odds and year, while discharging various recommendatory challenges. The Authority also initiated a number and regulatory funcons, TRAI has tried to address of steps aimed towards bringing in measures to various issues and new challenges being faced by ensure stability and uniform growth of the sector the telecom sector. Recommendaons were made that is presently undergoing a transformation. to the Government on key issues including those During the year, recommendations were made on the subjects like “Cloud Services”, “Spectrum, by TRAI to the Government on key issues Roaming and QoS related requirements in Machine- concerning broadcasting sector such as “Issues to-Machine (M2M) Communicaons”, “Approach related to Digital Radio Broadcasting in India”, towards Sustainable Telecommunicaons”, “Ease of Doing Business in Broadcasting Sector” “Regulatory framework for Internet Telephony”, etc. 4 2. The significant developments relang to shows subscribers exercising their preference of Telecom and Broadcasng sectors during the year service provider. The Internet subscriber base in 2017-18 are briefly menoned below: the country as on 31st March 2018 stood at 493.96 million as compared to 422.19 million as on 31st I. TELECOM SECTOR March 2017. The total broadband subscriber base The Indian telecom sector is the second largest in in the country has increased from 276.52 million the world in terms of the number of subscribers. as on 31st March 2017 to 412.60 at the end of 31st The sector has witnessed exponenal growth March 2018. over the last few years which was due to many In order to create an enabling and stable factors such as affordable tariffs, wider service environment for telecommunicaons services availability, roll out of new facilies and services and to ensure greater access, transparency, such as Mobile Number Portability (MNP), 3G and non-discriminaon, consumer protecon, and 4G, evolving consumpon paerns of subscribers, stable growth in funconing of the sector, and conducive regulatory environment. a comprehensive review of the regulatory Connuing the growth trend, the Telecom Sector framework for the telecommunicaons sector has witnessed a substanal growth of subscriber has been undertaken by TRAI, which included base during the year 2017-18 also. At the end tariff, interconnecon and quality of service. To of the financial year, the subscriber base was ensure transparency while proposing any change 1206.22 million out of which 1183.41 million were in the exisng regulatory framework, TRAI follows wireless subscribers. During the year, wireless transparent consultaon process in order to give subscriber base recorded an increase of 13.23 an opportunity to the stakeholders to deliberate million, with the overall tele-density of 92.84% and offer their views on the proposed regulatory at the end of March 2018. The year also saw an framework. As part of this crical exercise that increase in the rural tele-density from 56.91% to ensures that robust regulaon emerges from the 59.05%, while the urban tele-density decreased consultave process, TRAI issued various important from 171.80% to 165.90%. During the year 2017- consultaon papers inving wrien comments / 18, 98.07 million subscribers have submied counter comments from the stakeholders during their porng requests to different service providers this year. This included Consultaon Papers on for availing Mobile Number Portability (MNP) “Data Speed under Wireless Broadband Plan”, facility. With this the MNP requests increased “Privacy, Security and Ownership of Data in the from 272.76 million at the end of March 2017 to Telecom Sector”, “Promong Local Telecom 370.83 million at the end of March 2018, which Equipment Manufacturing”, “Next Generaon 5 Public Protecon and Disaster Relief (PPDR) telecommunicaons sector, TRAI also issued the Communicaon Networks”, “Making ICT following key amendments and regulaons during Accessible to Persons with Disabilies”, “Method the course of the year: of Allocaon of Spectrum for Public Mobile Radio 1. The Standards of Quality of Service of Trunking Service (PMRTS) including aucon as a Basic Telephone Service (Wireline) and transparent mechanism”, “Voice Services to LTE Cellular Mobile Telephone Service (Fih Users (including VOLTE and CS Fallback)” etc. Amendment) Regulaons, 2017 2. The Telecommunicaon Interconnecon An important aspect of TRAI’s funcons as Usage Charges (Thirteenth Amendment) mandated under the TRAI Act is to make Regulaons, 2017 recommendaons to the Government on diverse 3.
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