Nex-Gen Broadband in India

1. Nex-Gen Broadband in India 25,April 2005 S Ravindran Broadband Pacenet (I) Ltd

2. When does broadband penetrate (Top 30 broadband countries) • High PC penetration with high computer literacy • Large number of BB cybercafes for experience –games/videos • Cost of 100kbps BW less than 1% of monthly income • Strong Govt commitment.

3. Nex-Gen Broadband Growth –when will it happen? • It is not technology • It is applications that are relevant and capable of making a difference to the average Indian; and • ease of using the device using broadband because PC penetration in homes is just under 3% • Internet access at home can empower the woman at home enabling her to get–central, state and local administration services and so these become more responsive

4. Broadband/Net users growth- what applications/services • Application and services must entertain (enable him/her to enjoy what he/she enjoys), educate (enable to get the best inputs she needs) and empower (enable him to get central, state, local services she is entitled to) thru interactive services. • Must be inexpensive (Device and BW) and must be easy to use/no computer literacy

5. What application/service –requires an understanding of this average Indian • Typically mobile is in the hands of the man- not the woman. Typically he/she is not computer literate. • Enjoys TV (movies/music-key content); Enjoys movies (almost defines an Indian anywhere in the world-first day first show urge–every Friday-new release). Of course is committed to cricket • Knows how to use phone and TV remote. • Must assume literacy for self or children. • Must assume home with electricity and TV(100million+).

6. What BW for what application • -0-10kbps for interactive messaging/forms based apps for central/state/local admin services—coupled with RTI • -10-35kbps for email/downloading-35-70kbps-VOIP/browsing/web based apps-70-200kbps for audio streaming/multimedia messaging-over 256 kbps for video streamingMost applications just need always on and asymmetric BW

7. BB growth -requires addressing major content delivery issues Must address the problems faced by • TV broadcasters & content providers-not all content can be free—so pay content as well • movie producers • educational content providers

8. Will VOD- the key killer app. for BB penetration-succeed in India? • Critical success factors (study around the world-some challenges too specific to India not here): • Low cost base. • Cheap fast broadband. • VOD delivery thru TV. • Fresh diverse content. • Strong PayTV culture. • Multiple revenue streams. • Market scale.

9. Access Network Challenge in India. • Dial up expensive & too Little. • Mobile too Little & Expensive. • DSL depends on copper availability – estimated at 5% of lines less than 700m or less. • Fiber to kerb – right for dense cities.VOD requires even more investment in servers and gigabit switches—will the investment be justified Underground fiber to every home will be slow build-up • 2.5/3G—at best 1Mbps shared in cell-about dial up speed possible(2-3bps/hz ) • Wifi / Wimax evolving. Wimax capable of 4-5bps/hz with 1:3 re-use; two years away.

10. Access Network Challenge • Indians live in over 300 cities with 1lakh+ population, over 5000 villages with a population of 5000+ —and about 550000villages.-200/300 villages within 20-30km of Taluka HQ • 7200 Rail stations and road network of about 100k kms • Road/rail infrastructure growth has been/will be slow • 6-7lakh PCOs account for 20% of revs • Most women will not really be mobile for years but most(max) Indian homes are touched by TV broadcast first and then(second) by coax cable • TV is the number 1 consumer durable acquired for the home

11. Access Network Advantage • One way broadcast access all over India-over 100million Tv homes • Coax cable one way 4GBPS-60Million homes. Coax network delivers at Rs300/m (max) for 4GBPSone way;

12. What is the least we need to do to increase BB penetration?But BB has all the access network issues now.Can we think out of the box to drive net penetration, first things first ?

13. Converting broadcast users to net users is the essential first step to exponentially grow the base for BB penetrationThe least GOI can focus on is enabling Broadcast Interactive Network infrastructure—to drive net growth to improve responsiveness of central, state, local authorities

14. BIN in India must provide solution for broadcast industry • Broadcasters want a device to cope with the emerging technology changes • DVBS2(which improves BW efficiency) • H.264,DVB-T/H • Interactive broadcast applications-MHP Interactive Access network has to be • Fiber + Ethernet network as created by cable operators in metros or • wireless upstream from home of the customer and coax-cable down to the customer—using the 4GBPs capacity of coax cable at low cost • Ignoring this massive fibre/coax infrastructure created by cable operators can only be at the behest of vested interests

15. BIN in India must provide solution to the problems of movie industry • Indian movie industry- the world’s largest (800+movies/yr) - now having over 95% flop releases and the cost of film based technology limits release depth of most movies. • India has 12000 cinema halls. • 30000 video parlours. • HNI homes would like to see the movie at home in HDTV mode many more in VOD mode. • Even more homes in PPV mode • Broadcast Interactive Network can provide the solution to the movie industry content delivery problem • Government needs to treat this as infrastructure to protect encourage more content creation

16. BIN solution must minimise risks for movie producers by enabling content value extraction across many windows • Indian movies can be delivered on the net overseas to halls and homes simultaneously and so increase the reach • Why shouldn’t Min of I&B/PB define its mission as: enabling technologies and services for maximal content value extraction for Indian content creators to build brand India-simultaneously killing the piracy issue

17. Education delivery issues • Over 1500 colleges having 400k undergrad students—shortage quality teaching manpower • 200million school going children—teaching skills shortage enormous.

18. Educational content distribution thru BIN desperately needed for schools/colleges • Educational content be delivered to schools and stored in HDD attached to STB over say Edusat • Only way we can swiftly improve the quality of education/overcome quality staff shortage for 200 million school going children and 400000 undergrads in 1500 colleges • By using same satellite used to deliver movies to halls/parlours HNI homes in HDTV mode or stored VOD mode—can subsidise educational BW needs on satellite.

19. Empowering the average Indian requires a low cost innovative device to use BIN service • Interactivity thru TV remote thru web browser in the STB (requiring no computer literacy, at less than half the cost of a PC), emailing and VOIP - would really empower the home. STB should be able to use any available data network anywhere in India—with an ethernet and serial port or USB STB with PVR capability will enable playback of stored movies/Tv programs (making up for absence of multiple TVs) and educational content possiblity; • E-governance -- forms based apps for central/state/local admin services-coupled with RTI • Telemedicine would be valuable.

20. Govt commitment? • A combined Ministry of multi-modal transport can be more effective in reducing the impact of petroleum shock—but …. • In KOREA they realised broadband is critical—and WiMax is important—and they –got Defence to vacate spectrum,put some three companies—now KOREA is ahead of all countries in BB • Thanks to CAS imbroglio, BIS has an opportunity to be pro-active national need perspective in its standards than just be ”proven international technology perspective”

21. Govt. commitment? • Empowering Indians is truly a government responsibility • MIT & Min of I&B&DD should adopt a nationally defined CAS and BIN with interactivity capable STB thru any available data network anywhere in India. Solution to movie distribution/content protection problem will get into a mess as did CAS unless a proactive wholistic India need view is taken BIN services growth will enable BB services growth as a competitive technology service

22. Govt. commitment to creating enabling technologies and devices to make Central, State and local admin machinery more responsive to citizen’s need. Promoting development of such devices is critical to bridging the digital divide while, entertaining, educating and empowering Indians and make a dramatic difference to millions of citizens

23. Let us hope Broadcast Interactive Network services will grow in India (so also BB will grow), thru synergising of various arms of GOI Ministries of IT , I&B and organisations like PB/DD and BIS, just as a corporate conglomerate do to improve its customer service