Even as the country progresses on the data growth trajectory, it continues to face several challenges in terms of building networks and architecture. The industry requires a fibre-based high bandwidth backaul network to support data growth and enable data transfers at faster speeds. Cisco is emerging as a key stakeholder in this area, with several projects in India in its portfolio, including the upcoming Smart Cities project. Sanjay Kaul, managing director, service provider business, Cisco India and SAARC discusses the emerging opportunities and technologies in the Indian telecom industry, as well as the key issues faced by operators and steps needed to overcome them.

Edited excerpts:

What are the key technology trends in the global communications industry?

Today, mobile, social media, cloud and data analytics are converging to bring about a digital disruption in the global communications industry. While mobile service has been revolutionary in itself, social media is helping bring about digital literacy. Meanwhile, cloud allows several functions to be conducted at affordable rates. If a trajectory is drawn for the next 10 years, several network functions will be virtualised while cloud intelligence and data will bring down the cost of production. In addition, data analytics plays a fundamental role in drawing useful information, which can be incorporated in business models to help bring about efficiencies.

What are the industry verticals that Cisco is focusing on in the Indian telecom market?

In India, the company is focused on innovating IT and information and communications technologies, and bringing them to multiple industries such as retail, banking, security and surveillance, and health. One of the company’s key focus areas is partnering in the Smart Cities and Digital India programmes. On the technology front, Cisco is focused on network function virtualisation, video optimisation and technologies that help conserve bandwidth needs up to 30-40 per cent. The company also provides solutions for data centres, private cloud and public cloud.

What are the key emerging opportunities in the Indian telecom market?

IP-fication of networks is a key emerging opportunity as there are still a number of networks in India that are hybrid and living on legacy. Other opportunities include the transformation of backhaul and packet core.

Another emerging avenue is helping cable operators that are looking to offer broadband services to design and plan their networks. Further, there lies a long-term opportunity in contributing to the evolving ecosystem in the smart cities and Digital India initiatives. Under this, Cisco is not only bringing in relevant technology but also offering business models, revenue models and pricing models to operators in order to speed up the deployment of such initiatives.

What challenges are operators facing in the roll-out of next-generation services?

The primary challenge faced by operators relates to infrastructure. Operators face the issue of lack of spectrum, which is required to cope with the growing amount of data. Another issue relates to backhaul, which needs to be shifted to fibre in order to cater to the growing bandwidth requirements. In addition, the regulatory regime requires more clarity on mergers and acquisitions to pave the way for consolidation in the industry.

What is your perspective on the policy and regulatory environment in the Indian telecom industry?

The regulatory changes in the telecom sector are moving in the right direction. However, issues related to investing in and rolling out fibre networks should be part of the national agenda. While the National Optical Fibre Network project will address this need, the pace of project execution needs to be improved. Facilitating consolidation in the industry is also an important issue. The Indian telecom market is competitive; however, several operators are in financial distress and are unable to sustain their balance sheets. This can inhibit data growth. Lastly, the regulator needs to create a policy regime that supports infrastructure build-out, innovation and long-term investments by operators.

How is the cloud computing and virtualisation landscape developing?

Cloud is a necessity in the Indian context as it helps reduce capex in a monolithic architecture. Thus, the cloud will grow multifold in the coming years. Operators in India have a clear agenda to virtualise their functions and move them to the cloud. The technology thus has an important role to play in reducing operators’ costs of production. Cloud will also bring agility in the time-to-market and time-to-service. We believe this technology will thrive in India.

Where does India stand in Cisco’s global agenda? What opportunities is the company looking to tap under Make in India?