Consultation Paper on Proliferation of
Broadband
through Public Wi-Fi Networks
Group-1
Vidyadhar Prabhudesai
Priyanka Chauhan
Notan Roy
Payal Dey
Gagandeep Kaur
How to engage in broadband policy and
regulatory processes
August 22, 2016
Key Objectives
> Key Objectives & Questions
To assess need for hub based model proposed to
be handled by a Third Party for authentication,
authorization and accounting with respect to users,
payments and interconnection between ISPs of
Public Wi-Fi network
To identify the regulatory issues, licensing
restrictions and other factors that are the
determinants for the expected growth of public
Wi-Fi services in India
Questions for Group-1
• Are there any regulatory issues, licensing
restrictions or other factors that are hampering
the growth of public Wi-Fi services in the country?
• What regulatory/licensing or policy measures are
required to encourage the deployment of
commercial models for ubiquitous city-wide Wi-Fi
networks as well as expansion of Wi-Fi networks
in remote or rural areas?
> Backdrop
23%
Mobile Internet
Penetration
Increase in Wi Fi
hot spots 2013-16
Internet Penetration in
Rural India
9%
12%
53%
568%
India
Internet Penetration in
Urban India
Global
No. of Wi-Fi Hot Spots
13
9.8
5.6
In millions
0.03
India
US
UK
France
Source: IAMAI 2015 & TRAI, Wi-Fi Consultation Paper, July 2016
Need for the Policy
• Planning of socio-economic development processes largely rely on
the last mile connectivity.
• Extending high speed broadband connectivity up to the last mile
especially in the Rural & Remote areas by using the license based
mobile technology is still a challenge for a large section of TSPs.
• Involvement of huge investment put the barrier to entry for the
ISPs to facilitate the last mile connectivity due to lack of viability &
sustainability in terms of return on investment (ROI).
• Wi-Fi spectrums mostly being the license-exempts can be a driving
force to motivate the ISPs to participate in those unconnected
areas, in case there is an appropriate Government Policy &
Regulatory Processes in place which shall guide as well as protect
both the demand & supply sides in a fairly manner.
• The current regime of Broadband Policy does not enable a neutral
& interoperable Public Wi-Fi services & its accessibility.
• Such regimes need to be revamped to facilitate an efficient Public
Wi-Fi network which further necessitate standards & interoperable
systems.
Need for the Policy
• A “National Public Wi-Fi Broadband Service &
accessibility Policy” can be a catalyst to enabling
provision of unified platform for providing a reliable
and open access to the high speed data
connectivity for the citizens by leveraging various
prevailing backbone infrastructures (backhaul) and
front-end service delivery ecosystem like CSCs to
change the market economy for bringing in greater
impact on GDP etc.
Regulatory issues
> Regulatory and Licensing Issues
1. Scarcity of unlicensed spectrum and hence difficult frequency management for ISPs
with limited spot frequencies. There should be an appropriate Regulatory measures
for allocative efficiency of such limited spectrum to balance the competitive
environment with reasonable profit margin of the ISPs for maintaining ethics of the
business.
2. Regulatory measures ensuring that Wi-Fi devices & equipments meet criteria of
Interoperability, Compatibility, Open standards, Scalability, Quality assurance &
flexibility on user portability must be incorporated.
3. Suitable regulatory measure & benchmark needs to be formulated by the regulatory
body to address the issue of packet transmission interruption in case of network
congestion on mobile networks in high density public footfall areas by mandating
automatic handover to the public Wi-Fi networks for mobile
4. Needs to adopt policy measures to incentivize TSPs/ISPs for providing uninterrupted
data service to citizens.
5. Needs to conduct periodical audit on Wi-Fi operation of various ISPs by TRAI to check
the performance against interferences and other factors.
6. Needs to Regulate usage of bands through suitable control mechanisms like
monitoring the EMF Compliance & other standard benchmarks of radio access
network etc to check on radiation hazards.
> Regulatory and Licensing Issues
Licensing issues
1. Limitations of usage of unlicensed spectrum for Wi-Fi in four different bands.
2. There are several other frequency bands which can supply high capacity
backhaul. For instance, E-Band (80 GHz) and V-Band (60 GHz) provide a wide
spectrum of 15 GHz allowing multi Gigabit per second capabilities.
3. Needs to explore & recommend the possibility of allocation in other
internationally harmonized bands in 6-42 GHz range viz. 26 GHz, 28 GHz, 32
GHz, 38 GHz and 42 GHz.
4. Needs to gradually workout to release larger quantities of unlicensed spectrum
(as has been done in many parts of the world) for better quality of service and
reducing the loads on existing networks, for instance TV White Space (470-690
MHz UHF).
5. Devising appropriate pricing mechanism of license fee for releasing unused and
effective radio frequency spectrums, keeping in view the rational market
mechanism, allocative efficiency & prospects of more & more participation of
ISPs for developing standard business & commercial models ensuring the
sustainability through the way of partnership, collaboration & convergence of
various Wi-Fi servers presently working in silos.
> Proposed Architecture of Operation
Existing Models
Registration
Paid, Freemium, Advertisementbased and Aggregators
All ISPs to register all payment
companies /wallets
Central ized
Switching (Hub) for
mobility
management &
aggregated
Payment Platform
Operation
Access
-Multiple ISPs, Net neutrality
User can register using any
payment mode, access seamless,
no geography limitation
-Interoperability, Compatibility, Open
standards, Scalability, Quality assurance &
flexibility on user portability
Proposed guidelines for appropriate commercial models
For Commercial Model
>
1. Liberty to ISPs on taxation part until the model becomes viable & sustainable.
Telecom service tax regulation for Wi-Fi services need to be reviewed for
necessary amendment.
2. Viability gap funding & transparent bidding process for selection of competent
ISPs for deployment of Wi-Fi network through PPP mode.
3. Finalizing realistic approach of MSAs / SLAs for Win-Win situation.
4. Establishing Institutional Framework for collaborative action under clear cut
Administrative & Organization Reforms at State / District/ Panchayat level, as
connectivity is now a basic human need.
5. Arriving at most competitive & uniform pricing for both the consumers & other
stakeholders.
6. Equitable revenue sharing mechanism between stakeholders.
7. Creating a Special Purpose Vehicle (SPV) like BBNL for regular assessments on
frequency & site planning, monitoring, providing supports at technical &
financial capabilities etc. even after Government supports end.
8. Constituting State/UT level Apex body comprising members from all the
associated organizations / civic bodies for handholding & directing ISPs for
smooth implementation of Wi-Fi network and to take the ownership of the
model after it becomes fully functional till the last mile.
> Mumbai Airport & Varanasi
10% users
upgrade
from free to
paid
400-500
BSNL free
users
BSNL 70-80
paid users
Clear Demand
Source: TRAI, Wi-Fi Consultation Paper, July 2016
> Need for Public Wi-Fi
Need Assessment
Overload on mobile data, > 90% users access internet
Low bandwidth available, 2 bands not allowed on public space
Limitation on data usage, low speed back haul
Users demand speed – movies, bank transaction, Govt. services
Higher frequency has adverse impact on health
> Current Usage of Internet
Top 5 Activities
Google
Organizations
use internet
35%
72%
Whatsapp
55%
Facebook
Email
Share of technology
Govt. services
2G/3G
1%
17%
Broadband /Wireline
6%
Broadband - Wi - Fi
8%
Data card / Dongle
68%
Dongle with Wi Fi
Hotspots
Source: Lirneasia Research Report, 2016
52%
45%
37%
> Barriers for Internet Usage
Top 3 Barriers
65%
Organizations
do not use
internet
Continue existing work
without internet
48%
Lack of devices
Awareness of Wi-Fi
Lack of experience of
internet
31%
Aware
Not aware
69%
Source: Lirneasia Research Report, 2016
44%
35%
> Key Issues
Supply Side Bottlenecks
No exclusive policy on Public Wi-Fi
Possibility of infrastructure sharing, capping on tariff plans
Logistics & distribution costs, extra incentives?
Backend agreements with multiple gateways
Business opportunity in rural areas – local shops, individuals, PCOs
> Key Issues
Demand Side Bottlenecks
Yet to increase absorptive capacity of present & potential
institutional users
Insecurity of online transactions
Debit / credit cards availability – all modes to be enabled.
Freemium model, link mobile numbers to Wi-Fi
Login issues – OTPs, SMS, roaming etc,
User to be traceable at all times to avoid malpractices, breaches etc
Licensing
Regulatory
> Recommendations: Regulatory and Licensing
• Competition control for effective service.
• Wi-Fi devices & equipments meet criteria of Interoperability,
Compatibility, Open standards, Scalability, Quality assurance & flexibility
on user portability
• Encryption of user related data.
•Releasing those unused spectrum as license-exempt on Pilot run basis for a
definite duration.
•Depending upon the performance after implementation phase and also
depending upon the level of revenue earning by all the stakeholders, an
appropriate market discovery of prices can be adopted.
•Whilst doing so, there should not be any scope for unwanted competition
in the market which may narrow the profit margins in the Wi-Fi business.
•Market discovery of prices based on different business model of revenue
sharing.
•Market discovery of prices based on different commercial models of
infrastructure set up- either Build Own Operate (BOO), Build Own Operate
& Transfer (BOOT) etc.
> Recommendations: Urban and Rural
• Awareness in users
Urban and Rural
• Affordability - access on multiple devices; convert nonusers of internet
• Identification of early adopters – need to do a study for
this
• Ways to empower local business for incentivizing
opportunities for last mile
> Recommendations: Legal
• Wi-Fi operation: user access and servicing should be in
conformity with the existing legal framework, Act and
Legal
Rules because accessibility by the ISPs need to be
equitably provided within the currently available
spectrum
• As the
spectrum is now
license-exempt, any
unexpected situation (including multiple-use of same
frequency for different technology), if arising in future,
should be addressed against the challenges about the
limitation of spectrum
Thank You
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