Two Steps to Boost Broadband Usage

Context: While the Cabinet has recently announced a policy to expand Wi-Fi coverage across the country and increase broadband internet access and usages, there are certain gaps in internet connectivity in India.

Problems associated with the policy:

• Infringement on the licensed rights of the telecom operators and Internet service providers (ISPs): as they have already paid huge sums for licensed and contractual rights. (charging upto 30% of revenues)
• No clarity on some aspects of the policy: Whether existing laws allow for reselling Internet services by subscribers (equivalent to subletting, which was prohibited)
  • ­About eligibility: of transnationals such as Google, Facebook, Amazon and domestic firms.
• Does not have a comprehensive focus on the problems: The policy focuses on the last-mile at the user end, whereas our problems extend from the user all the way back to the fibre core networks.

Issues with broadband sector

• Incomplete links in communications networks: in the planning and execution of broadband Internet service delivery of what is required, and where.
  • ­ This may be because of an expectation of markets being self-organizing systems, which does not hold universally.
• Lack of wireless opportunities for the middle-mile: since the spectrum is available but not permitted in India. (because of contention of treating some bands as open Wi-Fi or restricted to licensed telcos).
  • ­ It is this middle-mile from the fibre to the kerb, or to the home or before the user link, or from a gram panchayat to the village, that is missing, and difficult to fulfil.
• Huge penalties delaying the outcomes: E.g. the 2G scam stalled the sector as a whole, because penalties against some perpetrators upended the industry, penalizing everyone. (also retrospective taxation).

Way Forward: To make the new policy more effective and boost broadband usage

• Fix the gaps in the communications chain: including distribution at the user end, and technology gaps.
• Consideration and consultation: For better services and avoiding undue disruption.
  • ­ Maintaining stability is imperative in crucial infrastructure service that affects areas of living, working, education, entertainment, leisure, governance and security.
  • ­ Remove government charges from telcos and ISPs: It will increase investment in hotspots and a possible resurgence of the communications services industry.
• Remove restrictions on spectrum: Restricted and expensive spectrum escalated equipment costs and resulted in constraining of revenues.
• Coverage should be inclusive: e.g. by enabling community Wi-Fi networks, especially in rural areas.