Rajeev Chandrasekhar opposes India's position on internet regulation-I: Says government did not consult stakeholders

May 17: Rajya Sabha MP, Rajeev Chandrasekhar has opposed India’s statement proposing government control over the internet to the UN. In a letter to the Prime Minister, Chandrasekhar has expressed his reservations on India's stand on setting up of a United Nations Committee for Internet-Related Policies (UNCIRP) and pointed out that the government did not involve view-points of all stakeholders before announcing its viewpoint. He has stated that the move is "inherently against the open, democratic, inclusive and unhindered growth of the internet." The proposal is slated to be raised today at the World Summit on the Information Society (WSIS) in Geneva.
 8Chandrasekhar has stated that India's position, even though cleverly worded, hurts its reputation of a multi-ethnic, multi-cultural and democratic society with on open economy and an abiding culture of pluralism.
 8The MP has also argued that India's position will hurt the advancement of the internet as a vehicle for openness, democracy, freedom of expression, human rights, diversity, inclusiveness, creativity, free and unhindered access to information and knowledge, global connectivity, innovation and socio-economic growth.
 8Chandrasekhar has contended that the move is fundamentally against the interest of 800 million mobile users and over 100 million Internet users in India who need to play a continued role by strengthening the existing multi-stakeholder process, rather than moving Internet governance to a government-run, inter-governmental, bureaucratically organized system- as proposed by India.
 8Lastly, the MP expresses concern over the fact that governments would be taking control, regulating, and circumscribing the Internet. He has objected to the government’s proposal of establishing the CIRP, the body comprising of 50 politicians/ bureaucrats controlling the internet, while multi-stake holders move to an advisory role.

Rajeev Chandrasekhar opposes India's position on internet regulation-II: 'Multi-stakeholder approach' only way forward

May 17: In his letter, Chandrasekhar has submitted that inter-governance is a highly complex issue and a top-down, centralized, international governmental overlay is fundamentally against the architecture of the Internet. The MP believes that the solution lies not in governments taking charge, but rather in strengthening the existing multi-stakeholder model from which significant benefits can be derived since it allows for equal access to decision-making for all bodies.
 8Further, the MP has contended that in India productivity, rising living standards and the spread of freedom everywhere would be hurt as engineering and business decisions relating to the growth of the internet will become politically paralyzed within a global regulatory body.
 8Chandrasekhar opines that the internet has neither been built by governments nor should it be regulated by them. This sudden attempt to move internet governance into intergovernmental control is unexplained, considering the tremendous success that the internet has seen around the world, especially after 3G being launched in India - with over 2.5 billion internet users and nearly half a million being added each day.
 8It has also been pointed out that the current governance structure does not, in any way, prevent the seven mandates that India's proposal mentions for CIRP. India, therefore, must find a way to achieve these within the multi-stakeholder arrangement or through suitable improvements rather than a radical shift.
 8Shoring up his case against the internet regulation , the MP has submitted that "modernization and reforms can be constructive, but not if the end result is a new government-controlled, global bureaucracy that departs from the multi-stakeholder model."
 8Concluding, Chandrasekhar has strongly urged the Indian government to draw a line and stand against such proposals while welcoming a role for further reforming the multi-stakeholder process that could even include a non-regulatory role for the ITU (UN). He says that in the withdrawal of this proposal, India will be seen as a country with a "strong sense of introspection".

TRAI issues Quality of Service guidelines-I: Recommendations on set top boxes

May 17: TRAI, in a recent communiqué to broadcasters, has issued regulations on the Quality of Service (QoS) for improving the end user experience. It has issued a number of recommendations pertaining to Set Top Boxes (STB's) that will be mandatory after digitization of TV services is made mandatory. Some of these recommendations are given as follows: 
 8A standard application form giving all details to be used for providing services such as connection, disconnection, shifting and return of set top box etc.
 8Prior notice of a minimum of 15 days to be given for disconnection of services to the consumer. Similarly, the consumer to give prior notice of minimum 15 days for making request for disconnection.
 8No charges, other than rentals for STB to be charged, in case the connection is suspended on the request of the consumer for a period of minimum one month to maximum three months.
 8Consumer complaints to be responded within 8 hours.
 8In case consumer is not satisfied with the redressal of his complaints through complaint centre, he can approach the nodal officer of the operator.
 8Every multi-system operator to offer cable TV services with both pre-paid and post-paid payment options and .be responsible for generation of bills to the consumers.
 8Operators to offer three schemes for set top boxes to the consumers namely outright purchase, hire purchase and rental.
 8Minimum warranty of one year to be provided for set top boxes acquired by the consumer under outright purchase scheme.
 8The security deposit for the set top boxes to be refunded within seven days of surrender of the set top box by the consumer.
 8Every multi-system operator to have a website giving details of services being offered, rates of services being offered.

TRAI issues guidelines on QoS-II: What the CCR mechanism will look like

May 17: The next time a consumer faces any sort of issue with the cable operator, chances are that he/she might finally have somebody to go to for relief. In its QoS guidelines, TRAI has shed light on the need for an effective redressal mechanism for addressing issues of the consumers and has proposed the creation of a 'Consumer Complaint Redressal (CCR)' mechanism for the purpose. The salient features of this mechanism, as laid out by TRAI, are as follows:
8Every multi-system operator or his linked local cable operator, before providing the services, will need to establish a complaint centre in his service area for redressal of complaints and addressing service requests of consumers.
8The consumer care number has to be toll free and to be widely publicized.
8Every multi-system operator or his linked local cable operator to establish a web based complaint monitoring system to enable the consumers to monitor the status of their complaints.
8Every multi-system operator or his linked local cable operator to appoint or designate one or more nodal officers in every state in which it is providing its services.
8Multi-system operators or his linked cable operator has to publish a consumer's charter for Digital Addressable Cable TV systems providing all necessary details with respect to the services being provided by them.Enter Introduction Here

Tulip Telecom posts annual results 2011-12: Profitability nearly stagnant, an improvement of only 1.1% from previous fiscal

May 17: Tulip Telecom, a premier enterprise data services company in India, has come out with its financial results for the fiscal 2011-12. The company has reported a net profit of Rs 309.7 crore compared to the Rs 306.4 crore that it recorded in the previous fiscal, up by just 1.1 percent. However, the company`s total revenues for the 12 months ended March 31, 2012 stood at Rs 2,705.1 crore, up 15.1 per cent from Rs 2,351.1 crore in FY`11.
8The company also did not seem to fare well in the January- March quarter with a 18.8 per cent decline in net profit compared to the year-ago period. The net profit stood for the quarter stood at Rs 67.1 crore.
8"Our focus for FY 12-13 will remain on strengthening our managed services portfolio leveraging Tulip`s strong presence in the data center space, while Tulip`s fiber based data connectivity business continues to strengthen with an expanded product and service offerings," said HS Bedi, CMD, Tulip Telecom
8Recently, Tulip Telecom launched the world`s third largest data center in Bangalore with an investment of approximately Rs 900 crores in FY`11 and registered leading names such as IBM, NTT and HP as some of its major customers.
8The company is also the network bandwidth service provider for offering services in Bihar, Andhra Pradesh, Punjab, Uttarakhand, Uttar Pradesh and Gujarat with a cumulative project value of about Rs 275 crore.
8In a separate filing to the BSE, the company said its Board of Directors (BoD) had approved the extension of its financial year. The filing stated that "subject to the approval of the Registrar of Companies, Delhi and Haryana, the Board of Directors has approved the extension of financial year from 12 months to 18 months" thereby making the fiscal ending on September 30, 2012.

TRAI wants VAS to be brought under licensing ambit-I: Says move aimed at making life simpler for ASPs

May 16: TRAI wants all application services to be brought under the licensing ambit. TRAI believes that bringing Application Service Providers (ASPs) under the provisions of Section 4 of the Indian Telegraph Act, 1885 through simple licensing would enable them to seek interconnection from telecom service providers, and take recourse to available dispute redressal mechanism available to a licensee.
 8Application services, it may be noted, are 'non-core' services that either add value to the basic tele-services or can be provided as standalone application services through the telecommunication network. The basic services being standard voice calls, voice or non-voice messages, fax transmission and data transmission.
 8Making its case, the regulator has said that in view of the massive expansion of application services and their contribution in enhancing the life style and capability of customers, a suitable framework that helps further the potential of application services is required.
 8TRAI also points out that there is no standard format for agreement and telecom service providers being the core of the application services value chain, usually dominate in finalizing the terms and conditions of the agreement. Licensing, TRAI feels, will help create a more level playing field. 
 8At present, the applications and services are provided either by the service providers directly or by third party content aggregators/enablers, generally known as Application Service Providers (ASPs). The revenue generated from application services is shared among telecom service providers, ASPs and content owners. The revenue shared is dependent upon a number of factors such as the nature of technology, type of content, demand from consumers etc.
  (Click on our `Reports` section for more information)

TRAI wants VAS to be brought under licensing ambit-II: Industry opposes move, argues regulatory intervention will only increase costs

May 16: Most of the stakeholders including telecom service providers, VAS providers and their associations are not in favor of bringing value added services under a licensing regime. The stakeholders have argued that licensing of VASPs will have an impact on the cost of providing VAS due to the contractual obligations of the relevant provisions of licensing, establishment of an independent marketing department, advertising and other related costs. They have instead suggested that telecom service providers should ensure that the VAS providers meet the regulations of the relevant industries/ regulators.
 8The stakeholders have opined that bringing the VASPs under the licensing ambit will give rise to implementation issues as it would be very difficult to issue and monitor thousands of licenses. But, they agreed to the fact that VASPs need to be registered under the appropriate government body to ensure entry of serious players only and to safeguard the right and privileges of the end subscribers, besides compliance on security and the nature of content/services.
 8Another viewpoint that emerged was that there should be a centralized authority which can register any ASP at a nominal fee and also work on the monitoring of content being provided by the providers and regulate them if need be.
 8The industry also pointed out that that none of the licenses have any provisions for Mobile Value Added Services (MVAS). They also mentioned that telecom operators and VAS providers offer Value Added Services under mutual commercial agreements, which are outside the purview of the current licensing regime.
 8However, some of the stakeholders, mostly individuals, agreed with the need for bringing VASPs under the licensing regime and mentioned that as it will make VASPs more responsible towards QoS, content provisioning and customers. They felt that licensing will also help dependent VASPs demand desired QOS from telecom service providers and in case of any dispute, VASPs can seek the compensation.
 8Additionally, it was also suggested that VASPs may be given licenses under Other Service Provider (OSP) category as being issued to application service providers presently with low entry barriers and less restrictions. The license fee initially may be kept at a reasonable level so as not to hamper the growth of VAS and put financial burden on the customers.
  (Click on our `Reports` section for more information)

TRAI wants VAS to be brought under licensing ambit-III: Short codes to be allocated, managed through new 'council'

May 16: For the allocation of short codes to telecom service providers and licensed application service providers, a Short Code Council (SCC) will be set up by TRAI. The proposed council is likely to allocate short codes in accordance with the National Numbering Plan to both ASPs and telecom operators independently.
 8The Short Code Council (SCC) will centrally manage the details of short codes allotted, type of service provided under short code, tariff for the service and hosting details for application services, which can be used by customers for discovering the services interactively.
 8If TRAI's proposal comes through, application service providers will be able to launch services only after online approval by the SCC. If the content provider wishes at a later date to run a new, modified or additional application on the same short code, the content provider shall update the same online for obtaining revised approval.
 8TRAI has also stated that the appropriate fee, one time and recurring charges, should be charged for allocation of common short code by the Short code Council (SSC), so that only genuine and serious content providers should seek the same.
 8TRAI has further proposes that services through allocated short codes should be made operational within three months of allocation and intimated online about the date of operationalization of the common short code by the concerned application service provider. However, if no such information is updated online within three months by provider for declaring the service operational, it shall be presumed that the common short code has not been made operational and non-utilization of short code for a period of more than three months will be subject to cancellation of short code and reallocation to other applicants.
 8Lastly, TRAI has suggested that service providers should open the common short code within a fortnight or fifteen days, after the code is approved by the Short Code Council (SSC) and update this information online with the Short Code Council. The orders/ directions/ regulations of DoT or TRAI from time to time, as the case may be, shall be applicable in this regard.
  (Click on our `Reports` section for more information)

TRAI wants VAS to be brought under licensing ambit-IV: Industry associations want government to step up act, enter VAS sector to give it a leg up

May 16: Industry associations have urged the government to provide more VAS services in the field of commerce, education, health, governance etc. and also to initiate active integration of relevant government bodies that can provide maximum online assistance to the public, something that the association feel, will ensure success of the utility VAS segment. A strong need has been felt to set up a Government Advisory Committee (GAC) that understands and identifies key needs of the public which can be addressed through mobile technology.
 8The associations have also suggested that information regarding government departments should be made available to citizens via text on their mobile phones. The services may be made available either on-demand, wherein the citizen sends the query via text and receives the answer via text or through subscribed services.
 8The stakeholders concurred on the view that the government can play a pivotal role in giving a boost to the sector in the form of incentives and tax rebates. 
 8Stakeholder felt that some other measures such as setting up of smart phone booths, spreading awareness through campaigns and trainings on their usage, deployment of innovative payment solutions and simple authentication mechanisms to enable transactions, including leveraging UIDAI as well as utilizing USOF funds to increase usage would be beneficial for increasing usage.
 8The industry has now sought government's active initiative, micro payment infrastructure, regulatory framework for privacy, dispute resolution mechanism, and assurance of relevant service.
  (Click on our `Reports` section for more information)

TRAI wants VAS to be brought under licensing ambit-V: Suggests applications should be adapted to local vernacular languages

May 16: TRAI has said that the development of application services in Indian regional languages should be encouraged through suitable incentives. This move, if accepted, should propel the growth of VAS solutions since people in tier II and tier III cities will then have increased accessibility to these utilities.
 8The regulator says that subscribers in the smaller cities and rural areas, who are likely to be major consumers of utility application services, are different from the English-savvy subscribers in metros and big cities. According to TRAI, subscribers in smaller cities and rural areas may not have adequate knowledge of  English and hence are more comfortable in communicating in their mother tongue.
 8In addition, the regulator notes that rural tele density is just 38.53% compared to an urban tele density of 169.37%. This clearly indicates that in near future, majority of new subscribers are expected to come from rural areas. Therefore, provision of relevant application services through phone could accelerate the uptake of phones in rural areas.
 8Another important factor which might force telecom service to provide localized applications, is that the English literacy in rural India is a mere 7%. This highlights the importance and need for development of application services in Indian vernacular languages.
 8At present, India has 22 official languages and each language has its own unique script and alphabet. A key barrier to development of application services, including SMS in Indian languages, is the lack of handsets embedded regional languages. The higher number of characters in the alphabet required to be mapped on phone keys is huge for local vernacular languages.
 8A strong need to encourage development of standardized keypad layouts for Indian languages has been felt. Ease of use of application services, as well as, providing multilingual content of choice is the key to increasing adoption of utility VAS.
  (Click on our `Reports` section for more information)

News Briefs:

May 16: 8Huawei was honored with a certificate of merit at the Global CSR Summit 2012 held recently in the Philippines. This recognition affirms Huawei’s commitment to bridging the digital divide and promoting the harmonious and sustainable development of the economy, society, and the environment. Pinnacle Group International Private Limited organized the Global CSR Summit 2012 during which Huawei received the certificate of merit. The award recognizes and honors companies for projects and programs that demonstrate a company's leadership, sincerity and ongoing commitment in incorporating ethical values, compliance with legal requirements, and respect for individuals, communities and the environment in the way they do business.
 8Qualcomm and Digibras Industria do Brasil S.A. (owner of the brands CCE Info and CCE Mobi) recently announced that they have entered into 3G and 4G license agreements, the first such agreements with a major Brazilian consumer electronics supplier. Under the terms of the agreements, Qualcomm has granted CCE worldwide, royalty-bearing patent licenses to develop, manufacture and sell 3G WCDMA and TD-SCDMA, and 4G OFDMA (e.g., LTE) subscriber units and routers. The royalties payable by CCE are at Qualcomm’s standard worldwide rates. "Qualcomm is pleased to sign license agreements with Digibras Group in Brazil to help drive the acceleration of mobile broadband penetration and the development of next generation wireless technologies in the country,” said Derek Aberle, executive vice president and group president of Qualcomm. “This agreement enables CCE to develop and manufacture 3G and 4G products such as smartphones in Brazil and sell them worldwide, which will help make Brazil a stronger force in the global economy and give Brazilians greater access to information, education, healthcare, and each other.”

TRAI caps duration of TV ads-I: Advertisements restricted to twelve minutes per hour

May 15: The consumers will no longer be harassed with incessantly long ad-breaks while viewing the idiot box, courtesy TRAI. In a recent communiqué issued to the broadcasters, TRAI has mandated that no broadcaster will carry in its broadcast of a programme, advertisements exceeding twelve minutes in a clock hour and any shortfall of advertisement duration in any clock hour shall not be carried over.
 8The advertisement slot in an hour, as per the ruling, may include up to 10 minutes per hour of commercial advertisements, and up to 2 minutes per hour of a channel’s self-promotional programmes.
 8the regulator has stated that all advertisement should be clearly distinguishable from the programme and should not in any manner interfere with the programme that is, use of lower part of screen to carry captions, static or moving alongside the programme.
 8This effectively means that consumers or viewers will no longer have to contend with 'floating' commercials cropping up, every now and then on the screen while watching serials or movies. Advertisements can only be full screen with part screen and drop down ads not permitted.
 (Click on our `Reports` section for more information)

TRAI caps duration of TV ads-II: Broadcasters will be adversely affected, oppose TRAI restriction

May 15: The cap on advertisements is likely to directly impact the revenues generated by broadcasters since as advertisements are one of the only revenue sources of free to air and paid channels.  The broadcasters, advertisers and their respective associations are clearly unhappy and have therefore vehemently opposed the proposed mandate.
8Various stakeholders have pointed out that this move is against the fundamental right of freedom of speech and expression guaranteed under Article 19(1) (a) and (g) of the Constitution.
8The industry associations and other broadcasters have questioned TRAI's jurisdiction over the matter. They contended that rule 7 (11) of the Cable Television Networks Rules eclipses the power given to TRAI through the notification, dated January 9, 2004.
8The broadcasters have also quoted some rulings of the Supreme Court wherein the court has held that the restriction on advertisement space in news papers would lead to a reduction in revenues, something that is in violation of Article 19(1)(a) and consumer interest cannot be the only relevant factor for framing a regulation.
8One of the industry associations stated that it is the wrong time to regulate the advertisements since the digitization has just started. They have stated that rather than regulating the advertisements, the regulators main  focus should be on successful implementation of the digitization of the cable TV sector.
8In addition, the stakeholders have argued that advertisements are part of a business model of the broadcasters and should not be seen as a burden to the consumers. In fact, advertisements help the consumers in many ways. They further submitted that a system of self regulation by the industry body is a better and appropriate way to regulate the advertisements.
(Click on our `Reports` section for more information)

TRAI caps duration of TV ads-III: Advertisements during 'live sporting events' left out of regulations, relief for sports channels

May 15: TRAI has not included any live sports broadcast as part of its regulations. However, it has stated that the advertisements shall be carried only during breaks in the sporting action. This initiative will primarily benefit sports genre based channels such as ESPN, Star Sports, Nimbus, which are already raking in millions of dollars in advertisement revenue from broadcasting cricket matches worldwide.     
 8The sports broadcasting channels had argued that the production and rights cost for live sporting events is very high and hence the present format of advertisement breaks should be allowed and if advertisements breaks are restricted then it may not be commercially viable to have live telecast of sporting events.
 8There is an argument from one of the broadcasters, that the statutory definition of ‘program’ includes the term advertisement as an integral part of the definition and advertisement insertion is an effective tool for communication with the viewers about various products and services.
 8They have further stated that in an increasingly competitive environment, channels have been required to develop new, creative ways of engaging their viewer on behalf of advertising clients and advertising and sponsorship insertions represent an important strategic way in which channels can seek to monetize their airtime and therefore allowing advertising only in the break time or half time is totally 'impractical'.
 8Sports broadcasters also feel that the nature of sporting events is too diverse and distinct and generic guideline for advertisement break during the 'interruption' may not serve the purposes as the notion of interruption is not defined and any attempt of putting proposed stipulation could lead serious impact on the ability of the broadcaster to attract sponsors and eventually degrade the quality of production of event in TV.
 8Keeping the above in view, the authority has opined that in case of sporting events being telecast live, the advertisements shall only be carried during the natural breaks in the sporting action, that is, half time in football or hockey match, lunch break, drinks break, change of over in cricket matches; game, set change in case of lawn tennis etc.
 (Click on our `Reports` section for more information)

TRAI caps duration of TV ads-IV: Mandates a minimum fifteen minute gap between advertisements

May 15: The next time we watch any of the blockbuster movies or serials on our TV sets, chances are that we might not have to resort to shifting through numerous channels due to long breaks. TRAI, in its recent directive to the broadcasters, has stated that the time gap between end of one advertisement session and the commencement of the next advertisement session shall not be less than fifteen minutes. In case of broadcast of a film or movie the time gap between end of one advertisement session and the commencement of the next advertisement session has been mandated to be not less than thirty minutes.
 8However, the broadcasters have opposed the move and stated that there should not be any reduction in frequency of advertisements since they struggle to recover even 20% of the cost of the movie in the first year of telecast with no restriction and if 3 breaks in a movie norm is implemented then it will become unviable for the broadcasters to acquire the cable and satellite rights also adversely affecting the movie industry.
 8It has also been pointed out that currently, there is no data to show that when the content is compelling, the users tend to keep away due to excessive advertising. As an example, the broadcaster has stated that the movies running on channels which have multiple breaks have garnered high TRPs and GRPs.
 8One of the broadcasters has put forth the view that market dynamics is already playing its role and the advertisement break patterns have started to change to reflect this. This is evident from the fact that more and more channels have started putting on screen displays providing information of the duration of advertisement breaks with an aim to retaining viewers. There are broadcasters who transmit ‘break free’ movies. Thus, market should be allowed to operate under self-regulated environment to achieve the objective.
 8The operators have further argued that ,as long as, the overall advertisement and channel promos are restricted within the fixed limits, there should not be any restriction of content duration in between advertisement breaks as the content duration between the breaks would be based on the content flow and the creative planning.
 8Many of the consumer groups have complained that frequent advertisements break the continuity of the programme to such an extent that it jeopardizes its integrity. Impact of frequent breaks is more pronounced in case of films. To address this aspect, a number of international markets have regulated the frequency of the advertisement breaks in the TV channels.
 8Therefore, to strike a  balance between the consumer’s viewing experience and the interest of broadcasters, the authority is of the view that the time gap between end of one advertisement session and the commencement of next advertisement session shall not be less than fifteen minutes and during the broadcast of a film (movie),  this time gap shall not be less than thirty minutes. However, in case of sporting events, being broadcast live, this provision shall not apply. 
 (Click on our `Reports` section for more information)

TRAI caps TV ad duration-V: Abolishes 'part-screen' advertisements

May 15: Television channels will not be able to show part or drop down advertisements, as per the latest regulations issued by the Telecom Regulatory Authority of India (TRAI). With the end user experience in mind, TRAI has stated that every broadcaster shall ensure that the advertisements carried in its channels are only full-screen advertisements and there are no part-screen or drop-down advertisements.
 8Majority of broadcasters have concurred with the view that the program should be clearly visible and distinguishable from the advertisement and this should not interfere with or cause any impediment in viewing and enjoyment of a programme. However, they have contested that the total ban on the part screen advertisements would be a disproportionately excessive measure.
 8The broadcasters also stated that Rule 7(10) of the Cable Television Networks Rules, 1994, already captures the legislative intent and mandate that advertisements must be clearly distinguishable from the programme and should not interfere with the programme. Therefore, there appears to be no need for further regulation. 
 8The broadcasters have opined that with availability of wide and bigger TV screens, the insertion of an advertisement on any part of the screen when programme is also simultaneously being telecasted on the same screen, does not affect the quality of telecast or create a hindrance to viewer’s enjoyment and therefore is in complete conformity with the rules stipulated by MIB in this regard.
 8Industry associations have observed that the sports broadcasters should have sufficient flexibility regarding the format of advertisement and advocated that part-screen advertisements should be allowed as this has the virtue of allowing the viewer to watch the action even while the advertisement airs. They further stated that if part-screen advertisements were banned it would be necessary to interrupt the coverage, and this would not be of benefit to consumers.
 8While the consumers tend to buy bigger and higher resolution screens to enjoy the best possible near life size images and clarity in programmes, only end up viewing larger than life commercials sharing the screen. Also in case of part screen advertisements the consumer does not have a choice to skip these advertisements, adversely affecting the overall viewing experience of the consumers. Therefore the Authority is of the view that there shall only be full screen advertisements. Part screen and drop-down advertisements shall not be permitted.
 (Click on our `Reports` section for more information)

NPIT awaits cabinet nod-I: Targets too ambitious?

May 14: The draft National Policy on Information Technology (NPIT) has set lofty targets for the future. The policy, which aims to enhance India's position as an IT powerhouse, has been approved by the telecom ministry and has also been circulated for an inter-ministerial consultation. What now remains is the final nod from EGoM. With infrastructural and policy hurdles constraining the development of the sector, such high targets that the policy aims to achieve seem to be a case of aiming for the skies to land on treetops.
 Following are targets put forward by the NPIT 2011:             
 8To increase revenues of IT and ITES Industry from 88 Billion USD at present to 300 Billion USD by 2020 and expand exports from 59 Billion USD at present to 200 Billion USD by 2020.
 8To promote innovation and R&D in cutting edge technologies and development of applications and solutions in areas like localization, location based services, mobile value added services, cloud computing, social media and utility models.
 8To encourage adoption of ICTs in key economic and strategic sectors to improve their competitiveness and productivity.
 8To create a pool of 10 million additional skilled manpower in ICT.
 8To leverage ICT for key social sector initiatives like education, health, rural development and financial services to promote equity and quality.
 8To strengthen the regulatory and security framework for ensuring a secure and legally compliant cyberspace ecosystem.
 (Click on the 'Reports' section for more information)

NPIT awaits cabinet nod-II: Strategy pivotal for social sector initiatives

May 14: With important programmes such as e-governance, e- health, e-education all set to play pivotal roles in transforming the country into a powerful knowledge economy, it is extremely important that the government does not lose steam while executing the NPIT. The importance of a well thought out strategy has therefore been felt by the government at large. This strategy that the government has envisioned in the NPIT is given as follows:
 8Creating an ecosystem for a globally competitive IT/ITES Industry: The strategies include requisite policy changes to make India a preferred destination to establish and operate IT/ITES enterprises including a stable tax regime, formulation of fiscal and other policies to attract investment in IT industry in tier II cities and rural areas, promoting ICT companies in accessing new markets, formulation of policies to provide fiscal benefits to SMEs and startups and evolving strategies for promoting the use of IT in other key sectors.
 8Human Resource Development: The strategies include creation of necessary physical and institutional infrastructure for creating a pool of 10 million trained persons in IT sector, by 2020, with a focus on skill development and expertise creation, producing at-least 3,000 PhD's in ICT in specialized areas by 2020 and developing a , mechanism to ensure that at least one individual in every household is e- literate.
 8Promotion of innovation and R&D in IT sector: The strategies include supporting SMEs and startup companies to equip them for competitive environment, creating an innovation challenge agenda to promote innovation and digital inclusion, building R&D infrastructure and test facilities for development and adoption of emerging technologies, incentivizing innovation in public supported research and industry academia collaborative R&D and Innovation academia with emphasis on products, patents and IP's, and encouraging the adoption of ICT based green technologies 
 8Enhancing productivity and competitiveness in key sectors through ICT: The strategies include leveraging ICT including mobile technology for financial inclusion and the use of ICT in key economic and strategic sectors.
 8Enabling service delivery through e-Governance through electronic mode within a fixed time frame by enactment of the Electronic Delivery of Services (EDS): Bill, mandating public procurement through electronic mode across all departments to enhance transparency and competition, undertaking implementation of Mission Mode Projects (MMPs) in Health, Education, Financial Services, PDS etc. to improve the quality and accessibility of such services, setting up a widespread network of Common Service Delivery Access points, accelerating and standardizing the delivery of electronic services by leveraging technologies like Cloud Computing and designing and implementing a policy framework for placing data in public domain
 (Click on the 'Reports' section for more information)

NPIT awaits cabinet nod-III: Government takes cognizance of slowdown in IT/ ITES, says intrinsic demand crucial to drive future growth

May 14:  The Indian IT/ITES sector's main strength lies in exports and outsourcing, which alone generate around 80% of the total revenues for the sector. The recent slowdown in major countries, especially Europe and USA, throws up new challenges for the sector and can be a major stumbling block for continued growth of exports.
 8Therefore, the government, on its part has stressed for a focused effort on geographical diversification to mitigate the risk of a regional downturn . Also, the government believes that strategies for increased domestic demand can offset this dependence.
 8The Indian IT/ITES sector, it may be noted, is estimated to have aggregated revenues to the tune of USD 100 billion in 2011-12. By the end of this period, direct employment in the IT/ITES sector reached nearly 2.8 million people with an addition of 230,000 employees during 2011-12 alone.
 8As a proportion of the national GDP, the sector revenues have grown from 1.2 per cent in 1997-98 to an estimated 6.4 per cent in 2011-12. Its share of total Indian exports (merchandise plus services) has increased from less than 4 per cent in 1997-98 to 26 per cent in 2011-12. With a focused and concentrated push through this policy it is envisaged that information technology can further contribute to more sustainable and inclusive growth.
 8Additionally, the advent of cloud computing technology has thrown up another wide range of possibilities for India. Indian companies have already begun creating new products and services incorporating their own intellectual property (IPs) and patents. The stage is now set for a quantum jump in this emerging sector. Another positive aspect is that there is a growing trend of entrepreneurship and product/ service innovation and so it is necessary to provide an enabling environment to nurture this evolution.
 (Click on the 'Reports' section for more information)

NPIT awaits cabinet nod-IV: ICT sector holds the 'key' to India's emergence in the electronic sector, R&D essential to sustain growth

May 14:  The pace of technological advance is accelerating and ICT is increasingly becoming a ubiquitous and intrinsic part of people's behavior and social networks as well as of business practices, government activities and service provision. These transformations brought about by the ICT sector holds the key to India's success story in the manufacturing space. Recognizing this, the policy attempts to optimally leverage India's global edge in ICT to- advance national competitiveness in other sectors, particularly those of strategic and economic importance through active research and development. Specifically, the policy aims to:
 8To support SMEs and startup companies to equip them for a competitive environment through fiscal benefits, innovation fund and incubation facilities.
 8To create an innovation challenge agenda to promote innovation and digital inclusion
 8To build R&D infrastructure and test facilities for development and adoption of emerging technologies like: next generation computing systems, High Performance Computing (HPC), cloud computing, GIS, mobile technologies, interoperable infrastructure for small financial transactions etc.
 8To incentivize innovation in public supported research.
 8To create and support an ecosystem to support R&D and innovation in academia through collaboration with the industry and ideation to commercialization with emphasis on products, patents and IP's.
 8To encourage adoption of ICT based green technologies as well as to promote green technologies by making them competitive through appropriate fiscal and non-fiscal policies.
 8To strengthen the ecosystem for creation as well as protection of intellectual property
 (Click on the 'Reports' section for more information)

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