Draft telecom policy removes roaming charges, allows full porting

In a move aimed at cheering mobile subscribers in the country, India's telecommunication ministry has proposed to remove roaming charges and allow porting of mobile numbers any where in the country.

''Draft NTP (National Telecom Policy) aims for 'one nation-one licence', telecommunications minister Kapil Sibal said, unveiling the draft of a new policy. `National Telecom Policy 2011' (NTP 2011) to replace the existing decade-old policy.

At present, the country has 22 telecom circles and roaming charges are levied while a user travels from one circle to another. The move to do away with roaming charges would make calls cheaper when a person is on the move, even though it will eat into the revenues of telecom operators.

Allow porting of mobile numbers any where in the country, enables a user to retain his number even while he is moved from one state or circle to another. Till now, porting – discarding one operator for another and retaining the same number - was allowed only in the home circle.

The draft NTP 2011, released by Sibal, also intends to permit operators to share and trade spectrum and formulate an exit policy for companies intending to discard telecom operations.

The new policy also provides an increasing trust to the broadband segment, intends to introduce 'Right to Broadband', meaning getting a broadband connection would be considered as a basic right of every citizen. It also aims to achieve 600 million broadband users by 2020.

''Draft National Telecom Policy 2011 targets broadband on demand,'' Sibal said, adding, ''…will make 300 MHz of spectrum available by 2017 and another 200 MHz by 2020,'' for broadband services. Sibal, however, did not divulge any time frame for this.

The ministry also plans to revise the existing broadband download speed of 256 KBPS to 512 KBPS by 2011 and subsequently to 2 MBPS by 2015 and higher speeds of at least 100 MBPS thereafter.

An increased thrust on domestic telecom equipment manufacturing segment would be given to meet the indigenous demands for becoming self-reliant in telecom, ICT equipment design and manufacturing and to encourage manufacture of cost effective customer-end terminals and devices, including mobile devices, SIM cards with enhanced features etc.

The government also intends to delink spectrum from telecom licences and intends to make it available at market-determined prices. At present, spectrum is mandatorily provided when an operator wins a licence to offer telecom services.

''We will seek TRAI (Telecom Regulatory Authority of India) recommendations on new licences, migration to new licences and exit policy,'' Sibal added.

The new policy also intends to increase tele-density to 60 per cent by 2017 and 100 per cent by 2020.

According to the Telecom Regulatory Authority of India (TRAI), India has 892.55 million subscribers as on July 31, 2011, with an overall tele-density of 74.44.  

However, revenue generation would play a secondary role under NTP 2011.

The objective of the policy is to provide secure reliable, affordable high-quality telecom services anytime anywhere, the minister said.

''In achieving the goals of national telecoms policy 2011, revenue generation will play a secondary role. Our vision is to have broadband on demand,'' he said.

NTP 2011 has also proposed relaxing merger and acquisition norms in the sector, provide more teeth to regulator TRAI and provide transparent, affordable, reliable and secure telecommunication and broadband services across the country.

The draft policy also seeks to reposition the mobile phone from a mere communication device to an instrument of empowerment that combines communication with proof of identity, fully secure financial and other transaction capability, multi-lingual services and a whole range of other capabilities that go with them and transcend the literacy barrier.

"The National Telecom Policy-2011 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," Sibal said while unveiling the policy draft.

"NTP-2011 is an initiative to create a conducive policy framework to address these issues and to touch lives of all citizens and transform India. By formulating a clear policy regime, NTP-2011 endeavors to create an investor-friendly environment for attracting additional investments in the sector apart from generating manifold employment opportunities in various segments of the sector," he added.

Efforts would also be made to ensure the availability of sufficient microwave spectrum to meet current and future demand for wireless backhaul, especially in prime bands below 12 GHz, in addition to higher spectrum bands. Unlicensed spectrum will be made available for proliferation of wireless broadband services.

Highlights

• Increase in rural teledensity from the current level of around 35 to 60 by the year 2017 and 100 by the year 2020;
  
• Provide affordable and reliable broadband on demand by the year 2015 and to achieve 175 million broadband connections by the year 2017 and 600 million by the year 2020 at minimum 2 Mbps download speed and at least 100 Mbps on demand;
  
• Provide high speed and high quality broadband access to all village panchayats through optical fibre by the year 2014 and progressively to all villages and habitations;
  
• Promote indigenous R&D, innovation and manufacturing that serve domestic and foreign markets;
  
• Promote domestic production of telecommunication equipment to meet 80 per cent Indian telecom sector demand through domestic manufacturing with a value addition of 65 per cent by the year 2020;
  
• Provide preferential market access for domestically manufactured telecommunication products, including mobile devices, SIM cards with enhanced features etc with special emphasis on Indian products for which IPRs reside in India to address strategic and security concerns of the government, consistent with international commitments;
  
• Create `One Nation-One Licence' across services and service areas;
  
• Achieve full mobile number portability and free roaming across the nation
  
• Optimise transmission of services to consumers irrespective of their devices or locations by fixed-mobile convergence, thus making available valuable spectrum for other wireless services;
  
• Ensure adequate availability of spectrum and its allocation in a transparent manner through market related processes. Make available additional 300 MHz spectrum for IMT services by the year 2017 and another 200 MHz by 2020
  
• Strengthen the framework to address environmental and health related concerns pertaining to the telecom sector;
  
• Encourage adoption of green policy in telecom and incentivise use of renewable resources for sustainability;
  
• Protect consumer interest by promoting informed consent, transparency and accountability in quality of service, tariff, usage etc;
  
• Encourage recognition and creation of synergistic alliance of public sector and other organisations of Department of Telecommunications (DoT) through appropriate policy interventions;
  
• Achieve substantial transition to new internet protocol (IPv 6) in the country in a phased and time-bound manner by 2020 and encourage an ecosystem for provision of a significantly large bouquet of services on IP platform;
  
•  Put in place a web-based, real time e-governance solution to support online submission of applications for all services of DoT and issuance of licences and clearances from DoT;