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DETAILED PROJECT REPORTFOR

2G COVERAGE IN UNCOVERED VILLAGESOF

NORTH EASTERN STATES

Prepared by

TELECOMMUNICATIONS CONSULTANTS INDIA LTD. (A Govt. of India Enterprise)

TCIL Bhawan, Greater Kailash - I,New Delhi - 110 048.

Telephone: 011 - 26202020Fax: 011 - 26242266

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Table of Contents1. EXECUTIVE SUMMARY ..............................................................................................................................4

2. STRUCTURE OF THE REPORT.....................................................................................................................9

3. TELECOM SCENARIO IN NORTH EAST .......................................................................................................9

3.1 Introduction ......................................................................................................................................9

3.2 Gap in 2G Coverage in villages of NER..............................................................................................9

3.3 USOF Support....................................................................................................................................9

4. METHODOLOGY OF 2G COVERAGE IN NER ............................................................................................11

4.1 Introduction ....................................................................................................................................11

4.2 Assumptions....................................................................................................................................13

4.3 References: .....................................................................................................................................14

4.4 Methodology: .................................................................................................................................14

4.4.1 Choice of BTS: .........................................................................................................................14

4.4.2 BSS planning............................................................................................................................15

4.4.3 Backhaul..................................................................................................................................17

4.4.4 BSNL Satellite Network Backhaul in Northeast.......................................................................18

4.4.5 Power calculation....................................................................................................................19

4.4.6 Infrastructure..........................................................................................................................20

4.4.7 System configuration ..............................................................................................................20

4.4.8 Cost .........................................................................................................................................20

4.5 ESTIMATED CAPEX: .........................................................................................................................22

4.6 Key observation ..............................................................................................................................25

4.7 Recommendation ...........................................................................................................................26

5. ANNEXURE 1 ...........................................................................................................................................29

5.1 Project Cost Summary ....................................................................................................................29

5.2 2G Coverage in Arunachal Pradesh and 2 Dist. Of Assam ..............................................................30

5.3 2G Coverage in other areas of NER.................................................................................................31

5.4 2G Coverage along NH....................................................................................................................32

5.5 Tax break up....................................................................................................................................33

5.5.1 Tax break up for Arunachal Pradesh and 2 Dist. Of Assam.....................................................33

5.5.2 Tax break Up for rest of Villages .............................................................................................33

5.5.3 Tax break Up for National Highways (in Arunachal Pradesh) .................................................35

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5.5.4 Tax break Up for National Highways (Rest of NER-NH) ..........................................................35

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1. EXECUTIVE SUMMARY

Amendment to the earlier report dated 11th Feb 2014:

This report is modified version of our earlier report dated 11th Feb 2014. The modificationshave been incorporated based on the inputs from stakeholders’ meeting held on 26th Feb 2014.The major inputs were

i) 1800MHz Frequency Band also to be considered for GSM operation along with900MHz band.

ii) Towers to be considered ground based tower (GBT) withstanding minimum windspeed of 180 Km/hr.

iii) Cost re-consideration of some items like tower and battery.iv) Cost of new electrical connection from power grid supply to be incorporated.

Introduction:

TCIL was approached by USOF Administrator vide Letter D.O No 30-119-1/2013 –USF dated 1stNov 2013 for preparing a DPR in accordance with TRAI Recommendations dated Sep 2013 forTelecom Infra-structure Augmentation in the North Eastern States including Sikkim and Assam.

TCIL studied the above mentioned TRAI Recommendations. Based on the study and variousmeetings that were held with USOF officers in Nov 2013 the scope of DPR was finalized.

The three verticals to be addressed in the study for North East Region (NER) are as follows:

1. Providing 2G coverage to the villages that are uncovered by any Telecom ServiceProvider (TSP).

2. Providing 2G coverage to the uncovered National Highway (NH) network of North East.3. Providing redundancy and diversity for the optical media from SHQ to DHQ and inter-

state capitals connectivity.

The North east region comprises of 45,221 villages out of which 9,091 villages are uncoveredfor mobile communication. TRAI report study and broad analysis have given their assessmenton the above three vertical.

TCIL has carried out a desk top analysis for estimation of the mobile infrastructure deploymentand enhancement of optical fiber media redundancy, diversity and capacity to support thecommunication network. This report covers the 2G coverage for the uncovered villages ofNER including Sikkim, a total of 8 States.

As a part of the study, optimization of the mobile network with respect to number of BTS hasbeen carried out for determination of the capital cost. Optimization has been done by forming

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suitable clusters of the villages for installation of the BTS for mobile coverage. The details ofthe estimates are covered in the subsequent chapters and are summarized below.

CAPEX ESTIMATION

The capital expenditure required to build infrastructure for 2G coverage in the uncoveredvillages of NER is tabulated below. The capital expenditure has been calculated based on theitems required for setting up the BTS site which includes evaluated BTS equipment (2, 4 and 6TRX) as per the site requirements, tower & antenna, power infrastructure to support the BTScovering Solar panels, batteries (with 3 and 1 day autonomy) as well as DG supply andbackhaul equipments along with accessories. The backhaul has been covered through Optical,Microwave and Satellite communication media. The quantities of the optical, microwaveand satellite media have been assumed as per the proportion in TRAI report.

A. 2G COVERAGE IN NER uncovered villages

CAPEX (without Taxes)

S. No. State No. of BTS Cost (Rs. Crore)

1 Arunachal Pradesh 1893 997.12

2 Assam 1874 1,054.033 Manipur 384 227.074 Meghalaya 2162 1,177.765 Mizoram 227 143.926 Nagaland 112 76.987 Sikkim 19 12.298 Tripura 2 1.51

Total 6,673 3,690.68

Note:1. The CAPEX calculated above does not include the survey cost. Therefore, 1 0 %

additional cost over and above the estimated CAPEX, may be considered for survey.2. The detailed cost tables showing CAPEX, survey and OPEX are placed at Annexure 1.

The basis of the cost of telecom equipment have been taken from vendor costs, Ministry ofRenewable energy and BSNL tender No CA/NOW-CM/LWE-BSS/T-445 for setting up of 2Ginfrastructure in 9 states. The desktop analysis details have been covered in chapter 4 of the

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report.

BSNL is using Satellite technology for the backhaul in northeast region for the mobile networkwhich has been detailed in section 4.4.4 of the report. The cost of supply, installation,operations and time to roll out is economical with reference to other media. The overallcapacity assessment of the satellite network of BSNL shall be required for meeting the overallneeds of the NER.

OPEX

On an average OPEX per year can be taken as 20% of capex cost. Such cost includes AMCcharges, Bandwidth charges per year, manpower, drive test and optimization, regular sitemaintenance, diesel etc.

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Comparison with TRAI Report:

Based on the study by TCIL and optimization, the comparison with respect to TRAI report istabulated as under:

Mobile coverage comparison of uncovered villages

BTS Type AntennaHeight

In meter

TRXPower(Watt)

No. of TRX No. of Village No. of BTSrequired/cost

TCIL TRAI TCIL TRAI TCIL TRAI TCIL TRAI TCIL TRAI TCIL TRAI

A1 A1 20 20 5 2 2 2 8,621 3,142 6,673with INR3,690.68Cr.

3316withINR

1725Cr.

A2 A2 30 20 10 5 2 2B B 30 30 20 10 4 2C C 30 40 20 20 6 2+2+2

Based on the above following may be noted:

1. TRAI report has considered villages with population greater than 250 only whereas TCILhas taken all uncovered villages having inhabitants into consideration.

2. NE SAC data has been available for 8,621 out of 9,091 uncovered villages as mentioned inTRAI report.

3. Total number of BTS estimate to cover 8,621 uncovered villages has been estimated to be6,673 at a cost of Rs. 3,690.68 Crore which comes to average of Rs. 55.30 lakhs per BTS.

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Total Project Cost

The Total project Cost (Capex + Opex of 5 years) is tabulated below:

S. No. TITLE CAPEX Tax Survey@ 10%

ofCAPEX

Centage@ 10%

of CAPEX

TotalCapex

OPEX for5 years

Centage@ 10%

of CAPEX

Tax @12.36%

TotalOpex

TOTAL

1 2G Coverage inArunachal Pradesh and2 Dist. Of Assam

1,454.47 128.02 145.45 145.45 1,873.38 1,454.47 145.45 179.77 1,779.69 3,653.08

2 2G Coverage in otherareas of NER 2,236.21 111.81 223.62 2,571.64 2,236.21 276.39 2,512.60 5,084.24

3 2G Coverage along NH 171.38 10.74 17.14 199.26 171.38 21.18 192.56 391.82

4 Transmission MediaPlan (all tax included) 295.97 295.97 0.00 295.97

TOTAL (in Rs. Crore) 4,158.03 250.57 386.21 145.45 4,940.25 3,862.06 145.45 477.35 4,484.86 9,425.10

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2. STRUCTURE OF THE REPORT

The broad structure of report is as follows:

Chapter 1 provides executive summary of the 2G coverage in villages of NER carried out. Itbriefly explains the key results arrived after doing analysis.

Chapter 2 defines the structure of the report.

Chapter 3 details the generic Telecom status of NER with respect to 2G coverage in uncoveredvillages.

Chapter 4 details the Assumptions, references, methodology, key tables , analysis andrecommendation of the study for 2G coverage study in villages of NER.

Supporting Tables and Annexure.

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3. TELECOM SCENARIO IN NORTH EAST

3.1 IntroductionThe country has seen a phenomenal growth in the availability of economical telecomservices. People from all sections of the population are now using mobile telephone andaccessing the internet for viewing/retrieval of information and e-mail.However among the various states of India, it is seen that there is a substantial gap inthe tele-density in the states of NER. As the whole country is moving towards NextGeneration Network and data dominated services, there are villages in NER wh ich donot have 2G coverage to date.

3.2 Gap in 2G Coverage in villages of NERThe analysis of uncovered villages in NER vis-à-vis the other states of country shows thatthere is a huge gap. Arunachal Pradesh has the highest 55.9% (reference TRAI report)uncovered villages, followed by Meghalaya (38.1%), Mizoram (32.3%), Manipur (24.3%).The gap in NER is wide, despite of the high targets set in the telecom plan and efforts ofgovernment.

In general the reason for low tele-density and gap in telecom coverage in NER is the highCAPEX and OPEX requirement for establishment of telecom infrastructure. The reason isNER states have tough terrain and LWE prone areas, which increases the fiber layingcost, maintenance and ROW permissions. BTS deployment cost also increases becauseof inadequate power availability which increases the diesel consumption to run a site.These issues result in more investment with low rate of return and high operatingexpenses. This unattractive business model discourages the telecom operators inentering the remote areas of NER.

3.3 USOF SupportThe USOF has already recognized the gap as mentioned above and has provided subsidyin many projects of NER under wireline and wireless schemes which covers thetransmission media network, shared passive BTS rollout in uncovered parts, rollout ofDirect Exchange lines (DELs) and provision of access equipments etc.

Presently, the rollout of OFC and Transmission network is going on in NE and Assam byRailTel and BSNL which covers the district to sub-district connectivity in ring. NOFNproject, also funded by USOF covers the Sub-district to Gram Panchayat Connectivity.The rollout of same is also under progress.

The current study conducted by TRAI on request of DOT has analyzed the gap and

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covered it in four categories.

This report covers 2G coverage in uncovered villages of NER.

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4. METHODOLOGY OF 2G COVERAGE IN NER

4.1 Introduction

The section reports on detailed study result on 2G uncovered villages of NER. The studyis based on the analysis made by TRAI in their report dated 26th Sept 2013. Data havebeen collected from various stakeholders to know the actual number of uncoveredvillages in the region. The report states that there are 9,091 uncovered villages out oftotal 45,221 villages in NER and the same can be covered in phased manner.

Purpose of the study is to estimate the number of BTSs with its capacity andinfrastructure required along with the budgetary CAPEX and OPEX for all the uncoveredvillages of NER states. The study shows that the maximum nos. of uncovered villagesexist in states like Meghalaya, Assam and Arunachal Pradesh. These three statesaltogether contributes 89.9% of the total villages. This chapter shows study analysis forarriving at the CAPEX required for providing 2G coverage in all the uncovered villages of

Arunachal Pradesh Assam Manipur Meghalaya Mizoram Nagaland Tripura Sikkim

Below given state wise detail of uncovered villages categorized under inhabitance lessthan 101, less than 251, less than751, less than 2501 and less than 4001 and above4000. To be noted that there are 78 nos. of villages having nil population.

Table: 4.1 No. of Villages and Population

Consolidated population type NUMBER OF VILLAGES0 78

BELOW 100 2659>=100&&<=250 2942>250&&<=750 2326

>750&&&<=2500 565>2500&&<=4000 39

ABOVE 4000 12TOTAL 8621

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NAME OFSTATE

POPULATIONTYPE

NUMBEROFVILLAGES

ArunachalPradesh

0 1

BELOW 100 1462>=100&&<=250 891>250&&<=750 389

>750&&&<=2500 61>2500&&<=4000 1


Assam 0 0BELOW 100 602

>=100&&<=250 798>250&&<=750 808

>750&&&<=2500 260>2500&&<=4000 25


Manipur 0 77BELOW 100 39

>=100&&<=250 190>250&&<=750 157

>750&&&<=2500 61>2500&&<=4000 3


0 0Meghalaya BELOW 100 534

>=100&&<=250 993>250&&<=750 769

>750&&&<=2500 76>2500&&<=4000 2


Mizoram 0 0BELOW 100 9

>=100&&<=250 36>250&&<=750 134

>750&&&<=2500 70

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>2500&&<=4000 3ABOVE 4000 0

TOTAL 252Nagaland 0 0

BELOW 100 8>=100&&<=250 33>250&&<=750 59

>750&&&<=2500 29>2500&&<=4000 5


Tripura 0 0BELOW 100 0

>=100&&<=250 0>250&&<=750 0

>750&&&<=2500 2>2500&&<=4000 0

ABOVE 4000 0TOTAL 2

Sikkim 0 0BELOW 100 5

>=100&&<=250 1>250&&<=750 10

>750&&&<=2500 6>2500&&<=4000 0


It is mandated by TRAI that there be complete 2G coverage in each inhabited village ofthe above states in North Eastern region.

4.2 AssumptionsThe broad assumptions taken while calculating the CAPEX requirement in this report areas follows:

a) GSM 1800MHz was taken for study as GSM is most wide spread technology in NE,however the TSPs can go for CDMA technology also. Frequency band 1800MHz wastaken so as to have the worst case scenario.

b) Keeping in mind the topography of North East area, village was treated as dense forestand hilly areas where line of sight is limited to maximum of 3.46 at ground level.

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c) Gram Panchayat is taken as POP (Point of Presence) for optical backhaul connectivitybetween BTS and BSC. The assumption is based on the BBNL Gram Panchayat last mileconnectivity project.

d) Cost of Land is considered as on rent basis for CAPEX calculation.

4.3 References:The reference documents used are,

a) TRAI recommendations dated Sep 2013.b) Report on USOF scheme for uncovered villages and National Highways.c) The NE SAC, Shillong GIS data base made available with the name of uncovered villages

and Gram Panchayats.d) Cost Reference: budgetary vendor costs, Ministry of Renewable energy and BSNL tender

No CA/NOW-CM/LWE-BSS/T-445 for setting up of 2G infrastructure.

4.4 Methodology:The GIS data was studied and analyzed and based on design guidelines the numbers ofsite for BTS location were arrived at. Unlike TRAI report, where ever possible cluster ofvillages were taken together and treated as a single unit with respect to radio coverage.Villages which are nearby within 2 Km range are taken together to form a cluster.

4.4.1 Choice of BTS:For NER we concluded that both low power outdoor BTS and conventionaloutdoor BTS will be suitable depending on location and population area to becovered. Following are some key statistics for BTS type recommendation.

Key Statistics of North Eastern region – Scattered & low population density – hence TRX capacity required is less. Radio coverage not more than 2.5 Km for population distribution, Line Of Sight

(LOS) is less. Monsoon period is larger & severe. Low availability of grid power.

The above points clearly indicates towards usages of low power BTS. Such lowpower design will bring benefit in terms of

Less OPEX/CAPEX More BTS uptime

The other issues to be addressed are infrastructure sharing for multiple vendor andeasy scalability of TRX in future. To address issues like large coverage area, more

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demand and chose of operators in future, conventional BTS are also recommended.Such BTSs are supported by GBT angular towers.

4.4.2 BSS planningFor planning BTS type, power requirement was the key factor as the remote areas areeither without grid power or having inadequate power supply. BTS was categorized asper coverage and population followed by antenna height and wattage rating of TRX.Limitation of DOT for maximum radiation of 43 dBm was taken care and thus distancewas limited to 3.46 KM at maximum (1800MHz band) though in North East, topographywas the main constraint for small distance coverage. Instead of considering villages asrural area we treated villages as dense forest and calculated radio coverage(outdoor) based on Okumura-Hata model (GM 1800MHz). Other parameters weretaken as per standards followed for link budget calculation.

In cases where backhaul on microwave is required, to get Line of sight (LOS) the towerlocation need to be required to be shifted away from the target population.Minimum TRX power of 5 Watt is taken in such cases as against the ideal need of 2WattTRX power, so as to cover the village even from a greater distance. Survey shall decidethe TRX power radiation and where ever possible the radiation may be reduced below 5watt so as to avoid unnecessary radio radiation. For all types of BTS, nos. of TRX wascalculated keeping GPRS/EDGE provision of at least 128 Kbps. Below given are the BTScategories with respect to Antenna height and TRX watt rating. For deriving requiredTRX value for a particular site following are assumed.

1. GoS (Grade of Service) = 2%.2. Call rate= 20% of population of calls per hour in TCBH.3. Erlang required= average of 25 milliErlang per call.4. Erlang Table B used for channel calculation.

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Table-4.2 Details of Type of BTS

Note: The above categories are derived using Okumura-Hata radio propagation model for1800MHz GSM considering Dense forest and Indoor coverage, as per actual design criteria.

BTS types have been taken basically of 3 types based on TRX radiation- 5 watt, 10watt and 20 watt. The types A1, A2, B and C are derived from the basic typesonly, they differ in antenna height and types. Out of the 3 types of BTS, 2 typesare as given for the Highway solution, one with TRX rating of 10 Watt and theother type is of 20 Watt power rating. It is to be noted that the types of BTS are acombination of low power BTSs and conventional BTs. On the backend microBSC’s were considered for micro BTSs which will be connected through optical,Microwave or Satellite links. Such BSC’s have upto 50 TRX capacity and can beeasily commissioned at remote sites like NE area. Cost of BSC along with itspower requirement have been built up on BTS cost on per TRX basis. Similarlycost of OMC-R is also build upon BTS cost. There is no need for a separate NOC tobe established.

Antenna sector requirement are to be decided after site finalization. Hence in theabove BTS types’ antenna may be Omni, Directional or Sectorial type with even oruneven distribution of TRX all depending on the tower location and populationdistribution. Such design can be implemented by using splitters as required. Site survey

S. N

o.

BTS

Cate

gory

Tota

l pop

ulat

ion

per v

illag

e

Max

imum

nos

. of u

ser a

t atim

eTr

affic

Use

(ERL

ANG)

No.

of C

hann

elsf

rom

Erla

ngB

tabl

e

No

of T

RX a

ctua

lly re

quire

ddu

e to

pop

ulat

ion

dist

ribut

ion

TRX

pow

erin

wat

t

Dist

ance

in K

m

Ante

nna

Heig

htin

met

er

Pow

erco

nsum

ing

of B

TS in

wat

t

Ante

nna

Gain

Expe

cted

cov

erag

e ar

eapr

obab

ility

1 A1 100 20 0.5 3 2 5 2.01 20 200

18 d

Bi

93%

2 A1 250 50 1.25 5 2 5 2.01 20 2003 A2 500 100 2.5 7 2 10 2.93 30 2504 A2 750 150 3.75 9 2 10 2.93 30 2505 B 1000 200 5.0 10 4 20 3.12 30 8006 B 1500 300 7.5 14 4 20 3.12 30 8007 B 2000 400 10.0 17 4 20 3.12 30 8008 B 2500 500 12.5 20 4 20 3.12 30 8009 C 3000 600 15.0 23 6 20 3.46 40 850

10 C 3500 700 17.5 25 6 20 3.46 40 85011 C 4000 800 20.0 28 6 20 3.46 40 850

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along with feasibility study will decide the exact tower location which in return willdecide the actual antenna height and required TRX radiation power. Issues like landacquisition, statutory permissions, views of inhabitants will also influence for sitelocation feasibility study.

4.4.3 BackhaulBackhaul channel requirements have been shown in analysis result. Backhaulconnectivity is categorized under 3 types, depending on site location. As per existingsites in NER microwave/Radio Modem are found the most used technology for backhaulconnectivity. Below given existing site backhaul details:

Backhaul Details of Existing BTSs (in %)

LSA Only OFC OFC + M/W Microwave VSAT

Arunachal Pradesh 25.82 0.69 63.17 10.33Assam 10.76 1.35 87.85 0.04Manipur 8.88 1.13 88.34 1.64Meghalaya 9.56 0.98 88.53 0.93Mizoram 7.34 0.86 89.35 2.45Nagaland 18.53 0.74 80.43 0.30Tripura 12.53 0.94 86.42 0.11Sikkim 1.23 4.92 93.85 0.00

Grand Total 11.27 1.28 86.81 0.65

The number of channels in E1 is found to be maximum of 12 for a site hence maximumbackhaul bandwidth for a site will be within 768 Kbps. Gram Panchayats are consideredas PoP for E1 (Optical/Copper) backhaul connectivity to BSC and hence all opticalbackhaul sites are proposed to get connected to the nearest panchayat. It is found thatan average distance from site location to nearby panchayat is around 7 km. Hence onlythe last mile optical cable laying will be required up to the g ram panchayat. Formicrowave backhaul line of sight (LoS) is essential and hence the same may influencesite location. Radio modem may be used as backhaul as the same will be a better option

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in comparison to microwave as it carries IP packets for a longer distance. 1 Mbps linkcan be through for more than 10 Km with low power requirement, less than 2 watts.

For backhaul, report follows similar pattern as existing in NER region. For ArunachalPradesh no. of VSAT link can be increased subject to waiver of yearly bandwidth cost inspecific district. This will make installation quick and more feasible. The total backhaulbandwidth requirement is approx. 3.85 Gbps.

4.4.4 BSNL Satellite Network Backhaul in Northeast

BSNL has been using IP base Satellite communication Network for backhaul connectivityfor the mobile network as per the architecture given below.

The IP based satellite network envisages BTS connectivity with BSC through BSNL MPLSnetwork as shown in diagram.

The following information may be used for estimation of the IP based satellite backhaulconnectivity.

1. The backhaul requirements for BTS connectivity shall be based on the bandwidthrequirement of 128 kbps + 128 kbps for uplink and downlink for 1 TRXconfiguration. The satellite bandwidth estimate shall be based on the actual BTSrequirements.

2. The VSAT Price for Supply, installation, testing and commissioning is estimated asRs. 90,000/-+ taxes as one time investment including 1.2M Antenna.

3. The recurring cost for the satellite bandwidth for 1TRX (128 kbps+ 128 kbps) isestimated as Rs.4.67 Lakhs + taxes per annum, including backhaul MPLS cost.

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4. AMC charges for operations and maintenance of the satellite equipment isestimated as Rs 10,000 +taxes per annum per site.

4.4.5 Power calculationPower calculation was made based on Battery (with 3 days autonomy for low powerBTS, type A1 & A2 and 1 day autonomy for conventional BTS, type B & C), Solar andDiesel Generator set. Use of Renewable Energy Technology (RET) Solar is taken asmandatory at all locations. In India the annual global solar radiation is about 5 KWh/sqm per day with about 2300-3200 sun-shine hours per year. In North East are solarradiation is about 4 KWh/ sqm per day. Solar radiations represent the earth’s mostabundant energy source. The perennial source of solar energy provides unlimitedsupply, has no negative impact on the environment. The solar photovoltaic (PV)modules convert solar radiation from the sun into electrical energy in the form of directcurrent (DC). Converting solar energy into electricity is the answer to the mountingpower problems in the rural areas especially for remote areas of North East region ofIndia. Solar Photovoltaic Cells (SPV) system gives quality power out-put of 48 volt DC tocharge directly the storage battery or provide direct power to telecom installations. BTSwill be powered through battery and the charging of the battery will be made with acombination of both Solar and DG set, solar being the first preference. It isrecommended to use Tubular GEL VRLA batteries as they provide better performanceunder the partial state of charge having slow rate of discharge performance ideally suitsrural applications.

To make auto switching and load shearing cost of Charge Control Unit (CCU) with inbuiltSMPS Rectifier, Solar Junction Box, Remote Monitoring and cable cost (both AC/DC)were taken.

Below table shows power requirement based on BTS types:

Table: 4.3 Power Requirements Based On BTS Types

S.

No.

BTS

Typ

e

Min

imum

Pow

erra

ttin

g fo

r ea

ch T

RX

BTS

Wat

tage

Battery-Singleunit

Solarpower-SingleUnit

DG Set-SingleUnit

Power anddistance coveredis calculated for1800MHz band

considering denseforest. Batteryautonomy for Band C Type BTS

is 1 day and restsare for 3 days.

AH Watt KVA

1 A1 5 200 1042 3125 0.87

2 A2 10 250 1250 3750 1.04

3 B 20 800 1181 7083 3.99

4 C 20 850 1250 7500 4.23

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4.4.6 InfrastructureUnder infrastructure category, towers are considered to be Heavy weight narrow baseand wide base Ground Base Tower (GBT) tower of length 20 meters, 30 meters and 40meters. For hilly area of North East region erection of angular tower are time consumingand difficult job, hence such tower were recommended for only Type C category. In mostof the cases the effective tower height will depend on the tower construction sitealtitude with respect to the target area to be covered. For NER region towers arerecommended to withstand minimum wind speed of 180Km/hr. It is recommended thattower design should be based on TEC GRs or as per design approved from anorganization like Structural Engineering Research Centre (SERC)/ TEC/ IITs for structuralfitness, safety, load bearing capacity, ability to withstand wind speed etc. Cost ofshelter along with fencing cost was considered for calculation of overall infrastructurecost.

Other cost like transportation, Commissioning and Installation cost was also included inthe CAPEX estimation.

4.4.7 System configurationThe system uses centralized power plant, battery bank, SPV and diesel generator set. Allthese are centrally controlled by a Charge Control Unit (CCU) for optimal poweringutilization of systems and charging of the battery bank. The CCU ensures smoothoperation of the overall powering arrangement without any manual intervention. Itsdesign will ensure optimal energy transfer from the SPV system using MPPT (MaximumPower Point Tracking) technique and automatic switching on/off of DG set on the basisof battery charge condition. For design purpose, Depth of Discharge (DoD) for thebattery is taken as 80% of its capacity and the DG set is consider to trigger only whenbattery is discharged below 40% of its capacity. Such combination will make opti mumuses of diesel and hence cost saving along with lower level of pollution is taken care off.A schematic diagram of system design:

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BTS

GEN

BATTERYBANK

CCUSolarJuncti-onBox

Solar PhotoVoltaic(SPV)

4.4.8 CostBelow is given the cost components per site. The components are divided in to five categories.

1. BTS with antenna, feeder cable and BSC with OMC-R2. Power

Battery (3 days and 1 day Autonomy) Solar (6 hrs. sunshine) Diesel Generator

3. Tower (20, 30 and 40 meter)4. Backhaul (OFC/Microwave/VSAT)5. Miscellaneous Items

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Below given the cost break up in each category:

BOQ per site for Villages of North East

Cost in INR Cost in INR Cost in INR Cost in INR

BTS conf. 2 TRX of 5watt each

2 TRX of 10watt each

4 TRX of 20watt each

6 TRX of 20 watteach

BTS Category A1 A2 B CComponents

BTS with Antenna along withBSC & OMC-R 350,000 400,000 750,000 800,000

PowerVRLA Battery with Racks,connector and otheraccessories

800,000 1,000,000 1,000,000 1,000,000

Solar power system with civilworks, Racks, connector andother accessories

625,000 750,000 1,416,667 1,500,000

Charge Control unit (CCU) 300,000 300,000 500,000 500,000DG Set (For emergencycharging) 150,000 150,000 250,000 500,000

Tower

Ground base Tower (GBT)withstanding wind speed of180Km/hr. (SERC ApprovedDesign) erecting with all civilworks ( Type A1 and A2 areNarrow base while type B andC are broad base tower)

1,100,000 1,300,000 1,300,000 1,700,000

Cables and accessories likeAC/DC Cable + Earthing+ HDPEPIPES

100,000 100,000 200,000 300,000

Cost of Electrical connection 600,000 600,000

Land rent, site preparation,fiber block roofing, Fencing etc 200,000 200,000 250,000 250,000

Transportation 250,000 250,000 400,000 500,000

Commissioning & Installation 200,000 200,000 250,000 400,000

Any other items 100,000 100,000 200,000 200,000

Site cost in Lakhs 4,175,000 4,750,000 7,116,667 8,250,000Site cost in Crore 0.4175 0.4750 0.7117 0.8250

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Back haul Cost in Crore

OFC per KM with one splicingjoint for 7 Km 0.56 0.56 0.56 0.56

Microwave 0.05 0.05 0.05 0.05VSAT 0.03 0.03 0.03 0.03

4.5 ESTIMATED CAPEX:Result of analysis for providing 2G mobile coverage to the uncovered villages of NERconsists of states Assam, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Tripura,Sikkim and Nagaland states shows that a total of 6,673 nos. of BTS are required to cover8,621 nos. of total uncovered villages of North east region. The CAPEX cost calculatedcomes to INR 3,690.68 Crore with an average site cost Rs.55.30 Lakhs. In contrast toTRAI report where one to one mapping was made between no. of villages and no. of BTSrequired, we formed cluster of villages which are found nearby having feasiblegeographical solution based on desktop study and design. This has optimized thenumber of BTS’s required for NE. Cost per BTS varies with its type, power rating andtower heights. Below table shows summary of cost of a site with respect to BTS types.

Table- 4.4 Reference table for BTS cost

S.

No.

BTS

Typ

e

Num

bers

of BTS

Unit Cost of aSite with out

backhaulconnectivity in

Crore INR

Total cost of a Sitewith out backhaul

connectivity in CroreINR

1 A1 3666 0.42 1,531

2 A2 2253 0.48 1,0703 B 680 0.71 4844 C 74 0.83 61

Total 6,673 3,145.71

Total Backhaul cost is Crore Rs. 544.97, hence total CAPEX is in Crore Rs.3690.68

With the above basic cost we have arrived at the total cost of the project. State wisecost breakup is also shown below. Survey cost may be taken as 10% of the total cost.

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Table – 4.5 Consolidated & State- Wise Cost Break up:

Consolidated At site BackhaulA1 A2 B C Optical VSAT Microwave

Total in Numbers 6,673 3,666 2,253 680 74 528 1,816 4,329Cost (Rs. Crore) 1530.56 1070.18 483.93 61.05 295.68 54.48 194.81

Total Cost (Rs. Crore) 3690.68 3145.71 544.97

Manipur At site BackhaulA1 A2 B C Optical VSAT Microwave

Total in Numbers 384 159 149 71 5 35 3 346Cost (Rs. Crore) 66.38 70.78 50.53 4.13 19.60 0.09 15.57


Meghalaya At site BackhaulA1 A2 B C Optical VSAT Microwave



Mizoram At site BackhaulA1 A2 B C Optical VSAT Microwave



Nagaland At site BackhaulA1 A2 B C Optical VSAT Microwave



Sikkim At site BackhaulA1 A2 B C Optical VSAT Microwave



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Tripura At site BackhaulA1 A2 B C Optical VSAT Microwave



Assam- Dima Haso At site BackhaulA1 A2 B C Optical VSAT Microwave



Assam- Karbi Anglong At site BackhaulA1 A2 B C Optical VSAT Microwave



Assam (Rest) At site BackhaulA1 A2 B C Optical VSAT Microwave



Arunachal Pradesh At site Backhaul

A1 A2 B C Optical VSAT MicrowaveTotal in Numbers 1893 1356 447 88 2 152 605 1136Cost (Rs. Crore) 566.13 212.33 62.63 1.65 85.12 18.15 51.12


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The BTS location has been identified with Latitude and the longitude along with itsantenna height, number of TRX and maximum sector requirements. As power supplyis crucial factor for the project hence total power requirement is also shown in thetable. Battery autonomy is taken for 3 days for Type A and 1 day for Type B and CBTS. Capacity of battery was calculated made considering solar and diesel generatorset to be as backup for battery charging where solar charging will be given priorityover DG set. On an average sunshine was considered to be for 6 hours a day and theDepth of Discharge (DoD) for the battery is taken as 80%. Battery when dischargebelow 40% of its capacity will trigger the DG set provided that there is no solarcharging available at that moment. Such circuit design is possible through CCU/DCPDBboard and automatic change over switch.

4.6 Key observation

Business case does not exist in North Eastern States remote village site because ofvery low return on investment (ROI). The OPEX cost is also high in such regions. It isobserved that due to low availability of power source in remote areas of North Eastregion the cost per site increases many folds. It may be observed that the cost of BTSis only some 10 to 12% of site cost. The maximum of the cost is contributed by powersystem having both solar and DG sets. Hence BTS power rating would be a key factoron the overall budget estimation. As explained earlier it is suggested to go for a mixof low power outdoor and conventional outdoor BTSs.

Below table shows in % equipments and cost involved.

BTS Type BackhaulA1 A2 B C Optical VSAT Microwave

No. in percentage55% 34% 10% 1% 8% 27% 65%

Total Cost inpercentage 85% 15%

Cost in percentage49% 34% 15% 2%

The backhaul contributes about 15% of the total expenditure. To be noted that for 2district of Assam namely Dima Haso and Karbi Anglong the total backhaulconnectivity is taken on Satellite. Backhaul in NER region is contributing significantlytowards project cost. It is recommended that backhaul optical connectivity should beminimized as the same is costly and time consuming for laying works etc incomparison to Microwave or VSAT. In case of VSAT the CAPEX is quite low but thebandwidth cost is found to be very high, around INR 9 lakhs per year per Mbps link.Hence microwave is more suitable in NER and the same can be seen from the

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existing backhaul connectivity in NER area. The

license free band, 5 GHz may be used for microwave link which is more suitable forrainy areas like NER. In Arunachal Pradesh where VSAT bandwidth cost is likely tobe waived off, the total backhaul may be on VSAT.

Moreover cost saving may be done mostly on BTS part for Type A1 and Type A2 as theirtotal contribution is more than 83% of the BTS site cost. Thus with low power rating BTScost saving on the power back up equipments will be significant and thus may prove tobe better feasible solution for sites with very low return on investment (ROI).

4.7 Recommendation

In BoQ battery was taken as VRLA type as the same is popularly used throughout thecountry. However Lithium Ion batteries are found to be more durable and lessweight/footprint with better performance. Such batteries are about 3 times costlier thannormal VRLA batteries.

In addition to the CAPEX cost, there is a huge recurring investment required tomaintain this infra structure in the form of Fiber and equipment maintenance. As theNorth eastern Region has tough terrain and low tele-density, operators do not see alucrative business model or rate of return in this part of the country because of the gapin huge investment of capital and operational expenses vis-à-vis the revenue earned.Therefore there is a need to cover operating costs also; this will encourage operators toprovide keep providing services in NER.

The CAPEX as estimated above for the BTS deployment in uncovered villages may befunded by USOF. This will encourage operators to establish infrastructure. As OPEX isalso very high in NER, the same can be factored by taking the net revenue (i.e. Revenue– OPEX) while calculating the subsidy. It is to mention in earlier schemes of USOF,passive sharing of towers is mandated. However, as per current guidelines active sharingof RAN is also allowed and the main advantage of this technology is the reduction inCAPEX and OPEX as both active and passive component is shared by operators. Thesubsidy calculation to fund the gap may consider this technology and mandate theactive sharing of RAN.

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5. ANNEXURE 1

This annexure contains the Total Cost for the three verticals that have been addressed in the two Reports.

5.1 Project Cost Summary

S. No. TITLE CAPEX Tax Survey@ 10%

ofCAPEX

Centage@ 10%

ofCAPEX

TotalCapex

OPEX for5 years

Centage@ 10%

ofCAPEX

Tax @12.36%

TotalOpex

TOTAL

1 2G Coverage inArunachal Pradesh and

2 Dist. Of Assam

1,454.47 128.02 145.45 145.45 1,873.38 1,454.47 145.45 179.77 1,779.69 3,653.08

2 2G Coverage in otherareas of NER

2,236.21 111.81 223.62 2,571.64 2,236.21 276.39 2,512.60 5,084.24

3 2G Coverage along NH 171.38 10.74 17.14 199.26 171.38 21.18 192.56 391.82

4 Transmission MediaPlan (all tax included)

295.97 295.97 0.00 295.97

TOTAL (in Rs. Crore) 4,158.03 250.57 386.21 145.45 4,940.25 3,862.06 145.45 477.35 4,484.86 9,425.10

Note: The two districts of Assam in above table are Karbi Anglong and Dima Hasao.

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5.2 2G Coverage in Arunachal Pradesh and 2 Dist. Of Assam

S.No.

STATE Villages asper TRAI

Villages asper TCIL

Towers CAPEX Tax Survey @10% ofCAPEX

Centage @10% ofCAPEX

OPEX for 5years

Centage @10% of OPEX

Tax @12.36%

TOTAL

1 ArunachalPradesh

2,886 2,805 1,893 997.12 105.15 99.71 99.71 997.12 99.71 123.24 2,521.77

2 2 Dist. OfAssam

1,605 1,314 924 457.35 22.87 45.74 45.74 457.35 45.74 56.53 1,131.31

TOTAL (in Rs.Crore)

4,491 4,119 2,817 1,454.47 128.02 145.45 145.45 1,454.47 145.45 179.77 3,653.08

For BSNL At site BackhaulA1 A2 B C Optical VSAT Microwave

Total in Numbers 2,817 1,830 821 164 2 152 1,529 1,136Cost (Rs. Crore) 764.03 389.98 116.71 1.65 85.12 45.87 51.12Total Cost (Rs. Crore) 1454.47 1272.36 182.11

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5.3 2G Coverage in other areas of NER

S.No.

STATE Villagesas perTRAI

Villagesas perTCIL

Towers CAPEX Tax Survey@ 10%

ofCAPEX

OPEXfor 5years

Tax @12.36%

TOTAL

1 Assam(other than2 District)

1280 1189 950 596.68 29.83 59.67 596.68 73.75 1,356.62

2 Manipur 610 528 384 227.07 11.35 22.71 227.07 28.07 516.273 Meghalaya 2389 2374 2162 1,177.76 58.89 117.78 1,177.76 145.57 2,677.764 Mizoram 258 252 227 143.92 7.20 14.39 143.92 17.79 327.215 Nagaland 137 134 112 76.98 3.85 7.70 76.98 9.51 175.016 Tripura 2 2 2 1.51 0.08 0.15 1.51 0.19 3.447 Sikkim 23 23 19 12.29 0.61 1.23 12.29 1.52 27.93

TOTAL (in Rs.Crore)

4699 4502 3856 2,236.21 111.81 223.62 2,236.21 276.395,084.24

Rest of NER At site BackhaulA1 A2 B C Optical VSAT Microwave

Total in Numbers 3,856 1,836 1,432 516 72 376 287 3,193Cost (Rs. Crore) 766.53 680.20 367.22 59.40 210.56 8.61 143.69


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5.4 2G Coverage along NH

S.No.

STATE TOWERSTRAI

TOWERSTCIL

CAPEX Tax Survey@ 10%

ofCAPEX

OPEXfor 5years

Tax @12.36%

TOTAL

1 Arunachal Pradesh 122 119 87.53 6.55 8.75 87.53 10.82 201.182 Assam 10 23 16.92 0.85 1.69 16.92 2.09 38.463 Manipur 18 34 25.01 1.25 2.50 25.01 3.09 56.864 Meghalaya 0 9 6.62 0.33 0.66 6.62 0.82 15.055 Mizoram 1 12 8.83 0.44 0.88 8.83 1.09 20.076 Nagaland 10 29 21.33 1.07 2.13 21.33 2.64 48.507 Tripura 4 6 4.41 0.22 0.44 4.41 0.55 10.038 Sikkim 0 1 0.74 0.04 0.07 0.74 0.09 1.67

TOTAL (in Rs.Crore) 165.00 233.00 171.38 10.74 17.14 171.38 21.18 391.82

Tax Assumptions:1. Sales tax on goods @ 5% on CAPEX.2. Entry tax for Arunachal Pradesh @ of 13.5% for battery and @ 4% for other goods on

CAPEX.3. Service tax @ 12.36% on OPEX.4. Octroi and local taxes will be additional.

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5.5 Tax break up

5.5.1 Tax break up for Arunachal Pradesh and 2 Dist. Of Assam

CAPEX for Villages Total cost TaxesArunachal Pradesh 997.122 dist of Assam 457.35Total 1,454.47Tax @ 5% 72.72

Entry Tax for Arunachal PradeshBattery 162.18Tax @ 13.5% 21.89Rest of the items 834.94Tax @ 4% 33.40

128.02OPEXArunachal + 2 dist. Of Assam 1,454.47Tax @ 12.36% 179.77

Total tax in Crore 307.79

5.5.2 Tax break Up for rest of Villages

Capex Total cost TaxesRest of the villages 2,236.21Total 2,236.21Tax @ 5% 111.81

111.81Opex 2,236.21

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Tax @ 12.36% 276.4

Total tax 388.21

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5.5.3 Tax break Up for National Highways (in Arunachal Pradesh)

Capex Total cost TaxesArunachal Pradesh 87.53Total 87.53Tax @ 5% 4.38

Entry Tax for Arunachal PradeshBattery 3.93Tax @ 13.5% 0.53Rest of the items 41.06Tax @ 4% 1.64

6.55OpexArunachal 87.53Tax @ 12.36% 10.8

Total tax 17.37

5.5.4 Tax break Up for National Highways (Rest of NER-NH)

Capex Total cost TaxesRest of the HW 83.85Total 83.85Tax @ 5% 4.19

4.19Opex 83.85Tax @ 12.36% 10.4

Total tax 14.56

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