dot annual report 2010

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ANNUAL REPORTANNUAL REPORT

DEPARTMENT OF TELECOMMUNICATIONS

MINISTRY OF COMMUNICATIONS & IT

GOVERNMENT OF INDIA

NEW DELHI

2009-10


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ANNUAL REPORT

2009-10

DEPARTMENT OF TELECOMMUNICATIONS

MINISTRY OF COMMUNICATIONS & IT

GOVERNMENT OF INDIA

NEW DELHI


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CONTENTS

I. Indian Telecom Sector: An Overview.............................................................1

II. Telecom Commission..................................................................................15

III. Department of Telecommunications...........................................................17

IV. Telecom Regulatory Authority of India

V. Telecom Disputes Settlements And Appellate Tribunal..................................................73

VI. Audit Observations of C & AG..........................................................................................75

VII. Centre For Development of Telematics............................................................................79

VIII. Public Sector Undertakings.............................................................................................85

IX. Statistical Supplement................................................................................................... 125

Acronyms ..................................................................................................................... 141

Organisation Chart........................................................................................................ 144

III. 1. Wireless Planning and Coordination .......................................................................31III. 2. Telecom Engineering Centre....................................................................................41III. 3. Universal Service Obligation fund............................................................................43III. 4. Controller Of Communication Accounts Offices ......................................................49III. 5. Vigilance Activities....................................................................................................51III. 6. Telecom Network Security........................................................................................53III. 7. Empowerment Of Women........................................................................................57III. 8. Person With Disabilities............................................................................................61III. 9. Citizen's Charter & Grievance Redressal Mechanism..............................................63

VIII. 1. Bharat Sanchar Nigam Limited ................................................................................87VIII. 2. Mahanagar Telephone Nigam Limited ....................................................................99VIII. 3. ITI Limited ..............................................................................................................111VIII. 4.Telecommunications Consultants India Limited................................................119

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Growth of Telecom Sector

The opening of the sector has not only led to rapid growth but also helped a great deal towardsmaximization of consumer benefits as tariff have been falling across the board as a result of

unrestricted competition. Telecom sector has witnessed a continuous rising trend in the totalnumber of telephone subscribers. From meager 22.8 million telephone subscribers in 1999, it hasgrown to 54.6 million in 2003 and further to 429.72 million at the end of March 09.The total numberof telephones stands at 562.21 million as on December 31, 2009 showing addition of 132.49 millionduring the period from March to December of 2009. Wireless Telephone connections havecontributed to this growth as the number of wireless connections rose from 3.57 million in March2001 to 13.29 million in 2003, 101.86 million in March 2006, 391.76 million in March 09 and525.15 million as on December 31, 2009. The wireline has shown increase from 32.70 million in2001 to 41.42 million in March 2005 but then started declining to 40.22 million in March 2006, 37.96million in March 2009 and 37.06 million in December'09.

Changes in structure of composition of Telecom Sector

Wireline vs. Wireless

The growth of wireless services has been substantial, with wireless subscribers growing at acompound annual growth rate (CAGR) of 60 per cent per annum since 2004. Today, the wirelesssubscribers are not only much more than the wireline subscribers in the country, but also increasingat a much faster pace. The share of wireless phones has increased from 5.26 per cent in 1999 to93.41 per cent in December 2009. On the contrary, the share of fixed wireline has steadily declined.The private service providers adopted wireless technology since it was easy to roll out wireless

telecom services. Wireless phones have increased as they are preferred because of theirconvenience and affordability. As a result, telephones today have come within the reach of acommon man.

Department of Telecommunications2

1


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Private vs. Public

The liberalization efforts of the Government are evident in the growing share of the private sector.The private sector is now playing an important role in the expansion of telecom sector. The shareof private sector in total telephone connections is now 82.33% as per the latest statistics availablefor December 2009 as against a meager 5% in 1999.

Annual Report 2009-10 3


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Trend in Teledensity

Teledensity is an important indicator of telecom penetration in the country.

The Teledensity which was 2.32% in March 1999 increased to 12.7% in March 2006 andfurther to 36.98% in March 2009 and 47.88% in December 2009. Thus there has been

continuous improvement in the overall teledensity of the country.

The rural teledensity which was above 1.21% in March 2002 has increased to 9.46% inMarch 2008 and further to 15.11% in March 2009 and 21.19% at the end of December2009.

The urban teledensity has increased from 66.39 in March 2008 to 88.84% in March 2009and stands at 110.69% at the end of December 2009.

Thus, there is wide gap between urban and rural teledensity. For economic and socialdevelopment of rural areas, rapid increase in rural teledensity is of utmost importance. With theintroduction of wireless phones in rural areas, there is increasing trend in rural teledensity also.The Government is taking various measures under USOF for expansion of mobile network inremote rural areas. As the urban areas has got saturated, private service providers are also

finding out further opportunities in rural areas. All these factors have led to increasing trend in ruralteledensity of late.FIGURE - 2

TELE-DENSITY (Number of Telephones per 100 Population)

7.02% 8.95%12.74%

18.22% 26.22% 36.98%

47.88%

20.79% 26.88%38.28%

48.10% 66.39%

88.84%

110.69%

1.55% 1.73% 2.34%5.89% 9.46%

21.19% 15.11%

0.00%

20.00%40.00%60.00%

80.00%

100.00%

120.00%

2004 2005 2006 2007 2008 2009 December'09 Year ending 31st March'

TELE-DENSITY

TOTALTELE-DENSITY

URBANTELE-DENSITY

RURALTELE-DENSITY

Shifting focus on Rural Telephones

While the urban subscribers have been growing significantly, similar growth has not been on therural front. However, with introduction of mobile services in rural areas, the rural subscribers

recently are increasing. The measures taken under USOF to increase rural connectivity are givenin Box 2.

The rural Telephone connections have gone up from 3.6 million in 1999 to 12.3 million inMarch 2004 and further to 123.51 million in March 2009.

Their share in the total telephones has constantly increased from around 14% in 2005 to

4 Department of Telecommunications


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31% as on December 31, 2009.

The rural subscribers have grown to 174.58 million as on December 31, 2009.

The mobile connections have contributed substantially to total rural telephoneconnections

During 2009-10, the growth rate of rural telephons was 41.35% as against the growth of26.59% of urban telephones. The private sector has contributed to the growth of ruraltelephones as it provided more than 81% of rural telephones as on December 31, 2009.

BoX: 2 USOF to increase Rural Connectivity

As on December 31, 2009, about 5.66 lakh (94.79%) villages covered byVPTs.

40694 villages out of 40705 villages having more than 2000 populationprovided rural community phones.

Under Bharat Nirman Programme, of 62302 remaining villages, 61186covered upto December 2009.

In 1685 cost positive short distance areas (SDCA), about 70.49 lakh RDELinstalled.

Infrastructure sharing scheme to set up 7436 towers spread over 500 districtof 27 states of the country implemented; 6956 towers set up as on December31,2009.

Potential for further Growth

Broadband

Indian telecom market has still large untapped potential to grow further. With large population yetto have access to telecommunication and teledensity still being 48% and rural tele-density 21%,

potential for the sector remains large especially in urban areas where wireline and internetservices are yet to make significant inroads. Even the mobile services space, which has seenexponential growth in urban areas, has not reached the vast majority in rural areas. The focus ofthe stakeholders, is now shifting to these untapped rural areas which will provide engine for thesecond phase of the growth in Indian Telecom. Rural teledensity target is upgraded to 40% by2014. There is talk about one billion telephones in the country by 2015.

It is necessary to increase the broadband connectivity for the knowledge-based society to growquickly and for reaping the consequent economic benefits. Several policies have been announcedand implemented to promote broadband in the country (Box 3).

As a result of these measures, the broadband subscribers grew from 0.18 million in 2005 toth6.2 million as on 30 April 2009 and about 7.98 million, at the end of the December 2009.

Broadband connectivity has been provided in 4044 cities, 5431 block headquarters, 613district headquarters covering about 1,06,559 villages.

Broadband coverage will get fillip with the sitting up of 100,000 Common Service Centers(CSCs) covering all the villages in the country. As on November 2009, 26,239 CSCs have



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been covered. They will provide internet excess and benefit of e-governance to thecommon citizen.

It is also envisaged that internet and broad-band subscribers will increase to 40 million and20 million, respectively, by 2010.

India faces technological as well as commercial challenges in penetration of broadband.

The low PC penetration and affordability issue due to high cost are the main causes.

The wireless broadband is likely to be the preferred route that many operators adopt indelivering broadband services to the masses of the country. Wireless technologies havecapabilities to provide widespread broadband access and could drive inclusive growth byway of mobile banking, tele education, E-governance, tele medicine etc.

To achieve the stipulated target, the government has issued guidelines for BroadbandWireless Access (BWA) Services. Introduction of BWA services will enhance thepenetration as well as growth of broadband subscribers. Wi-Max has also been makingheadway for penetration of wireless broadband connectivity across all the sectors.

BoX 3: USOF for boosting rural Broadband

?Scheme to provide 8, 88,832 wireline broadband connections to individual andGovernment institutions by 2014.

? As on December 31, 2009, 95011 broadband connections and four kiosksprovided.

?Institutional users such as Gram Panchayat Higher Secondary School andPublic Health Centres will be provided Broadband.

?Initiative taken to strengthen OFC network in rural areas to provide sufficientback-haul capacity to integrate voice and data traffic.



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Hon'ble Prime Minister Dr. Manmohan Singh addressing the delegates at

India Telecom 2009 at New Delhi

Hon'ble Prime Minister Dr. Manmohan Singh with Minister of Communications & IT,Shri Thiru. A. Raja, Minister of State for Communications & IT Shri Sachin Pilot, Minister of State

for Communications & IT Shri Gurudas Kamat and Secretary DOT, Shri P.J.Thomas at "India Telecom 2009"



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Former President of India Dr. A.P.J.Abdul Kalam addressing the delegates atIndia Telecom 2009 at New Delhi

Former President of India Dr. A.P.J.Abdul Kalam releasing Report on Telecom Industry atIndia Telecom 2009 at New Delhi



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New Horizons for further Growth

3G Telecom services

Mobile Number Portability (MNP)

Value added Services (VAS)

Manufacturing

The explosive growth of the telecom industry in India is being followed by the urge to movetowards better technology and the next level of service delivery. While the last 5 years have been

transformational for Indian telecom industry, the next few years look even more exciting. One ofthe key frontiers which would make journey in coming years exciting is the launch of 3Gtechnology. The government has recently announced guidelines for penetration of 3G telecomservices. This will provide a good opportunity for existing operators and also for foreign players tomake an entry into the Indian market and bring in new technology and innovations.

MNP allows any subscriber to change his service provider without changing his mobile phonenumber. With the announcement of guidelines for MNP, telecom service providers will be forcedto improve quality of their service to avoid losing subscribers. This can be seen as maturingelement of the Indian telecom industry and a natural step for the industry to go forward.

The mobile value added services include, text or SMS, menu based services, downloading ofmusic or ringtones, mobile TV, videos, streaming, sophisticated m-commerce applications etc.Prior to 2008, a majority of VAS revenues were attributable to SMS's. However, recent trendsindicate that this mix is evolving. With greater penetration of new services, availability of relativelyinexpensive feature rich handsets and consumer education, VAS other than SMS is gainingimportance. It is further expected that over the next few years, non-SMS VAS would become adominant contributor to VAS revenue.

Indian telecom industry manufactures a complete range of telecom equipment using state of arttechnology. Considering the growth of telecom, there are excellent opportunities for domestic andforeign investors in manufacturing sector. The last five years saw many renowned telecomcompanies setting up their manufacturing base in India. The production of telecom equipments in

value terms has increased from Rs. 412700 million (2007-08) to Rs.488000 million during 2008-09 and expected to increase to Rs. 575840 million during 2009-10. The growth of telecommanufacturing industry is largely attributed to the rapidly growing telecom sector. India haspotential to emerge as a global hub for telecom manufacturing. There are favorable factors suchas policy moves taken by the government, incentive offered, large talent pool in R&D and lowlabour cost which can provide an impetus to the industry.



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Exports increased from INR 4020 million in 2002-03 to INR 1, 10,000 million in 2008-09 accountingfor 21 per cent of the total equipment produced in the country and further expected to increase toRs. 132,500 million during 2009-10.

Foreign Direct Investment

The liberalisation in financial sector has beneficial results as that in telecom sector. Liberalisationwith allowing entry to the private firms has resulted in unprecedented growth in telecom sector. Allowing greater participation of foreign investor has helped in growth of the sector. Today,telecom is the third major sector attracting FDI inflows after services and computer softwaresector. At present 74% to 100% FDI is permitted for various telecom services. This investment hashelped telecom sector to grow. The total FDI equity inflows in telecom sector have been US$ 2223million during April-November 2009-10 as shown in graph below:-



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Regulatory Framework

Research & Development

The Telecom Regulatory Authority of India (TRAI) has always endeavored to encourage greatercompetition in the telecom sector together with better quality and affordable prices in order to meetthe objectives of New Telecom Policy, 1999. A number of regulations and Directions were issuedby TRAI during 2009-10 which inter-alia included the Telecommunication Mobile Number

portability Regulation 2009, Telecommunication Mobile Number portability per port transactioncharge and dipping charge Regulation, Telecommunication Tariff order 2009, and Direction toAccess Service providers on provision of value added services for enhanced transparency withregard to taking explicit consent of customers and preventing accidental subscription to value Added services, Direction to IPTV providers, direction to all access service providers forsubmission of their performance Monitoring Report etc. These directions and regulation will helpto develop the telecom sector.

In order to protect the interest of the consumers, TRAI has taken steps regarding audit of meteringand billing system for bringing uniformity and transparency, prescribing standard relating toaccuracy of measurement and reliability of billing etc. The service providers have to furnish theAudit report to TRAI every year, with corrective action taken on inadequacies by the service

providers. Besides, TRAI has undertaken activities towards consumer education.TRAI has also taken steps to ensure the quality of the service provided by the service providers byway of monitoring the performance of Basic and Cellular Mobile Telephone Service on quarterlybasis and also point of interconnection(POI) congestion through monthly reports.

The above measures are expected to facilitate orderly growth of telecom sector by promotinghealthy competition and enhancing investment efficiency besides protecting interests ofconsumers.

C-DoT, an autonomous society under DoT, is carrying out research & development for areas ofnational importance in Telecommunication. C-DoT is working on various developmental projects

like Shared Global System of Mobile Communication Radio Access Network (SG-RAN) for ruralIndia, upgradation of legacy switches to Next Generation services for North Eastern region,communication monitoring systems, secure dedicated communication networks, broadbandservice delivery platforms like Gigabit Passive Optical (GPON) systems. The projects like SG-RAN & GPON are expected to give an impetus to indigenous manufacturing.

The increased use of new technologies, the move towards corporatisation, competition and theseparation of regulatory functions from operational services require advanced level of policy,regulatory, managerial and technological expertise. In order to develop and strengthen thecapability to generate this expertise, the Telecom Centers of Excellence (TCOE) concept hasbeen established in a Public-Private Partnership (PPP) mode with all stake holders onboard. Apartfrom application oriented research, the Centers are designed to assist and offer training to both

high level decision makers of telecommunication entities to manage sector reforms and tocorporate managers for management of networks and services. There will be eight TCOEs at thepremier academic institutes of the country with the seven major telecom operators supporting onecenter each. The spectrum management center is being developed in an autonomous model withthe support of an industry consortium. To provide a further boost to our manufacturing and R&Defforts, it has been further decided to set up a Telecom Testing and Security Certification Center



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(TETC) for communication security, research and monitoring. A large number of companies likeAlcatel, Cisco etc. have also set up their research & development (R&D) centers in India.

MTNL and BSNL are the two premier PSUs under the department that have thrived to meet thegrowing requirements of telephones and other related services. MTNL, which was set up mainly toexpand the quality telecom network and to raise revenue for developing telecommunicationfacilities in India's key metros - Delhi and Mumbai, has taken rapid strides since its formation in1986, to emerge as India's leading and one of Asia's largest telecom operating companies.Besides having a strong financial base, MTNL has achieved a customer base of 8.37 million at theend of December 2009. The company has 768037 broadband customers as on December 31,2009. The Company has also been in the forefront of technology induction by converting 100% ofits telephone exchange network into the state-of-the-art digital mode. The Govt. of India currentlyholds 56.25% stake in the company.

BSNL formed in October, 2000, is the World's 7th largest Telecommunications Company providingcomprehensive range of telecom services in India: Wireline, CDMA wireless, GSM wireless,

Internet, Broadband, Carrier service, MPLS-VPN, VSAT, VoIP services, IN Services etc. Within asmall span of eight years, it has become the largest public sector service provider in the countryserving 90.96 million subscribers including 62.86 million wireless customers in December 2009.Rural telephony is one of the focus areas of BSNL. It has provided Village Public Telephones(VPTs) in 5.63 lakh villages and has 323.27 lakh telephones in the rural areas as on December 31,2009. BSNL has introduced broadband services from January 2005 and has provided 47.30 lakhbroadband connections till December 2009.

Given the central aim of NTP 99 to ensure rapid expansion of tele-density and the objective totransform in a time bound manner, the telecommunications sector to a greater competitiveenvironment in both urban and rural areas providing equal opportunities and level playing field for

all players, the Department has taken various Policy Initiatives, as below which have helped thegrowth of the Telecom Sector, increased competition to benefit the customers to ensureaffordable & quality service:

?Decided that there should be no cap on the number of access provider in any service area.122 new UAS licences were granted in year 2008 to 17 companies in 22 service areas of thecountry.

?Permission of use of dual technology spectrum under the same UAS/CMTS licence wasgranted to 8 companies including BSNL & MTNL. BSNL & MTNL were exempted from theprescribed fee for such usages.

th?On 11 July 2008, provision of mobile service within 500 meters of international boarder within

Indian Territory has been permitted.?Keeping in view the interest of consumers, the department has decided to introduce Mobile

Number Portability (MNP). This will allow subscribers to retain their existing telephonenumber while switching over from one service provider to another or from one technology toanother of the same service provider. This would make the telecom market truly competitive.

Telecom PSUs

Major Policy Initiatives



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With a view regulate the unsolicited calls from the telemarketers; a regulation has beenimplemented whereby National DO Not Call Registry (NDNC) has been put into place.Consequent upon its implementation, there has been a substantial reduction in the number ofunsolicited calls.

?The Government has also decided to introduce National Integrated Directory Service

(NIDQS) in the country. The detailed guidelines for award of NIDQS Licences through opentender shall be issued by DOT shortly.

?Revised subscriber based criteria for allocation of GSM and CDMA spectrum were issued onth17 January 2008.

?Recommendations of TRAI have been sought on the Report of the Committee on 'Allocationof Spectrum to access services providers and Spectrum pricing'.

?FDI Ceilings raised from 49% to 74%. 100% FDI is permitted in the area of telecom equipmentmanufacturing and provision of IT enabled services.

The world has been witness to the tremendous success of the Indian telecommunicationsindustry. From the onset, the sector has displayed enormous potential and played an importantrole in developing the country's economy. The telecommunications industry has also been highlysuccessful in promoting the public agenda and driving inclusive growth.

The success of the telecommunications sector so far had been limited more or less to the urbanareas. Over the last few years, however, the Government as well as private players has beenmaking a concentrated attempt to replicate the success achieved in urban areas to the newermarkets of rural India. While voice service has traditionally been the key driver for the developmentof the sector, the industry is now at the threshold of the next big shift and is poised to drive growththrough other avenues. Broadband connectivity is likely to open up newer markets while at thesame time improve the social and economic conditions of the lower penetrated areas. Mobile VASis expected to benefit all sections of society with relevant content being develop to enhancebusiness, provide financial assistance, and promote education and healthcare for the masses.The relatively newer industries of telecom manufacturing and research and development bring withthem a plethora of employment opportunities for all.

?

Vision

While celebrating the success in the telecom sector, the government recognizes the fact that thereis no room for complacency. The government recognizes the need to take a forward-lookingapproach, based on an appreciation of changing technologies and to accelerate structuralchanges in this sector in line with trends in other countries to ensure that the telecommunicationservices are not only made available on the scale needed to sustain rapid growth in the economyas a whole but also that the quality and cost of these services come up to the requirements of amodernizing economy.

The government is now looking forward to achieve the target of 600 million telephone subscribersby the end of Eleventh Plan.

Rural telephony continues to be the thrust area of the government. It is recognized that provision ofaffordable telecom services in rural areas enhances the ability of people to participate in marketeconomy, which, in turn improves their productivity and contributes to their earnings. It is therefore,proposed to achieve rural teledensity of 25% by means of 200 million rural connections at the end



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of 11th Plan. In view of the present growth, 40% rural teledensity is expected by 2014.

Recognizing the potential of Broadband services in the growth process, it has been proposed inthe Eleventh Plan targets to provide the broadband for all secondary and higher secondaryschools; all Public Health Care Centers and Gram Panchayats. It is also envisaged that internet

and broad-band subscribers will increase to 40 million and 20 million, respectively, by 2010.The government has a vision to provide telephone connection and broadband facilities ondemand across the country and at an affordable price and it thrives to achieve the same.

*****



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III. Department of Telecommunications

ROLE AND FUNCTIONS

The Department of Telecommunications (DOT) is responsible for policy formulation, performancereview, monitoring, international cooperation, Research & Development and grant of licences tooperators for providing basic and value added services in various cities and telecom circles as perapproved policy of the Government. The Department also allocates frequency and manages radiocommunications in close coordination with the International bodies. It is also responsible forenforcing wireless regulatory measures and monitoring the wireless transmission of all users in thecountry. The office of Administrator, Universal Service Obligation (USO) Fund has been set upw.e.f. June 1, 2002 for the purpose of implementation of Universal Service Support Policy. Afterformation of Bharat Sanchar Nigam Ltd (BSNL) in October 2000, following are the functionsassigned to the DOT under Government of India (Allocation of Business), Rules, 1961:-

?Policy formulation, licensing and coordination matters relating to telegraphs, telephones,

wireless, data, facsimile and Telematics services and other similar forms of communications.

?International cooperation in matters connected with telecommunications, including mattersrelating to all concerned international bodies such as International Telecommunication Union(ITU), its Radio Regulation Board (RRB), Radio Communication Sector (ITU-R),Telecommunication Standardization Sector (ITU-T), Development Sector (ITU-D),International Telecommunication Satellite Organization (INTELSAT), International MobileSatellite Organization (INMARSAT), Asia Pacific Telecommunication (APT).

?Promotion of standardization, research and development in telecommunications.

?Promotion of private investment in Telecommunications.

?Financial assistance for the furtherance of research and study in telecommunications

technology and for building up adequately trained manpower for telecom programme,including:-

(a) assistance to institutions/scientific institutions and to universities for advancedscientific study and research; and

(b) grant of scholarships to students in educational institutions and other forms of financialaid to individuals including those going abroad for studies in the field oftelecommunications.

?Procurement of stores and equipment required by the Department of Telecommunications.

?Telecom Commission.

?Telecom Regulatory Authority of India.?Telecom Disputes Settlement and Appellate Tribunal.

?Administration of laws with respect to any of the matters specified in this list, namely:

(a) The Indian Telegraph Act, 1885 (13 of 1885);



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(b) The Indian Wireless Telegraphy Act, 1933 (17 of 1933); and

(c) The Telecom Regulatory Authority of India Act, 1997 (24 of 1997).

?ITI Limited.

?Post disinvestment matters relating to M/s Hindustan Teleprinters Limited.?Bharat Sanchar Nigam Limited.

?Mahanagar Telephone Nigam Limited.

?Videsh Sanchar Nigam Limited and Telecommunications Consultants (India) Limited.

?All matters relating to Centre for Development of Telematics (C-DOT).

?Residual work relating to the erstwhile Department of Telecom Services and Department ofTelecom Operations, including matters relating to the following:-

(a) Cadre controlling functions of Group 'A' and other categories of personnel till theirabsorption in Bharat Sanchar Nigam Limited.

(b) Administration and payment of terminal benefits.

?Execution of works, purchase and acquisition of land debitable to the Capital Budgetpertaining to telecommunications.

?There were 241 Unified Access Service (UAS), 2 Basic Service and 38 Cellular Mobileservice (CMTS) Licenses as on December 31, 2009.

?Permission for usage of dual technology spectrum (both CDMA and GSM) under the same

CMTS/UAS Licence has been granted to 8 companies as on December 31, 2009.

Department of Telecom is in the process of introducing Mobile Number Portability (MNP) in Indiawhich will allow subscribers to retain their existing telephone number when they switch from oneservice provider to another or from one technology to another of the same service provider. Forthe purpose of grant of Licences for MNP service in India, the whole country is divided into 2 MNPzones consisting of 11 service areas each and one licence for MNP service in each MNP zone hasbeen awarded in April 2009 based on tendering process. It is expected that MNP Service shall beavailable by end of March, 2010.

The Government has accepted the Recommendations of Telecom Regulatory Authority of Indiath(TRAI) dated 6 August, 2008 for introduction of Mobile Virtual Network Operators (MVNOs)Licences in India. The detailed guidelines for grant of MVNO Licence shall be issued by theDepartment of Telecom shortly.

Grant of licenses

Unified Access Services

Mobile Number Portability (MNP)

Mobile Virtual Network Operator (MVNO)



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Other Service Providers (OSPs) & Telemarketers

Very Small Aperture Terminal Service (VSAT) Service

Internet and Broadband Services

Investment Policy (IP)

Basic and cellular, Unified Access Services, National/ International Long Distance, V-Sat,

Public Mobile Radio Trunked Services (PMRTS), Global Mobile Personal CommunicationsServices (GMPCS) and other value added telecom services

ISP (with gateways), end to end bandwidth and Radio Paging Service

ISP without gateway, Infrastructure Providers providing dark fibre, right of way, duct space,tower(Category-I), Electronic Mail and Voice Mail.

?Registration of call Centres (International and domestic), Network Operation Centres andVehicle Tracking Systems is being done under OSP category. Over 2500 cases have beenregistered under OSP category at DOT HQ.

?Registration of call Centres under OSP Category and of Telemarketers under TelemarketingCategory was earlier decentralized from DOT HQ to TERM Cells in 10 circles w.e.fSeptember 1, 2007. Further, w.e.f June I, 2008 the work has been decentralized to all TERMCells. However, the CS Cell of DOT shall continue to handle the policy issues.

?The OSP Registration Policy has been revised from August 5, 2008 and as pper new policy,the work from Home concept has been permitted for call center OSP's.

?There are 12 licences for Commercial CUG VSAT service as on March 2009. Over 90,000commercial CUG VSATs are operational as on September 30, 2009.

?As on December31, 2009 there were 376 Licencees for Internet Services which includes 98Category A Licencees, 130 Category B Licencees and 148 Category C Licencees. TwoInternet Service Licencee has been permitted to provide IPTV Services. Further, there were14.95 million internet subscribers as on September 30, 2009 and about 7.98 millionbroadband subscribers as on December 31, 2009.

Telecom Sector is considered to be one of the most attractive sectors for foreign direct investment.Present FDI Policy for the Telecom sector is as under:

Foreign Direct Investment (FDI) upto 74% (including FDI, FII, NRI, FCCBs, ADRs, GDRs,convertible preference shares, and proportionate foreign equity in Indian promoters/ InvestingCompany) is permitted. FDI upto 49% is permitted under automatic route, beyond 49% by FIPB.as per the conditions of Press Note 3 (2007 series) ead with Press Note No. 2/2009.

FDI upto 74% is permittedsubject to licensing and security requirements.

FDI upto 49% is permitted under automatic route and beyond 49% by FIPB.

FDI upto 100% is allowed subject to the conditions that such companies would divest 26% of theirequity in favour of Indian public in 5 years, if these companies are listed in other parts of the world.Also subject to the licensing and security requirements, where required. FDI upto 49% is permittedunder automatic route and beyond 49% by FIPB.



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Manufacture of Telecom equipments

(Rs in crore)

MANUFACTURING OF TELECOM EQUIPMENT

India has fast emerged as a manufacturing hub as Multinational companies look for long termalternatives. As a result of Government policy, progress has been achieved in the manufacturing oftelecom equipment in the country. There is a significant telecom equipment-manufacturing base inthe country and there has been steady growth of the manufacturing sector during the past fewyears. In the last 5 years, the country's contribution in mobile devices has been increased from0% to 6% of the global device production. Several Indian companies in the telecom and electronics

industry are creating global scale.

Rising demand for a wide range of telecom equipment, particularly in the area of mobiletelecommunication, has provided excellent opportunities to domestic and foreign investors in themanufacturing sector. The last two years saw many renowned telecom companies setting up theirmanufacturing base in India. Nokia and Nokia Siemens Networks have set up their manufacturingplant in Chennai. Ericsson has set up GSM radio Base Station Manufacturing facility in Jaipur.Motorola, Foxconn (OEM) has set up large manufacturing plants in Chennai. Elcoteq has set uphandset manufacturing facilities in Bangalore. LG Electronics has set up plant of manufacturingGSM mobile phones near Pune. Ericsson has launched their R&D Centre in Chennai. Flextronicshas set up an SEZ in Chennai. A large number of companies like Alcatel, Cisco have shown interestin setting up their R&D centers in India. With above initiatives, India is expected to be a

manufacturing hub for the telecom equipment.With upcoming broadband revolution, the demand for wireline products, transmission equipment,wireless equipment, fibre and devices will multiply, providing large scale opportunities for Indianand Multinational companies. The rapid development of semiconductor ecosystem and theelectronic ecosystem in India is connected with the growth of telecom sector in India, as bothdomestic and foreign companies are expanding their operations across the whole value chain in



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the country.

Telecom Equipment Production: Rs. 488,000 million.

India's Export of telecom items: Rs. 110,000 million.

India's Import of Telecom items: Rs. 52,674 million.

India's export of Telecom Consultancy: Rs 62.70 million.

Telecom Equipment Production: Rs 575,840 million (projected)

India's Export of Telecom items: Rs. 132,500 million. (Projected)

India's export of Telecom Consultancy: Rs 27.80 million (upto September 2009).

Advances in computer and communication technology have formed a basis for the globaleconomic growth and improvement in standard of living. With this increased reliance comes theneed to make information system more secure, trust worthy, sustainable and available in the faceof both intentional attacks and accidental faults. The very technology that enabled unprecedentedgrowth and now underpin our economy and way of life also increases the vulnerability of ourinfrastructure, which in turn threatens our ability to sustain IT-driven prosperity. The need for thesecured network is not merely that of the telecom service providers for testing of telecomequipment, there is a need for capacity building and training in this highly specialized area whereone has to follow a moving target and be one step ahead of the miscreants and threat generators.

There is a need to perform more comprehensive tests in order to assure oneself of securednetwork. It is important to create a test bed in an environment in which the Government hasadequate control in devising protocols and procedures for security testing on every telecomproduct and carrying out research. Work on this project has already been started in IISc,Bangalore and this is in advance stage of implementation. A team of 6 professors under Prof.Balakrishnan and a number of research scholars are working on this project. For funding thisproject, a capital expenditure of Rs. 20.00 crore has been envisaged. Out of this Rs. 8.00 crorehas already been granted to TETC. TETC have finalized test standards for security testing andhave generated draft test reports.

The increased use of new technologies, the move towards corporatisation, competition and the

separation of regulatory functions from operational services require advanced level policy,regulatory, managerial and technological expertise. In order to develop and strengthen thecapability to generate this expertise, Telecom Centres of Excellence (TCOE) have beenestablished in Public Private Partnership (PPP) mode. The seven TCOEs at the premier academicinstitutes at IITs, IIM Ahmedabad & Indian Institute of Science, Bangalore supported by a majortelecom operator have centers have identified important projects in association with the industry

Production of Telecom Equipments including export and import during 2008-09 & 2009-10are as under:

During 2008-09

During 2009-10

Setting up of Telecom Equipment Testing and Security Certification Centre (TETC)

Telecom Centers of Excellence (TCOE)



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and are working to generate a skilled talent pool, cutting edge research, customer centricregulatory framework and innovative business models for rural India with the ultimate vision toextend the education and economic benefits to the poorest of the poor throughtelecommunications. So far 70 R & D projects at a cost of about Rs. 16 crore have been taken up inthe areas of energy efficient devices & low backhaul for rural areas, network security, voice mail

banking etc. TCOE India has been accepted by International Telecommunication Union as avaluator for its international mobile telephony cards data proposal for 4 G network.

The Department of Telecommunications organized an exhibition and conference India Telecom2009 in December 2009 at New Delhi with the objective of promoting and showcasing thecapabilities & opportunities in Indian Telecom Sector.

India Telecom 2009

A view of the Exhibition Hall at India Telecom 2009 at New Delhi

The conference brought the Government, policy makers, potential investors, operators,manufacturers, infrastructure providers, content providers, academia and non-governmentalorganization together at a common platform to discuss how telecommunications can lead to an "all-inclusive growth" of the Indian economy in terms of GDP, growth, employment and revenues,among others. There was also a Special session on Telecom for Inclusive Growth with address byDr. A P J Abdul Kalam, Former-President of India. The exhibition held during the event at PragatiMaidan was also a huge success with more than 200 participants from 28 countries. Du r i ng t heevent, there was a CEO's Roundtable with Hon'ble Minister of Communications & IT. The focus ofthe Roundtable was to have decision makers together at one platform to have concretediscussions on taking the Indian Telecom Sector to the next level and to share Government's visionfor the growth of telecom sector particularly in rural areas. The Hon'ble Prime Minister of Indiaaddressed the participants of the event during the Closing Ceremony of the event held at VigyanBhawan.



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International Cooperation

Bilateral Co-operations / Joint Commission Meetings that were represented by theofficers of DOT :-

In the field of international cooperation, workshops, seminars and training programmes are heldwithin the country and outside. Deliberations are held with the visiting foreign dignitaries, apartfrom the visits. Some of these are listed below:

?A High level Japanese delegation attended the bilateral meeting between India and Japan innd

the field of Telecom in New Delhi on 21-22 May, 2009. From DOT side Deputy DirectorGeneral (International Relations) and Director ((International Relations) attended themeeting.

th th?The 12 India- Australia Joint Ministerial Commission (JMC) meeting was held on 11

September 2009 in New Delhi. The meeting was attended by ADC (IC-I) from DOT side.

st?The 1 Session of the Inter-governmental Commission on Trade, Economic, Scientific and

Technology Cooperation between the Government of the Republic of India and Governmentof Republic of Azerbaijan was held on November 26, 2009 in New Delhi.

?A meeting with Bangladesh delegation and DDG (IR) DOT regarding setting up of microwavelink between India and Bangladesh, cross border interference, cyber security and schedulingof meeting once in a year was held on December 24, 2009 in New Delhi.


Indian and Foreign delegates participating in India Telecom 2009 held at New Delhi


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Multilateral Cooperation

Foreign Deputation

A high level delegation led by Hon'ble Minister of Communications & IT attended ITU Telecomth

World 2009 held at Geneva during 5-9 October, 2009. Indian National Pavilion was also set up bythe Department of Telecommunications in collaboration with ASSOCHAM in which over 20 Indiancompanies exhibited their products and services. In the sideline of the exhibition Hon'ble Minister

of Communications & IT had bilateral meetings with his counterpart from Australia, Mexico,Azerbaijan and Colombia, besides meeting with Secretary General and other elected officebearers of International Telecom Union.

A high level delegation led by Secretary DOT participated in the inaugural session of 2009 ITUth

council. On the opening day of the Council i.e. on 20 October, 2009, host country agreementbetween India and ITU was signed by Secretary DOT and Secretary General ITU. On thisoccasion besides Member (Finance) DOT, H.E PMI Geneva was also present. India is going to

th thhost World Telecom Development conference 2010, HICC Hyderabad during 24 May to 4 June,2010. The signing ceremony was quite highlighted in the media and the member countries of ITUappreciated India's contribution to International Telecom Union.

Deputy Director General (International Relations) DOT was unanimously elected a Vice Chairmanof 2009 session of ITU Council. India got the Vice Chairmanship of ITU for the first time.

?Indian delegation led by Chairman Telecom Commission was deputed to hold bilateralth

meeting in Nepal 14-16 April, 2009.

?Deputation of Deputy Director General (IR) DOT as member of Indian delegation led bySpecial Secretary, Department of Information Technology to Tunisia for participation in the

thFirst meeting of the Indian-Tunisian Joint Working Group during 16-17 April, 2009.

?Deputation of two senior officers of DOT for participation in Telecommunications ICT Policyth st

and Regulation Meeting at Nadi, Fiji during 29 April to 1 May, 2009.

?Deputation of Indian delegation led by Chairman Telecom Commission with the senior

officer of Department of Telecommunications to participate in the Regional PreparatorythMeeting for the Asia Pacific Region held in Kuala Lumpur, Malaysia from 05-8 May, 2009.

?Advisor (Finance), DOT participated in the Seminar on Women Leadership organized byth

USTTI at Washington, USA during 11-15 May, 2009.

?Deputy Wireless Advisor, WPC DOT participated in the WiMAX Forum Member Conferenceth

from 11-15 May, 2009 at Dublin, Ireland.

?Deputation of Indian delegation led by Additional Secretary (T), DOT to participate in thend

meeting of WSIS Forum 2009 at Geneva, Switzerland from 18-22 May, 2009.

?Deputation of India delegation led by Chairman Telecom Commission along with the senior

office of Department of Telecommunications to Singapore for participation in Communic Asia for International Promotion of the India Telecom 2009 Exhibition and Conferenceduring 16-19the June, 2009.

?Deputation of Indian delegation Chairman Telecom Commission with the senior officer ofrd

Department of Telecommunications for participation in the 33 meeting of Assembly of



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Parties of International Telecommunications Satellite Organization at Rome, Italy from 08-th

09 July, 2009.

?Deputation of Deputy Director General (SU), DOT for participation in the Seminar onCompetition Policy for Telecommunications and Regulatory & Privatization issues in

th

Telecommunication being organized by ITU/USTTI at Washington, USA from 17-24 July,2009.

In addition to above, officials were deputed to foreign countries during the period for participatingin the meetings of ITU-T, ITU-R, ITU-D of ITU and other international and regional organizationslike APT, APSCC, and UNDP etc.

?SAARC Project on Tele-medicine

?SAARC Project on Tele-education

th?India hosted a cyber Security Forum from 23-25 September 2009 at Hyderabad in

association with ITU Geneva.

rd? India hosted a SAARC Workshop on Cyber security from 22-23 December, 2009.

During the period 2009-10 (April December 2009), the following items of important work relating toprogressive use of Hindi were undertaken by the Official Language Division of DOT:

All Sections, Attached and Subordinate Offices and Public Sector Undertakings under theadministrative control of DOT were advised to comply with the provision of the Official LanguageAct, Rules and instructions issued thereunder for achieving the targets fixed by the OfficialLanguage Department in there Annual Programme for the year 2009-10. Quarterly ProgressReports regarding progressive use of Hindi in the Department/ its attached and subordinateOffices and PSUs under the administrative control of DOT were reviewed and necessaryinstructions were issued for taking corrective measures. The Section 3(3) of the Official LanguageAct, 1963 was fully complied with during the period under report.

During the period seven (7) inspections were conducted by the Second Sub Committee ofParliament on Official Language in all the offices/units and PSUs of the DOT spread through outIndia. The Official Language Division worked as a coordinator during the course of all suchinspections. Official Language Division also conducted eight (8) such inspections independentlyto ensure the compliance of the provisions of the Official Language instructions issued

Visit of DOT delegation to foreign countries

Projects under special aid and under process

Hosting of important International events

Use of Official language (Hindi)

Activities

Implementation of Official Language Policy and the Annual Programme of the Governmentof India

Monitoring and inspection



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thereunder.

Two officers of DOT participated in All India Official Language Conference organized by RastriyaHindi Academy, Rupambra at Kodaikanal (Tamil Nadu) from 2-4 October, 2009. One of the

participants, though from a non-Hindi back ground was awarded a prize in an open competitionheld during the conference. Two officers from Official Language division of DOT participated inthe Rajbhasha Sammelan organized by Bhartiya Bhasha Evam sanskriti Kendra, Delhi in Goafrom 28-30 October, 2009.

Three (3) Stenographers, who were not trained in Hindi Stenography, were nominated for trainingin Hindi Stenography. Similarly, three (3) officials who did not posses working knowledge of Hindiwere nominated for training to Probodh and Praveen.

Quarterly meetings of Official Language Implementation Committee of the Department were held

at regular intervals wherein the progress relating to the use of Hindi in official work in theDepartment was reviewed. During the year, four such meetings were held.

During the period under report Hindi Workshop for Section Officers of this Department wasorganised and practice session was held wherein 15 officers were trained to do their maximumofficial work in Hindi.

Official Language Conference

Training in Hindi Language, Hindi Typewriting and Hindi Stenography

Official Language Implementation Committee

Hindi Workshop


Shri P.J.Thomas Secterary (Telecom) delivering speech during Hindi Pakhwara-2009. Sitting to his right are;Shri Subodh Kumar Additional Secretary (Telecom) and to his left are Ms. Sudha Shrotria, Joint Secretary (Admn.)

and Ms Daya Pant DD(OL).


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Celebration of Hindi Pakhwara

Hindi Salahakar Samiti

Translation Work

Staff Welfare and SportsActivities

Hindi Pakhwara was organized from September 14, 2009 to September 30, 2009 in theDepartment. 14 competitions relating to the promotion of Official Language in the Departmentwere organized. Separate competitions in Noting /drafting and Essay writing were organised for

the Non-Hindi speaking officers/officials. About 151 officers/officials participated in thecompetitions. Cash Prizes/Certificates were given to the successful participants by Secretary(Telecom.) in a function organized on December 21, 2009.

The tenure of the Hindi Salahakar Samiti of DOT has expired on August 8, 2009. The process ofreconstitution of this Samiti is in progress.

During the period under report number of documents related to Parliamentary Meetings/StandingCommittee/Demand for Grants/Parliamentary Assurances etc. were translated from English toHindi and vice versa. The Division is also actively involved in the Hindi Translation of the Website

of the Department. Apart from routine translation important documents, specified in Section 3(3)of the Official Language Act, 1963 (including all papers/reports to be laid by the Department onthe table of both the Houses of Parliament) were translated and prepared in bilingual form.

Under the Welfare Programmes, scholarships, book-awards and incentives are granted to

meritorious school/college going children of the DOT employees. Besides this, conveyance

allowance/hostel subsidy is also granted to mentally/physically challenged children of the

employees. The programme also includes financial assistance to employees in distress and

providing subsidies for recreation tours etc.

During the year 2009-10 the following activities were undertaken under the revised schemes.

Financial Assistance of Rs. 30,000/- (Rupees Thirty thousand only) was provided to the families

of deceased employees.

FExcursion trips to Shimla and nearby places was arranged by the department from June

24-27, 2009.

FOfficials of DOT (HQ) were deputed to participate in different sports events conducted by

Northern Telecom Region(NTR)/Bharat Sanchar Nigam Limited.

FBook Award and Incentive were distributed to the meritorious school during children of

DOT employees.

The welfare schemes are largely gender neutral and composite in nature. However, some of theschemes namely Book Awards, Scholarship awards contains pro women and SC/ST orientationby way of relaxation in marks for these categories. There is no earmarked amount for these



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categories as Book Awards/Scholarships are awarded to the deserving applicants fulfilling theeligibility criteria.

Expenditure incurred on Women Welfare : Rs. 2, 64,000/-

Expenditure incurred on Development of SC/ST : Rs. 1, 63,300/-

In the Department of Telecommunications the Gender Budget Cell was constituted in November2006. The Gender Budgeting Cell of the department is trying to generate awareness about thegender budgeting initiative of the Government and how department of telecom can play a role inmainstreaming gender concern at the planning and formulating stage of various schemes in thesector. A sum of Rs. 9 lakh as allocated for 2008-09 (RE) under non-plan (amenities to staff) forgender Budgeting purpose.

The expenditure incurred out of Staff Welfare Fund in respect of women and SC/ST is asunder:

Gender Budgeting

Budget outlays (Plan & Non-Plan) Estimates for 2008-09 and 2009-10 for Department ofTelecommunications:

(Rs. in crore)

Right to Information Act

In pursuance of the gazette notification of the Govt. of India regarding Right to Information Act 2005for its implementation, department of Telecom, Ministry of Communication and IT also initiated itsimplementation in the Administrative Division since October 2005. A separate RTI Unit wasestablished in this Department and started working form January 1, 2007 with one CPIO at thelevel of Deputy Secretary, one APIO at the level of Under Secretary, and DDG(C&A) as Appellate Authority for the entire Department, its PSUs and autonomous bodies and other

departments/ministries.

RTI Unit of department of Telecommunications is continuously in the process of strengthening thesystem of disposal of RTI applications to the satisfaction of the public. Accordingly, during theyear, 13 more CPIOs were designated with additional First Appellate Authority in addition to the 48CPIOs and First Appellate Authority.



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During the year 2009-10, 1350 applications were received out of which 333 applications weretransferred to other departmental Public Authorities and PSUs. Disposal of applications withinformation was approximately 99%. There was no denial of information except as per theprovisions of the RTI Act.

Department of Telecom receives complaints directly in its Public Grievances Cell from the office ofthe Hon'ble Prime Minister, Minister of Communications and IT, MPs, MLAs, VIPs, Chairman'sOffice, Department of Administrative Reforms and Public Grievances (DARP&G) and from thepublic. Public Grievances Cell of DOT monitors complaints for their early and timely settlements.

During the period 2009-10(April-December), 95367 complaints were received in PG Cell and96584 cases were disposed.

In accordance with the policy of the Government of India, a SCT cell is functioning in theDepartment of Telecommunications under the supervision of Director (Staff Relations) who hasbeen appointed as Liaison Officer for SC/STs for the Department of Telecommunications. TheLiaison Officer provides relevant guidelines not only to the officers in the Department but also to allPublic Sector Undertakings, Autonomous Bodies, Statutory Bodies, Attached and SubordinateOffices under the Department of Telecommunications.

During the period January-December 2009, 32 judgements/orders of Central AdministrativeTribunal were implemented by the Department of Telecommunications.

*****

Public Grievances and Redressal

Implementation of Reservations Orders for Scheduled Castes / ScheduledTribes and Obcs Employees

Implementation of Judgements/Orders of Central Administrative Tribunal(cat)



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III. 1 Wireless Planning & Cordination

INTRODUCTION

Performance During 2009-10(upto December)

Frequency Assignment for Terrestrial Networks

Standing Advisory Committee on Radio Frequency Allocations (SACFA)

National Frequency Allocation Plan (NFAP-2008)

The Wireless Planning and Coordination Wing of the Department of Telecommunications, dealswith the spectrum management, wireless licensing, frequency assignments, internationalcoordination for spectrum management and administration of Indian Telegraph Act 1885, (ITA,1885), for radiocommunication systems and Indian Wireless Telegraphy Act 1933, (IWTA, 1933)

Assignments of frequencies for CDMA networks are made for a variety of applications, like,CDMA/CorDECT based networks, point-to-point and point-to-multipoint microwave networks,etc. after necessary technical examination, analysis and coordination with other wirelessnetworks, as appropriate for establishing electromagnetic compatibility so as to ensure

interference-free operation of all such networks. The frequency band 869-889 MHz paired with824-844 MHz is considered for assignment of CDMA based networks & 1880-1900 MHz isconsidered for assignment for CorDECT based networks.

Frequency assignments for public/captive satellite communication network including that of V-SAT networks and other satellite application were made to various serviceproviders/user/departments. Frequency assignments were also made to several broadcasters foroperation of TV up linking earth stations.

SACFA is a high level inter-departmental standing committee under the chairmanship of theSecretary (Telecom) and is responsible for formulating policies on Clearance of sites forinstallation of antennas for Cellular Service providers and other wireless users. SACFA took upcases of unauthorized use/installation of antennas by wireless users and it also took up the casesof interference/obstruction/flying hazards caused by a wireless user/network. Wireless usershave to abide by other local bye-laws regarding structural safety, environment and pollution.

SACFA Secretariat charges a sum of Rs. 1000/- (rupees one thousand only) payable per ID asSACFA siting application registration fee for fixed wireless installations in respect of allapplications filed for SACFA Clearance w.e.f. 01-06-2007, earlier these charges were treated asearnest money and was adjusted against DoT Licence fee/dues of respective wireless user.

Policy document National Frequency Allocation Plan- 2008 (NFAP-2008) has been evolved in linewith the Radio Regulation of the ITU edition 2008 with a view to catering for conflicting demands

on the spectrum, including those of new emerging technologies without unduly constraining theexisting usages. NFAP-2008 is released and available on WPC Wing web site. NFAPreview/Revision Committee 2010 under the Chairmanship of Wireless Adviser has beenconstituted to revise the NFAP-2008 and its second meeting was held on December10, 2009.



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Satellite System Coordination

Satellite coordination with other Administrations

Coordination with ITU

International coordination of satellite systems is required to be undertaken as per the provisions ofthe International Radio Regulations (RR) of the International Telecommunications Union (ITU).Coordination of frequency assignments for the individual satellite networks is necessary with

satellite networks of other administrations for mutual coexistence and interference free operationsof these networks.

Agreement of Indian Administration regarding summary record of satellite coordination meetingbetween India and Kazakhastan has been conveyed to Administration of Kazakhastan and ITU.

Coordination agreement between INSAT and ARABSAT satellite network for BSS operation hasbeen conveyed to Administration of Kingdom of Saudi Arabia and ITU.

?Detailed coordination request i.r.o. INSAT-TTC satellite networks of India for location 82Ewas sent to ITU.

?AP30B information in respect of INSAT EXK (82.5E) satellite network in Ku band was sent toITU for publication in BR IFIC.

?Due-diligence in respect of INSAT-KU10 (55E) satellite network of India under Resolution 49(rev. WRC-07) was forwarded to ITU for appropriate publication in the special section.

?The compatibility analysis between INSAT-EK 83 (83E) satellite network of India andSTATSIONAR 6 (90E) was communicated to ITU for registration of INSAT-EK 83 (83E).

?Notification in respect of CHANDRAYAAN-1 satellite network of India was sent to ITU for itspublication in special section of BR IFIC.

?

Advance Publication Information in respect of Global Indian satellite System (INSAT-GNSS),INSAT-MET (81.5) E and OCEANSAT-2 satellite networks of India have been sent to ITU forits publication in BR IFIC.

?Request for registration of INSAT-EK48, INSAT-EK55, INSAT-EK74,INSAT-EK83, INSAT-EK93.5, INSAT-EK48R, INSAT-EK55R, INSAT-EK74R, INSAT-EK83R and INSAT EK93.5Rsatellite network has been sent to ITU.

?Advance Publication Information in respect of INSAT-Ku11 (48) E, INSAT-Ku11 (74) E,INSAT-Ku11(83) E, INSAT-Ku11(93.5) E and INSAT-Ku11(111.5) E was submitted to ITU forPublication in BR IFIC.

?Coordination request in respect of IRNSS constellation consisting of INSAT-NAV-A(34),INSAT-NAV-A(83), INSAT-NAV-A(131.5) and INSAT-NAV (GS) satellite network of India foradditional frequencies was sent to ITU.

?Coordination request in respect of INSAT-KU-11(55)E satellite network of India in Ku bandwas sent to ITU.

?Coordination request for 387 frequency assignments in respect of G5 (55) E, INSAT-G5 (74)



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E, INSAT-G5 (82) E and INSAT-G5 (93.5) E satellite network of India in C band was sent toITU for its publication in BR IFIC.

?Advance Publication Information and coordination request in respect of INSAT-TTC (81.5) Esatellite network of India has been sent to ITU for its publication in BR IFIC.

With a view to protecting our frequency assignments and satellite orbital position for interferencefree operation of Indian satellite networks, detailed examination of Special Sections of weeklycirculars published by the ITU have been undertaken on a continuous basis. Space Circularsreceived from Radiocommunication Bureau (BR) were examined and objections sent toAdministrations of Holland, France, UAE, Canada, Vietnam, China, Cyprus, Indonesia, Thailand, Azerbaijan, Holland, Japan, USA, Luxumbourg, CZECH Republic, Saudi Arabia, Australia,Nigeria, COTE D'IVORIE, Russia, Norway, Laos, Korea, Malaysia, Pakistan and Italy requestingfor detailed coordination with a view to protecting Indian Satellite and terrestrial networks.

Coordination request in respect of INSAT-TTC at GSO locations (48E, 55E, 74E, 83E, 93.5E &111.5E) and INSAT-C/Ku (86) E satellite networks of India were published in BR IFIC2635/13.01.2009.

Progress reports in respect of INSAT-NV (55), INSAT-NAV-A-GS (NGSO), INSAT-NAV-A at GSOlocations 34E, 83E, 132E, 131.5E, INSAT-MSS-NG at GSO locations 48E, 55E, 74E, 93.5E &111.5Esatellite networks of India was published in BR IFIC.

Part-1S Notification of INSAT-EK-55 satellite network of India at GSO location 55E was publishedin BR IFIC.

Advance Publication Information in respect of TWSAT (NGSO) and INSAT-MET 48E, 55E, 74E,82E, 83E and 93.5E satellite network of India was published in BR IFIC.

Meetings: 4 meetings were held with Indian satellite operators to discuss the issues relating tocoordination of Indian Satellite network.

National Preparations, participation and follow-up action for various international and regionalconferences under the aegis of International Telecommunication Union (ITU) and Asia-PacificTelecommunity (APT) were undertaken to protect national interests especially in the context ofspectrum management and radio communication related matters.

?WPC Officers participated in the following meetings of Radiocommunication Sector of ITU(i.e., ITU-R).

?Working Parties 4A & 4C where a paper on system characteristics of Indian RadioNavigation Satellite Services (RNSS) was submitted for inclusion in relevant ITU-Rrecommendation. The proposal was discussed and approved by the meeting of WorkingParty 4C.

?Study Group-5 and its Working Parties where India submitted proposal on harmonization of

Protection of Indian space, Terrestrial and Radio Astronomy Services from the SatelliteNetworks of other countries.

Following Indian satellite networks were published in the special sections of InternationalFrequency Information Circular (BRIFIC):

International Conference and Meetings



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UHF bands for PPDR.

?Working party 3K where India submitted a proposal on Effect of movement of persons andobjects in the indoor environment on the design of short range wireless communicationsystems and wireless local area networks.

?Study Group-1 and its Working parties where India submitted a document on CognitiveRadio.

?WPC Officers participated in the following meeting of the Asia Pacific Telecommunity(APT).

?APT Preparatory Group for World Radiocommunication Conference-2011 (APG-2011).

th?7 meeting of the APT Wireless Forum (AWF-7).

?Meeting of ITU-R Study Group 5 and Working Party of Special Committee on Regulatory/Procedural matters. India is one of the Vice Chairman of Special Committee on Regulatory/Procedural matters.

?Meeting of the ITU Council.

?India submitted a proposal on Channel arrangement in the frequency band 698 806 MHzfor consideration by the meeting of the ITU-R Working Party 5D.

?India is hosting the Meeting of the Working Party 4A, 4B and 4C of the ITU-R Study Group 4at Bangalore from March 15 to April 1, 2010.

Following Notifications under sub-section(5) of Section 7 of the Indian Telegraph Act, 1885regarding amendment in Experimental service and Demonstration license were publishedthrough Gazette notifications during the period :-

o The Indian Wireless Telegraphy (Experimental Service) (Amendment) Rules, 2009 werethpublished in Notification No. G.S.R. 324(E) in Gazette of India dated the 15 May, 2009.

o The Indian Wireless Telegraphy (Demonstration License) (Amendment) Rules, 2009 wereth

published in Notification No. G.S.R. 325(E) in Gazette of India dated the 15 May, 2009.

The Core Group formed by National Disaster Management Authority (NDMA), New Delhi,convened various meetings for preparation of Guidelines on National Disaster CommunicationNetwork (NDCN) within the country wherein WPC Wing made significant contribution. NDMA wereinformed during various Core Group meetings that the current National Frequency Allocation Plan-

st2008 (NFAP-2008) document, effective from 1 April, 2009, has been developed within theframework of ITU taking into account spectrum requirement of Government as well as privatesectors in the fast changing scenario with a view to meeting requirements of new emerging and

existing technologies and taking into account the decisions/ recommendations of the WorldRadiocommunication Conferences 2003 & 2007 (WRC-2003 & 2007) of InternationalTelecommunication Union (ITU), etc.

As per NFAP-2008, which is available on WPC Wing's website viz. , suitableprovisions for public protection and disaster relief (PPDR) communications have been made in thecurrent NFAP spectrum policy document to meet the spectrum requirement for various wireless

Regulations

www.wpc.dot.gov.in



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communication needs during any disaster. Relevant IND 73 remark mentioned in the NFAP-2008 document, presently in force has been carved out taking into account the existingInternational Radio Regulation practices adopted worldwide, which depicts that requirement ofpublic protection and disaster relief (PPDR) communications may be considered, as far aspossible, in the frequency bands 380-400 MHz, 406.1-430 MHz, 440-470 MHz, 746-806 MHz,

806-824/851-869 MHz, 4940-4990 MHz and 5850-5925 MHz on a case by case basis dependingon specific need and equipments availability.

The project 'Design, Supply, Installation & Commissioning of National Radio SpectrumManagement & Monitoring System (NRSMMS) is being implemented by the WPC Wing. Underthe project, spectrum management and monitoring functions have been automated with a viewto making these activities effective and efficient. The NRSMMS has two interrelatedcomponents of Automated Spectrum Management System (ASMS) and National SpectrumMonitoring System (NSMS). ASMS has been completed and in operation.

After Completion of Operational Acceptance of NRSMMS facilities for 20 fixed sites and 21

V/UHF Mobile stations, excluding SHF parts (fixed & Mobile), on 14.10.2008, one year DefectLiability Period (DLP) has been started w.e.f 15.10.2008.The Annual Maintenance Contract, forone year w.e.f 15.10.2009 has been commenced in respect of various parts of NRSMMS. Duringthis period, all of the NRSMMS be maintained for its smooth working.

Name of the Project: OFC Project for the Armed Forces for release of Spectrum: The followingactivities have been completed for the Defence Project for the said period.

It may be mentioned that a Telecom Commission memo was prepared for the approval of theconsolidated OFC project for the Defence project, according to the decision of the GoM on'vacation of spectrum and finding resources' and subsequent MoU signed between DoT andMoD dated 22/5/2009. BSNL was asked to prepare the estimate in consultation with the armed

forces. As per the specifications of the Armed forces, BSNL submitted an estimate of Rs.9970.16Crore for this project. This estimate also included Rs.1077.16 Crore proposed earlier for the AirForce Component.

The Full Telecom Commission met on 28.8.2009 to give approval for the project. The TelecomCommission has observed that the detailed project report (DPR) for the exclusive OFC projectfor the Armed forces be examined by an Inter Ministerial group and the proposal be resubmittedfor the Full Telecom Commission.

Accordingly, BSNL was requested to submit a DPR for the Defence Project. DPR for dedicatedOFC network for Defence Services was jointly prepared by BSNL in consultation with Ministry ofDefence. An Inter-Ministerial Group (IMG) was constituted with members from DoT,Department of Economic Affairs, MoD and Planning Commission. The IMG made the following

recommendations:

?The DPR submitted by the BSNL may be accepted.

?The project cost component of Army and Navy which is Rs. 8893 crore as per DPRsubmitted by BSNL includes tentative Right of Way (RoW) charges for Rs. 400 crore.There can be further reduction in the project cost as well as roll out time in case one time

Automation of Spectrum Management & augmentation Monitoring System.

OFC Based Project for Defence Services



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RoW waiver is granted for this project.

The Full Telecom Commission in its meeting held on 23 November 2009 approved the proposal oflaying of alternate communication network for Defence Services for release of spectrum, subjectto the following modifications.

?The Right of Way (RoW) charges would be limited to restoration work only and would be Rs.200 crore or the actual amount paid instead of Rs. 400 crore in the DPR at present. Theproject cost would accordingly change.

?The implementation cost of BSNL would be 7 % instead of 15% of the total cost. Thus theimplementation cost payable to BSNL would work out to 7 % of Rs. 7533 crore or Rs. 565crore. Thus the total cost of the network for Army and Navy would be Rs. 8098 crore. Thiswould include taxes like service tax but no license fee would be payable on this amount byBSNL.

?The project would be completed in a period of 36 months.

?The procurement for network requirements, e.g. router, switches, servers and optical fibercable (OFC) etc, may be done through a transparent and competitive bidding process.

?The OFC network for Defence would be implemented as a mission-mode project with CMD,BSNL as the Mission Director and one representative each from the MoD and DoT on theMission Team.

The revised project cost of the exclusive, dedicated OFC network for Army and Navy is:

APPROVAL OF CCI

A note was submitted seeking approval of Cabinet Committee on Infrastructure (CCI) on thefollowing proposals:

?Approval of setting up of an alternate exclusive, dedicated OFC based communicationnetwork for Defence services for release of spectrum.

?Financial approval ofRs. 9175.16 Crore (Rs. 1077.16 Cr for Air Force and Rs. 8098.00 Cr.for Army and Navy) for laying of alternate communication network for Defence Services ina period of 36 months and approved budgeting of the same in the budget of DoT.

?The assets created will belong to DoT during the currency of the project and after completionof the Project these assets will be transferred to Ministry of Defence as book transfer.



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rdThe Cabinet Committee on Infrastructure (CCI) in its meeting held on 3 December, 2009approved the above proposal in total.

High Level monitoring Committee: A high level Monitoring committee under the chairmanship ofCabinet Secretary is reviewing the progress of the work. In the second meeting of the high level

committee, chaired by Dr.Sam Pitroda on 12/11/2009 has directed that the OFC project should beimplemented as Mission-mode project with CMD BSNL as the Mission Director and onerepresentative each from MoD and DoT.

The achievements during the year in the field of Radio Frequency Spectrum Management,new frequency assignment / licenses issued etc. were as under.



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WIRELESS MONITORING ORGANISATION

Actual achievements

Wireless Monitoring Organization continues to provide interference-free wireless services in the

increasingly crowded radio environment besides providing vital technical data for theintroduction of new services such as 3G, BWA etc.

WMO's primary focus, at present, is on public mobile radicommunication services, publicbroadcasting services and safety-of-life services. WMO is earnestly gearing up its resourcesmanpower and machine-power to ensure that these services continue to operate in interference-free environment. The primary reason for the interference protection to these services lies in theircritical importance to the Indian public. With respect to public mobile cellular service, WMO hastwin objectives: (i) to identify and eliminate the sources of interference occurring due to a multitudeof reasons, and (ii) to find unused spectrum for expansion of existing 2G service and for theintroduction of 3G service. In so far as public broadcasting is concerned, its transmissions havebeen found to be affecting aeronautical mobile communications (civil aviation) and also infringinglicensing parameters. To address the needs of such crucial services, WMO is in the process of

procuring custom-designed radio monitoring products.

With the approval of Telecom Commission, WMO has brought out an Order, in November, 2009establishing of six new Wireless Monitoring Stations at Bhubaneswar, Dehardun, Lucknow, Patna,Raipur & Vijayawada. The technical infrastructure for these six additional Wireless MonitoringStations would more effectively address the monitoring needs of public mobile and broadcastingservices than what is currently available to other Wireless Monitoring Stations. To this end, WMOhas initiated the process of seeking the approval of Telecom Commission for the procurement ofsix V/UHF Mobile Monitoring Terminals and six V/UHF Mobile DF Terminals. In addition, WMOalso intends to procure six HF fixed monitoring facilities for these six new WMS's. The expectedcost of these facilities is about Rs. 27.0 crore and the procurement is to be effected in 2010-11.

The case for the procurement of land for the new Wireless Monitoring Stations was taken up with

the respective State Governments in 2007. With continuous perusal by the WMO, the stateGovernments of Uttrakhand, Chattisgarh and Orissa have offered the land to the WMO forestablishing Wireless monitoring Stations.

WMO intends to procure 4 "SHF Microwave Monitoring Terminals (MWTs)" at an estimated costof Rs.28.0 crore in the current Five Year Plan. The procurement of these MWTs would be the firstphase of equipping the WMO with the microwave monitoring capability.

In order that WMO effectively and efficiently addresses new monitoring challenges emerging fromthe increasingly crowded radio frequency spectrum, WMO has taken steps to introduce newtechnologies and capacity-building. As for new technologies, procurement of software andhardware has already been initiated. Intensive training on monitoring as well as informationtechnology is aimed at capacity-building. These two aspects are being jointly handled by the MHQ

and Training & Development Centre, New Delhi.

Satellite Monitoring Earth Station at Jalna (Maharashtra) continues the monitoring of signals fromall satellites located in the Geo-arc of interest to India. Its measurement functionality is planned tobe enhanced in the near future.



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The construction of two new buildings at Visakhapatnam and Bhopal was completed in 2009.Wireless Monitoring Stations at these places have started functioning from the newly constructedbuildings. It is pertinent to add here that WMO has issued the expenditure sanctions for Rs 9.3crore for the construction of the office buildings of WMSs Jallandhar and Mangalore. Further,CPWD has been asked to prepare preliminary estimates for the new buildings at Nagpur and

Siliguri.

W.M.O has undergone major modernization of Radio Spectrum Monitoring capabilities throughWorld Bank assisted Telecom Reform Project. Under this project, 21 V/UHF Mobile MonitoringTerminals were procured. Additionally, two HF DF facilities were also procured.

Statistical performance during 2009-10(April-December)

*****



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III. 2 Telecommunications Engineering Centre

INTRODUCTION

Achievements

Telecommunications Engineering Centre (TEC), is the Technical wing of the Department ofTelecommunications (DOT). Its responsibilities include among other things:

?Preparing Standards and Specifications for harmonious growth of the Indian TelecomNetwork and Services for the public as well as private sector operators.

?Carrying out evaluation of equipment and services.

?According approvals for equipment, technology and services.

?Studying new technology and services and give technical advice to DOT for their introductionin the Indian Telecom Network.

?Technical and Advisory support for DOT.

?Technical advice to TRAI, TDSAT, USOF, BSNL and MTNL, on request of DOT.

?Drawing up Fundamental Technical Plans of DOT.

?Interaction with multilateral agencies like APT, ETSI and ITU etc. through DOT.

?Creating facilities to further the objectives of MRA.

?Develop necessary expertise to imbibe the latest technologies and results of R and D.

?Coordinate with C-DOT to provide details on the technological developments in the TelecomSector for policy planning at DOT level.

Achievements for the period April December 2009 are given a under:

?As part of its activity for according approval, 88 Interface Approvals were issued for theproducts for interfacing with the BSNL/MTNL network, 26 Certificate of approval were issuedfor the network coverage of private operators and 8 Type Approvals were issued.

?Revenue collected from various vendors as test fee and sale of documents during AprilDecember 2009 is Rs.1.39 Crore.

?TEC is playing a major role in dissemination of information for migration from IPv4 to IPv6 toensure seamless transition. In this connection, TEC has planned to organize a series ofworkshops to foster dialogue and cooperation between different stakeholders in the country

stto meet the common objective. The first such workshop was held in New Delhi on 21 July



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th nd2009, second in Bangalore on 15 September 2009, third in Chennai on 22 October 2009,

thand fourth workshop in Mumbai on 27 November 2009. In addition one IPv6 hands ontraining with Asia Pacific Network Centre (APNIC) was also conducted by TEC in Mumbai on

th th25 -26 November 2009.

? As part of on going activities, TEC was referred 3 field problems on switching andtransmission, which were looked into and expert advice rendered.

?To keep the officers of TEC abreast with new developments in new technologies in theTelecom Sectors: - 2 officers were deputed to attend Meeting of ITU SG-13 meeting atGeneva. 2 officers nominated as office bearers of correspondence groups in APTPreparatory group for WTDC and PP-10, were deputed to attend the meeting at Bangkok.

?NGN project was approved by the competent authority in November 2009, and theprocurement process is in progress.

?40 VSAT terminals have been installed in the NE States and the project is nearing completionstage.

?TEC has issued guidelines for testing of radiation from cellular mobile base stations as laiddown by the International Commission on Non-Ionizing Radiation Protection (ICNIRP) forlimiting exposure to time-varying electric, magnetic, and electromagnetic fields up to 300GHz.

?Technical advice provided to DOT, on 10 GMRTS and 2 PMRTS cases.

****



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III. 3 Universal Service Obligation Fund

Organizational Structure

Amendment of Telegraph Act for creation/ administration of USO Fund

Rules for administration of USOF

Resources for USO Fund

?

Functions and objectives

The Universal Service Obligation Fund formed by an Act of Parliament is headed by theAdministrator USO Fund, appointed by the Central Government, for the administration of theFund. He is empowered to formulate procedures for implementation of USO Fund schemes anddisbursement of funds from USOF. His office works as an attached office of the Department ofTelecom, Ministry of Communications and Information Technology.

The Universal Service Support Policy came into effect from 01.04.2002. The guidelines forth

universal service support policy were issued by DOT and were placed on the DOT website on 27March 2002. Subsequently, the Indian Telegraph Act, 1885 was amended vide the IndianTelegraph (Amendment) Act, 2003 giving statutory status to the Universal Service Obligation Fund(USOF) in December 2003. An ordinance was promulgated on 30.10.2006 as Indian Telegraph

(Amendment) Ordinance 2006 to amend the Indian telegraph Act 1885 in order to enable provisionof all types of telegraph services in rural and remote areas. Subsequently Indian Telegraph(Amendment) Act 2006 was passed on 29.12.2006.

The Rules for administr

dot annual report 2010

Documents