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

Background and Context
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

Available Options

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.

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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.