On Improving Rural Mobile Connectivity

IEEE Endorsement for Rural Broadband Access

• On June 6, IEEE endorsed a wireless network structure aimed at providing economical broadband access in rural areas, formulated at IIT Bombay.

Latest Telecom Subscription Data

• Urban Tele-density: 127%, indicating each urban user on average has more than one mobile connection.
• Rural Tele-density: 58%, meaning only about one in two rural residents has a mobile connection.
• Urban-Rural Digital Divide: Significant disparity in mobile connectivity between urban and rural areas, highlighting a substantial digital divide.

Access and Core Networks

• Access Network (AN):
  • Composed of base stations providing wireless connectivity to mobile devices within a specific geographical area.
  • Directly interfaces with mobile devices, facilitating communication and data transfer.
• Core Network (CN):
  • Consists of centralized network equipment managing and directing data traffic between the access network, other networks (e.g., the Internet), and service providers.
  • Handles routing, switching, and managing connectivity across the broader network infrastructure.

Impediments to Rural Connectivity

• Affordability: Lower income levels make mobile services expensive, limiting access for many rural residents.
• Cost of Infrastructure: High costs for installing and maintaining network infrastructure like fiber optics in remote areas.
• Low Population Density: Sparse populations over large areas make infrastructure deployment less profitable for network operators.
• Geographical Barriers: Difficult terrains and remote locations complicate the installation of base stations and backhaul infrastructure.
• Urban Bias in Technology: Advances in cellular networks (e.g., 5G) prioritize urban environments, neglecting rural challenges.
• Limited Research: Insufficient focus on developing cost-effective solutions for rural connectivity.

IEEE 2061-2024 Standard

• Objective: Establish a standardized wireless network architecture for affordable broadband access in rural areas.
• Architecture:
  • Defines a heterogeneous Access Network (AN) comprising macro base stations (Macro-BS) and Wi-Fi base stations.
  • Integrated with a flexible Core Network (CN) bypass capability to enhance connectivity and manage data traffic efficiently.

IEEE 2061-2024 Standard Architecture

• Heterogeneous Access Network (AN):
  • Macro-BS: Covers large areas with potentially lower data rates.
  • Wi-Fi Base Stations: Deployed within villages for high-speed connectivity.
• Core Network (CN) Bypass:
  • Allows direct Internet access from the AN.
  • Enhances efficiency and reduces latency, catering to stationary users common in rural settings.
• Middle-Mile Connectivity:
  • Utilizes multi-hop wireless networks (e.g., satellites, long-range Wi-Fi) to extend connectivity over long distances.
  • Useful where optical fiber deployment is impractical or costly.

Middle-Mile Network

• Definition: Infrastructure connecting core network hubs to local access points, spanning intermediate distances.
• Technologies Used: Fibre optics, microwave links, or satellites.
• Purpose: Facilitates efficient connectivity over longer distances without the need for direct local access networks.

Conclusion

To bridge the urban-rural digital divide in telecom:

• Affordability: Implement subsidized services.
• Incentivize Infrastructure Investment: Encourage investment in rural areas.
• Promote Research: Focus on rural-specific technologies.
• Equitable Access: Ensure access to advanced wireless standards like IEEE 2061-2024.

Has digital illiteracy, particularly in rural areas, coupled with a lack of Information and Communication Technology (ICT) accessibility hindered socio-economic development? Examine with justification. (2021)

ICEA calls for reduction in Import Duties to Boost Mobile Phone Sector

ICEA’s Call for Reduction of Import Duties

• Request: ICEA calls for a reduction of import duties in the upcoming Union budget.
• Rationale: Growth in the mobile phone sector now depends on global market demand, facilitated by supportive policies like the Production Linked Incentive (PLI) scheme.

About India Cellular and Electronics Association (ICEA)

• Role: Apex industry body representing the mobile and electronics sector in India.
• Established: 2017.
• Functions: Shapes policies, promotes industry growth through advocacy, policy formulation, and strategic initiatives.

Membership and Collaborations

• Membership: Leading mobile handset manufacturers, electronics companies, and industry stakeholders, both Indian and global.
• Collaborations: Works closely with government bodies, regulatory authorities, and other industry associations to align initiatives with national economic goals.

ICEA’s Key Demands

• Reduction of Import Duties: Reduce import duties on manufacturing inputs for electronics, especially in the mobile phone sector.
  • Current Impact: High tariffs increase manufacturing costs in India by 7-7.5% on the bill of materials.
• Alignment with Global Standards: Align tariffs with countries like China and Vietnam, which have lower tariffs on fewer components.
• Improvement of Customs Procedures: Streamline customs procedures to prevent delays in the shipment of key components.

Significance of ICEA’s Demands

• Competitiveness: Reducing import duties enhances competitiveness.
• Exports: Boosts exports.
• Investment and Job Creation: Stimulates investment and job creation.
• Trade Deficit: Reduces trade deficit.
• Long-term Growth: Fosters long-term growth in India’s electronics and mobile phone manufacturing sectors.

Key Initiatives and Programs by ICEA

• Electronics Manufacturing Clusters: Promotes the development of clusters to create a robust supply chain and manufacturing base in India.
• Skill Development: Emphasizes the need for skill development to ensure a skilled workforce.
• R&D and Innovation: Encourages research and development (R&D) and innovation to maintain competitiveness and technological advancement.

Boost in Mobile Phone Exports from India

• ICEA Report: Mobile phone exports from India have doubled to surpass Rs 90,000 crore (about USD 11.12 billion) in FY 2022-23 from Rs 45,000 crore in FY22.
• Government Targets: Target of USD 10 billion worth of mobile phone exports, aiming for USD 300 billion worth of electronics manufacturing by 2025-26, with USD 120 billion expected from exports.

Major Contributors to Export Growth

• Apple: Estimated to have a 50% share of mobile phone exports from India, contributing USD 5.5 billion (about Rs 45,000 crore).
• Samsung: Accounts for approximately 40% of exports, worth Rs 36,000 crore.
• Third-Party Exports: Contributed around USD 1.1 billion to the total export, comprising phones of various brands made in India.

Future Projections

• Export Contribution: Mobile phones are anticipated to contribute more than USD 50 billion worth of exports by 2025-26.
• Overall Contribution: Mobile phone exports now account for 46% of the overall electronic goods exports, according to ICEA.

Conclusion

To bridge the urban-rural digital divide in telecom, measures should focus on:

• Affordability: Implement subsidized services.
• Incentivize Infrastructure Investment: Encourage investment in rural areas.
• Promote Research: Focus on rural-specific technologies.
• Equitable Access: Ensure access to advanced wireless standards like IEEE 2061-2024.

RBI proposes rationalising regulations on Export-Import Transactions

 RBI Proposal and Directions

RBI Issued Draft Regulations and Directions

• Document: “Regulation of Foreign Trade under Foreign Exchange Management Act (FEMA), 1999 – Draft Regulations and Directions.”
• Key Propositions:
  • Repatriation Timeline: Full export value of goods and services must be realized and repatriated to India within 9 months from the date of shipment for goods and the date of invoice for services.
  • Caution Listing: Exporters who fail to realize the full value within the specified time may be caution-listed by the authorised dealer.
  • Caution-Listed Exporters: Such exporters can undertake exports only against receipt of advance payment in full or an irrecoverable letter of credit, to the satisfaction of the authorised dealer.
  • Advance Remittance Restrictions: No advance remittance for the import of gold and silver is permitted unless specifically approved by the RBI.

Expected Benefits

• Ease of Doing Business:
  • Intended to promote ease of doing business, especially for small exporters and importers.
• Empowerment of Banks:
  • Regulations aim to empower authorised dealer banks to provide quicker and more efficient service to their foreign exchange customers.

Significance of FEMA in Regulating EXIM Transactions

1. Facilitates Trade
   • Clear Regulatory Framework: Provides a structured and efficient framework for export and import (EXIM) transactions.
   • Trade Growth: Contributes to the expansion of international trade by streamlining procedures and reducing bottlenecks.
2. Economic Stability
   • Monitoring: Ensures that foreign exchange earnings and expenditures are tracked and regulated.
   • Prevention: Helps prevent illegal outflows of foreign exchange, maintaining overall economic stability.
3. Investor Confidence
   • Transparency: Promotes a transparent foreign exchange environment.
   • Attraction: Increases investor confidence, thereby attracting more foreign investment.
4. Liberalization
   • Flexible Approach: Replaces the stringent controls of the Foreign Exchange Regulation Act (FERA) with a more liberal and business-friendly approach.
   • Global Trade: Encourages businesses to engage in global trade by simplifying regulatory requirements.