Regulatory bottlenecks in the expansion of wireless Internet in India
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1 Regulatory bottlenecks in the expansion of wireless Internet in India Bhavya Omkarappa Supervisor: Prof. Heikki Hämmäinen Advisor: Jaume Benseny School of Electrical Engineering Aalto University July 3, 2018
2 Outline Introduction Background Study of licensed spectrum Study of unlicensed spectrum Results Regulatory recommendations 2/28
3 Introduction 1200 million subscribers 10 operators The estimation of wireless subscribers by the end of 2020 is 9,684 million. France has 13 million WiFi hotspots and India has 31,000 hotspots (2017) 3/28
4 Introduction 1200 million subscribers 10 operators The estimation of wireless subscribers by the end of 2020 is 9,684 million. France has 13 million WiFi hotspots and India has 31,000 hotspots (2017) 3/28
5 Introduction 1200 million subscribers 10 operators The estimation of wireless subscribers by the end of 2020 is 9,684 million. France has 13 million WiFi hotspots and India has 31,000 hotspots (2017) 3/28
6 Introduction 1200 million subscribers 10 operators The estimation of wireless subscribers by the end of 2020 is 9,684 million. France has 13 million WiFi hotspots and India has 31,000 hotspots (2017) 3/28
7 Introduction 1200 million subscribers 10 operators The estimation of wireless subscribers by the end of 2020 is 9,684 million. France has 13 million WiFi hotspots and India has 31,000 hotspots (2017) 3/28
8 Research Question What are the main regulatory bottlenecks for wireless expansion in India? Hypothesis 1 : Licensed spectrum is scarce Hypothesis 2 : Low spectrum holdings of operators Hypothesis 3 : Inadequate market concentration Hypothesis 4 : Lack of regulatory incentives for community networks 4/28
9 Research Question What are the main regulatory bottlenecks for wireless expansion in India? Hypothesis 1 : Licensed spectrum is scarce Hypothesis 2 : Low spectrum holdings of operators Hypothesis 3 : Inadequate market concentration Hypothesis 4 : Lack of regulatory incentives for community networks 4/28
10 Research Question What are the main regulatory bottlenecks for wireless expansion in India? Hypothesis 1 : Licensed spectrum is scarce Hypothesis 2 : Low spectrum holdings of operators Hypothesis 3 : Inadequate market concentration Hypothesis 4 : Lack of regulatory incentives for community networks 4/28
11 Research Question What are the main regulatory bottlenecks for wireless expansion in India? Hypothesis 1 : Licensed spectrum is scarce Hypothesis 2 : Low spectrum holdings of operators Hypothesis 3 : Inadequate market concentration Hypothesis 4 : Lack of regulatory incentives for community networks 4/28
12 Research Question What are the main regulatory bottlenecks for wireless expansion in India? Hypothesis 1 : Licensed spectrum is scarce Hypothesis 2 : Low spectrum holdings of operators Hypothesis 3 : Inadequate market concentration Hypothesis 4 : Lack of regulatory incentives for community networks 4/28
13 Background Role of regulation in spectrum management Indian telecom regulator and its objectives Indian telecom industry framework Indian government bodies Wireless Planning and Coordination(WPC) Department of Telecommunications(DoT) Telecom Group oncommission Telecom and IT Independent bodies Telecommunication Regulatory Authority of India(TRAI) Telecom Disputes Settlement and Appellate Tribunal (TDSAT) Figure 1: Framework of Indian Telecommunication Industry 5/28
14 Background Role of regulation in spectrum management Indian telecom regulator and its objectives Indian telecom industry framework Indian government bodies Wireless Planning and Coordination(WPC) Department of Telecommunications(DoT) Telecom Group oncommission Telecom and IT Independent bodies Telecommunication Regulatory Authority of India(TRAI) Telecom Disputes Settlement and Appellate Tribunal (TDSAT) Figure 1: Framework of Indian Telecommunication Industry 5/28
15 Overview of Indian telecom market LSA METRO LSA A LSA B LSA C Number of telecom circles Total number of subscribers Population density (population/sq.km) Subscriber density (subscribers/sq.km) Penetration W.Avg Operators Table 1: Different variables across local service areas 6/28
16 Overview of Indian telecom market Figure 2: Comparison of population and subscriber density across LSAs 7/28
17 Overview of Indian telecom market Figure 3: Mobidensity across service areas 8/28
18 Study of Licensed Spectrum Spectrum availability Quantified by the estimate of the total available spectrum for a single subscriber Total available spectrum (MHz) / The number of cellular subscribers (in millions) 9/28
19 Study of Licensed Spectrum Spectrum availability Quantified by the estimate of the total available spectrum for a single subscriber Total available spectrum (MHz) / The number of cellular subscribers (in millions) 9/28
20 Licensed spectrum availability Country Available spectrum (MHz) Cellular subscribers (in millions) Spectrum per subscriber (Hz) MNO HHI 4G speed (Mbps) India USA China Finland Australia Germany Japan Table 2: Summary of the licensed spectrum for mobile broadband in selected countries SH per subscriber = Total no. of SH of all operators in TC n Total no. of subscribers in TCn where, SH = spectrum holdings TC n = n-th telecom circle (n = 1,..., 22) 10/28
21 Licensed spectrum availability Figure 4: Operator spectrum holdings across local service areas 11/28
22 Licensed spectrum availability Figure 5: Spectrum holdings per subscriber in different local service area 12/28
23 Licensed spectrum utilization z HHI in TCn = si 2 i=1 n w.avg HHI of LSAm = w.avg HHIi i=1 where, Figure 6: Competition between telecom operators across telecom circles and LSAs s i 2 = market share of MNO in TCn 13/28
24 Licensed spectrum utilization Figure 7: Penetration among telecom circles and LSAs 14/28
25 Effect of market conditions on mobile network penetration Independent variables Number of network operators Competition between the network operators (HHI) Subscriber density Population density Operator spectrum holdings(osh) Expected impact on the penetration Positive Positive Positive Positive Positive Table 3: Impact of market variables on network penetration 15/28
26 Effect of market conditions on mobile network penetration Regression Model Penetration ~1 + neghhi Penetration ~1 + No.Of Operators Penetration ~1 + Osh Penetration ~1 + subscriberdensity Penetration ~1 + populationdensity Estimate SE Tstat Pvalue R- squared RMSE e e e e e Table 4: Regression results on single independent variables 16/28
27 Linear regression Model 1 Penetration ~1 + NumberOfOperators + neghhi + subscriberdensity + Osh+ populationdensity Estimated Coefficients: Estimate SE tstat pvalue (Intercept) populationdensity e subscriberdensity e e e-05 NumberOfOperators Osh neghhi Table 5: Regression results of Regression Model 1 17/28
28 No. of observations: 22 Error degrees of freedom: 16 RMSE: R-squared: Adjusted R-Squared F-statistic vs. constant model: 19.5 p-value = 2.67e-06 Figure 8: Linear regression model 1 18/28
29 Linear regression model 2 Penetration ~1 + NumberOfOperators + neghhi Estimated Coefficients: Estimate SE tstat pvalue (Intercept) NumberOfOperators neghhi Table 6: Regression results of Regression Model 2 19/28
30 Number of observations: 22 Error degrees of freedom: 19 Root Mean Squared Error: R-squared: Adjusted R-Squared F-statistic vs. constant model: 4.06 p-value = Figure 9: Linear regression model 2 20/28
31 Study of unlicensed spectrum Public WiFi Pilot Community networks architectures that are distributed in which users implement a decentralized network through the decentralization of the hardware supporting the network community broadband model which is a private initiative by the local residents of the community 21/28
32 Study of unlicensed spectrum Public WiFi Pilot Community networks architectures that are distributed in which users implement a decentralized network through the decentralization of the hardware supporting the network community broadband model which is a private initiative by the local residents of the community 21/28
33 Study of unlicensed spectrum Public WiFi Pilot Community networks architectures that are distributed in which users implement a decentralized network through the decentralization of the hardware supporting the network community broadband model which is a private initiative by the local residents of the community 21/28
34 Case studies Projects names Project Duration India Circle Funding entity narios Deployment regions in Telecom Implementing / Transit Provider Technologies employed Coverage Size Usecase Sce- NGO (DEF) / W4C Phase Chanderi in Madhya B Wireless mesh setup (one 20-30kms wide Schools, government ISOC Pradesh relay station, 5 point to point nodes) Baran in Rajasthan C 25 hotspots (3 point to point NGOâĂŹs, W4C Phase nodes with base station) Schools 10km wide Tilonia in Rajasthan B School Giriridh in Jharkhand C NGO (DEF), Tower for wireless network Government, W4C Phase Local community partner less mesh network has markets has been set up and wire- banking, local (Nav,Jagtri,Yuva been deployed. 5 point to Mandal) / ISOC point nodes with a base station Mandla in Madhya B 5 point to point nodes have Government Pradesh been established with wireless mesh network NGO (DEF)/ ISOC Nangaon in North Tripura C 5 nodes have been established Government W4C Phase Shivpuri, Baran, Guna B Mesh network was set up intranet connectivity to 3 communities Narayanpet in Mahbubnagar district of Telan- 4Mbps centers C BSNL (state owned)/ schools, health W4C gana Tham in Koderma district A Airtel (private owed) / 4 Government, of Jharkhand Mbps schools W4C Phase Little Rann of Kutch, A Connected vans via unlicensed spectrum, to lend 100 meters Schools (Zero Connect) Manish Rann, Kharagodah Rann, Patadi and Internet-enabled devices Surendrangar in Gujurat 2010 Ranchi Network in Jharkhand with NGO/support to educational in- C close co-operation 1000 sq.km Services offered AirJaldi from the Ford stitutions, businesses and indi- Foundation viduals Harisal in Amravati in Maharashtra Affordable Access White Spaces Technology center and WiFi A MicrosoftâĂŹs NOFN Project & using TV Schools, health Initiatives Grant (link) services to the villagers. Gram Marg Palhgar in Maharashtra A IIT Bombay/Tata Using TV White spaces Broadband connectivity to vil- Teleservices ( MHz) lagers 22/28
35 Challenges Illiteracy Inadequate support for the backhaul network Less support from the regulatory networks Maintaining and managing the network Less funding Less support from the transit providers 23/28
36 Challenges Illiteracy Inadequate support for the backhaul network Less support from the regulatory networks Maintaining and managing the network Less funding Less support from the transit providers 23/28
37 Challenges Illiteracy Inadequate support for the backhaul network Less support from the regulatory networks Maintaining and managing the network Less funding Less support from the transit providers 23/28
38 Challenges Illiteracy Inadequate support for the backhaul network Less support from the regulatory networks Maintaining and managing the network Less funding Less support from the transit providers 23/28
39 Challenges Illiteracy Inadequate support for the backhaul network Less support from the regulatory networks Maintaining and managing the network Less funding Less support from the transit providers 23/28
40 Challenges Illiteracy Inadequate support for the backhaul network Less support from the regulatory networks Maintaining and managing the network Less funding Less support from the transit providers 23/28
41 Challenges Illiteracy Inadequate support for the backhaul network Less support from the regulatory networks Maintaining and managing the network Less funding Less support from the transit providers 23/28
42 Results Hypothesis 1 : Licensed spectrum is scarce Hypothesis 2 : Low spectrum holdings of operators Hypothesis 3 : Inadequate market concentration Hypothesis 4 : Lack of regulatory incentives for community networks 24/28
43 Results Hypothesis 1 : Licensed spectrum is scarce Hypothesis 2 : Low spectrum holdings of operators Hypothesis 3 : Inadequate market concentration Hypothesis 4 : Lack of regulatory incentives for community networks 24/28
44 Results Hypothesis 1 : Licensed spectrum is scarce Hypothesis 2 : Low spectrum holdings of operators Hypothesis 3 : Inadequate market concentration Hypothesis 4 : Lack of regulatory incentives for community networks 24/28
45 Results Hypothesis 1 : Licensed spectrum is scarce Hypothesis 2 : Low spectrum holdings of operators Hypothesis 3 : Inadequate market concentration Hypothesis 4 : Lack of regulatory incentives for community networks 24/28
46 Results Hypothesis 1 : Licensed spectrum is scarce Hypothesis 2 : Low spectrum holdings of operators Hypothesis 3 : Inadequate market concentration Hypothesis 4 : Lack of regulatory incentives for community networks 24/28
47 Results Hypothesis 1 : Licensed spectrum is scarce Hypothesis 2 : Low spectrum holdings of operators Hypothesis 3 : Inadequate market concentration Hypothesis 4 : Lack of regulatory incentives for community networks 24/28
48 Results Hypothesis 1 : Licensed spectrum is scarce Hypothesis 2 : Low spectrum holdings of operators Hypothesis 3 : Inadequate market concentration Hypothesis 4 : Lack of regulatory incentives for community networks 24/28
49 Results Hypothesis 1 : Licensed spectrum is scarce Hypothesis 2 : Low spectrum holdings of operators Hypothesis 3 : Inadequate market concentration Hypothesis 4 : Lack of regulatory incentives for community networks 24/28
50 Recommendations regarding the unlicensed frequency bands Requested Frequency Application Current Allocation Countries/Reg-ions where Ranges for Unlicensing Exemption is in Place MHz Data telemetry Low power short range devices Australia, Singapore, Malaysia, European Union and New Zealand MHz Low power wireless equipment MHz Low power cordless communication MHz: Additional requirements of cellular telephone systems, train control and mobile train radio systems 900 MHz band: Micro cellular low powered telecommunication systems Mhz: low power cordless telephone systems Micro cellular wireless access systems (fixed/mobile) based on TDD access techniques MHz Broadband Access MHz Broadband Access Low power equipments for wireless access systems indoor only Table 7: Delicensing of additional bands US Europe US, UK 25/28
51 Recommendations related to Community Network Operators Innovative licensing Flexibility in regulation Creating public private partnerships Increase in the engagement with the communities in the rural region 26/28
52 Recommendations related to Community Network Operators Innovative licensing Flexibility in regulation Creating public private partnerships Increase in the engagement with the communities in the rural region 26/28
53 Recommendations related to Community Network Operators Innovative licensing Flexibility in regulation Creating public private partnerships Increase in the engagement with the communities in the rural region 26/28
54 Recommendations related to Community Network Operators Innovative licensing Flexibility in regulation Creating public private partnerships Increase in the engagement with the communities in the rural region 26/28
55 References [1] Spectrum Holdings of Telecom Service providers as on date for the purpose of bidding. [Accessed: 30-Apr-2018]. [2] G. C. Moshi, H. Mwakatumbula, and H. Mitomo. Regulation, Competition and Productivity Growth in the African Telecommunications Industry. International Journal of Managing Public Sector Information and Communication Technologies, 4(4):17, [3] B. D. Omkarappa, J. B. Quintana, and H. Hämmainen. Study of spectrum scarcity and community wireless network operators in India. In Internet of Things Business Models, Users, and Networks, 2017, pages 1 5. IEEE, [4] R. Srivastava. Community networks: Regulatory issues and gaps - An experience from India. 27/28
56 Thank You! Questions? 28/28
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