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Business Standard
5 days ago
- Business
- Business Standard
Telcos raise concern over Digital Bharat Nidhi fund diversion to R&D
India's telecom operators have raised objection to the government's move to divert a portion of the Digital Bharat Nidhi (DBN) towards research and development (R&D) activities, arguing that it deviates from the fund's original mandate and lack of transparency in allocation. In a letter addressed to Telecom Secretary Neeraj Mittal, as seen by The Economic Times, operators flagged concerns over using DBN resources, which are funded primarily through levies on telecom and internet service providers, for R&D initiatives undertaken by public sector entities and academic institutions, including the Indian Institutes of Technology (IITs). What is the Digital Bharat Nidhi? The Digital Bharat Nidhi (DBN), formerly known as the Universal Service Obligation Fund, is a government-administered pool aimed at financing telecom infrastructure in underserved rural and remote areas. The fund is maintained through a 5 per cent levy on adjusted gross revenue (AGR) from telecom and internet service providers (ISPs). As of December 2023, the DBN corpus stood at ₹86,356 crore. OTT disproportionately gain from R&D: Telcos Telecom operators have raised concerns over the government's move to allocate 5 per cent of the DBN corpus to research and development (R&D). The argument of the telecom companies is that the contributor base remains limited to telcos and ISPs, while over-the-top (OTT) platforms, key beneficiaries of broadband expansion, are excluded from making contributions. The Cellular Operators Association of India (COAI), representing the major telecom players, argued that while R&D is valuable, it falls outside the scope of DBN's original objectives. They highlighted that private telecom firms are being required to support activities that do not necessarily yield direct benefits to them. Telecom cos criticise lack of transparency Operators also criticised the non-transparent allocation process, pointing out that most of the DBN's R&D funds have gone to a handful of institutions like the IITs without open or competitive bidding. They stressed that these premier institutions make up a small fraction of India's engineering education ecosystem and already receive significant public funding, reportedly around ₹8,000 crore in FY22. In their letter, telcos urged the government to ensure equitable access to R&D funding across a broader range of qualified institutions, rather than focusing funding on a select few. They also demanded that intellectual property generated through DBN-funded research be shared transparently with contributing telecom firms and not retained as proprietary assets by the research bodies. They also called for the selection of implementing agencies to be governed strictly under the DBN Rules, 2024, and insisted on industry representation in the decision-making process.
Time of India
6 days ago
- Business
- Time of India
Telcos raise concerns over Digital Bharat Nidhi use
New Delhi: Telecom operators have opposed the use of Digital Bharat Nidhi (DBN) funds for research and development (R&D) purposes, particularly by public sector units and select institutions like the Indian Institutes of Technology ( IITs ), saying the move goes against the reasons why the corpus was created in the first place. In a letter to telecom secretary Neeraj Mittal, telcos stressed that the foundational purpose of DBN, earlier called Universal Service Obligation Fund , was to support deployment of telecom networks in uncovered rural and remote areas. It was meant to relieve telcos and internet service providers (ISPs) of their individual obligations to roll out services in unviable regions. To make it happen, telcos and ISPs contribute 5% of their adjusted gross revenue to the DBN. As of December last year, the DBN had a fund balance of ₹86,356 crore. Now 5% of DBN is earmarked for R&D but the contributors remain the same and over the top (OTT) platforms, which are major beneficiaries of broadband proliferation, don't have to contribute. The telcos, through Cellular Operators Association of India (COAI), wrote to the government that while R&D was strategically important, it traditionally fell within the domain of academic and research institutions and did not directly align with the DBN's foundational purpose. "As a result, TSPs/ISPs are compelled to contribute significantly towards activities that may not offer them any direct or tangible benefit," the COAI said in the letter. Live Events The telcos further stressed that allocation of funds to public sector units on nominating terms effectively results in cross-subsidy from private players to them. Besides, the majority of DBN allocations for R&D have been directed to a few institutions like IITs, without a transparent selection mechanism like open bidding or competitive bidding. "While IITs are esteemed institutions, they represent less than 0.4% of the engineering colleges in India. Moreover, institutions such as the IITs already receive substantial government funding, approximately ₹8,000 crore annually, as of FY22," the letter said. The telcos want that DBN allocations should be done in a manner to ensure equal allocation to all the technical, R&D and engineering institutions which are equally worthy, and are capable of good quality research and development work. Further, the intellectual property rights and products developed using DBN-funded R&D must be made accessible to contributing telcos and ISPs in a transparent manner. "These outputs should not be treated as private assets by the R&D institutions or individual researchers," the letter said. It added that the selection of implementing agencies for R&D funding must adhere to the process as per the DBN Rules, 2024 and telcos, who are the major contributors towards the fund, should be involved in the selection process.
Time of India
30-06-2025
- Business
- Time of India
Strong domestic innovation boosting India's 6G ambition: Neeraj Mittal
The Centre is working on multiple initiatives to accelerate homegrown innovation in a bid to facilitate India's contribution to next generation (6G) technology. In an interaction with ETTelecom's Muntazir Abbas, Neeraj Mittal, Secretary, Department of Telecommunications (DoT), and Chairman, Digital Communications Commission (DCC) talks on sectoral health, Digital Bharat Nidhi (DBN) levy, technology development fund, 6G preparedness, satellite communications (satcom), terahertz spectrum band, and Bharat Sanchar Nigam Limited (BSNL) 4G network. Edited excerpts. Is there any new relief package in the works for the telecom sector? There is no proposal at present. Industry has been demanding a cut in Digital Bharat Nidhi (DBN) levy for a long time. Is DoT considering any reduction? There is no proposal of reduction. Do you think a 3+1 telco market is healthy enough for a country like India? India has large numbers of telecom licensees having authorisation to offer various telecom services. Market dynamics determine equilibrium. How has been the progress of Telecom Technology Development Fund (TTDF) so far? How much disbursement has been made till date? A total of 120 proposals covering areas such as 5G development under the 'India 5G Stack', 6G and beyond technology development, Internet of Things (IoT) and machine-to-machine (M2M) development, and other telecom technologies are being funded under the Telecom Technology Development Fund (TTDF) scheme, amounting to ₹500 crore. These also include 100 proposals aimed at advancing the development of 6G technologies and ensuring robust, efficient, and sustainable connectivity solutions. As of now about ₹180 crores have been disbursed. India's 6G preparedness seems to be slow-paced as against the ambition of at least 10% of the global patents by 2030. What steps are you taking to fast-forward the progress? India is gearing up for 6G by 2030 with a strong push for domestic innovation, guided by the Bharat 6G Vision . Building on its 5G research foundation, the country has launched over 100 research and development (R&D) projects and set up indigenous test beds and labs. Key events like the TTDF Symposium 2025 and the upcoming 3GPP RAN meeting in Bengaluru underscore India's growing role in shaping global telecom standards. Do you think terrestrial and non-terrestrial networks will be complementary to each other? Terrestrial networks offer dense, high-speed coverage, while non-terrestrial networks like satellites extend reach to remote and underserved areas. Together, they enable seamless, global connectivity across land, air, and sea. Share an update on terahertz band (95 GHz-3THz) and terahertz experimental authorisation (THEA), as proposed by Trai, to promote R&D and trials? TRAI recommendations on Terahertz band and Terahertz Experimental Authorisation, are under the Department of Telecommunications' consideration. What are the top 2-3 focus areas for BSNL in the current fiscal? What steps are you taking to sustain profitability? The focus areas of BSNL include rollout of indigenous 4G network, improving quality of service, improving customer service, and eventually make the company profitable. Share an update on Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL) assets monetisation exercise? Total earnings generated through asset monetization of BSNL and MTNL, is ₹12,984 crores since the approval of 2019 revival plan, from sale and rental. By when will the BharatNet 3 program be completed? The amended BharatNet project is for ten years.
Time of India
02-06-2025
- Business
- Time of India
'Unjustifiably low' satcom spectrum price, says COAI
India's top telcos have slammed the satcom recommendations from the telecom regulator, terming the spectrum price as 'unjustifiably low' and said that the proposals are based on "incorrect assumptions" and are "non-transparent".In their first reaction to the recommendations given by Telecom Regulatory Authority of India (Trai) last month, all three bitter rival operators have closed ranks and said that if implemented in the current form, the regulator's satcom suggestions would create a non-level playing field and impact the sustainability of terrestrial services. In a strongly worded joint letter through the Cellular Operators Association of India ( COAI ) to various government authorities, seen by ET, the carriers highlighted data and said the planned capacity of Elon Musk-owned Starlink and Jeff Bezos led-Amazon Kuiper are set to surpass the current capacity of Reliance Jio, Bharti Airtel and Vodafone Idea. "These recommendations are non-transparent based on non-justifiable assumption rather than factual data," the telcos said in the letter, marked to Trai, Department of Telecommunications (DoT), Finance Ministry, Commerce ministry, Ministry of Electronics and IT (Meity) and Niti Aayog etc. The operators have said the proposed spectrum charges are even lower than the administrative fees currently levied on GSO-based VSAT services-which do not compete with terrestrial networks. "It appears that Trai has underestimated the potential capacities of satellite network while possibly overstating those of terrestrial networks that have resulted in a flawed foundation for the entire exercise," the letter said, adding this fundamental flaw in the capacity assumptions exercise undermines the DoT's clear mandate to ensure competitive parity between satellite and terrestrial services. Trai had recommended the administrative allocation of satcom spectrum for a fee pegged at 4% of adjusted gross revenue (AGR) to be assigned for five years. There won't be any upfront fee for getting spectrum. Trai chairman AK Lahoti had categorically rejected the level-playing field argument by telcos, stating that the two technologies were different and that satellites could only be complementary. "It's not factually correct that satcom services are competing with terrestrial services because there is a huge difference between the capacity of the terrestrial network and the satellite network," he had said while releasing the recommendations. The telcos, however, feel the entire exercise was flawed as it was based on incorrect assumptions. "Despite a clear mandate from DoT, Trai's consultation process and final recommendations do not appear to address the core issue of competitive parity which shows a misalignment between the intent of DoT references and Trai's approach during the consultation process," the telcos said. The additional proposal by Trai to subsidise user terminals or satellite operators through the Digital Bharat Nidhi (DBN) fund further tilts the level playing field against the terrestrial operator, especially given that a majority of the DBN levy is contributed by telcos.
Time of India
28-05-2025
- Business
- Time of India
DoT seeks ISPs to use BharatNet infrastructure to bridge digital divide
NEW DELHI: The Department of Telecommunications (DoT) has urged the country's internet service provider (ISP) industry to increase the utilisation of the BharatNet infrastructure to bridge the digital divide in India. 'We at DBN (Digital Bharat Nidhi) are implementing the amended BharatNet project with an outlay of nearly ₹1.5 lakh crore, which aims to connect nearly 2.6 lakh gram panchayats. I feel that it is a great opportunity for various stakeholders, including ISPs, to be part of this huge exercise taken by the government of India to bridge the digital divide,' Niraj Verma, administrator, DBN, said Tuesday at an industry conference. BharatNet, a rural telecom connectivity project, is aimed at providing non-discriminatory access to broadband connectivity to all telecom operators, including ISPs, with the objective to connect a total of 6.5 lakh villages. However, the ambitious digital connectivity has been facing several execution-related challenges despite multiple extensions. "We have tried twice, Bharat Net Phase 1 and Phase 2, and we did not succeed to that extent due to various reasons. In Phase 1, we tried to connect 1.2 lakh villages, and then in Phase 2, tenders were awarded for eight states. The results had been mixed."Verma added. Under the BharatNet Phase 3, he said tenders have been awarded in 12 packages, including in major states such as Uttar Pradesh, Madhya Pradesh, Punjab, Bihar, and West Bengal. State-controlled Bharat Sanchar Nigam Limited (BSNL) has previously awarded contracts to Polycab , ITI Limited , Sterlite Technologies (STL), Telecommunications Consultants of India Limited (TCIL), and Pratap Technocrats, among others, under multiple packages of the BharatNet Phase 3 programme. Initially envisioned in 2011 under the UPA-II regime as the National Optical Fibre Network (NOFN), it was rebranded as BharatNet in 2015. Read More | Controversies surface over BSNL's ₹1.39 lakh crore BharatNet 3 programme In July 2022, the Cabinet approved the merger of Bharat Broadband Network Limited (BBNL) with BSNL to accelerate project rollout. In August 2023, the Centre approved the Amended BharatNet Programme (ABP) to expand fibre connectivity to the remaining 3.8 lakh non-Gram Panchayat villages on a demand basis. The top official said that nearly 2.12 lakh villages are service-ready today, cautioning that only 50,000 gram panchayats have an uptime of over 98% under BharatNet. 'We have now changed our focus from implementing the project to utilisation of the network and in amended BharatNet, it is a little different in the sense that we are giving the states as packages to EPC contractors, and we have a referee which is in the form of independent engineers,' Verma said. 'The idea is to get the services from this EPC contractor and a network with 98% uptime.' He added that a stable network offers 'exciting opportunities' to wireline ISPs, who can lease bandwidth or dark fiber to provide backhaul for mobile towers, or deliver broadband services and generate a new revenue model. 'We are engaging BharatNet Udyamis (entrepreneurs) for providing the connections, and anyone, including ISPs, can participate as BNUs under BSNL. ISPs can also have a look at the network that will come up and how they would like to provide services. We are ready to look at any alternate model where our utilisation goes up,' the official said. Under BharatNet, as of December 2024, 6,92,428 km of Optical Fibre Cable (OFC) has been laid and 2,09,281 gram panchayats (GPs) are service-ready on OFC. In addition, 5,032 GPs have been connected over satellite media, thus, a total of 2,14,313 GPs are service-ready, the Ministry of Communications said last year.
