Telcos to miss May 31 deadline on location-based services bl-premium-article-image

Thomas K Thomas Updated - August 11, 2012 at 06:30 PM.

Cite technical non-feasibility and high costs, but vendors differ

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Telecom companies have told the Government that they will not be able to implement location-based services (LBS) by May 31 deadline.

The operators have raised multiple issues, including costs and technical feasibility of achieving the requirements specified by the Department of Telecom.

LBS was made mandatory by the DoT at the behest of security agencies. This technology will allow law enforcement agencies to pin point the location of a mobile user. According to the order issued by the DoT, operators were supposed to build capability that would show the location of a subscriber with an accuracy of 50 metres.

According to mobile companies, it would cost over a billion dollars to implement this technology. In addition, they say that the technology does not allow achieving the accuracy levels required by DoT. The operators will send a joint letter to the DoT expressing their inability to implement the system.

Compensation sought

GSM operators have told the Government that they should be compensated for bearing the cost. They have sought fiscal benefits, including lower revenue share for spectrum usage and decreased contribution to the Universal Services Obligation.

However, technology vendors claim that the accuracy levels suggested by the DoT are achievable. For example, Polaris Wireless, one of the vendors of LBS technology, has written to the DoT that it has conducted trials with two operators.

“Based on the credible, validated results achieved in urban, suburban and rural areas, and with our extensive experience in deploying high accuracy wireless location solutions on 2G and 3G networks in North America, to meet the US regulator mandate, the Middle East- Africa and Asia Pacific regions, Polaris Wireless is confident its cost-competitive solution is able to meet the regulatory requirements in India,” the company said in a letter to DoT.

Another technology firm, UK-based Creativity Software, has also been able to demonstrate its complying with accuracy of location requirements.

According to industry estimates, LBS solution is possible in all technologies at a cost of nearly $10-15 million per operator. However, cellular operators are not convinced. “The trials run by the technology vendors work under certain parameters which may not be achievable across the country. For instance, the distance of cell sites in a location played a big role in their trials and this cannot be guaranteed for all the regions. If the vendors are so confident of achieving the requirements then let them take the onus of compliance,” said Mr Rajan Mathews, Director General, COAI.

Revenue potential

He also said that revenue potential from commercial LBS is not lucrative enough to make the investments needed to meet DoT requirements.

tkt@thehindu.co.in

Published on May 28, 2012 16:37