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  • Budget ’17: Media segments seek succour, digital direction from govt

    Budget ’17: Media segments seek succour, digital direction from govt

    NEW DELHI/MUMBAI: Despite government attempting to allay many fears of the various sectors of the Indian industry, the uncertainty prevailing after demonetisation continues and everybody is looking for the Union Budget 2017 to provide some indications, if not clear-cut answers, on various issues, including a high tax regime, incentivising digital uptake and, of course, the Goods and Services Tax (GST).

    Reliance Broadcast Networks Ltd (RBNL) feels as most radio broadcast players had been advocating for reduction in tax and custom duty on capital equipment, especially given the proposed launch of new frequencies, their expectation this year too remains the same as also the demand for granting infrastructure status to the broadcast industry.

    “Reduction in service tax would be a boon for the media and entertainment industry as a whole,” said Reliance Broadcast Network Limited COO Ashwin Padmanabhan.

    “The media and advertising industry in India is one of the fastest growing in the world. With the Union Budget 2017 expectation will rise for ‘Push for Digital India’ as India ranks second globally with 30 per cent Internet penetration, still to catch up with China (50 per cent) and USA (87 per cent). The implementation of GST is expected to benefit the industry bringing rationalisation of taxation policy by making the taxation process simple, transparent and easy to pay,”  Interspace Solutions CEO Praveen Vadhera.

    Shop CJ COO Dhruva Chandrie, while taking the bigger picture in account, opined if measures are taken to positively impact the overall consumer sentiment and propel their spending trends, it would definitely be good for the Indian economy. “While the government has set a goal of creating around 400 million jobs by 2020, one million people are entering the job market each year. In the given scenario, the government’s quick implementation of programs to create new jobs will give our economy the much needed boost,” he said.

    According to Mukta Arts MD Rahul Puri, the exhibition industry’s biggest hope for the Budget revolved around a formal announcement on the implementation of GST, which is not going to happen till July, but more details could emerge during the Budget speech. “Beside this, we hope that the government would continue to rationalise the corporate tax regime, which would be beneficial for the industry as a whole,” he added.

    Sphereorigins CMD Sunjoy Waddhwa felt that as times were changing for the media and entertainment industry, costs too are going up all round — from remunerations of artistes to costs of production of good programming. “However, I think GST would not have a lot of impact on our industry per se as long as the percentage is not too high,” he added.

    Echoing similar sentiments on rising cost of doing business, Pixel Pictures CEO Prashanti Malisetti said the entertainment industry players were under “heavy burden of multiple taxation and levies” such as license fee, service tax, VAT, etc. Buying props, for instance, currently attract high rates of VAT, depending on the State in question, she explained, adding, “In an ideal world, new technology adaptation should be viewed under a different category and new tax benefits should be applicable despite the age of the production house…(as) current import duties are high and can be a hindrance to smaller companies to make the jump.”

    While highlighting new format of shows in the non-fiction and game show category and arrival of VoD services have led to a host of new opportunities for production companies in the television industry, Malisetti also felt that the entertainment industry was particularly keen to get some clarification on GST.

    Demonetisation and, at times, the present BJP-led government’s unorthodox stand on various policies have been a common theme and, therefore, expectations from various quarters of the media and entertainment industry too have revolved around hoping to get clarifications from the government. Fractal Ink Design Studio CEO, co-founder and CCO Tanay Kumar highlighted that with demonetization “adding friction to our daily routines”, it would be interesting to witness steps taken towards “improving parallel transaction mechanisms”.

    Shop CJ Dhruva Chandrie, while taking the bigger picture in account, opined if measures are taken to positively impact the overall consumer sentiment and propel their spending trends, it would definitely be good for the Indian economy. “While the government has set a goal of creating around 400 million jobs by 2020, one million people are entering the job market each year. In the given scenario, the government’s quick implementation of programs to create new jobs will give our economy the much needed boost,” he said.

    According to Mukta Arts MD Rahul Puri, the exhibition industry’s biggest hope for the Budget revolved around a formal announcement on the implementation of GST, which is not going to happen till July, but more details could emerge during the Budget speech. “Beside this, we hope that the government would continue to rationalise the corporate tax regime, which would be beneficial for the industry as a whole,” he added.

    Sphereorigins CMD Sunjoy Waddhwa felt that as times were changing for the media and entertainment industry, costs too are going up all round — from remunerations of artistes to costs of production of good programming. “However, I think GST would not have a lot of impact on our industry per se as long as the percentage is not too high,” he added.

    Echoing similar sentiments on rising cost of doing business, Pixel Pictures CEO Prashanti Malisetti said the entertainment industry players were under “heavy burden of multiple taxation and levies” such as license fee, service tax, VAT, etc. Buying props, for instance, currently attract high rates of VAT, depending on the State in question, she explained, adding, “In an ideal world, new technology adaptation should be viewed under a different category and new tax benefits should be applicable despite the age of the production house…(as) current import duties are high and can be a hindrance to smaller companies to make the jump.”

    While highlighting new format of shows in the non-fiction and game show category and arrival of VoD services have led to a host of new opportunities for production companies in the television industry, Malisetti also felt that the entertainment industry was particularly keen to get some clarification on GST.

    Demonetisation and, at times, the present BJP-led government’s unorthodox stand on various policies have been a common theme and, therefore, expectations from various quarters of the media and entertainment industry too have revolved around hoping to get clarifications from the government. Fractal Ink Design Studio CEO, co-founder and CCO Tanay Kumar highlighted that with demonetization “adding friction to our daily routines”, it would be interesting to witness steps taken towards “improving parallel transaction mechanisms”.

    “As we see a lot of movement in the start-up world to take on the big pie of the digital world, we hope the Budget 2017 has some easing-down policies on regulatory aspects that will help them concentrate better on problem solving than running after compliance and taxation issues. With unique and easy payment methods like UPI and formation of payment banks, spending patterns and consumer behaviour is going to see a huge shift from being conservative to being more liberal and trusting. We, as a digital experience design agency, expect the Budget to be hugely in favour of creating digitally smart and enabled India in the coming times,” Kumar explained.
    TalentNext.com CEO Shekhar Purohit also felt that this year’s Budget could prove to be critical for the media and entertainment industry as major challenges remain with dual taxation (service tax and VAT), which unduly increases the cost of doing business.

    Pointing out that the media and entertainment industry continues to be a sunrise sector for India, Purohit said, “The implementation, application, and impact of GST on our industry must be addressed immediately and this year’s Budget should also support digitization to the fullest to foster digital empowerment.”

    Also Read:

    Budget 2017 Wish-list: MSOs demand industry status, rationalisation of entertainment & services taxes

    Broadcasters bat for parity with print medium under GST

  • Budget ’17: Media segments seek succour, digital direction from govt

    Budget ’17: Media segments seek succour, digital direction from govt

    NEW DELHI/MUMBAI: Despite government attempting to allay many fears of the various sectors of the Indian industry, the uncertainty prevailing after demonetisation continues and everybody is looking for the Union Budget 2017 to provide some indications, if not clear-cut answers, on various issues, including a high tax regime, incentivising digital uptake and, of course, the Goods and Services Tax (GST).

    Reliance Broadcast Networks Ltd (RBNL) feels as most radio broadcast players had been advocating for reduction in tax and custom duty on capital equipment, especially given the proposed launch of new frequencies, their expectation this year too remains the same as also the demand for granting infrastructure status to the broadcast industry.

    “Reduction in service tax would be a boon for the media and entertainment industry as a whole,” said Reliance Broadcast Network Limited COO Ashwin Padmanabhan.

    “The media and advertising industry in India is one of the fastest growing in the world. With the Union Budget 2017 expectation will rise for ‘Push for Digital India’ as India ranks second globally with 30 per cent Internet penetration, still to catch up with China (50 per cent) and USA (87 per cent). The implementation of GST is expected to benefit the industry bringing rationalisation of taxation policy by making the taxation process simple, transparent and easy to pay,”  Interspace Solutions CEO Praveen Vadhera.

    Shop CJ COO Dhruva Chandrie, while taking the bigger picture in account, opined if measures are taken to positively impact the overall consumer sentiment and propel their spending trends, it would definitely be good for the Indian economy. “While the government has set a goal of creating around 400 million jobs by 2020, one million people are entering the job market each year. In the given scenario, the government’s quick implementation of programs to create new jobs will give our economy the much needed boost,” he said.

    According to Mukta Arts MD Rahul Puri, the exhibition industry’s biggest hope for the Budget revolved around a formal announcement on the implementation of GST, which is not going to happen till July, but more details could emerge during the Budget speech. “Beside this, we hope that the government would continue to rationalise the corporate tax regime, which would be beneficial for the industry as a whole,” he added.

    Sphereorigins CMD Sunjoy Waddhwa felt that as times were changing for the media and entertainment industry, costs too are going up all round — from remunerations of artistes to costs of production of good programming. “However, I think GST would not have a lot of impact on our industry per se as long as the percentage is not too high,” he added.

    Echoing similar sentiments on rising cost of doing business, Pixel Pictures CEO Prashanti Malisetti said the entertainment industry players were under “heavy burden of multiple taxation and levies” such as license fee, service tax, VAT, etc. Buying props, for instance, currently attract high rates of VAT, depending on the State in question, she explained, adding, “In an ideal world, new technology adaptation should be viewed under a different category and new tax benefits should be applicable despite the age of the production house…(as) current import duties are high and can be a hindrance to smaller companies to make the jump.”

    While highlighting new format of shows in the non-fiction and game show category and arrival of VoD services have led to a host of new opportunities for production companies in the television industry, Malisetti also felt that the entertainment industry was particularly keen to get some clarification on GST.

    Demonetisation and, at times, the present BJP-led government’s unorthodox stand on various policies have been a common theme and, therefore, expectations from various quarters of the media and entertainment industry too have revolved around hoping to get clarifications from the government. Fractal Ink Design Studio CEO, co-founder and CCO Tanay Kumar highlighted that with demonetization “adding friction to our daily routines”, it would be interesting to witness steps taken towards “improving parallel transaction mechanisms”.

    Shop CJ Dhruva Chandrie, while taking the bigger picture in account, opined if measures are taken to positively impact the overall consumer sentiment and propel their spending trends, it would definitely be good for the Indian economy. “While the government has set a goal of creating around 400 million jobs by 2020, one million people are entering the job market each year. In the given scenario, the government’s quick implementation of programs to create new jobs will give our economy the much needed boost,” he said.

    According to Mukta Arts MD Rahul Puri, the exhibition industry’s biggest hope for the Budget revolved around a formal announcement on the implementation of GST, which is not going to happen till July, but more details could emerge during the Budget speech. “Beside this, we hope that the government would continue to rationalise the corporate tax regime, which would be beneficial for the industry as a whole,” he added.

    Sphereorigins CMD Sunjoy Waddhwa felt that as times were changing for the media and entertainment industry, costs too are going up all round — from remunerations of artistes to costs of production of good programming. “However, I think GST would not have a lot of impact on our industry per se as long as the percentage is not too high,” he added.

    Echoing similar sentiments on rising cost of doing business, Pixel Pictures CEO Prashanti Malisetti said the entertainment industry players were under “heavy burden of multiple taxation and levies” such as license fee, service tax, VAT, etc. Buying props, for instance, currently attract high rates of VAT, depending on the State in question, she explained, adding, “In an ideal world, new technology adaptation should be viewed under a different category and new tax benefits should be applicable despite the age of the production house…(as) current import duties are high and can be a hindrance to smaller companies to make the jump.”

    While highlighting new format of shows in the non-fiction and game show category and arrival of VoD services have led to a host of new opportunities for production companies in the television industry, Malisetti also felt that the entertainment industry was particularly keen to get some clarification on GST.

    Demonetisation and, at times, the present BJP-led government’s unorthodox stand on various policies have been a common theme and, therefore, expectations from various quarters of the media and entertainment industry too have revolved around hoping to get clarifications from the government. Fractal Ink Design Studio CEO, co-founder and CCO Tanay Kumar highlighted that with demonetization “adding friction to our daily routines”, it would be interesting to witness steps taken towards “improving parallel transaction mechanisms”.

    “As we see a lot of movement in the start-up world to take on the big pie of the digital world, we hope the Budget 2017 has some easing-down policies on regulatory aspects that will help them concentrate better on problem solving than running after compliance and taxation issues. With unique and easy payment methods like UPI and formation of payment banks, spending patterns and consumer behaviour is going to see a huge shift from being conservative to being more liberal and trusting. We, as a digital experience design agency, expect the Budget to be hugely in favour of creating digitally smart and enabled India in the coming times,” Kumar explained.
    TalentNext.com CEO Shekhar Purohit also felt that this year’s Budget could prove to be critical for the media and entertainment industry as major challenges remain with dual taxation (service tax and VAT), which unduly increases the cost of doing business.

    Pointing out that the media and entertainment industry continues to be a sunrise sector for India, Purohit said, “The implementation, application, and impact of GST on our industry must be addressed immediately and this year’s Budget should also support digitization to the fullest to foster digital empowerment.”

    Also Read:

    Budget 2017 Wish-list: MSOs demand industry status, rationalisation of entertainment & services taxes

    Broadcasters bat for parity with print medium under GST

  • Sops offered to promote indigenous electronics industry

    Sops offered to promote indigenous electronics industry

    NEW DELHI: In a move to give incentive to the electronics sector, the Government has taken steps to expedite investments into the Electronics System Design and Manufacturing (ESDM) sector in India to achieve the goal of ‘Net Zero imports’ in electronics by 2020.

    The Modified Special Incentive Package Scheme (M-SIPS) is expected to create employment opportunities and reduce dependence on imports. The projects already received under the scheme have the potential to generate employment to the extent of up to one million persons (direct and indirect).

    Under the amendments, applications will be received under the scheme upto 31 December 2018 or till such time that an incentive commitment of Rs 100,000 million is reached, whichever is earlier. In case the incentive commitment of Rs 100,000 million is reached, a review will be held to decide further financial commitments.

    A separate Committee headed by Cabinet Secretary and comprising of Niti Aayog CEO, Expenditure Secretary, and Ministry of Electronics and Information Technology (MeitY) will be set up in respect of mega projects, envisaging more than Rs 68,500 million (approximately US$ 1 billion) investments.

    The Policy covers all States and Districts and provides them an opportunity to attract investments in electronics manufacturing.

    So far, 243 applications have been received under the scheme, out of which 75 applications have been approved involving investment proposals of Rs 179,970 million.

    In the cabinet meeting held under the chairmanship of the prime minister Narendra Modi, the amendments that were approved say that for new approvals, the incentive under the scheme will be available from the date of approval of a project and not from the date of receipt of application.

    The incentives will be available for investments made within five years from the date of approval of the project.

    Approvals will normally be accorded to eligible applications within 120 days of submission of the complete application.

    A unit receiving incentives under the scheme, will provide an undertaking to remain in commercial production for a period of at least three years.

    The Appraisal Committee recommending approval of project will be chaired by Secretary, Ministry of Electronics and IT.

    The Cabinet had in July 2012 approved the M-SIPS to provide a special incentive package to promote large scale manufacturing in the Electronic System Design and Manufacturing (ESDM) sector. The scheme provides subsidy for capital expenditure – 20% for investments in Special Economic Zones (SEZs) and 25% in non-SEZs.

    The Scheme was amended in August, 2015 for scope enhancement and simplification of procedure. The Scheme has attracted investments in the ESDM sector to the tune of Rs 1,268,380 million, of which investments of around Rs 179,970 million have been approved by the MeitY. The M-SIPS has been able to create positive impact on investment in electronics sector.

  • Sops offered to promote indigenous electronics industry

    Sops offered to promote indigenous electronics industry

    NEW DELHI: In a move to give incentive to the electronics sector, the Government has taken steps to expedite investments into the Electronics System Design and Manufacturing (ESDM) sector in India to achieve the goal of ‘Net Zero imports’ in electronics by 2020.

    The Modified Special Incentive Package Scheme (M-SIPS) is expected to create employment opportunities and reduce dependence on imports. The projects already received under the scheme have the potential to generate employment to the extent of up to one million persons (direct and indirect).

    Under the amendments, applications will be received under the scheme upto 31 December 2018 or till such time that an incentive commitment of Rs 100,000 million is reached, whichever is earlier. In case the incentive commitment of Rs 100,000 million is reached, a review will be held to decide further financial commitments.

    A separate Committee headed by Cabinet Secretary and comprising of Niti Aayog CEO, Expenditure Secretary, and Ministry of Electronics and Information Technology (MeitY) will be set up in respect of mega projects, envisaging more than Rs 68,500 million (approximately US$ 1 billion) investments.

    The Policy covers all States and Districts and provides them an opportunity to attract investments in electronics manufacturing.

    So far, 243 applications have been received under the scheme, out of which 75 applications have been approved involving investment proposals of Rs 179,970 million.

    In the cabinet meeting held under the chairmanship of the prime minister Narendra Modi, the amendments that were approved say that for new approvals, the incentive under the scheme will be available from the date of approval of a project and not from the date of receipt of application.

    The incentives will be available for investments made within five years from the date of approval of the project.

    Approvals will normally be accorded to eligible applications within 120 days of submission of the complete application.

    A unit receiving incentives under the scheme, will provide an undertaking to remain in commercial production for a period of at least three years.

    The Appraisal Committee recommending approval of project will be chaired by Secretary, Ministry of Electronics and IT.

    The Cabinet had in July 2012 approved the M-SIPS to provide a special incentive package to promote large scale manufacturing in the Electronic System Design and Manufacturing (ESDM) sector. The scheme provides subsidy for capital expenditure – 20% for investments in Special Economic Zones (SEZs) and 25% in non-SEZs.

    The Scheme was amended in August, 2015 for scope enhancement and simplification of procedure. The Scheme has attracted investments in the ESDM sector to the tune of Rs 1,268,380 million, of which investments of around Rs 179,970 million have been approved by the MeitY. The M-SIPS has been able to create positive impact on investment in electronics sector.

  • India, US renew commitment to work on cyber security

    India, US renew commitment to work on cyber security

    NEW DELHI: India and the United States have signed a Memorandum of Understanding (MoU) to promote closer co-operation and the exchange of information pertaining to the Cyber Security in accordance with the relevant laws, rules and regulations of each economy on the basis of equality, reciprocity and mutual benefit.

    The MoU was signed between the Indian Computer Emergency Response Team (CERT- In) under the Electronics and Information technology Ministry and the US Department of Homeland Security on cooperation in the field of cyber Security. The MoU was signed by MeITY Secretary Aruna Sundararajan and US Ambassador Richard Verma.

    Earlier, United States and India signed an MoU on 19 July 2011 to promote a closer cooperation and timely exchange of information between the organisations of their respective Governments responsible for Cyber Security. Since 19 July 2011 regular interactions between CERT-In and US CERT are taking place to share the information and discuss cyber security related issues.

    The present MoU is in continuation to the cooperation in cyber security areas.

    Also Read:

    ‘Force 2’ piracy: Viacom18 registers FIR; KSS blames it on a theatre

    Guest Column: As digital spreads wings, bolstering security is paramount

     

  • India, US renew commitment to work on cyber security

    India, US renew commitment to work on cyber security

    NEW DELHI: India and the United States have signed a Memorandum of Understanding (MoU) to promote closer co-operation and the exchange of information pertaining to the Cyber Security in accordance with the relevant laws, rules and regulations of each economy on the basis of equality, reciprocity and mutual benefit.

    The MoU was signed between the Indian Computer Emergency Response Team (CERT- In) under the Electronics and Information technology Ministry and the US Department of Homeland Security on cooperation in the field of cyber Security. The MoU was signed by MeITY Secretary Aruna Sundararajan and US Ambassador Richard Verma.

    Earlier, United States and India signed an MoU on 19 July 2011 to promote a closer cooperation and timely exchange of information between the organisations of their respective Governments responsible for Cyber Security. Since 19 July 2011 regular interactions between CERT-In and US CERT are taking place to share the information and discuss cyber security related issues.

    The present MoU is in continuation to the cooperation in cyber security areas.

    Also Read:

    ‘Force 2’ piracy: Viacom18 registers FIR; KSS blames it on a theatre

    Guest Column: As digital spreads wings, bolstering security is paramount

     

  • IPR Policy expected to speed up clearances

    IPR Policy expected to speed up clearances

    NEW DELHI: Trademark pendency, which is at three months, is expected to come down further to one month by March 2017 following the shifting of the Intellectual Rights Property portfolio to the Department of Industrial Policy and Promotion.

    Trademarks filing increased by around 10 per cent and Trademark examination increased by around 250 per cent during FY16 till November as compared to FY15.

    A comprehensive National Intellectual Property Rights (IPR) policy was adopted for the first time in May 2016 to lay future roadmap for intellectual property. The aim was to improve Indian intellectual property ecosystem, hoping to create an innovation movement in the country and aspires towards “Creative India; Innovative India.”

    This becomes relevant in view of the large number of cases pending in courts on copyright and the emergence of newer vehicles where software can be used, including smartphones and OTT.
     
    The objectives of this policy are to increase IPR awareness; stimulate generation of IPRs; have strong and effective IPR laws; modernize and strengthen service-oriented IPR administration; get value for IPRs through commercialisation; strengthen enforcement and adjudicatory mechanisms for combating IPR infringements; and to strengthen and expand human resources, institutions and capacities for teaching, training, research and skill building in IPRs.

    Subsequently, a Cell for Intellectual Property Rights Promotion and Management (CIPAM) has been created as a professional body which will be working under the aegis of DIPP for addressing seven identified objectives of the Policy.

    During 2016, India signed memorandums of understanding in the field of Intellectual Property signed with U.K, Singapore and the European Union. An India-US Workshop was held on Protection of Trade Secrets organized by CIPAM.

    DIPP Secretary Rajiv Aggarwal had recently said India’s IP framework was in the midst of a paradigm shift following the announcement of the National IPR Policy.

    Aggarwal said while the Department was spearheading the overall policy, specific recommendations listed in the policy were being taken up for action by concerned ministries and departments.

    Also Read

    Govt launches IPR toolkit for enforcement agencies

    Copyright Force finally here to fight online piracy   

    India, US should resolve IPR issues at earliest: IACC

     

  • IPR Policy expected to speed up clearances

    IPR Policy expected to speed up clearances

    NEW DELHI: Trademark pendency, which is at three months, is expected to come down further to one month by March 2017 following the shifting of the Intellectual Rights Property portfolio to the Department of Industrial Policy and Promotion.

    Trademarks filing increased by around 10 per cent and Trademark examination increased by around 250 per cent during FY16 till November as compared to FY15.

    A comprehensive National Intellectual Property Rights (IPR) policy was adopted for the first time in May 2016 to lay future roadmap for intellectual property. The aim was to improve Indian intellectual property ecosystem, hoping to create an innovation movement in the country and aspires towards “Creative India; Innovative India.”

    This becomes relevant in view of the large number of cases pending in courts on copyright and the emergence of newer vehicles where software can be used, including smartphones and OTT.
     
    The objectives of this policy are to increase IPR awareness; stimulate generation of IPRs; have strong and effective IPR laws; modernize and strengthen service-oriented IPR administration; get value for IPRs through commercialisation; strengthen enforcement and adjudicatory mechanisms for combating IPR infringements; and to strengthen and expand human resources, institutions and capacities for teaching, training, research and skill building in IPRs.

    Subsequently, a Cell for Intellectual Property Rights Promotion and Management (CIPAM) has been created as a professional body which will be working under the aegis of DIPP for addressing seven identified objectives of the Policy.

    During 2016, India signed memorandums of understanding in the field of Intellectual Property signed with U.K, Singapore and the European Union. An India-US Workshop was held on Protection of Trade Secrets organized by CIPAM.

    DIPP Secretary Rajiv Aggarwal had recently said India’s IP framework was in the midst of a paradigm shift following the announcement of the National IPR Policy.

    Aggarwal said while the Department was spearheading the overall policy, specific recommendations listed in the policy were being taken up for action by concerned ministries and departments.

    Also Read

    Govt launches IPR toolkit for enforcement agencies

    Copyright Force finally here to fight online piracy   

    India, US should resolve IPR issues at earliest: IACC

     

  • ‘India needs 80 lakh hotspots; metros’ spectrum 1/10th of U.S’

    ‘India needs 80 lakh hotspots; metros’ spectrum 1/10th of U.S’

    MUMBAI: India needs over 80 lakhs hotspots as against the availability of about 31,000 hotspots with a view to reach the global level of one Wi-Fi hotspot penetration for every 150 people, according to ASSOCHAM-Deloitte joint study.

    There are currently over 31,000 public Wi-Fi hotspots installed in India. However, for India to match the current global average of one public Wi-Fi hotspot per 150 people, an additional 80 lakhs hotspots need to be deployed, noted the study titled ‘Digital India: Unlocking the Trillion Dollar opportunity,’ jointly conducted by ASSOCHAM and research firm Deloitte.

    The biggest challenge faced by the Digital India programme is the slow/delayed infrastructure development. Spectrum availability in Indian metros is about a tenth of the same in cities in developed countries (such as the U.S, U.K, Russia, etc). This has put a major roadblock in providing high speed data services (such as OTT and VOD).

    For Digital India to have a large scale impact on citizens across the nation, the digital divide needs to be addressed through last mile connectivity in remote rural areas. Currently, over 55,000 villages remain deprived of mobile connectivity. This is largely due to the fact that providing mobile connectivity in such locations is not commercially viable for service providers, adds the joint study.

    “For digital technology to be accessible to every citizen significant efforts are needed to customise apps and services to cater to local needs. Finding vendors who can provide such applications has become a challenge”.

    Policy framework for Digital India: Challenges in policy, such as taxation, right of way, restrictive regulations etc. are major roadblocks in realizing the vision of Digital India.

    Some of the common policy hurdles includes lack of clarity in FDI policies, for instance, have impacted the growth of e-commerce. Transport services like Uber have had frequent run-ins with the local government due to legacy policy frameworks which have not become attuned to the changing business landscape.

    Implementation of the Digital India programme has been hampered by contracting challenges such as several projects assigned to PSUs are delayed given challenges related to skills, experience and technical capabilities. Several RFPs issued by the government are not picked up by competent private sector organizations since they are not commercially feasible.

    The reports suggest that, as recently as 2014, nearly 70 per cent of Indian consumers indicated that lack of awareness was the main reason for not using internet services. Non-availability of digital services in local languages is also a major concern, noted the study.

    With the proliferation of cloud-based services like DigiLocker, data security has emerged as a major challenge. The recent data breach in August 2016, in which debit card data for more than 3.2 million subscribers was stolen highlights the importance of implementing foolproof security systems, adds the study.

    Development of digital infrastructure is a critical component of Digital India. To further enable development of digital infrastructure, the following measures should be considered as uniform policies for deploying telecom and optic fibre infrastructure.

    A uniform RoW policy across all states with a reasonable cost structure is required along with a single window mechanism for granting RoW permissions. PPP models need to be explored for sustainable development of digital infrastructure, as has been the case for civic infrastructure projects like roads and metro project. In addition, the government should make efforts to make additional spectrum available to telecom service providers for deployment of high speed data networks.

    Encourage collaboration with the private sector; Effective collaboration with the private sector is critical to the development of the digital infrastructure. Innovative engagement models that ensure commercial viability needs to developed jointly through consultation with industry bodies. This will encourage private sector participation and ensure a better response to infrastructure RFPs. In addition, startups need to be incentivised for the development of the last mile infrastructure and localized services and applications.

    Existing government infrastructure assets (e.g., post offices, government buildings, CSCs) should be further leveraged for provision of digital services. In rural and remote areas, private sector players should be incentivised to provide last mile connectivity. USOF can be effectively used to incentivise and create a viable business model. The deployment of funds so far has been erratic and not been used to effectively to fund the cost of infrastructure creation in rural areas. Currently, the fund has over Rs 451 billion in reserves which can be used to finance rural digital infrastructure growth in India through direct investment or subsidies.

    Satellite communication solutions could be used to speed up broadband access in rural and remote areas. For instance, banks can use VSAT technology to connect remote ATMs, remote branches that need instant access to customer data. It could be used as a last mile connectivity solution in rural areas which lack telecom networks. Another example could be of the navigational system NAVIC (Navigation with Indian Constellation), which can have applications in terrestrial, aerial and marine navigation, disaster management, vehicle tracking and fleet management, integration with mobile phones, precise timing, mapping and geodetic data capture, terrestrial navigation aid for hikers and travellers and visual/ voice navigation for drivers.

  • ‘India needs 80 lakh hotspots; metros’ spectrum 1/10th of U.S’

    ‘India needs 80 lakh hotspots; metros’ spectrum 1/10th of U.S’

    MUMBAI: India needs over 80 lakhs hotspots as against the availability of about 31,000 hotspots with a view to reach the global level of one Wi-Fi hotspot penetration for every 150 people, according to ASSOCHAM-Deloitte joint study.

    There are currently over 31,000 public Wi-Fi hotspots installed in India. However, for India to match the current global average of one public Wi-Fi hotspot per 150 people, an additional 80 lakhs hotspots need to be deployed, noted the study titled ‘Digital India: Unlocking the Trillion Dollar opportunity,’ jointly conducted by ASSOCHAM and research firm Deloitte.

    The biggest challenge faced by the Digital India programme is the slow/delayed infrastructure development. Spectrum availability in Indian metros is about a tenth of the same in cities in developed countries (such as the U.S, U.K, Russia, etc). This has put a major roadblock in providing high speed data services (such as OTT and VOD).

    For Digital India to have a large scale impact on citizens across the nation, the digital divide needs to be addressed through last mile connectivity in remote rural areas. Currently, over 55,000 villages remain deprived of mobile connectivity. This is largely due to the fact that providing mobile connectivity in such locations is not commercially viable for service providers, adds the joint study.

    “For digital technology to be accessible to every citizen significant efforts are needed to customise apps and services to cater to local needs. Finding vendors who can provide such applications has become a challenge”.

    Policy framework for Digital India: Challenges in policy, such as taxation, right of way, restrictive regulations etc. are major roadblocks in realizing the vision of Digital India.

    Some of the common policy hurdles includes lack of clarity in FDI policies, for instance, have impacted the growth of e-commerce. Transport services like Uber have had frequent run-ins with the local government due to legacy policy frameworks which have not become attuned to the changing business landscape.

    Implementation of the Digital India programme has been hampered by contracting challenges such as several projects assigned to PSUs are delayed given challenges related to skills, experience and technical capabilities. Several RFPs issued by the government are not picked up by competent private sector organizations since they are not commercially feasible.

    The reports suggest that, as recently as 2014, nearly 70 per cent of Indian consumers indicated that lack of awareness was the main reason for not using internet services. Non-availability of digital services in local languages is also a major concern, noted the study.

    With the proliferation of cloud-based services like DigiLocker, data security has emerged as a major challenge. The recent data breach in August 2016, in which debit card data for more than 3.2 million subscribers was stolen highlights the importance of implementing foolproof security systems, adds the study.

    Development of digital infrastructure is a critical component of Digital India. To further enable development of digital infrastructure, the following measures should be considered as uniform policies for deploying telecom and optic fibre infrastructure.

    A uniform RoW policy across all states with a reasonable cost structure is required along with a single window mechanism for granting RoW permissions. PPP models need to be explored for sustainable development of digital infrastructure, as has been the case for civic infrastructure projects like roads and metro project. In addition, the government should make efforts to make additional spectrum available to telecom service providers for deployment of high speed data networks.

    Encourage collaboration with the private sector; Effective collaboration with the private sector is critical to the development of the digital infrastructure. Innovative engagement models that ensure commercial viability needs to developed jointly through consultation with industry bodies. This will encourage private sector participation and ensure a better response to infrastructure RFPs. In addition, startups need to be incentivised for the development of the last mile infrastructure and localized services and applications.

    Existing government infrastructure assets (e.g., post offices, government buildings, CSCs) should be further leveraged for provision of digital services. In rural and remote areas, private sector players should be incentivised to provide last mile connectivity. USOF can be effectively used to incentivise and create a viable business model. The deployment of funds so far has been erratic and not been used to effectively to fund the cost of infrastructure creation in rural areas. Currently, the fund has over Rs 451 billion in reserves which can be used to finance rural digital infrastructure growth in India through direct investment or subsidies.

    Satellite communication solutions could be used to speed up broadband access in rural and remote areas. For instance, banks can use VSAT technology to connect remote ATMs, remote branches that need instant access to customer data. It could be used as a last mile connectivity solution in rural areas which lack telecom networks. Another example could be of the navigational system NAVIC (Navigation with Indian Constellation), which can have applications in terrestrial, aerial and marine navigation, disaster management, vehicle tracking and fleet management, integration with mobile phones, precise timing, mapping and geodetic data capture, terrestrial navigation aid for hikers and travellers and visual/ voice navigation for drivers.