In an interview with tele.net.in, N. Ravi Shanker, administrator, USO Fund, talked about the importance of collaborations among various stakeholders to increase broadband uptake in the country. Excerpts…

What is the current status of rural infrastructure roll-out in India? What role has the USO Fund played in expediting service roll-out in these areas?

The USO Fund’s contribution to the telecom infrastructure segment is aimed at two main components – mobile towers and mobile broadband. The USO Fund has played a key role in telecom sector development. In 2007, we set up 7,353 telecom towers as part of the first phase of tower roll-outs. Apart from 40 towers that could not be set up owing to difficult terrain, this phase is complete. Also, considering that rural areas may not attract adequate investments, we set up base transceiver stations (BTSs) at each tower site. A few tower sites do not have BTSs and we are in talks with the concerned operators to establish them.

Currently, over 57,000 villages do not have mobile coverage. We are preparing a plan to address the issue in collaboration with the Centre for Development of Telematics (C-DOT). We are currently working on the report for the project and aim to identify the mechanism to implement it in the current financial year.

Ideally, technology that can be used in difficult terrain is best suited for untapped areas. One should also consider the unpredictable power supply situation in these areas while identifying the best solutions. The USO Fund aims to deploy technologies that work in all-weather conditions and require low maintenance in these areas. As power supply is an issue, it is imperative to ensure availability of alternative sources of energy.

In this context, C-DOT has proposed various technology solutions, which are currently being scrutinised by the technology group of the Department of Telecommunications (DoT). The next step is to fix a suitable price for the technology. This requires discussions with various industry stakeholders and we aim to make significant progress on the project by end-March 2014.

Meanwhile, the Telecom Commission has approved the proposal to establish about 2,200 towers in extremism-affected areas. The location of the proposed towers has been approved by the Ministry of Home Affairs. We have circulated a cabinet note for the project to the concerned ministries and departments. Several of them have responded and we expect to receive all the pertinent inputs by end-May 2013. Following this, the cabinet note will be sent to DoT.

We have proposed to operate these towers on hybrid power solutions, considering the current supply situation. We are also adhering to the principle of preferential market access, as specified by DoT.

What is the status of the broadband market? Which factors are impeding its growth?

We have to ensure that external factors support the growth of data services. Currently, the country’s broadband subscriber base is very low and internet services are available to only 10 per cent of the population. The NTP, 2012 has set ambitious goals for the internet and broadband segment. Two factors would play a key role in achieving these targets – creating infrastructure based on an optic fibre network and deployment of wireless technologies. While the optic fibre network is being set up with the USO Fund’s assistance, we expect 3G and 4G services to provide a fillip to the broadband segment. Development of the broadband ecosystem will be equally important. The four key drivers for this are content, device costs, competitive tariffs and computer literacy.

The broadband targets set under NTP, 2012 can be achieved if all stakeholders, including DoT, operators, value-added service players and state governments, work in tandem.

What role will the NOFN project play in driving broadband uptake?

The NOFN is primarily aimed at connecting village panchayats through an optic fibre network. The network roll-out involves several components. Three pilot projects were concluded in October 2012, which elicited a lukewarm response. To improve the response, the Department of IT has prepared a plan to offer citizen-centric services to take broadband to schools and government hospitals. The equipment and connectivity for these services are also being provided by the government. These institutions are being provided 10 Mbps broadband connectivity.

Meanwhile, with regard to the roll-out of the NOFN, we have procured the optic fibre cable (through Bharat Broadband Network Limited), the tender for which was opened on May 8, 2013. The evaluation process and financial assessment will be completed by end-May 2013.

There has been limited activity with regard to the procurement of electronic equipment. The tenders were scheduled to be issued this month but the process was stalled due to technical glitches. The third aspect of the project relates to procuring ducts, for which Bharat Sanchar Nigam Limited (BSNL), RailTel and PowerTel have released tenders. The fourth component relates to trenching and laying works. Significant progress has been made in terms of survey works. Of the country’s 250,000 panchayats, survey works for 180,000 panchayats will be undertaken by BSNL while 30,000-35,000 panchayats will be covered by PowerTel and RailTel. Survey works in Kerala, Madhya Pradesh and Rajasthan have been completed and the entire process should be completed by end-July 2013.

What are the short- and long-term targets of the USO Fund?

The USO Fund’s long-term goal is achieving the broadband objectives specified in NTP, 2012. Our short-term goal is to implement the NOFN project. This involves setting up a nationwide optical fibre network, expanding telecom infrastructure to extremism-affected areas, establishing a telecom network in uncovered villages and promoting green telecom.

With regard to green telecom, we are working in collaboration with the Ministry of New and Renewable Energy to ensure that an increasing number of telecom sites deploy hybrid energy solutions. We also provide viability gap funding for infrastructure development. Increasing rural teledensity and broadband penetration, and achieving the green telecom targets are important priorities for us.

What are the key issues and challenges for the USO Fund?

Underutilisation of the infrastructure created by the USO Fund is a major issue. Other challenges include the absence of an all-encompassing ecosystem comprising telecom and cable operators, and lack of collaboration to enhance rural broadband penetration. A single agency cannot achieve the broadband targets.

What is your opinion on reports that the USO Fund remains underutilised?

We have unutilised funds of over Rs 250 billion, but the USO Fund cannot use it as per its discretion. The government makes these funds available through the annual budget depending on the planned programmes of the Fund. For example, funds will be required for the NOFN project. The next two years are important for accessing funds from the central government for implementing the project.

Similarly, to establish infrastructure in extremism-affected areas, we will require funds in the next two to three years. In sum, these news reports should first examine the USO Fund’s plan of action, which is in line with the objectives of the NTP, 2012 for broadband and teledensity.

How do you expect the industry’s competitive landscape to evolve?

Technology is a continuously evolving space. While we may feel that 10 Mbps broadband connectivity is adequate, certain countries have moved to 100 Gbps. We expect this to be replicated in our country as well. We expect to witness a data revolution as the uptake of data services increases. For example, the country witnessed a cable TV revolution in 1992 and today there are about 120 million homes with cable TV. Similarly, the mobile industry has grown significantly and currently, there are over 900 million users.

Similar growth is expected in the broadband segment and adequate infrastructure needs to be established to support this growth. The USO Fund is merely a tool in this process, and stakeholders need to collaborate to make “broadband for all” a reality. The central and state governments, private telecom players, internet service providers and cable operators should work together to achieve this goal. Manufacturers can also help by offering affordable devices.