ICT Sector in India Status and Challenges

ITU Regional Workshop on ICT Statistics for Asia-Pacific2-4 October 2019 , Hanoi, Vietnam

Arvind PandeyDirector(P&M)

Ministry of Communications Government of India

e-mail: pandey.arvind@nic.in

Contents

• Demographic Profile & Core Philosophy

• Indian Telecom Scenario

• ICT-Stakeholders

• Measurement of ICT data

• Coordination

• Legal Framework

• Issues and challenges

• Way Forward

Demographic Profile • Population : 1316 million ( 2nd )

• Geographical area : 3.28 million sq km (7th)

• GDP : $ 2.972 Trillion-nominal

: $11.468 trillion -PPP

• States/ provinces : 28

• Union Territories : 9

• Coastline : 7516 Km

• Languages : 22

• Spoken Languages : 325 Dialects : 1652

Core Philosophy-Inclusive Development

– India’s Philosophy -“sabka saath sabka vikas” (Development forAll with involvement of All).

– Approach resulted into BB penetration from 15 Mn in 2012 to595.59 Mn in June 2019.

– Internet data consumption reached 46.23MnTB in 2018 andcurrently highest in the world.

– Heavy investment made by Govt through BharatNet program toconnect 250,000 Gram panchayat covering 600,000 villages-Connecting the unconnected.

– Indian approach for Technologies has always been inclusive andwill be inclusive, and India believes leveraging ICT for inclusivedevelopment of masses for solving social and economicalproblems of society.

Indian Telecom Scenario• Telecom Subscriber base – 1189.28 million

– Wireless : 1168.31 million

– Wireline : 20.97 Million

– Urban telephones : 678.19 Million

– Rural telephones : 511.09 Million

– Public Sector : 133.58 Million

– Private Sector : 1055.70 Million

• Tele-density – :90.23%

– Urban teledensity : 160.87%

– Rural teledensity : 57.02%

Note: Data as on 31stJuly 2019

Telephone subscription trend

6

416.08447.77

501.81 525.87 514.27 511.09580.05

611.56693.18 685.93 669.14 678.19

996.131059.33

1194.99 1211.80 1183.41 1189.28

0.00

200.00

400.00

600.00

800.00

1000.00

1200.00

1400.00

March’15 March’16 March’17 March'18 March'19 July'19

Figu

res

in m

illio

n

At the end of

Total Number of Telephone connections

Rural

Urban

Total

Source: DoT11

Market Share of TSPs in Wireless connections - July 2019

Source: DoT

Bharti Group, 28.12%

Rel. Jio, 29.08%VodafoneIdea, 32.53%

PSUs , 10.27%

7

9

Market Share of TSPs in Wireline connections- July 2019

Source: DoT

Bharti Group, 20.53%

Reliance, 3.08%

VodafoneIdea, 1.74%

Tata Group, 8.67%

Quadarant , 1.03%

PSUs , 64.95%

8

10

Telephone growth-Rural vs Urban(2010-2019)

9

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

9.00%

10.00%

Rural Urban

9.86%

4.75%

CAGR of total telephone connections 2009-10 to 2018-19

CAGR: Compounded Annual Growth Rate Source: DoT

13

Indian Telecom Scenario

• Internet Subscribers :636.73 Million (March 2019)

– Broadband subscribers :594.59 Million (June 2019)

• Internet subscribers per 100 population : 48.48

– Urban internet subscribers per 100 population : 97.94

– Rural internet subscriber per 100 population : 25.36

• Data consumption - 46.23 Mn TB

– Average wireless data usage per subscriber per month -9.06 GB

– Tariff per GB of wireless data - Rs. 7.95 ( $ 0.1)

Internet connections trend

11

107.56 111.95136.52 145.82

227.01238.26

194.77230.71

285.68

348.12

409.72427.05

302.33

342.66

422.19

493.95

636.73665.31

0

100

200

300

400

500

600

700

March’15 March’16 March’17 March'18 March'19 June'19

Figu

res

in m

illio

n

At the end of

Number of Internet Connections

Rural

Urban

Total

Source: TRAI

15

Broadband connections trend

12

21.32 33.29

71.06

106.52

190.03 202.85

77.87

116.46

205.45

306.07

373.28391.74

99.19

149.75

276.52

412.59

563.31594.58

0

100

200

300

400

500

600

700

March’15 March’16 March’17 March'18 March'19 June'19

Figu

res

in m

illio

n

At the end of

Number of Broadband Connections

Rural

Urban

Total

Source: TRAI17

Broadband growth - Rural vs Urban( 2015-2019)

13

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

Rural Urban

54.88%

36.81%

CAGR of Broadband Connections 2014-15 to 2018-19

CAGR: Compounded Annual Growth Rate Source: TRAI

19

Wireless Data Usage (All India)

14

4206.415

5430.0466521.893

8067.633

10418.076

12549.891

14253.256

15850.560

0.000

2000.000

4000.000

6000.000

8000.000

10000.000

12000.000

14000.000

16000.000

18000.000

Wireless Data Usage (in PB)

Quarter ending

Source: TRAI 20

Data Usage per subscriber

15

1248.001600.00

1945.002437.00

3206.00

8320.008740.00

9060.00

0.00

1000.00

2000.00

3000.00

4000.00

5000.00

6000.00

7000.00

8000.00

9000.00

10000.00

Data usage per month per subscribers (in MB)

Source: TRAI

21

Data tariff per connections

16

17.43

21.22

18.85

14.94

12.0610.91 10.52

7.95

0.00

5.00

10.00

15.00

20.00

25.00

Data tariff ( Rs.per GB)

Source: TRAI 22

Minutes of Usage (MoU)

17

Source: TRAI

389 383 381405

584

692

0

100

200

300

400

500

600

700

800

March'14 March'15 March'16 March'17 March'18 March'19

Minutes of usage per subscriber per month (voice )

23

Wireless ARPU

18

ARPU: Average Revenue Per UserSource: TRAI

113

120

125

83

7671.39

0

20

40

60

80

100

120

140

March'14 March'15 March'16 March'17 March'18 March'19

monthly wireless ARPU (Rs.)

24

Telecom Coverage

• Number of Towers – 560,162

• Number of BTS (Base Trans-receiver Station) – 2,180,224

– 2G- 521,650 (23.92%)

– 3G- 358,158 (15.42%)

– 4G- 1,300,416 (59.64%)

( As on 12-07-2019)

Percentage of population covered with at least 2G - 97%

Percentage of population covered with at least 3G- 94 %

Percentage of population covered with at least 4G – 94%

19Source: DoT, TSPs25

ICT in India - Stakeholders

• Ministry of Communications

– Telecom Service Providers, Industry Associations-COAI,

TEMA, ISPAI, IAMAI, NASSCOM, etc.

• Regulatory and Appellate Bodies

• National Statistical Office (MoSPI)

• Ministry of Human Resource Development

(MHRD)

Ministry of Communications

• National Telecom Policy

• Issue of Licenses– Access service

– National Long Distance & International Long Distance

– Internet services

– Infrastructure Provider , VSAT service etc.

• Allotment of Spectrum

• Universal Service Obligation– BharatNet, NFS, Hilly Areas, Islands

S.N. Service Area S.N. Service Area

1 Andhra Pradesh 12 North East

2 Assam 13 Odisha

3 Bihar 14 Punjab

4 Gujarat 15 Rajasthan

5 Haryana 16 Tamil Nadu

6 Himachal Pradesh 17 Uttar Pradesh (East)

7 Jammu & Kashmir 18 Uttar Pradesh (West)

8 Karnataka 19 West Bengal

9 Kerala 20 Kolkata

10 Madhya Pradesh 21 Delhi

11 Maharashtra 22 Mumbai

Ministry of Communications

Regulatory and Appellate Bodies

• Telecom Regulatory Authority of India (TRAI)– Recommendation to Ministry on policy issues

– Interconnect Agreement between TSPs

– Tariff-Regulation and Directions

• Telecom Dispute Settlement and Appellate Tribunal ( TDSAT)-– Adjudicate matter involving Licensor, Licensee, Regulator

and Group of consumers

Ministry of Statistics and Program Implementation-(MoSPI)

Lays down and maintains norms and standards in the field of statistics,involving concepts and definitions, methodology of data collection,processing of data and dissemination of results;

• Central Statistical Office (CSO)– National Account– Social Statistical Division– Economic Statistical Division

• National Sample Survey Office (NSSO)– Survey design– Data collection – Data processing – Publication

Ministry of Human Resource Development (MHRD)

Collects data on various indicators on education forPolicy making on primary, secondary and tertiaryeducation and sending statistics to UNESCO. ITU takesdata directly from UNESCO website.

Measurement of ICT Data

Individual access and Use collected by MoC & TRAI fromTelecom operators and Industry Associations• Subscription data- wireline, wireless, internet, Broadband• Teledensity-Urban, Rural• Telecom financial data• Usage and Revenue • Data usage of mobile users• Cable and Broadcasting data• Quality of Service indicators

Trade in ICT goods by DGCI&S - Import , Export

Trade in ICT services by RBI- Import, Export

Measurement of ICT Data

Household Surveys – conducted by NSSO

• Access to computers, internet by households; Use of internet

by individual; ICT Skill etc.

• Latest data–2014(71st round): 75th round just completed in

2019

Annual Survey of Industries & Economic Censuses

conducted by CSO

• Use, Access and Skill of computers, internet by establishments

Measurement of ICT Data

MHRD Collects data on various indicators on educationfor Policy making on primary, secondary and tertiaryeducation and sending statistics to UNESCO. ITU takesdata directly from UNESCO website. Data for IDI skill(proxy indicators) are as under:

– Mean years of Schooling

– Gross secondary enrolment ratio

– Gross tertiary enrolment ratio

– ICT skill

Coordination

Ministry of Communication, being nodal agency for ICTindicators, coordinates with

-- Telecom Regulatory Authority of India

– Telecom service Provides and their Associations

– National Statistical Office –household data

– Ministry of Human Resource Development- skill

data

– Inter-ministerial task force is set up for coordination on ICT

data

Legal Framework

The Indian Telegraph Act 1885

• License Terms and Conditions, Audit of TSPs

Telecom Regulatory Authority of India Act 1997

The Collection of Statistics Act 1953

Various Acts under MHRD

Issues and Challenges

• Size - Population, Geographical Area

• Difficult terrains- Mountains & Deserts

• Diversity - Language, Culture

• Digital Divide – Urban vs Rural

• Lack of dedicated surveys and Periodicity

• Decentralized systems – not integrated

Way Forward

• Technology based solution for survey so as to get

timely and good quality data

• Core group on various futuristic indicators like

Cyber security, Artificial Intelligence, M2M/ IoTs,

OTT, Spectrum, 5G etc.

Thank You