{"id":5565,"date":"2022-11-19T00:00:00","date_gmt":"2022-11-19T00:00:00","guid":{"rendered":"https:\/\/www.nextias.com\/current_affairs\/uncategorized\/19-11-2022\/regulatory-framework-for-promoting-data-economy\/"},"modified":"2022-11-19T00:00:00","modified_gmt":"2022-11-19T00:00:00","slug":"regulatory-framework-for-promoting-data-economy","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/19-11-2022\/regulatory-framework-for-promoting-data-economy","title":{"rendered":"Regulatory Framework for Promoting Data Economy"},"content":{"rendered":"<p style=\"text-align:justify\"><span style=\"font-size:13pt\"><span style=\"font-family:\"Book Antiqua\",serif\"><strong>In News<\/strong><\/span><\/span><\/p>\n<ul>\n<li style=\"list-style-type:disc\"><span style=\"font-size:12pt\">Recently, the Telecom Regulatory Authority of India (TRAI)<\/span><span style=\"font-size:12pt\"><strong> released its recommendations <\/strong><\/span><span style=\"font-size:12pt\">on \u2018Regulatory Framework for Promoting Data Economy Through Establishment of Data Centres (DCs), Content Delivery Networks (CDNs), and Interconnect Exchanges (IXPs) in India\u2019.<\/span><\/li>\n<\/ul>\n<p style=\"text-align:justify\"><span style=\"font-size:13pt\"><span style=\"font-family:\"Book Antiqua\",serif\"><strong>Background<\/strong><\/span><\/span><\/p>\n<ul>\n<li style=\"list-style-type:disc\"><span style=\"font-size:12pt\">National Digital Communications Policy (NDCP) 2018 envisages \u201cEvolving enabling regulatory frameworks and incentives for promoting the establishment of International Data Centres, Content Delivery Networks, and Independent Interconnect exchanges in India\u201d.<\/span><\/li>\n<li style=\"list-style-type:disc\"><span style=\"font-size:12pt\">Accordingly, the Authority suo-moto issued a detailed Consultation Paper (CP) on the subject.<\/span><\/li>\n<\/ul>\n<p style=\"text-align:justify\"><span style=\"font-size:13pt\"><span style=\"font-family:\"Book Antiqua\",serif\"><strong>Salient features of the Recommendations<\/strong><\/span><\/span><\/p>\n<ul>\n<li style=\"list-style-type:disc\"><span style=\"font-size:12pt\">Data Centres:\u00a0<\/span>\n<ul>\n<li style=\"list-style-type:circle\"><span style=\"font-size:12pt\">Authority has recommended bringing out the Data Centre Incentivization Scheme (DCIS) for establishing Data Centres (DCs) and Data Centre Parks (Dc Parks). DCIS to have two list of incentives \u2013<\/span>\n<ul>\n<li style=\"list-style-type:square\"><span style=\"font-size:12pt\">Certain Centre specific fiscal and non-fiscal incentives can be rolled out by the Central Government.<\/span><\/li>\n<li style=\"list-style-type:square\"><span style=\"font-size:12pt\">The other in the form of a guideline to the States; leaving flexibility to States to announce fiscal incentives through their policies.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"list-style-type:circle\"><span style=\"font-size:12pt\">Operationalizing a Data Centre specific portal on National Single Window System (NSWS) for &#8211;<\/span>\n<ul>\n<li style=\"list-style-type:square\"><span style=\"font-size:12pt\">Time-bound single window clearances with provision for deemed approval after elapse of prescribed timelines for non-critical category permissions<\/span><\/li>\n<li style=\"list-style-type:square\"><span style=\"font-size:12pt\">Mandatory online registration of new DCs\/DC Park operators without any obligation or registration fees. This will be purely for statistical and record purposes.<\/span><\/li>\n<li style=\"list-style-type:square\"><span style=\"font-size:12pt\">Issue of notifications, announcement of schemes &#038; benefits, facility to interact and respond to queries of potential investors, and grievance redressal of existing and prospective DC\/DC Park operators.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<li style=\"list-style-type:disc\"><span style=\"font-size:12pt\">A <\/span><span style=\"font-size:12pt\"><strong>national level DC Readiness Index (DCRI) framework<\/strong><\/span><span style=\"font-size:12pt\"> to be implemented by the Central Government to rank Indian states as per their suitability to promote the DC sector. An indicative list of parameters and their weightages for ranking the States has been suggested.<\/span><\/li>\n<li style=\"list-style-type:disc\"><span style=\"font-size:12pt\"><strong>Establish DC Economic Zones (DCEZs)<\/strong><\/span><span style=\"font-size:12pt\"> &#8211; Out of suggested list of 33 SEZs which are located in areas with abandon power and water, one SEZ can be identified each in State of Andhra Pradesh, Kerala, Karnataka, Maharashtra, Haryana, UP, MP, Gujarat, Rajasthan, and Odisha, for either converting them into DCEZs or for carving out zones out of these SEZs for establishing DCs\/DC parks.<\/span><\/li>\n<li style=\"list-style-type:disc\"><span style=\"font-size:12pt\">Promoting Green DCs:<\/span>\n<ul>\n<li style=\"list-style-type:circle\"><span style=\"font-size:12pt\">Indian Green Building Council (IGBC) along with Telecommunication Engineering Centre (TEC) should be entrusted with the task of framing certification standards of green DCs in India.<\/span><\/li>\n<li style=\"list-style-type:circle\"><span style=\"font-size:12pt\">Government should form a scheme to invite Requests for Proposal (RFP) on an experimental basis for new technology\/methods\/processes that can be adopted for promoting green DCs.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"list-style-type:disc\"><span style=\"font-size:12pt\">Capacity Building:<\/span>\n<ul>\n<li style=\"list-style-type:circle\"><span style=\"font-size:12pt\">National Telecom Institute for Policy Research &#038; Training (NTIPRIT) under Department of Telecommunication (DoT), MeitY, All India Council for technical Education (AICTE) and Telecom Sector Skill Council (TSSC) should closely collaborate with DC industry to develop tailor-made short and long-term courses.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"list-style-type:disc\"><span style=\"font-size:12pt\">Content Delivery Networks (CDNs)<\/span>\n<ul>\n<li style=\"list-style-type:circle\"><span style=\"font-size:12pt\">CDNs play an important role in the value chain of content delivery ecosystem.\u00a0<\/span><\/li>\n<li style=\"list-style-type:circle\"><span style=\"font-size:12pt\">The internet traffic, which was earlier being delivered by ISPs alone, is now being delivered by ISP and CDN combined.\u00a0<\/span><\/li>\n<li style=\"list-style-type:circle\"><span style=\"font-size:12pt\">ISPs perform load balancing, traffic engineering and offers guaranteed quality of service to end users.\u00a0<\/span><\/li>\n<li style=\"list-style-type:circle\"><span style=\"font-size:12pt\">CDN Players also leverage various techniques like load balancing, caching, optimization, use of security protocols, etc. for ensuring better delivery of content to end users in association with TSPs.\u00a0<\/span><\/li>\n<li style=\"list-style-type:circle\"><span style=\"font-size:12pt\">CDN players are major contributors to the network traffic and can affect the overall quality of service.\u00a0<\/span><\/li>\n<li style=\"list-style-type:circle\"><span style=\"font-size:12pt\">Accordingly, TRAI, in its consultation process, had discussed various CDN-ISP interconnection and collaboration related policy and regulatory concerns.<\/span>\n<ul>\n<li style=\"list-style-type:square\"><span style=\"font-size:12pt\">To address these issues, TRAI has recommended that CDN players should be registered with DoT through a simple online registration process. The suggestive draft for guidelines for registration of CDN players along with registration form and registration certificate has been recommended with a one time registration fee of Rs 10,000.<\/span><\/li>\n<li style=\"list-style-type:square\"><span style=\"font-size:12pt\">The incentives recommended for DCs should also help in proliferation of CDNs in the country and this would in turn provide a boost to the digital infrastructure ecosystem, including CDNs and IXPs.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<li style=\"list-style-type:disc\"><span style=\"font-size:12pt\">Interconnect Exchanges Providers (IXPs):<\/span>\n<ul>\n<li style=\"list-style-type:circle\"><span style=\"font-size:12pt\">Currently, IXPs are required to obtain Internet Service Providers (ISPs) license which has several onerous licensing conditions related to subscriber verification, security etc which are not relevant to them.\u00a0<\/span><\/li>\n<li style=\"list-style-type:circle\"><span style=\"font-size:12pt\">This creates artificial entry barriers.\u00a0<\/span><\/li>\n<li style=\"list-style-type:circle\"><span style=\"font-size:12pt\">To address this issue and promote setting up of more IXPs, especially in Tier-II and Tier-III cities, TRAI has recommended that a separate authorization in Unified License may be created for IXPs with terms and conditions that are much less onerous than ISP license authorization.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p style=\"text-align:justify\"><span style=\"font-size:13pt\"><span style=\"font-family:\"Book Antiqua\",serif\"><strong>Addressing Demand Side Issues of Digital Data Infrastructure<\/strong><\/span><\/span><\/p>\n<ul>\n<li style=\"list-style-type:disc\"><span style=\"font-size:12pt\"><strong>Data digitization, sharing and monetization \u2013<\/strong><\/span><span style=\"font-size:12pt\"> A statutory body Data Digitization and Monetization Council (DDMC) for steering the data digitization drive be prescribed at the Centre,<\/span><\/li>\n<li style=\"list-style-type:disc\"><span style=\"font-size:12pt\"><strong>Data Ownership \u2013<\/strong><\/span><span style=\"font-size:12pt\"> Government should put in place a data sharing and consent management framework on lines of DEPA framework to provide telecom subscribers consent based option to share their KYC data with recipient TSP when they port their numbers.<\/span><\/li>\n<li style=\"list-style-type:disc\"><span style=\"font-size:12pt\"><strong>Data Ethics \u2013<\/strong><\/span><span style=\"font-size:12pt\"> DDMC should also be entrusted with the responsibility of putting in place an overarching framework for ethical use of data both by Government as well as by corporate in India. The framework should address the generic as well as vertical sector specific requirements.<\/span><\/li>\n<\/ul>\n<p style=\"text-align:justify\"><span style=\"font-size:13pt\"><span style=\"font-family:\"Book Antiqua\",serif\"><strong>Data Economy<\/strong><\/span><\/span><\/p>\n<ul>\n<li style=\"list-style-type:disc\"><span style=\"font-size:12pt\">The data economy is the global digital ecosystem in which the producers and consumers of data\u2014businesses and individuals\u2014and government and municipal agencies gather, organize, and share accumulated data from a wide variety of sources.\u00a0<\/span><\/li>\n<li style=\"list-style-type:disc\"><span style=\"font-size:12pt\">By connecting unconnected data across industry boundaries, organizations can glean richer business insights, tap into unexplored markets, serve citizens and consumers alike with data-driven products and services, and monetize their data by sharing it externally with key customers and suppliers.\u00a0<\/span><\/li>\n<li style=\"list-style-type:disc\"><span style=\"font-size:12pt\">Benefits:<\/span>\n<ul>\n<li style=\"list-style-type:circle\"><span style=\"font-size:12pt\">More than half (53%) of business leaders say that participating in the data economy has led them to create new business models.<\/span><\/li>\n<li style=\"list-style-type:circle\"><span style=\"font-size:12pt\">Another benefit of the data economy is faster innovation. Traditional companies are facing unprecedented pressure from their digitally native counterparts to innovate and respond quickly to evolving customer preferences and market trends.<\/span><\/li>\n<li style=\"list-style-type:circle\"><span style=\"font-size:12pt\">Participating in a data economy can improve rates of customer acquisition and retention\u2014gaining new customers and retaining current ones\u2014while 42% of respondents cite increased revenue as an important business benefit.\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p style=\"text-align:justify\"><span style=\"font-size:13pt\"><span style=\"font-family:\"Book Antiqua\",serif\"><strong>Way Ahead<\/strong><\/span><\/span><\/p>\n<ul>\n<li style=\"list-style-type:disc\"><span style=\"font-size:12pt\">The Central Government should <\/span><span style=\"font-size:12pt\"><strong>prepare guidelines listing out the incentives<\/strong><\/span><span style=\"font-size:12pt\"> for the Data Centres and DC Parks for the states that have scanty DC footprints, in line with other advanced states.\u00a0<\/span><\/li>\n<li style=\"list-style-type:disc\"><span style=\"font-size:12pt\">Bureau of Indian Standards (BIS) should be entrusted for <\/span><span style=\"font-size:12pt\"><strong>developing different India-specific building standards for construction<\/strong><\/span><span style=\"font-size:12pt\"> of DCs and to develop India specific standard-based certification framework for the DCs.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-size:13pt\"><span style=\"font-family:\"Book Antiqua\",serif\"><strong>Source<\/strong><\/span><\/span><span style=\"font-size:13pt\"><span style=\"font-family:\"Book Antiqua\",serif\">: <\/span><\/span><a href=\"https:\/\/pib.gov.in\/PressReleasePage.aspx?PRID=1877179\" style=\"text-decoration-line:none\" target=\"_blank\" rel=\"noopener\"><span style=\"font-size:13pt\"><span style=\"font-family:\"Book Antiqua\",serif\"><span style=\"color:#1155cc\">PIB<\/span><\/span><\/span><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In News Recently, the Telecom Regulatory Authority of India (TRAI) released its recommendations on \u2018Regulatory Framework for Promoting Data Economy Through Establishment of Data Centres (DCs), Content Delivery Networks (CDNs), and Interconnect Exchanges (IXPs) in India\u2019. Background National Digital Communications Policy (NDCP) 2018 envisages \u201cEvolving enabling regulatory frameworks and incentives for promoting the establishment of [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":5566,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[26,68],"class_list":["post-5565","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-current-affairs","tag-gs-3","tag-inclusive-growth-related-issues"],"acf":[],"jetpack_featured_media_url":"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2023\/07\/40476692962218D1C2BEA-B42D-44CA-AC90-12BFBC61D8CC.png","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/5565","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=5565"}],"version-history":[{"count":0,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/5565\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media\/5566"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=5565"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=5565"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=5565"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}