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NationalOpticalFibreNetwork(NOFN)

Empowering,Rural

India

by

DEMOCRATISINGINFORMATION

throughBroadband

4th April2012

K.K.MinochaDDG(BB)USOF,DOT

INDIA 1

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Agenda

NationalOpticalFibre

Network(NOFN)&

BroadbandEcosystem

2

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Past2daysRoleofBB,

convergenceinNationBuilding PotentialandpowerofBBtotouchandempower

ourlivesbothinurban/rural MoresoinRURALwherebulkof72%peoplelive

bringingfulfillment,Electronically/online beginning

withkey sectors:

Health,Education,GovernanceandDemocratisation

ofinformationandsoon

LetustouchBottomofpyramid:throughresonance

ofConvergence, Policy,Regulation,Action

(Realisation)

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FACTORSRESPONSIBLE

UrbanRuralFORDIGITALDIVIDE

Difficult

terrain

&

Scattered

Population

LackofInfrastructure(Roads,Poweretc.)

Lowincome

HigherCAPEX&OPEX,LowARPUs

4

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BBacomplexEcosystem

BBVoice

Voiceevolution:4khz 64kbps 32kbps16kbps 9600bps 1200bps

BBevolution:SmokesignalsMorse50bpstelex

KbpsMbpsGbps Tbps ?

FoundationofBBinfrastructure=OFC

PoweroffibertocopegrowingneedsofBB wellunderstood

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2BBcomplexEquations

BB

Voice AVL Good BB= BHN+AN+UserD+

Con.+Lit+Awareness+AFFORD+Trust+Feltneed

Feltneed=naturalforvoice=CultivatedbysocietyforBB

Ecosystem=simpleforvoice

=complexforBB(3Ctriangle)

RuralBB=FillingGapsinBH+ANunbalancedeqn.atBottomofPyramid

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PolicyAspirationofBB

DraftNTP

2012

TODAY:No.ofBBconnections( 256Kbps) =13.5million(Jan2012)

Vision: BBonDemand

Increase ruralteledensityfrom 35to60(year2017)

100 (year2020)

Affordableandreliablebroadbandondemand(year2015)

BBconnectionstargets

175million

(year

2017

)

600million(year2020)atminimum2MbpsDLspeed

higherspeedsofatleast100Mbpsondemand.

RecognisetelecomandBBconnectivity as abasicnecessitylike

educationandhealth&worktowardsRighttoBroadband. Synergise betweenexisting,ongoingandfutureGovernmentprograms

viz egov,epanchayat,NREGA,NKNAADHAR,AAKASHtabletetc.&BB

rollout,Sharing;

GAP?:Miles

to

go

!How

to

we

leap

frog?

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Howdowemeetaspiration?

UrgentneedforinclusivegrowththroughBB

DeploymentofaNationalBroadband

infrastructureisaprerequisite

IndeedAgiganticandchallengingtask

for

vast

country

with

diverse

terrain

and

diversity

ofpeople.

NeedforSTIMULUS totriggerBBEco

system Questions:

Whererequired?Fromwhom?How?

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PrerequisitetoBBProliferation

Study DeploymentofaNationalBroadbandinfrastructureisaprerequisite,

Wayforward:

UnderstandtheReachoftheexistinginfrastructure(core,middleand

access)and

toidentifyandaddresstheinfrastructuregaps.

A

studyDeployment

Models

and

Required

Investments

for

Developing

RuralBroadbandInfrastructureinIndia was

commissionedbythe CII&conductedbyAnalysysMason.

Delveddeepintothemostappropriatedeployment&investment

models

for

the

Indian

context. OneofthekeyfindingsistheroleoftheGovernment.

Likeinothercountries,heretoo,governmentsinterventionandsupportis

necessaryforthebroadbandecosystemtoreachacriticalmass.

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G o a stu y:3Investmentmo e s

possible:

1. Ownership

2. PublicPrivatePartnership(PPP)and

3. FinancialIncentives

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DependingonExtentofGovt.

involvement TheOwnershipmodelhas

thehighestlevelinvolvementwiththegovtdeployingandowningthebroadbandcore/middlemile infrastructure

ThePPPmodelhas

relativelylowerlevelofgovt.role,withgovt.partneringwith

oneormoreprivateoperatorsindevelopingtheBB

infrastructure

TheFinancialincentivesmodeldefines

govtsroleasafacilitatorforprovidingincentives&grantstopublicandprivatesectorcompaniesfordeployingBB

infrastructure,butwithouthavinganyownership

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BroadbandEvolutionandGrowthFramework

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Investmentperspective

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INDIANADMINISTRATIVESETUPPopulation 1.17Billion

Area 3 287 263

Sq. Kms

States 28

UT 7

Districts 640

Blocks 6 382

Villages 6 38 619

72%Rural

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GramPanchayat=VILLAGECOUNCIL

Basicadministrativeunitinvillages

Numbercrunching:Highlevelview

No.of Villages 6 38 619

No.ofGramPanchayats2,50,000

No.ofBlocks 6,382

No.ofDistricts 640

Averageno.ofGramPanchayatsperDistrict 390

Averageno.ofGramPanchayatsperBlock 40

Averageno.ofVillagesperGram

Panchayats

3

Organisation of villages into GPs

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x s ng re=+ , , m

Reach/Coverage?

Fibre needed

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TelecomNetworkLayersGapsinOFC

Reach

Gapfrom

BlocktoGP

DIT/BSNLprogrammesby2012cover2,50,000GPs

ForPanchayats

wimax/wireline/

CSCbyDIT

A new Rural market

at BoP waitingto be tapped

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GISmappingoffibre

GIS mapping of 3 CPSUs BSNL,RAILTEL,PGCIL

completed by NIC

GIS Data of few private telecom operators received.

Data is inadequate.

Data from others has requested without further

delay.

18

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RoughsketchOFC

Existing+Incremental)

Stars=GPs

BSNL

RAILTEL

PGCIL

Block

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Gapsestimation ExistingfibersfromBlocktobeleveragedby

leasingexistingoperators(BSNL/RAILTEL/PGCIL) Onaverage2kmincrementalOFCperGPrequired

fromnearestexistingOFCtoGP

No.ofGPstobecovered2,50,000 Incrementalcableneededtobelaid5,00,000Km

Associatedelectronicstobemountedonthe

cablefromBlocktoGPs EstimatedcostINR20,000Crore($4billion)

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WhatisNationalOpticalFibreNetwork

(NOFN)? NOFN A Project to connect 2,50,000 Gram Panchayats(GPs)through OFC

Approved by GoI on 25.10.2011

NOFN Project will bridge connectivity gap between GPs andBlocks.

Project to be implemented by NOFNSPV namely Bharat

Broadband Network Ltd (BBNL). Envisaged as aCentreState joint effort.

Govt. of India to fund the project through the Universal Service

Obligation Fund (USOF).Rs. 20,000 Cr.($4B)

State Govtsare expected to contribute by way of not levying any RoWcharges (including reinstatement charges)

Reinstatement tob done by BBNL

SuitableTripartite MoUto be signed by GOI, State Govt & BBNL

21

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BBNLInfrastructureProvider BandwidthProvider

Gapfillerinaggregatelayer

UsersofNOFNareaccessoperators(TSPs/ISPs/CableTVoperators)

Enablesthemtolaunchvariousaccessservices

Operatorofoperators(carrierofcarriers) B2B,Noretailing

Nondiscriminatoryaccesstoalllicensedoperators

SeekstotriggerEcosystemopeningupnewRural

markets

Incrementalinnature

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NOFNDetails NOFN will ensure that Broadband of atleast

100Mbps is available at each GP NOFN will provide nondiscriminatory access to all

categories of service providers.

On NOFN, ehealth, eeducation, egovernance & ecommerce applications & Video conferencingfacilities can be provided.

NOFN Project implementation time 24 months (by31.10.2013).

23

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Concept:MakingavailableDarkFibers

byparticipatingCompanies

PoP

(AtBlockLevel)

ExistingOFC

ExistingDarkFibertobemadeavailabletoNOFNbyparticipatingCompanies

bycommercialarrangementtoBBNL

Joint Points

IncrementalOFC

Splitters

Tappingisproposed

atJointpoint

IncrementalOFC

GramPanchayats

GramPanchayats

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BBNL Interconnection

25

OPnOP1

GPs

BLOCK

DISTRICT

BBNLPoP

CENTRAL

NOC

Existing

Networks

BBNLPoP

PoIatBlock

PoIatGP

BBNLDomain

Access

Domain

Access

Providers

PoPs

Tobearranged

byUser

SPs

InterconnectAgreement

betweenBBNLandUserSPs

RetailCustomers

InterconnectAgreement

betweenBBNLexistingoper

Infrastructure by

Central Govt. SP

-Bridging the

Infrastructure by

Market

Stimulus opens

a new rural market at BoP

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WhatdoesNOFNoffertoService

Providers?

Guaranteed Bandwidth at GP and Block

Beneficiary operators to interconnect NOFN at itsPoP at Block and further built up connectivity using

existing networks upwards

Access Providers to interconnect at GPs to launchtheir retail services.

Standard interfaces for interconnection at GPs as

well as Blocks Centralised Management NMS, OSS/BSS

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HighlightsofNOFN(Contd.) Both Active & Passive technologies to be deployed

depending on ground situation Ring & tree architecture to be used depending on

ground realities and requirements

NOFN will use technologies that are scalable,

maintainable, observable & controllable meeting

ground realities of diverse rural environment.

NOFN to be operated and controlled centrally (NMS)

by BBNL

27

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HighlightsNOFN Evolution: HLCAdvisory bodySPV(Incorporated as

BBNL)

NOFN to be built using dark fibres leased from three

CPSUs (or any other desirous telecom operator) and

laying incremental fibre.

NOFN to offer interconnection at Block level and

Gram Panchayat (GP) level

Guaranteed Bandwidth of100 Mbpsat GP

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FunctionsoftheAdvisoryBody

EvolvingEcosystem&Resonanceofstakeholders

1. Implementation Issues

2. Upstream and downstream integration3. Issues relating to nondiscriminatory access

4. Providing strategic vision to entire BB Ecosystem

including Content, Localisation, Services,Applications, Customer end devices / CPE etc. for

accelerating BB penetration

5. Any other matter considered vital for accelerationof broadband penetration

29

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NOFN MANAGEMENT1.ASSETCLASS NATIONAL ASSET

2.ASSETHANDLING SPVasAMC(ASSET

MANAGEMENTCOMPANY)

3.ASSETOPERATION SPV CPSUsAGREEMENT

BOM(BUILDOPERATE

MAINTAIN)

4.ASSETRELIABILITY SPVTOOPERATENOC

5.ASSETQUALITY SPV TCILAGREEMENT

ASSURANCE

30

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RoW(RightofWay) Telecom Cables are laid along roads/railway

tracks/ on electric transmission/ distributiontowers.

This requires permission (termed RoW) fromthe concerned authorities viz. PWD,

Municipality, Forest, Panchayat Authorities,Rural Engineering Service, Electricity Boards,Irrigation, Private Electricity Distribution

Agency, etc. Project execution by BBNL will commence aftertripartite MoU is signed .

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Salient

features

of

Tripartite

MOU

:

SupportrequiredfromStateGovernments/UTs

To grant RoW permission by issuing instructions toall state government agencies (as applicable) PWD/RES/ Forest/ Municipality/ Panchayat Authorities/Electricity Boards/ Irrigation/ Private Electricity

Distribution Agency etc. for enabling NOFN SPV to layOFC without any charges (including reinstatementcharges). The executing Agency(BSNL,RAILTEL,PGCIL) will reinstate at its cost.

State Govts to plan out services to be offered on thenetwork (egovernance, elearning, ehealth, etc.)

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Other

Issues

Ecosystem Availability of relevant applications & content

particularly in priority areas viz.

eEducation, eHealth, eGov applications to suit

local requirements

Timely availability and affordable customer end

devices relevant to rural applications

Pilot Trials Participation by access providers at GPs,content providers & Govt. Departments

33

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PROJECT

ORGANOGRAMDoT/HLC/USOF

BOD

BBNL

CorporateManagementTeam ProjectManagement

ProjectExecution

(BSNL/RT/PG)

ProjectMonitoring

(TCIL)

ProjectSupport

(CDOT/CDAC)

ProjectExperimentImpactAssessment

ServiceProviders

Centre/StateGovts.

Panchayats

Academia

CivilSociety

34

GIS support

NIC

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Bharat Broadband

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THANKYOUK.K.Minochaddgbbdot@nic.inDDG(BB)USOF,DOT

INDIA

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SOURCEOFFUNDS&STATUS

Funded through Universal Access Levy @ 5% of Adjusted

Gross Revenue (AGR) from all Service Providers

Levy amount is credited to Consolidated Fund of India Fund is made available to USOF after due appropriation

by the Parliament

As on 31.12.2012 :

Subsidy of Rs Rs.15,059.46 Crores (US$ 2.34 billion) disbursed

Potential Balance available is about Rs 16,803.84 Crores

(US$ 3.73 billion)

*Exchange rate: I USD=Rs 45

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GPONRINGBranchTopology

2x4*GPON OLT

CO/POP

* Splitter located in remote CO, pole mount, Strandmount , pedestal, below grade etc

DistributionFiber

Applications: High construction neighborhoods where

Protection against Feeder f iber cuts isrequired

High availability GPON for businesseswith path and equipment protection

Advantages: Protection Up sell for business

Protection for feeder fiber cuts Efficient use of distribution fiberAccommodates basic churn Few types of spli ttersDisadvantages: May have some stranded drops

Feeder fibers must be diversely run

Drop FiberBlock POP ODN

PanchayatsPremise

1x8

1x8

1x8

1x8

Working Span

Protection S pan

12/24F

SpliceEnclosure

SpliceEnclosure

12/24F

12/24F

12/24F

1/ 2F

FDF

2.5Gbps/1.25Gbps