The ‘Digital India’ Initiative of the Government

The ‘Digital India’ campaign of the Government was launched on July 1, 2015 by the Prime Minister, Narendra Modi. The INR 1.13 lakh crore is aimed at creating a digitally empowered society and knowledge economy. The project has the potential to bridge the digital divide and benefit billions of people through digital solutions in education, banking, healthcare, irrigation and agriculture sectors.

‘Digital India’ comprises of initiatives targeted to render good and effective governance to the citizens through synchronized and co-ordinated activities of various arms of the Government. This is centered on three broad key areas of – (i) Digital Infrastructure as a utility to every citizen, (ii) Governance and services on demand, and (iii) Digital Empowerment of citizens.

The programme aims to provide broadband highways, universal access to mobile connectivity, public internet access programme, e-governance: reforming government through technology, eKranti – electronic delivery of services, IT for jobs, information for all and electronics manufacturing: target net zero imports.

The ambitious project comes with its set of challenges, some of which are:-

1. Spectrum shortage: This can be said to be the biggest challenge. A visible trend shows that the numbers of wireless subscribers are growing and wireline subscribers are declining. Spectrum being a scarce resource, further mobile push is likely to make the situation worse. In case of the foreseeable happening of rise in the spectrum price, the telcos will not be in a position to provide affordable internet.
2. Duty abnormalities affecting the domestic manufacturing of electronics: Manufacturing has for long been a slow growth sector and the electronics manufacturing has been no different. The government removed 11.5% excise duty concession for manufacturing of electronics. During the recent signing of Memorandum of Understanding between the National Association of Software and Services Companies (Nasscom) and the India Electronics and Semiconductor Association (IESA), the Minister of Communication and Information Technology, Ravi Shankar Prasad admitted that for increasing the electronics manufacturing in India, a correction in the duty structure is vital.

With these, among other, challenges likely to be countered, it would have to be seen how would the Government overcome them and successfully implement the Project.

According to an NDTV report, the Finance Minister, Arun Jaitley, said that this project is a part of a series of programmes intended to give a new direction to the country. He further said while last week saw launch of ‘Smart Cities Mission’, ‘Skill India’ educational initiative would be unveiled next week.

Under ‘Digital India’ the Government endeavours to provide broadband connectivity in all panchayats, Wi-Fi in all schools and universities and public Wi-Fi hotspots in all important cities by 2019.

At the launch event, India Inc committed INR 4.5 lakh crore investments in projects relating to ‘Digital India’ and also promises to create about 18 lakh jobs under the programme.

Spectrum Sharing Guidelines Likely Only After Spectrum Auctions

The issuing of the guidelines for sharing of spectrum is likely to be delayed further and the same may be issued after the forthcoming spectrum auctions next month. The guidelines would be finalised and are likely to be issued after the auctions, upon finalisation.

The finalised guidelines were earlier supposed to be issued in December last year, however the same have not yet seen light of the day. Further, even the recent Notice Inviting Applications issued by the Department of Telecommunications (“DoT”) for the upcoming auctions in February, 2015 had indicated the guidelines for these would be notified in due course.

As per news reports, the DoT is not keen on announcing the guidelines before the auctions as this might prevent companies from aggressive bids is causing a revenue loss to the exchequer. However, the Telecom Commission, the highest policy making body of the DoT, is yet to take a final decision on the issue. Our previous post on the issue of spectrum sharing guidelines may be accessed here.

The Telecom Regulatory Authority of India (“TRAI”), in July 2014, recommended that sharing of spectrum in all bands (2G, 3G and 4G) should be allowed, subject to the condition that all operators have spectrum in the same band. The TRAI, however, specifically provided for a prohibition on leasing of spectrum. Additionally, the DoT plans to allow sharing of spectrum only between entities having 2G spectrum in the same service area and not between operators with spectrum in different service areas. Please refer or previous post on the recommendations issued by TRAI here.

DoT is in the process of finalisation of guidelines for inter-operator swapping. The said swapping is regardless of the type of allocation to ensure contiguity. The DoT has formulated a committee for the identification of issues concerning the industry, resolution of the issues and framing appropriate guidelines.

Additionally, the DoT is in process of reviewing the policy relating to licensing requirements for import of low powered wireless devices.