Digital Connectivity in Rural India

Why in News?

The Department of Telecommunications (DoT) has recently released draft rules to operationalise the Digital Bharat Nidhi.

Telecom & Digital connectivity – A systems of interconnected communication devices and equipment that enable people to communicate with each other over long distances.
They facilitate the transmission of voice, data, and video signals between devices, including smartphones, computers, and other communication devices.
The foundation of digital transformation is telecom infrastructure.
- Importance – It allows extensive access, fast data transfer, and seamless communication.
It propels the world's transition to a digitally empowered society.
Integrating cutting-edge technologies like cloud computing, artificial intelligence, and the Internet of Things promotes creativity and global connectedness across sectors.

Status of Telecom and Digital Connectivity in India

Global position – It secures 60^th rank in Network Readiness Index 2023
It secures 2nd rank in Mobile broadband internet traffic within the country and in International Internet bandwidth.
Telecom sector – It is 2^nd largest telecom industry in the world.
It is the 4th largest sector in terms of FDI inflows, contributing 6% of total FDI inflow.
100% Foreign Direct Investment (FDI) has been allowed.
It contributes directly to 2.2 Mn employment and indirectly to 1.8 Mn jobs.
Teledensity - Telephone density is the number of telephone connections for every hundred individuals living within an area.
India has an overall tele-density of 85.76%,
- Rural market - 59.44%
- Urban market - 133.42%.
Internet subscribes - Till 2023, the total number of internet subscribers increased to 918.19 Mn (narrowband + broadband subscribers).
Out of total subscribers, 40.91% belong to the rural areas.
5G network – It has been rolled out in all 28 states and 8 UTs.
India, in terms of median mobile broadband speed, has reached 43rd position.
Data consumption - India is one of the highest consumers of data per day with approximately 5 hours of daily time spend on smartphones.

BharatNet - Connecting 250,000 village councils with high-speed broadband through optical fiber cables & Wi-Fi hotspots.
Digital India program - Transforming India into a digitally empowered society by providing e-governance services and establishing Common Service Centers (CSCs) at the village level.
USOF – Universal Service Obligation Fund is a pool of funds generated by a 5% Universal Service Levy charged upon all the telecom fund operators on their Adjusted Gross Revenue (AGR).
This money would be used to fund the expansion of telecom networks in remote and rural areas, where private companies resist to invest and develop.
PM-WANI – Expanding public Wi-Fi hotspots across rural areas with simplified processes for setting up Wi-Fi service providers.
Skill development and digital literacy – Enhancing digital literacy through programs like DISHA and PMGDISHA, offering digital skills training to rural populations.
Financial inclusion - Providing banking and financial services through digital means with projects like Jan Dhan Yojana, Aadhaar, and promoting digital payments.
Smart villages and digital villages - Developing model villages with comprehensive digital infrastructure and integrating digital technologies to improve rural life quality.
Digital Bharat Nidhi – It is aimed at increasing telecom connectivity in rural areas.

Digital Bharat Nidhi

It will replace Universal Service Obligation Fund and has wider scope than USOF.
Objectives - Promoting access, affordability and delivery of telecommunication services in under-served rural, remote and urban areas.
Providing targeted access for underserved groups of society such as women, persons with disabilities and economically and socially weaker sections.
Funding research and development of telecommunication services, technologies, and products.
Supporting pilot projects, consultancy assistance and advisory support for improving connectivity.
Creation of regulatory sandboxes.
Developing and establishing relevant standards to meet national requirements and their standardisation in international standardisation bodies.
Encouraging start-ups including the manufacturing of telecom equipment, among other things.
Funding – As per the Telecom Act, contributions made by telecom companies towards this fund will first be credited to the Consolidated Fund of India (CFI).
The collected funds will be moved to the DBN from time to time.
Implementation – Centre will appoint an “administrator” who will select “DBN implementers” through “bidding” or invitation of applications from eligible persons.
Any DBN implementer receiving funding from the DBN for establishing, operating, maintaining, or expanding a telecommunication network shall be delivered on an open and non-discriminatory basis.

Infrastructure deficit – Still there are places which lack of basic infrastructure like electricity and roads, which can hinder the establishment and maintenance of telecom networks.
Geographical challenges - Difficult terrain, such as mountains and forests, makes infrastructure development challenging and expensive.
High implementation costs - The cost of laying fiber optic cables and setting up telecom towers in remote areas is high.
Underutilisation of USOF – It is primarily due to underspending on the BharatNet project for village fiber connectivity.
Resistance by private companies – They resist in offering their services in rural and remote areas as they are not considered as revenue-generating markets.
Financial constraints - Lower income levels in rural areas limit the ability of residents to afford digital devices and internet services.
Security concerns - Vandalism and theft of telecom equipment and challenges in ensuring cybersecurity and protecting user data.

Enhance mobile connectivity - Setting up mobile towers in remote regions and partnering with private operators to extend mobile network coverage.
Provide satellite connectivity - Using satellite communication to provide connectivity in areas with challenging terrain for terrestrial infrastructure.
Develop localized content & applications – Local languages and locally relevant digital content can increase engagement.