Lok Sabha Question No. 178 (UNSTARRED), answered on 2018-07-18
Subject: Draft Telecom Policy
Ministry: COMMUNICATIONS
Asked by: R. GOPALAKRISHNAN

## GOVERNMENT OF INDIA MINISTRY OF COMMUNICATIONS DEPARTMENT OF TELECOMMUNICATIONS

## LOK  SABHA UNSTARRED QUESTION NO. 178 TO BE ANSWERED ON 18 th   JULY, 2018

## DRAFT TELECOM POLICY

## 178. SHRI R. GOPALAKRISHNAN:

Will the Minister of COMMUNICATIONS be pleased to state:

- (a) whether the Government has recently released a new draft telecom policy;
- (b) if so, the details and the salient features thereof;
- (c) the details of regulatory reform measures incorporated under the said new policy; and
- (d) the  extent  to  which  the  said  new  policy  will  be  helpful  in  reviving  the  telecom sector of the country?

## ANSWER

## THE MINISTER OF STATE (IC) OF THE MINISTRY OF COMMUNICATIONS & MINISTER OF STATE IN THE MINISTRY OF RAILWAYS (SHRI MANOJ SINHA)

(a) to (d) The draft National Digital Communications Policy - 2018 released on 1 st May, 2018 for public consultations is placed at Annexure - I. The draft National Digital Communications Policy - 2018 recognizes the importance of continued improvement in the  regulatory  framework  for  attracting  investments  and  ensuring  fair  competition,  to serve  the  needs  of  citizens.  It  aims  to  attract  long-term,  high  quality  and  sustainable investments by pursuing regulatory reforms to ensure that the regulatory structures and processes remain relevant, transparent, accountable and forward-looking. It also aims to remove  regulatory barriers and reduce the regulatory burden that  hampers investments, innovation and consumer interest. All these measures aim for growth and revival of the sector.

## Preamble

1. Digital  infrastructure  and  services  are  increasingly  emerging  as  the  key  enablers  and  critical determinants of a country's growth and well-being. With significantly advanced capabilities in both  telecommunications  and  software,  India,  more  than  most  countries,  stands  poised  to benefit  from  harnessing  the  new  digital  technologies  and  platforms;  as  a  means  to  unlock productivity, as well as to reach unserved and underserved markets; thus catalysing economic growth and development, generating new- age jobs and livelihoods, and ensuring access to next generation services for its citizens.
2. The task before India's policy makers is to ensure that the advantages of the new technologies are  accessible  to  all  equitably  and  affordably;  while  securing  them  against  existing  and emerging  threats.    India  needs  to  particularly  ensure  that  its  communications  infrastructure supports the entire population, whose demographic profiles vary widely across various indices such  as  literacy,  economic  conditions  and  urbanisation.  It  is  important  for  India  to  remain sensitive to these factors and promote policies that increase opportunities for their social and economic development.
3. Digital  India  is  already  unfolding.  India's  digital  profile  and  footprint  is  one  of  the  fastest growing in the world. With over a billion mobile phones and digital identities and half a billion internet users, India's mobile data consumption is already the highest in the world. Over 200 million Indians regularly use social media and in the last year alone, over 200 million Indians took  to  mobile  banking  and  digital  payments.  At  the  current  pace  of  digitisation  and digitalisation, it is estimated that India's digital economy has the potential to reach one trillion USD by 2025.  The rapid  and  unprecedented  proliferation  of  the  mobile  phone,  the  internet, social  media  platforms,  digital  payments,  data  consumption  and  generation  across  India indicate  that  the  data  economy  and  digital  technologies  and  services  are  no  longer  the prerogative  of  the  privileged  few;  but  that  they  have  indeed  evolved  into  widespread instruments of access and empowerment for more than a billion Indians.
4. The objective of this document is to lay out a policy and principles framework that will enable creation of a vibrant competitive telecom market to strengthen India's long term competitiveness and serve the needs of our aspiring nation. It has been broadly estimated that a 10%  increase  in  broadband  penetration  in  a  country  could  potentially  lead  to  an  over  1% increase  in  GDP.  However,  studies  in  India  estimate  that  the  impact  could  be  significantly higher for the country, given the increased productivity and efficiency gains that are likely to accrue to the economy.
5. Currently, India has approximately 1.5 million kilometres of OFC, and less than one-fourth of the towers are fibre-connected. In order to expand mobile and broadband connectivity across the  country,  it  is  necessary  to  explore  and  utilise  the  opportunities  presented  by  nextgeneration-networks  like  5G  and  other  pioneering  network  access  technologies  including

satellite  communications.  It  would  be  critical  to  focus  on  fixed  infrastructure  development initiatives related to fibre deployment and Right of Way clearances that will form the bedrock of next generation technologies.

6. While India has embarked on one of the world's largest rural optic fibre roll-outs in the world, aiming  to  connect  600,000  of  its  villages  by  broadband  through  its  flagship  initiative  called 'BharatNet';  the  convergence  of  a  cluster  of  revolutionary  technologies  including  5G,  the cloud, IOT and data analytics, along with a growing start-up community, promise to accelerate and deepen its digital engagement, opening up a new horizon of opportunities. As the world prepares  for  what  is  increasingly  being  called  as  the  fourth  industrial  revolution,  India,  and indeed every single sector of its economy, need to be readied to embrace this wave.
7. A robust, competitive landscape, which ensures availability of new communications technologies,  services  and  applications,  is  central  to  the  growth  of  GDP,  productivity  and creation of new jobs in the economy. For consumers, competition leads to innovation, access to new technologies, improved quality, affordable prices and wider choice. Indian consumers need and deserve the widest range of services at competitive rates. The Policy seeks to promote and protect fair competition across the communications and digital economy sector.
8. Improvement  in  regulation  and  ongoing  structural  reforms  are  the  pillars  of  a  sound  policy initiative.  Regulatory  reform  is  not  a  one-off  effort,  but  a  dynamic,  long-term  and  multidisciplinary  process.  The  Policy  recognises  the  importance  of  continued  improvement  in  the regulatory  framework  for  attracting  investments  and  ensuring  fair  competition,  to  serve  the needs of Indian citizens. Given the sector's capital-intensive nature, the Policy aims to attract long-term, high quality and sustainable investments. To serve this objective, the Policy further aims to pursue regulatory reforms to ensure that the regulatory structures and processes remain relevant,  transparent,  accountable  and  forward-looking.  Additionally,  the  Policy  aims  to remove  regulatory  barriers  and  reduce  the  regulatory  burden  that  hampers  investments, innovation  and  consumer  interest.  The  Policy  also  identifies  steps  to  strengthen  the  sector's institutional mechanism and legislative framework, to ensure that India's economy and citizens can derive the full potential of its digital communications sector.
9. If  India's  economic,  social  and  political  interests  in  the  emerging  data  economy  are  to  be effectively secured, its 'digital sovereignty' encompassing the data privacy, choice and security of its citizens requires to be kept in prime consideration while participating in the global digital economy.
10. The objective of a national policy on digital communications is to prepare the country and its citizens for the future. Achieving these goals would require that the key stakeholders - namely the  Centre,  the  States,  local  governments  and  agencies,  Telecom  Service  Providers,  Internet Service  Providers,  handset  and  equipment  manufacturers,  the  academic  community,  the innovators and start-ups come together to forge a coalition to deliver this national policy and its missions.

## The National Digital Communications Policy, 2018

The National Digital Communications Policy, 2018 seeks to unlock the transformative power of digital communications networks - to achieve the goal of digital empowerment and well being of the people of India; and towards this end, attempts to outline a set of goals, initiatives, strategies and intended policy outcomes.

The National Communications Policy aims to accomplish the following Strategic Objectives by 2022:

1. Provisioning of Broadband for All
2. Creating 4 Million additional jobs in the Digital Communications sector
3. Enhancing the  contribution of the Digital Communications sector to 8% of India's GDP from ~ 6% in 2017
4. Propelling India to the Top 50 Nations in the ICT Development Index of ITU from 134 in 2017
5. Enhancing India's contribution to Global Value Chains
6. Ensuring Digital Sovereignty

## Vision

To fulfil the information and communication needs of citizens and enterprises by establishment of  a  ubiquitous,  resilient,  secure  and  affordable  Digital  Communications  Infrastructure  and Services; and in the process, support India's transition to a digitally empowered economy and society.

## Missions

In pursuit of accomplishing these objectives by year 2022, the National Digital Communications Policy, 2018 envisages three Missions:

1. Connect India : Creating Robust Digital Communications Infrastructure

To promote Broadband for All as a tool for socio-economic development, while ensuring service quality and environmental sustainability.

2. Propel India : Enabling Next Generation Technologies and Services through Investments, Innovation and IPR generation

To harness  the  power  of  emerging  digital  technologies,  including  5G,  AI,  IoT, Cloud and Big Data to enable provision of future ready products and services; and to catalyse the fourth industrial revolution (Industry 4.0) by promoting Investments, Innovation and IPR.

3. Secure India: Ensuring Sovereignty, Safety and Security of Digital Communications

To secure the interests of citizens and safeguard the digital sovereignty of India with  a  focus  on  ensuring  individual  autonomy  and  choice,  data  ownership, privacy and security; while recognizing data as a crucial economic resource.

## 1. Connect India: Creating a Robust Digital Communication Infrastructure

## 2022 Goals:

- a. Provide Universal broadband coverage at 50Mbps to every citizen
- b. Provide 1 Gbps connectivity to all Gram Panchayats of India by 2020 and 10 Gbps by 2022
- c. Enable100 Mbps broadband on demand to all key development institutions; including all educational institutions
- d. Enable fixed line broadband access to 50% of households
- e. Achieve 'unique mobile subscriber density' of 55 by 2020 and 65 by 2022
- f. Enable deployment of public Wi-Fi Hotspots; to reach 5 million by 2020 and 10 million by 2022
- g. Ensure connectivity to all uncovered areas

## Strategies:

## 1.1 Establishing a 'National Broadband Mission -RashtriyaBroadband Abhiyan' to secure universal broadband access

- (a) Implementation ofthe following broadband initiatives, to be funded through USOF and Public Private Partnerships:
- i. BharatNet - Providing 1 Gbpsto Gram Panchayats upgradeable to 10 Gbps
- ii. GramNet -  Connecting  all  key  rural  development  institutions  with  10  Mbps upgradeable to 100 Mbps
- iii. NagarNet - Establishing 1 Million public Wi-Fi Hotspots in urban areas
- iv. JanWiFi - Establishing 2 Million Wi-Fi Hotspots in rural areas
- (b) Implementing a ' Fibre  First  Initiative' to  take  fibre  to  the  home,  to  enterprises  and  to key development institutions in Tier I, II and III towns and to rural clusters:
- i. According Telecom Optic Fibre cables the status of Public utility
- ii. Promoting collaboration models involving state, local bodies and private sector as necessary for provision of shared duct infrastructure in municipalities, rural areas and national highways
- iii. Facilitating Fibre-to-the-tower programme to enable fiberisation of at least 60% base stations thereby accelerating migration to 4G/5G
- iv. Leveraging  existing  assets  of  the  broadcasting  and  power  sector  to  improve connectivity, affordability and sustainability
- v. Incentivising and promoting fibre connectivity for all new  developmental construction

- vi. By making requirement for telecom installations and the associated cabling and in-building solutions mandatory in in all commercial, residential and office spaces by amending National Building Code of India (NBC), through Bureau of Indian Standards (BIS)
2. (c) Establishment of a National Digital Grid by:
- i. Creating National Fibre Authority
- ii. Establishing  Common  Service  Ducts  and  utility  corridors  in  all  new  city  and highway road projects, and related elements
- iii. Creating  a  collaborative  institutional  mechanism  between  Centre,  States  and Local Bodies for Common Rights of Way, standardisation of costs and timelines; and removal of barriers to approvals
- iv. Facilitating development of Open Access Next Generation Networks
7. (d) Facilitate the establishment of Mobile Tower Infrastructure by:
- i. Extending incentives and exemptions for the construction of telecom towers
- ii. According accelerated Rights of Way  permissions for telecom towers in government premises
- iii. Promoting deployment of solar and green energy for telecom towers
11. (e) Improve  international  connectivity  and  reduce  the  cost  of  international  bandwidth  by facilitating  setting  up  of  International  Cable  Landing  Stations  by  rationalising  access charges and removing regulatory hurdles
- i. Encourage sharing of active infrastructure by enhancing the scope of Infrastructure Providers (IP) and promoting deployment of common sharable, passive as well as active, infrastructure;
13. (f) Enabling Infrastructure Convergence of IT, telecom and broadcasting sectors:
- i. Amending the Indian Telegraph Act, 1885 and other relevant acts for the purpose of convergence in coordination with respective ministries
- ii. Establishing  a  unified  policy  framework  and  spectrum  management  regime  for broadcast and broadband technologies
- iii. Restructuring  of  legal,  licensing  and  regulatory  frameworks  for  reaping  the benefits of convergence
17. (g) Creating a Broadband Readiness Index for States/ UTs to attract investments and address RoW challenges
18. (h) Encouraging investment in broadband infrastructure through fiscal incentives, including accelerated depreciation and tax incentives; and incentivizing fixed line broadband

- (i) By  encouraging  innovative  approaches  to  infrastructure  creation  and  access  including through resale and Virtual Network Operators (VNO)
- (j) Promoting broadband connectivity through innovative and alternative technologies

## 1.2 Recognizing Spectrum as a key natural resource for public benefit to achieve India's socioeconomic goals, optimise availability and utilisation by:

(a) Making adequate spectrum available to be equipped for the new broadband era:

- i. Identifying and making available new Spectrum bands for Access and Backhaul segments for timely deployment and growth of 5G networks.
- ii. Making available harmonized and contiguous spectrum required for deployment of next generation access technologies
- iii. Further liberalizing the spectrum sharing, leasing and trading regime
- iv. Coordinating with Government departments for freeing underutilised/ substitutable  spectrum,    and  its  auctioning  and/  or  assignment  along  with unutilised spectrum for efficient and productive use
- v. Optimal  Pricing  of  Spectrum  to  ensure  sustainable  and  affordable  access  to Digital Communications
- vi. Simplifying the process of obtaining permissions from various agencies such as WPC and SACFA in order to promote efficiency
- vii. Enabling Light Touch licensing/ de-licensing for broadband proliferation
- viii. Promoting the co-use/ secondary use of spectrum
- ix. Constituting  a  Spectrum  Advisory  Team  (SAT)  consisting  of  experts,  industry and  academia  to  facilitate  the  identification  of  new  bands,  applications  and efficiency measures to catalyse innovation and efficient spectrum management
10. (b) Transparent and fair mode of spectrum allocation by developing a fair, flexible, simple and transparent method for spectrum assignments and allocations
11. (c) Efficient spectrum utilisation and management:
- i. Ensuring the optimum utilisation of spectrum by management of interference free spectrum and encouraging new technologies and consolidation
- ii. Monitoring  efficient  utilization  of  spectrum  by  conducting  systematic  audits  of the  spectrum  allocated  to  both  commercial  and  government  organizations  and deploy dynamic database systems for interference assessment
- iii. Publishing annual spectrum utilization and availability roadmap for communication needs including those of aircraft and vessels
15. (d) Promoting Next  Generation  Access  Technologies in  India  through  the  following actions:

- i. Encouraging licensed service providers to utilise next generation access technologies to ensure cost optimization, service agility and new revenue streams
- ii. Recognising  mid-band  spectrum,  particularly  the  3  GHz  to  24  GHz  range,  as central to India's strategy for Next-Generation Networks
- iii. Promoting the effective utilisation of high capacity backhaul E-band (71-76/ 8186  GHz)  and  V-band  (57-64  MHz)  spectrum  in  line  with  international  best practices
- iv. Rationalizing annual royalty charges for microwave links for backhaul connectivity

## 1.3 Strengthening Satellite Communication Technologies in India

## (a) Review the regulatory regime for satellite communication technologies, including:

- i. Revising  licensing  and  regulatory  conditions  that  limit  the  use  of  satellite communications, such as speed barriers, band allocation, etc.
- ii. Simplifying compliance requirements for VSAT operators to ensure faster roll out
- iii. Expanding  scope  of  permissible  services  under  the  Unified  Licensing  regime using High Throughput Satellite communication systems

## (b) Optimise Satellite communications technologies in India, by:

- i. Reviewing SATCOM policy for communication services, along with Department of  Space,  keeping  in  view  international  developments  and  social  and  economic needs of the country
- ii. Making available additional  transponders  and  new  spectrum  bands  (such  as  Ka band) for satellite-based commercial communication services
- iii. Rationalizing satellite transponder, spectrum charges and charges payable to WPC
- iv. Assessing  the  bandwidth  demands  across  various  spectrum  bands  used  for satellite communications, in consultation with stakeholders
- v. Prioritising international engagement with ITU on spectrum management issues, specifically with respect to satellite communications in India

## (c) Develop an ecosystem for satellite communications in India, with focus on:

- i. Streamlining administrative processes for assignment and allocations, clearances and permissions related to satellite communication systems
- ii. Promoting  local  manufacturing  and  development  of  satellite  communications related infrastructure through appropriate policies
- iii. Promoting  participation  of  private  players,  with  due  regard  to  national  security and sovereignty

## 1.4 Ensuring Inclusion of uncovered areas and digitally deprived segments of society by:

- (a) Channelizing the Universal Service Obligation Fund (USOF) for:
- i. Ensuring  connectivity  for  all  uncovered  areas  in  the  North  Eastern  States, Himalayan region, LWE areas, Islands and Border Areas
- ii. Marginalised communities, women and persons with differential capabilities,; and for economically and socially weaker sections in urban pockets
- iii. Promoting  innovative,  effective  and  scalable  alternate  technologies  for  remote areas
- iv. Enabling access provision by any entity capable of fulfilling the Universal Service Obligation

## (b) Reviewing the scope and modalities of USOF:

- i. Redesigning the USOF  and  broadening  its objectives to enable universal broadband access
- ii. Strengthening  institutional  capacity  of  USOF  to  ensure  effective  rollout  of services in uncovered, remote and rural areas

## 1.5 Ensuring Customer Satisfaction, Quality of Service and effective Grievance Redressal

- (a) Establishing effective institutional mechanisms to protect consumers' interests including:
- i. Telecom Ombudsman
- ii. A centralised web based complaint redressal system
- (b) Focussing on public health and safety standards to promote the well-being of citizens:
- i. Framing a comprehensive policy to encourage the adoption of environmental and safety standards and building trust by enabling self-certification
- ii. Generating  awareness  around  Electro  Magnetic  Fields  Emissions  based  on international experience and global best practices
- iii. Generating  awareness  on  hazards  of  e-waste  and  encouraging  proper  disposal management of equipment used
- (c) Incentivising  the  use  of  renewable  energy  technologies  in  the  communications  sector, including:
- i. Encouraging the utilisation of small cell fuel batteries, lithium-ion batteries or other similar technologies to improve energy consumption efficiencies
- ii. Promoting research and  development of green telecom through active participation of stakeholders across government, industry and academia
- iii. Rationalising of taxes and levies on the manufacture, production and import of such equipment for digital communication technologies

## 2. Propel India: Enabling Next Generation Technologies and Services through Investments, Innovation, Indigenous Manufacturing and IPR Generation

## 2022 Goals:

- a. Attract investments of USD 100 Billion in the Digital Communications Sector
- b. Increase India's contribution to Global Value Chains
- c. Creation of innovation led Start-ups in Digital Communications sector
- d. Creation of Globally recognized IPRs in India
- e. Development of Standard Essential Patents (SEPs) in the field of digital communication technologies
- f. Train/ Re-skill 1 Million manpower for building New Age Skills
- g. Expand IoT ecosystem to 5 Billion connected devices
- h. Accelerate transition to Industry 4.0

## Strategies:

The recent past has witnessed an unprecedented transformation in the Digital Communications Infrastructure  and  Services  sector  with  the  emergence  of  new  technologies,  services,  business models  and  players.  There  is  hence  an  imperative  need  to  review  the  existing  licensing, regulatory  and  resource  allocation  frameworks  to  incentivize  investments  and  innovation  to optimise new technology deployments and harness their benefits.

## 2.1 Catalysing Investments for Digital Communications sector:

- (a) According Telecom Infrastructure the status of Critical and Essential Infrastructure
- i. By  recognizing  communication  systems  and  services  as  essential connectivity infrastructure at par with other connectivity infrastructure like Roadways, Railways, Waterways, Airlines etc. for development of India, and, in the process,  enable low cost financing for development of communication infrastructure
- (b) Reforming the licencing and regulatory regime to catalyse Investments and Innovation, and promote Ease of Doing Business by:
- i. Reviewing levies and fees including License Fee, Universal Service obligation Fund (USOF) levy and concept of pass through revenues in line with  principles of input line credit
- i. Rationalising Spectrum Usage Charges (SUCs) to reflect the costs of regulation and administration of spectrum
- ii. Rationalising taxes and levies on Digital Communications equipment, infrastructure and services

- iii. Enabling  unbundling  of  different    layers  (e.g.  infrastructure,  network,  services  and applications layer) through differential licensing
- iv. Establishing light touch licensing regime for the proliferation of Public Data Offices and  Public  Data  Office  Aggregators  for  providing  internet  access  through  Wi-Fi Hotspots
- v. Introducing various fiscal and non-fiscal benefits for development of telecom clusters around  cable  landing  stations  to  foster  innovation  in  Digital  Communications Technologies

## (c) Simplifying and facilitating Compliance Obligations by:

- i. Reducing  license  and  regulatory  compliance  requirements  keeping  in  view  best international practices
- ii. Simplifying all existing technical systems and online systems applicable for grant of licenses, approvals, clearances, permissions and developing a comprehensive end-toend online platform
- iii. Specifying  timelines within which  various  types  of  licenses,  permissions  and clearances shall be provided by the relevant administrative offices
- iv. Improving  the  Terms  and  Conditions  for  'Other  Service  Providers',  including definitions, compliance requirements and restrictions on interconnectivity
- v. Reforming the Guidelines for Mergers & Acquisitions, 2014 to enable simplification and fast tracking of approvals
- vi. Establishing  exit  norms  for  licensees  including  alignment  to  bankruptcy  code  to maximize telecom sector system efficiencies and consumers interest
- vii. Fixing the penalty provisions to ensure proportionality and reasonableness
- viii. Creating a regime for fixed number portability to facilitate one nation - one number including  portability  of  toll  free  number,  Universal  Access  numbers  and  DID numbers
- ix. Simplify ETA (Equipment Type Approval) process for low powered (< 1 watt) radio devices

## 2.2 Ensuring a holistic and harmonised approach for harnessing Emerging Technologies

(a) Synergising deployment and adoption of new and emerging technologies by:

- i. Creating  a  roadmap  for  emerging  technologies  and  its  use  in  the  communications sector,  such  as  5G,  Artificial  Intelligence,  Robotics,  Internet  of  Things,  Cloud Computing and M2M
- ii. Simplifying licensing and regulatory frameworks whilst ensuring appropriate security frameworks  for  IoT/  M2M  /  future  services  and  network  elements  incorporating international best practices
- iii. Earmarking adequate licensed and unlicensed spectrum for IoT/ M2M services
- iv. Encourage use of Open APIs for emerging technologies

- (b) Promoting innovation in the creation of Communication services and network infrastructure by Developing a  policy framework for 'Over The Top' services
- (c) Ensuring  the  Transition  to  IPv6  for  all  existing  communications  systems,  equipment, networks and devices
- (d) Enabling Hi-speed internet, Internet of Things and M2M by rollout of 5G technologies:
- i. Implementing an action plan for rollout of 5G applications and services
- ii. Enhancing  the  backhaul  capacity  to  support  the  development  of  next-generation networks like 5G
- iii. Ensuring availability of spectrum for 5G in <1 GHz, 1-6 GHz and >6 GHz bands
- iv. Reviewing  industry  practices  with  respect  to  traffic  prioritisation  to  provide  5Genabled applications and services
- v. Developing framework for accelerated deployment of M2M  services while safeguarding security and interception for M2M devices
- vi. Defining policy for EMF radiation for M2M devices, with accompanying institutional framework  to  coordinate  government-funded  and  India-specific  research  in  this regard
- (e) Ensuring adequate numbering resources, by:
- i. Allocating 13-digit numbers for all M2M mobile connections
- ii. Developing a unified numbering plan for fixed line and mobile services
- (f) Establishing India as a global hub for cloud computing, content hosting and delivery, and data communication systems and services
- i. Evolving enabling regulatory frameworks for promoting the establishment of International Data Centres, Content Delivery Networks and independent interconnect exchanges in India
- ii. Enabling a light touch regulation for the proliferation of cloud based systems
- (g) Leveraging Artificial Intelligence and Big Data in a synchronized and effective manner to enhance  the  overall  quality  of  service,  spectrum  management,  network  security  and reliability
- (h) Recognizing Digital Communications as the core of Smart Cities by:
- i. Developing,  in  collaboration  with  Ministry  of  Urban  Development,  a  Common Service Framework and Standards for Smart Cities
- ii. Facilitating  and  supporting  deployment  of  innovative  solutions  in  identified  Smart Cities

## 2.3 Research and Development

(a) Promoting research & development in Digital Communication Technologies by:

- i. Restructuring C-DOT as a premier Telecom Research and Development Centre for identification, customization, and development of digital products and services in the country as per indigenous needs
- ii. Simplifying approvals/ processes for R&D procurements/ imports
- iii. Creating a framework for testing and certification of new products and services
4. (b) Creating  a  Fund  for  R&D  in  new  technologies  for  start-ups  and  entrepreneurs  to  enable innovation  in  cutting  edge  communications,  5G,  software,  content,  security  and  related technologies  and  applications;  and  commercialization  of  products  and  services  through grants, scholarships, venture capital, etc.
5. (c) Establishing Centres of Excellence including in Spectrum Management, Telecom Security and Next Generation Access Technologies
6. (d) Fostering an Intellectual Property Rights regime that promotes innovation, by:
- i. Implementing key recommendations in the National IPR Policy pertaining to Digital Communications, including  a  review  of  the  legal  regime  around  copyright,  patents and trade marks
- ii. Assisting start-ups in filing copyright, patent and trademarks applications
- iii. Providing  financial  incentives  for  the  development  of  Standard  Essential  Patents (SEPs) in the field of digital communications technologies
- iv. Promoting Indian IPR through international collaborations and active participation in standard development processes and IPR related events
11. (e) Simplifying  the  process  of  obtaining  Experimental  Licenses  and  establishing  regulatory sandboxes; viz.:
- i. Enabling creation of suitable infrastructure for testing of new products and services with due regard to safety and security concerns
- ii. Facilitating allocation of spectrum for R&D and experimentation at affordable prices
- iii. Simplifying  and  fast-track  approvals  for  products  and  services  for  experimental purposesthrough de-licensing and other mechanisms; and promoting establishment of test  beds,  incubators,  innovation  centres,  etc.  in  collaboration  with  industry  and academia

## 2.4 Promoting Start-ups

- (a) Supporting Start-ups with various fiscal and non-fiscal benefits, including:

- i. Academic collaborations, permissions for pilots and testing, concessions on imported software, mentoring support, etc.
- ii. Promoting participation of Start-ups in government procurement
3. (b) Reducing  the  entry  barriers  for  start-ups  by  reducing  the  initial  cost  and  compliance burden, especially for new and innovative segments and services
4. (c) Prescribing a simple and enabling regulatory framework for application service providers in order to promote innovation in Application Services for Digital Communications

## 2.5 Local Manufacturing and Value Addition

- (a) Maximising India's contribution to global value chains, by focussing on domestic production, increasing exports and reducing the import burden, by:
- i. Rationalising taxes, levies and differential duties to incentivize local manufacturing of equipment, networks and devices to the extent of domestic value addition
- ii. Introducing Phased Manufacturing Program for identified product segments in Digital Communication Technologies
- iii. Attracting  Global  OEMs  and  Generic  Component  players  to  setup  manufacturing base in India
- iv. Ensuring the availability of essential background IPR in Fair, Reasonable And NonDiscriminatory (FRAND) terms required for promoting local manufacturing
- v. Promoting  design  led  manufacturing  in  India  by  leveraging  indigenous  software/ R&D capabilities
- vi. Incentivizing fab and/or fab-less design and manufacturing of chips and system on a chip (SOC) for network and devices in emerging technologies
- vii. Attracting global talent from Indian diaspora to create best in class enterprises
- (b) Ensuring strict compliance to Preferential Market Access requirements:
- ii. Preferring  domestic  products  and  services  with  domestically  owned  IPR  in  the procurement  by  government  agencies,  especially  for  the  procurement  of  security related products
- iii. Incentivizing private operators to buy domestic telecom products

## 2.6 Capacity Building

- (a) Building human resource capital to facilitate employment opportunities in Digital Communications Sector:
- i. Building  national  capacity  and  institutional  capabilities    in  telecom  security  tools, standards and forensics including in manufacturing of critical telecom equipment

- ii. Creating  educational  resources  relating  to  the  communications  sector  and  making them  available  in  an  open  and  accessible  format  to  promote  self-directed  and collaborative learning through interactive formats, including audio, video and text

## 2.7 Strengthening of PSUs

- (a) Focus on building technical expertise and knowledge management for Public Sector Units, through the following initiatives:
- i. Building  internal  capacity  within  PSU's  to  promote  secure  and  efficient  service delivery, infrastructure development and domestic manufacturing.
- ii. Identifying and exploiting operational synergies in service provisioning, infrastructure creation, R&D, Standardization and manufacturing
- iii. Using the training infrastructure available with telecom PSUs for skill development
- iv. Upgrading the  manufacturing  PSUs  under  DoT  to  effectively  harness  strategic  and operational synergies

## 2.8 Accelerating Industry 4.0

- (a) Create a roadmap for transition to Industry 4.0 by 2020by closely working with sector specific Industry Councils
- (b) Establish  a multi-stakeholder led collaborative mechanism for coordinating transition to Industry 4.0
- (c) Developing market for IoT/ M2M connectivity services in sectors including Agriculture, Smart  Cities,  Intelligent  Transport  Networks,  Multimodal  Logistics,  Smart  Electricity Meter, Consumer Durables etc. incorporating international best practices.

## 3. Secure India: Ensuring Digital Sovereignty, Safety and Security of Digital Communications

## 2022 Goals:

- a. Establish  a  comprehensive  data  protection  regime  for  digital  communications  that safeguards  the  privacy,  autonomy  and  choice  of  individuals  and  facilitates  India's effective participation in the global digital economy
- b. Ensure that  net  neutrality  principles  are  upheld  and  aligned  with  service  requirements, bandwidth availability and network capabilities including next generation access technologies
- c. Develop and deploy robust digital communication network security frameworks
- d. Build capacity for security testing and establish appropriate security standards
- e. Address security issues relating to encryption and security clearances
- f. Enforce accountability through appropriate institutional mechanisms to assure citizens of safe and secure digital communications infrastructure and services

## Strategies:

## 3.1 Establish a strong, flexible and robust Data Protection Regime

- (a) Harmonising  communications  law  and  policy  with  the  evolving  legal  framework  and jurisprudence relating to privacy and data protection in India, including:
- i. Amending  various  licenses  and  terms  and  conditions, wherever  necessary, to incorporate provisions with respect to privacy and data protection
- (b) Addressing issues of data protection and security in digital communications sector, by:
- i. Ensuring that core data protection and security principles are applied and enforced
- ii. Promoting the usage of indigenous communication products and services

## 3.2 Provide Autonomy and Choice for every citizen and enterprise

- (a) Recognising the need to uphold the core principles of net neutrality:
- i. Amending the license agreements to incorporate the principles of non-discriminatory treatment of content, along with appropriate exclusions and exceptions as necessary
- ii. Ensuring  compliance  with  net  neutrality  principles,  by  introducing  appropriate disclosure and transparency requirements

## 3.3 Assure Security of Digital Communications

- (a) Addressing security issues across layers:
- i. Infrastructure Security (physical infrastructure, cyber-physical infrastructure, hardware  &  network  elements),    Systems  Security  (equipment,  devices,  distributed systems, virtual servers)
- ii. Application and Platform security (web, mobile, device and software security)
- (b) Developing security standards for equipment and devices:
- i. Telecom Testing and Security Certification (TTSC)to develop and enforce security standards for digital communications products and services
- ii. Aligning with global standards on safety and security
- iii. Harmonising the legal and regulatory framework applicable to security standards such as  the  BIS  Act,  Electronics  &  Information  Technology  Goods  (Requirements  for Compulsory Registration) Order, Indian Telegraph Act, etc.
- (c) Participating  in  global  standard  setting  organizations  to  ensure  consideration  for  local needs of the Indian communications industry
- (d) Strengthening security testing processes by:
- i. Enhancing institutional capacity to perform testing, including establishing domestic testing hubs and laboratories with state-of-the art facilities
- ii. Establishing comprehensive security certification regime based on global standards
- (e) Formulating  a  policy  on  encryption  and  data  retention,  by  harmonising  the  legal  and regulatory regime in India pertaining to cryptography with global standards, as applicable to communication networks and services
- (f) Facilitating Security and Safety of Citizens, Institutions and Property by:
- i. Facilitating  establishment  of  a  Central  Equipment  Identity  Registry  for  addressing security,  theft  and  other  concerns  including  reprogramming  of  identity  of  mobile handsets
- ii. Facilitating  lawful  interception  agencies  with  state  of  the  art  lawful  intercept  and analysis systems for implementation of law and order and national security
- iii. Increasing awareness amongst users about security related issues concerning digital communications networks, devices and services
- (g) Establishing a Security Incident Management  and Response System for Digital Communications  Sector by:

- i. Instituting a sectoral CERT
- ii. Improving information sharing and coordination between various security agencies, including CERT-In and sectoral CERTs as may be necessary
- iii. Enforcing obligations on service providers to report data breaches to authorities and affected users, based on specific parameters
- iv. Strengthening the Security Audit Mechanism

## 3.4 Developing  a  comprehensive  plan  for  network  preparedness,  disaster  response  relief, restoration and reconstruction

## (a) Strengthening network resilience by:

- i. Framing and enforcing standard operating procedures to be followed during disasters and natural calamities, including sectorial guidelines for disaster response applicable to various service providers
- ii. Establishing  institutional  framework  to  promote  monitoring  of  activities,  rapid dissemination  of  early  warning  disaster  notifications  and  better  coordination  and collaboration  between  relevant  Ministries  /  Departments,  including  the  National Disaster Management Authority of India

## (b) Developing a Unified Emergency Response Mechanism, by:

- i. Creating  an  institutional  framework  with  clearly  defined  roles  and  responsibilities, Standard Operating Procedures and technical guidelines
- ii. Incorporating obligations under the license terms and conditions for implementation of Next Generation 112 services in all areas, based on geo-location technologies, and provide  online  access  to  caller  location  and  details  to  authorised  central  and  state agencies
- iii. Enforcing  obligations of service providers to share infrastructure, and  ensure interoperability in emergency situations in a network-agnostic, operator-agnostic and technology-agnostic manner

- (c) Enhancing the Public Protection and Disaster Relief (PPDR) plan for India by:
- i. Facilitating  the  establishment  of  a  Pan-India  network  for  Public  Protection  and Disaster Relief (PPDR)
- ii. Making  necessary  spectrum  available  for  PPDR  including  by  establishing  INSAT satellite-based mobile communication systems
- iii. Implementing global and regional harmonized spectrum Plans for PPDR

It is hoped that this policy will facilitate the unleashing of the creative energies of citizens, enterprises and institutions in India; and play a seminal role in fulfilling the aspirations of all Indians for a better quality of life.

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