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Rapid Deployment of Telecommunications Kiosks in India (RADTEK-I) Case Study

Background and Context
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On January 26th of 2001 a major earthquake that registered over 7 on the Richter scale devastated the state of Gujarat. Since most structures are of inferior construction and not designed to withstand even a minor earthquake, many towns and villages suffered severe damage. The cities of Surat, Baroda, and Ahmedabad suffered significant damage to their infrastructure. Human loss was in the tens of thousands. Relief efforts from around the world and from agencies of UN have been remarkable and gratifying. Nevertheless, these efforts were significantly hindered because of an inadequate communications infrastructure.

While India has launched rockets and its own communications and broadcast satellites, is self-sufficient in nuclear technology, and has one of the world's best talent pools in electronics and IT software, this has not translated into an improved commutations system throughout India. Still, it is not necessary to upgrade the entire infrastructure of the country order to provide effective and rapid communications in crisis situations.

Project Description

The RADTEK-I model calls for a basic self-supporting telecommunications kiosk collocated either at a public facility or a small business operation. In some cases, it may be a standalone facility, with access to power or the ability to generate its own power. The RADTEK-I (the Telecom/ Internet kiosk) may contain two or three telephone sets and a limited number of desktop computers. The connection lines can be several 8 Kbps lines along with analog or digital voice lines. The 8 Kbps data lines can also be used for voice.

The Telecommunications Environment in India

The public telephone network infrastructure (PSTN) is owned and operated by the Government. In 1995, the Government did privatize part of the voice telephony business. India was divided into 16 areas (Circles) and one license was issued per Circle via auction. The licensee was (is) required to implement fiber backbones between cities and wireless subscriber nodes. Many leading Indian and global companies bid on the licenses with auction values per Circle reaching hundreds of millions of dollars.

Data Communications in India are not part of the Government monopoly. However, there has been no concerted effort to deploy a regional or nationwide broadband digital network for data communications. The National Informatics Center (NIC) has deployed and operates a satellite-based VSAT network connecting up to 12,000 sites. To use a VSAT terminal in the field, it has to operate as an integral part of a VSAT network. The VSAT Central Control Facility will terminate all user traffic at the collocated or nearby PSTN switch. The INSAT satellite transponders are used for this operation. In recent years, small terminal (two-meter antennas), at a cost of about $5,000, have been installed in many locations. Typical data rates are about 64 Kbps per VSAT SCPC channel. These VSAT networks may not carry public voice traffic. The Government has waived this rule during natural disasters and other special occasions (the earthquake qualifies under this stipulation).

Replication

The Rural Telecommunications Project has spawned a number of small entrepreneurs, who have built and are operating DMR (Digital Microwave Radio) networks in a small number of locations. This technology is still used in some parts of the rural United States. Target villages are connected to the central switch site, which can be 50 to 60 miles away, via multi-hop digital microwave repeaters.

The INMARSAT (International Maritime Satellite Communications) Organization is set primarily to provide maritime satellite communications. However, in recent years, it has been offering its "NAVCOM" suitcase-size satellite phone terminals. India has an INMARSAT Central Control facility in Bombay, and the user traffic is terminated at the PSTN in Bombay. As India is a signatory of INMARSAT, the INMARSAT terminals can carry voice and data traffic. NAVCOM terminals cost about $4000 and offer up to 3 Kbps channels. INMARSAT time changes can run in excess of $2 per minute.

Recently, several global low-orbit mobile satellite systems have been launched. The IRIDIUM system was too expensive and went bankrupt. GLOBALSTAR, a joint venture of Loral and Qualcomm, is still operating. It has several partners, including France Telecom, Vodafone/Air Touch, Hyundai, Daimler Benz, DACOM, and Alenia Spazio. Each partner has rights to offer Globalstar service in several selected countries. Hyundai Electronics won the rights to offer service in India, and has formed a joint venture with Crompton-Greaves (Thapar Group) to form Globalstar India. Handsets that use the Qualcomm CDMA technology are priced at $700, and the service at $.70/minute. Data rates of 8Kbps are offered for each Globalstar traffic channel.

Factors Affecting Rural Telecommunications in India

icost per call
dependability of the switch
dependability/transparency of trunk medium

system size (# of telephones that can be accessed on minimum unite fee basis)
registration charges .
access charges

special offers with respect to registration charges
clearance of waitlist
the fact that having a telephone means one must pay income tax
proximity to switch (tele-density is inversely proportional to proximity to switch)

Available Options

Terrestrial Wireless Options

DMR Option: This involves obtaining a license from the Rural Telecommunications Board and reaching a service agreement with the PTT Regional Headquarters. This will permit deployment of DMR facilities in selected locations and interconnected with the PSTN switch in Ahmedabad, Baroda, or any nearby PSTN switch facility. A three hop system covering a range of 60 miles and offering three 8 Kbps channels will cost around $10,000. The price normally includes equipment and installation, including a set of subscriber terminals. This will be a permanent facility. The kiosk and computer cost will be separate. Access charges must be negotiated with the PTT. Channels can carry both voice and data communications. Several vendors (Hughes Network Systems, Comstream, Alcatel, Siemens, Nortel, Lucent, and others) offer competitive equipment and also provide installation and maintenance support. It may take up to six months, under normal conditions, to deploy the equipment, after all licenses/agreements have been obtained.

Arrangement with Alternate Basic Services Carrier: This may not be a viable option. The Alternate Basic Services Carriers carry only voice and have yet to begin implementation beyond major cities. Access costs are expected to be very high.

Cellular Carrier: India has licensed cellular carriers in over a dozen cities. They offer GSM-based voice and data service. Access charges are kept around 30 cents/minute, per the Government mandate. It is possible, as demonstrated by Qualcomm, Alcatel, Ericsson, Siemens, HNS, and others, to offer fixed wireless service using cellular frequencies. Budapest, Hungary is a very good example of this. All pay phone kiosks are wireless and operate using cellular technology. The subscriber terminals are fixed (or cordless) telephone handsets. Recently Internet access has also been added. Ahmedabad and Baroda have cellular service. If the desired village location is within the cellular coverage area, it will be possible to make arrangements with the cellular operators to deploy fixed wireless kiosks at selected locations. Installation and service can be accomplished within 2-3 months, once agreement is reached with the cellular carrier.

Satellite-based Wireless Options

VSAT Terminals: It may be possible to obtain approval from the DOT (Department of Telecommunications) to integrate a limited number of VSAT terminals in earthquake-damaged areas. As there is no central VSAT call-structure pricing policy, it may become necessary to pay a fixed amount per month to the PTT for interconnecting voice/data traffic from each VSAT terminal with the PSTN network. This arrangement will provide both voice and data services. It may also be possible to reach an agreement with NIC of the Government of India, to deploy a limited number of VSAT terminals and interconnect them to the PSTN switch, via the VSAT Central Facility in New Delhi, India.

There are many VSAT equipment vendors (Hughes Network Systems, Scientific Atlanta, Alcatel, NEC, a former Division of the Indian Telephone Industries, and others) who are capable of providing equipment, installation, and maintenance. One can purchase the services directly from vendors, or obtain the facilities from NIC at a reimbursable price.

Inmarsat Satellite Phone: In disaster relief efforts, and for temporary services, the Inmarsat satellite phone is a quick way to deploy field equipment. However, it is not a long-term solution. Data rates are low and performance quality is poor. Service cost is high (as high as $3/minute). In any event, this option must always be kept in mind a stopgap measure, as longer-term solutions are investigated and implemented.

Globalstar Service: If Globalstar India still has the license to provide service in India, and there is an operational gateway terminal, this option may be very useful. It is similar to the cellular wireless option, described earlier under terrestrial wireless options, and is not dependent on a base station to exist in the vicinity of customer kiosk location. In addition, cost of equipment and service pricing is similar to the cellular wireless option. Qualcomm and its licensees provide equipment and installation.

Scalability

The Rapid Deployment of Telecommunications Kiosks in India (RADEK-I) focuses on implementing a limited number of telecom facilities in the earthquake-devastated areas, to probably a dozen villages. If initial efforts succeed, it is possible to expand the model to cover additional villages. It may also be possible to entertain business initiatives that will benefit from and support this public interest activity.

Obstacles

There are a number of obstacles RADTEK-I will have to overcome. First, there are several access techniques to achieve the capability necessary. In each, it will be necessary to terminate the traffic at a PSTN digital switch. This architecture issue can be resolved once the viability and availability of a desired access scheme is determined. Second, although the rule regarding VSAT networks has been waived temporarily, the government may be unwilling to waive it on a permanent basis. Third, modem-based Internet access is available only in major cities, and has yet to be obtained from the PTT. Application costs are high and the wait can be several months. Fourth, the licensee companies are mired in financial trouble and have yet to deploy any significant network. And finally, bureaucratic delays are inevitable unless ministerial involvement is achieved.

Assumptions Upon Which Implementation is Based

1. It is possible to obtain the support and approval of the Central and State Governments if the project is crafted as a nonprofit, humanitarian initiative aimed at alleviating the damage and pain caused by the recent earthquake.

2. If the objective is for a longer-term telecommunications solution in targeted areas, several government regulations and laws will have to be followed; provision of telecommunications service, particularly for voice and voice-based data services, can only be achieved through involvement of a licensed telecom service provider.

3. Equipment procurement, installation, and maintenance can be implemented with the availability of sufficient funds.

4. Even if influential NRI organizations are involved, it will be necessary to have qualified and well-connected local representation at the program management level.

To contribute input please contact info@digitalpartners.org.

Thunderbird, AGSIM students based upon information supplied by Digital Partners and/or the ventures themselves wrote all cases. We have tried in all instances to highlight the most important points from the information provided. Please note that this document is being circulated without formal editing which will be done after the conference. We would like to acknowledge the following Thunderbird students for their work in preparing the cases: Dennis Hall, Srikanth Madala, Hammad Rizwan, Steen Simonsen, Ryan Timms, David Feige, and Stephen Frail.

 

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