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8 th December 2011 New Delhi

Working Group of National Advisory Council (NAC) on the Development of North Eastern Region Presentation on Telecom Sector. 8 th December 2011 New Delhi. Department of Telecommunications. Tele-density as on 31Oct. 2011. Subscribers as on 31Oct. 2011. Broadband connections in North-East

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8 th December 2011 New Delhi

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  1. Working Group of National Advisory Council (NAC) on the Development of North Eastern RegionPresentation on Telecom Sector 8th December 2011 New Delhi Department of Telecommunications

  2. Tele-density as on 31Oct. 2011

  3. Subscribers as on 31Oct. 2011

  4. Broadband connections in North-East (BSNL)

  5. Broadband coverage in NE Region (BSNL)

  6. Common Service Centers (CSCs) coverage in NE Region

  7. USO Fund Activities in NE Region

  8. USO Fund Universal Service Obligation Fund (USO Fund) was created w.e.f. 01.04.2002, with an amendment of Indian Telegraph Act A percentage of Viability-Gap is funded to meet the Universal Service Obligations for spread of telecom facilities in remote and rural areas Originally the thrust was on public & individual access which included Village Public Telephones (VPTs), MARR replacements and Rural Community Phones (RCPs) and Rural lines to individual users (RDELs) In December 2006, Indian Telegraph Act was amended to include the activities of shared infrastructure, mobile services, broadband connectivity, general infrastructure like OFC etc

  9. USO Fund – Levy Funded through Universal Access Levy @ 5% of Adjusted Gross Revenue (AGR) from all Service Providers except the pure value added service providers like Internet, Voice Mail, E-Mail service providers etc Levy amount is credited to Consolidated Fund of India and made available to USOF after due appropriation by the Parliament Non-lapsable fund Non-plan budget till 2010-11. Now it is budgeted under Plan-expenditure Bidding process followed for USOF activities

  10. Scope of USO Fund • Activities under USO Fund are taken up under different Streams of Indian Telegraph Rules • Stream I : Provision of Public Telephone Services • Stream II : Provision of Household Telephones in Net High Cost rural & remote Areas • Stream III : Creation of Infrastructure for provision of Mobile Services in rural & remote areas • Stream IV : Provision of Broadband connectivity to villages in a phased manner • Stream V : Creation of general infrastructure in rural and remote areas for development of telecom facilities • Stream VI: Induction of new technological developments in the telecom sector in rural and remote areas

  11. VPTs in all inhabited villages Village Public Telephones (VPTs) have been provided in 37,166 villages out of the total of 40,377 inhabited villages in North Eastern Region, with financial support from USO Fund Remaining villages are expected to be provided with VPTs by May’2012

  12. Status of Provision of VPTs (as on Oct.2011)

  13. MARR Replacements Dysfunctional VPTs working on Multi Access Radio Relay (MARR) technology are being replaced with that of reliable technology VPTs As on Oct’ 2011, BSNL has replaced 12600 existing dysfunctional Multi Access Radio Relay (MARR)based VPTs in North Eastern Region with reliable technology VPTs (out of 12,796) Replacement of remaining MARR based VPTs is possible only by satellite phones

  14. Status of MARR Replacement

  15. Status of Provision of RCPs 2355 Rural Community Phones (RCPs)] were to be provided by BSNL in North Eastern Region in villages with population exceeding 2,000 and not having PCO facility

  16. Individual Rural Lines Agreements were signed with M/s BSNL in March 2005 for provision of individual rural household Direct Exchange Lines (RDELs) to be installed during 01.04.2005 and 31.03.2007 in North Eastern Region RDELs were to be installed in the eligible 104 Short Distance Charging Areas (SDCAs), where cost of providing telephone connection is more than the revenue earned 1,44,791 RDELs have been provided in North East states till 31.03.2010 i.e. till the closure of the scheme

  17. Status of Provision of RDELs

  18. Shared Mobile Infrastructure Scheme The Scheme was launched for Setting up and managing infrastructure sites for provision of mobile services in rural and remote areas, where there is no existing fixed wireless/ mobile coverage The habitations of more than 2000 populations covered Infrastructure so created to be shared by three service providers for provision of mobile services The agreements effective from 01.06.2007 were signed with the successful bidders in May 2007 As on 31.10.2011, 520 towers out of 574 towers have been set up in NE Region

  19. Status of Provision of Towers

  20. Status of Provision of mobile Services

  21. Wireline Broadband • An Agreement was signed with BSNL on 20.01.09 for subsidy disbursement towards provision of wire-line broadband connectivity (with 512 kbps) in rural areas. • Rollout targets are to be met by 2014 • The subsidy disbursement is for • Broadband connections, • Customer Premises Equipment (CPE) • Computer/Computing devices • Setting up of Kiosks for public access to broadband services. • Individual Users, Institutional Users such as Gram Panchayats, Hr. secondary schools and Public Health Centers, Kiosks etc are entitled for support

  22. Status of Provision of BB Connectivity

  23. Optical Fiber Network The scheme envisages to provide subsidy support for augmentation, creation and management of intra-district SDHQ-DHQ OFC Network The aim is to make available the network capacity of 2.5 Gbps (minimum) on sharing basis to other service providers for transport of rural/remote area traffic at the prescribed rates To start with, Assam has been taken up as first state. BSNL (the selected bidder) has installed about 163 nodes so far (Out of 354) USOF subsidy will be Rs. 98.89 Crore

  24. Summary of Subsidy Disbursed • Total Fund collected till Mar’ 2011: Rs.37,223.92 Crore • Balance as on Mar’ 2011: Rs.16,803.84 Crore • Total fund allocated for FY2011-12: Rs.1650 Crore • Total Subsidy disbursed by USO Fund till Oct’ 2011: Rs.14917.07 Crore • Total Subsidy disbursed in North Eastern Region: Rs.321.9 Crore • Total Subsidy disbursed to BSNL: Rs.13039.29 Crore

  25. Area-wise Scheme-wise Subsidy Disbursal in NER till 31.10.2011

  26. Forthcoming Schemes • Augmentation of Intra-District SDHQ-DHQ OFC Network Scheme in NE-I (Meghalaya, Manipur, Tripura) to be executed by RailTel and Subsidy is Rs. 89.50 Crore • Augmentation of Intra-District SDHQ-DHQ OFC Network Scheme in NE-II (Arunachal Pradesh, Manipur & Nagaland) and subsidy is Rs.298.50 Crore • A scheme is envisaged for provision of mobile services in all left out uncovered rural & remote areas of the country including those in North Eastern States

  27. National Optical Fibre Network (NOFN) To create an incremental optical fibre network to connect all the 2,50,000 Gram Panchayats by OFC Size of the incremental network : Approx. 0.5 million route-km An SPV (Special Purpose Vehicle) will be the executing agency. Tri-partite agreement between Central Government, State Governments and Executing Agency for providing Right of Way Non-discriminatory access to all the service providers The network is proposed to be completed in 2 years’ time with an expenditure of Rs.20,000 Crore

  28. Implementation Issues Difficulty in acquisition of land Frequent cable cut during road widening and repair work by road authorities Cable cut by other operators during laying of pipe by them Cutting of cable by antisocial elements Disruption of cable due to land slides and other natural calamities Poor electric supply

  29. Implementation Issues Difficult working conditions in the region Difficulty in transportation of telecom goods Due to Insurgency, it is difficult to develop transmission network in North Cachar Hill and Manipur State Limited number of contractors in NE Region and problems in executing the work from outsiders Due to frequent bandh and difficult terrain the working period is limited

  30. Suggestions Security for telecom installation is to be provided by State Governments Free Right-of–Way permission for laying cable Cases of cable cutting to be investigated TAX on telecom goods may be exempted Electric supply to be improved Provisioning of electric connection be done on priority

  31. THANK YOU

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