TRAI to the rescue

Broadband seems to top the agenda for TRAI in 2008. Worried about low penetration of broadband services in the country, coupled with slow and unreliable services of the existing broadband services, TRAI has taken several steps. Starting with a New Year gift for consumers...asking service providers to mention the minimum speed for every package they offer. Until now, service providers mentioned only the maximum speed, which was seldom provided. This move will ensure a minimum quality of service, forcing operators to improve on quality.

To ensure that operators adhere to norms, TRAI has appointed independent agencies on a zonal basis for undertaking survey and audit and assessment of quality of service provided under the basic service (wireline and wireless), cellular mobile service, and broadband service during 2008. In the case of broadband service, audit and assessment of quality of service will be undertaken at 5% of point of presence of ISP spread over in 10% SDCAs in each service area.

TRAI had a meeting with service providers and survey/audit agencies on January 8, 2008 in order to avoid ambiguity in understanding the procedure of survey/audit, data collection, and calculation of parameters. All the basic mobile service providers and major Internet service providers of broadband services attended this meeting.

It's all About DTH
One of the most important recommendation put forward was regarding DTH. TRAI had the government ensure and expedite the availability of more Ku-band transponders (which can be used for TV as well as data transmission) so that DTH companies can also offer broadband services. The regulator suggested that ISRO, which is launching two more satellites with Ku-band transponders and negotiating for more from Malaysia's Measat, should expedite the process. TRAI had earlier suggested that the government should follow an open sky policy and allow DTH operators to get into long-term contracts with international satellite companies.

DTH can offer a high speed of as much as 1.5 Mbps without difficulty. Given the increasing reach of DTH services in the country, this move can spell a huge jump in the number of broadband subscribers. At the same time, it will mean additional service in the DTH bouquet, which will make DTH more lucrative for the consumer and push DTH subscriber base substantially, even in non-CAS areas. Moreover, DTH does not require any physical infrastructure to be created on ground, making it a cost-effective medium for broadband services. However, the cost of a satellite modem can be prohibitive. It will also improve ARPU of the DTH service providers. If the government can take steps to make satellite modems cheaper, and reduce the cost of renting a satellite DTH, this can provide answers to broadband worries.

Encouraging Municipal Committees
TRAI recommended that municipal committees should be encouraged to include a clause for making Multiple Dwelling Units broadband ready by adopting suitable internal wiring while giving clearance for the construction of all such buildings in the future. This will help avoid the clutter of wires in buildings

TRAI also initiated a debate whether 2 Mbps should be made the minimum broadband speed. "Recently, some expressions have been made for raising the minimum speed for broadband connection from the present 256 Kbps, so as to bring it at par with international standards. There is an impression that a large number of countries have a minimum broadband connection speed of more than or equal to 2 Mbps," TRAI said in its status paper on broadband speed in the country. The broadband policy of 2004 defines a broadband connection as an always-on Internet access with a minimum speed of 256 Kbps from the point of presence of service provider to the customer premise equipment (CPE).

TRAI Recommendations

BSNL and MTNL should be encouraged to appoint franchisees for providing broadband services to supplement their efforts. Any procedural restrictions/limitations to be addressed immediately
TEC should undertake certification of different CPEs model for interoperability for provisioning of the broadband. All CPEs conforming to specifications for interoperability should be displayed on the TEC website for the information of customers
Incumbents may declare future plans for providing broadband using DSL technology to encourage manufacturing of CPEs within country
The Government should expedite decision on TRAI's recommendations regarding mechanism and pricing of spectrum for 3G and Broadband Wireless Access
Spectrum for 3G and WiMax should be made available at the earliest to boost the deployment of broadband using these technologies
Streamlining RoW procedures. The Central government may take-up with the state governments to adopt uniform Right of Way (RoW) procedures. A district level committee may be formed to study RoW requirement and to take measures to encourage service providers to share ducts
The Government should ensure availability of more number of Ku band transponders to roll out broadband services through Direct to Home (DTH) platform
Cable TV operators should be encouraged to provide broadband over their network
Utilize Universal Service Obligation (USO) fund to provide subsidy for providing broadband services through satellite in remote and hilly areas
Utilise USO fund to subsidize backhaul charges initially for a period of three years to support the broadband rollout efforts
Precondition that service provider identified for the USO Fund subsidy to provide broadband should have spectrum for suitable technology
In order to increase the competition to provide broadband in rural areas, more than two service providers seeking minimum subsidy should be identified with a rollout obligation to ensure the establishment of network
Encourage municipal committees to include a clause for making Multiple Dwelling Units/buildings broadband ready by adopting suitable internal wiring while giving clearance for the construction of all such buildings in future

According to TRAI, an increase in speed will lead to higher adoption of broadband services, as it will enable provisioning of different high-end services like IPTV, live video streaming, interactive gaming and telemedicine. However, this can mean an increase in cost of owning a broadband connection also. Currently, a 256 Kbps broadband connection is available at Rs 250 a month. A connection of 2 Mbps would mean Rs 3,300 a month. Moreover, the current capacity needs expansion, as an increase in minimum speed will mean lower number of subscribers per cable. TRAI has also pleaded with the government to expedite decisions regarding pricing of spectrum for 3G and WiMax-effective wireless solutions-to provide broadband in the country.

The recent initiatives and recommendation, if implemented, will push a speedy penetration of broadband services. TRAI seems to be addressing the issue through a multi-pronged approach. It is trying to utilize all the resources available, or that can be made available, to increase the reach of these services. Allowing DTH service providers to offer broadband services is a step that must be appreciated and accepted. The regulator has suggested that operators should share infrastructure, like optical fiber ducts that are being laid across the country, to bring broadband to homes and save costs considerably.

Nilabh Jha
nilabhj@cybermedia.co.in