International bandwidth crunch is another chink in DoT’s armour. VSNL has just 325 Mbps catering to 1 million subscribers, which includes ISPs and other bulk Internet customers. This is pathetic considering the number of ISPs already operational—some with multiple E1 links. The result is a bullock cart Internet access speed. Without its own gateways and large chunks of bandwidth at each point, the DoT Internet Access Service (DIAS) will not be any different.

On the other hand, good bandwidth planning will make DoT unparalleled as an Internet backbone provider. With its A1 level nodes functioning as National Access Points (NAPs), DoT will be able to sell bandwidth to both ISPs as well as corporate customers in addition to catering to its own ISP subscribers. By putting in Internet exchange equipment, the six A1 levels can also be transformed into domestic Internet exchanges to ease out the traffic jam at the international gateway junctions.

On the infrastructure side, DoT has to start thinking in gigabits and terabits. Where does it stand on the content side? DoT has made a beginning by putting up its web site and directing its telecom circles to expedite their individual site preparation. This process can be speeded up to come up with more national and regional level content so as to develop an ISP portal with several regional sub-portals.

Mobile DoT

The total subscriber base in the country, presently growing at 85 percent, has crossed the 2 million. The average industry growth has been 50-60 percent over the last three years. Handset price and airtime rates are falling drastically. Cash card subscribers can be seen in every nook and corner of the country. And Caller Party Pays (CPP) regime will further boost the usage.

Currently, about 6.7 percent of total phones are mobile. It is projected that by end 2000, it will be 10 percent and by 2010 every alternate phone would be mobile. Hence, it makes common business sense for DoT to enter the fray sooner than later. It has to participate in the mobile revolution.

DoT can easily become the first truly national mobile service provider by setting up a national network. By doing so, it will effect an economy of scale that will be hard to match by other telcos. Naturally, it will also be able to take mobile telephony to the remotest areas via its incomparable transmission links.

Technologically, it can establish proper cellular networks in the most potential circles while integrating wireless support into its existing switching system to provide personal communications services in areas without a cellular network. In fact, C-DOT is known to be developing various mobile sub-systems to support DoT’s cellular expansion.

The strongest business case for DoT to go mobile is that the per line cost of setting up and running a mobile network, in terms of equipment and manpower cost, is far cheaper than fixed telephony. While the former costs about $600, the latter is pegged at $25,000-26,000. The manpower needed for maintaining a
cellular network is also negligible compared to fixed services.

DoT cannot remain a silent spectator to the wireless data revolution.

DoT, the Carrier

Can DoT remain the incumbent and yet become a competitive carrier? Yes, if it restructures efficiently and makes the right moves and rapidly.

One, it should stop worrying about losing revenues. The Indian communications industry is still a green field. The harvest is far away. India’s current tele-density is around 2.6. As per NTP ’99, it will be 7 by 2005 and 15 by 2010. It means a Herculean effort. We have added 26 million telephones over the last century; now we are trying to add 146 million in the next 10 years. The job at hand is to prepare the ground. The harvest will come on time. Obviously, DoT alone cannot afford the kind of mega investment and effort required.

Two, while DoT tries to fill the gap in fixed lines, it should not forget that telephone lines of the future will require high bandwidth for multimedia transmission in addition to mere voice calls or data calls. For this purpose DoT will need to revamp its existing facilities—be it in the trunk network, exchange, or the local loop.

The quality of service—in both voice and data communications—needs drastic improvement. The leasedlines that DoT currently provides are replete with problems like poor throughput and frequent faults and downtime. If DoT wants to prevent large migration of its subscribers when an alternative emerges, it has to take precautionary measures by building up an infrastructure that can support various corporate access services.

DoT can play active role when international communications open up. Its massive domestic traffic and subscriber base will undoubtedly help it to deal with international carriers from a position of strength.

But first it needs to build a network that can provide information, communication, and entertainment. An Information Communication Entertainment (ICE) network is the need of the hour. For this, avoiding proprietary technologies and going in for standardized technologies is a must. The key is to use convergence technologies like voice/fax over IP and be open to new kind of services like Internet telephony, video-on-demand over DSL, free telephone services that come with advertising jingles, etc. DoT needs to stop doing the ostrich act every time a radically new technology hits the Indian shores.

The Socialist Perspective

Suppose it does become one in not-so-distant future, then what?

The question really loses credibility in the new liberalized economy. Even otherwise, how can it lay cables and build networks in rural and remote areas unless it has enough money for the expansion.

Also, the feeling that rural and remote areas are not lucrative may be unfounded. As has been proved by the cellular service providers in Bihar and UP, the rural belts of India are waiting for the elusive telephone connection.