The Aakhya Weekly #80 | Could D2M Prove To Be A Game Changer For India’s Growth?

In Focus: Digital Inclusion Through NextGen Broadcasting Tech

By Sasanka Kanuparthi

India’s telecommunications and broadcasting journey is unlike any other, given how several advanced economies transitioned to modern technology gradually over several decades, from the ubiquitous experiences of landline telephones and black-&-white televisions. While formal telephone and terrestrial television broadcast experiments began relatively early in India, it was not until the 90s that active policy measures were adopted for mass deployment. The focus, however, is not on the economic liberalization measures that led to the unprecedented socioeconomic and cultural shifts. Instead, it is on the scale achieved, and the leapfrogging of technologies, which led digital transformations across sectors. 

From expensive sim-enabled mobile phones with astronomical rates per minute of talk time, to universal mobile phone usage with affordable internet, India has come a long way. The routine was similar for the television broadcasting industry as well. From grainy Doordarshan broadcasts, to the plethora of HD options on offer today through Direct-to-Home (DTH), the scale and speed of adoption is unprecedented. However, it is the advent of mobiles which spurred a digital revolution, backed by precise and timely policy tweaks. This ushered in the era of digital governance, ensuring that India’s digital infrastructure acted as a public good. Direct-to-Mobile, or D2M, is one such indigenous endeavour at creating technology disruptions, with the hope of building momentum for the next phase of technology-enabled growth for India.

D2M’s Ambitions and India’s Next Digital Revolution

A brainchild of startup innovators and young talent at India’s premier academic institutions, D2M technology enjoyed the patronage of public institutions to pilot its projects. Support from public service broadcasters like Prasar Bharati indicates their personal growth ambitions, as well as their faith in the technology’s future. The technology itself centres on relaying terrestrial television broadcasts, audio and video streaming, etc., directly to a smartphone. The technology’s USP pertains to its reliance on public broadcaster-assigned spectrum, which allows broadcast relays without the need for mobile internet data, Wi-fi connectivity, or DTH. 

Those in favour of the technology’s prospects argue that D2M will play a significant role in decluttering India’s bottlenecks vis-a-vis spectrum, amidst emerging 5G and 6G standards. Given India’s global recognition as the world's largest market for digital video content, creating domestic alternatives aimed at decongestion of spectrum seems appropriate. With over 800 million active internet users and a video consumption surge in tier 2 and tier 3 towns, the sector is witnessing collaborations and conversations about innovations in next generation broadcasting technology. After a decade of successes with respect to financial inclusion, digital payments, and India Stack as a whole, D2M is seen as the evolutionary step in achieving digital inclusion and prowess in semiconductor manufacturing. 

The belief is that D2M’s adoption would not require large investments for infrastructure upgradation to enhance broadband connectivity to the last mile. The blueprint suggests that D2M is designed to use existing terrestrial broadcasting infrastructure in achieving broadband and mobile phone convergence. However, consensus among stakeholders is that a conducive framework needs to be introduced by the government to achieve this. While D2M is being promoted as the next digital public infrastructure that shall be open and interoperable, its success will depend on the speed and extent to which this could be achieved. Building an interactive ecosystem with content creators, app creators, OTT platforms, and open APIs is imperative for catalyzing innovation, as  it could widen the scope for developing advanced future applications. 

Other ambitions pertain to digital sovereignty and efforts at reducing reliance on third party platforms, given how the government has had long-standing concerns over this dependence. D2M offers them the opportunity to put unutilized spectrum to use, while aiding the creation of an independent nationwide emergency alert system. D2M’s proponents also mention the diverse range of use cases, indicating that remote areas stand to benefit with access to education and information on agriculture, at much lower costs.

Overlap between India’s semiconductor ambitions and D2M

Apart from generating awareness and aiding the creation of an operating framework, D2M’s hopes are pinned on reaching critical mass in the manufacturing of semiconductor chips. This could allow the upgradation of hundreds of millions of feature phones into broadcast-ready devices, invigorating the semiconductor ecosystem in turn. Additionally, it provides an impetus to India’s mobile manufacturing industry, as D2M's widespread adoption will allow mass production of D2M-enabled mobile phones. 

The conversion of feature phones to D2M-enabled smartphones is not merely a technological leap, as the strategy could also spur domestic and global demand. It could help indigenous fabless semiconductor companies grow exponentially, while showcasing India’s semiconductor manufacturing achievements..

On the other hand, the government’s motivations for encouraging technology-led disruptions have remained consistent over the years. Policy decisions on new technologies or rules on technology-use, rely largely on addressing questions on affordability, access, and speed of reaching scale. Naturally, the popular view is that D2M offers India an opportunity to create a niche in the global semiconductor industry.  

Reservations, Challenges, and Implementation

To clear the air on the technology’s efficacy and to address the reservations raised by telecom operators, the government and D2M’s developers actively led engagements on the subject. For instance, several stakeholder summits such as the recently concluded Driving India’s Techade: D2M for Bharat – 5G Broadcast Summit, were hosted to encourage conversations with industry experts and gather diverse opinions. Additionally, a white paper was released in 2022, outlining the working concepts and recommendations. However, the Cellular Operators Association of India (COAI), representing major telecom operators, has raised concerns over the government's recent D2M push. Their apprehensions are linked to issues like spectrum allocation, network integration, and the plausible impact of D2M’s adoption on the revenues of telecom companies. 

Officials representing India’s public telecom company, BSNL, also raised concerns about the high maintenance costs of telecom towers at the recently concluded D2M summit. It was suggested that both D2M technology and telecom operators need to work in tandem to bring the costs down, while ensuring that the operational costs are lower than the wider revenue generated. 

Amidst the debates and reservations on D2M, the Ministry of Information & Broadcasting announced that the trials of D2M technology would be held soon in 19 cities across India. It indicates the government’s willingness to test out consumer response to the technology, before it takes a shape of its own. While the jury is still out on whether D2M will reach its full potential, there is no doubt that India is at the cusp of technological disruptions that can pave its path towards global leadership and redefine the future of broadcasting.

Top Stories of the Week

Govt mulling repeal of Indian Stamp Act; invites public comments on draft Bill

In a bid to modernize the stamp duty regime in India, the Government of India is looking to repeal the Indian Stamp Act, 1999 and replace it with a new legislation—the ‘Indian Stamp Bill, 2023’. The Department of Revenue (Ministry of Finance) has invited comments from the public within a period of 30 days.

The Indian Stamp Act is a pre-colonial legislation that allows for taxing on transactions through payment of stamp duty. States have adopted their own legislations based on this Act, through which they collect and manage stamp duties pursuant to Article 268 of the Constitution. However, over the years, many provisions of the Indian Stamp Act have become redundant, thereby necessitating a new legislation. This is in line with the Government of India’s ongoing exercise to repeal and modernize outdated legislations.

Comments/ suggestions may be sent to sunil.kmr37[at]nic[dot]in, within 30 days. The proforma for comments may be found here.

Assam launches a scheme for 40 lakh women to become rural micro-entrepreneurs

The Assam government has announced the Mukhyamantri Mahila Udyamita Abhiyan (MMUA), a significant initiative aimed at fostering entrepreneurship among 39 lakh women associated with self-help groups in the state. With a budget of Rs 4,000 crore, this scheme seeks to empower rural women by nurturing them into micro-entrepreneurs, thereby boosting their financial independence. The scheme's objective is to develop 40 lakh self-help-group members as 'lakhpati baidos (elder sisters),' providing each eligible woman with Rs 35,000 over three years, to support their entrepreneurial endeavors. 

While the scheme is aimed at ensuring the financial inclusion of aspiring women micro-entrepreneurs, the specific socio-economic criteria laid down by the Assam government could exclude many women. The scheme limits beneficiaries based on the number of children born to each woman beneficiary. Additionally, this condition is relaxed based on the caste category of the applicants. For instance, women belonging to the General and OBC categories, with a maximum of three children each, would be eligible to avail benefits, while those from Scheduled Tribes (STs) and Scheduled Castes (SCs) who have up to four children each would also be eligible. Chief Minister Himant Biswas Sarma explains that this condition is intended to ensure the effective use of funds for setting up businesses. However, approximately 5 lakh women involved in self-help groups in rural Assam may face exclusion due to this limitation. In addition to the aforementioned criteria, beneficiaries must fulfill two other conditions: they must enroll girl children in a school and ensure the survival of trees planted under the government's tree plantation drive.

In 2021, the state government had announced a two-child policy for beneficiaries to avail benefits under specific state-funded schemes. Similarly, the MMUA is in alignment with the state government's broader strategy of connecting beneficiary schemes to population norms.

A Few Good Reads

In the unforgiving aftermath of Taliban rule, Afghan girls face the cruel fate of child marriages.

Delving into Taiwan's electoral landscape, the piece uncovers political clashes, the DPP's historical journey, China's disquiet, and the enduring spirit of democratic values.

Rajesh Rajagopalan analyses the changing dynamics of India's neighbouring regions in response to the growing influence of China, emphasizing the necessity for a strategic approach in the face of evolving geopolitical shifts.

Red Sea tensions rise with Houthi attacks, revealing a disjointed response from global allies and sparking doubts about the ability to safeguard maritime security.