The Department of Telecommunications (DoT) is currently assessing approximately 440 proposals, valued at over Rs 1,000 crore, for funding through the Telecom Technology Development Fund (TTDF) scheme. Launched on October 1, 2022, the TTDF aims to foster rural-specific communication applications and drive technology ownership, indigenous manufacturing, and the creation of intellectual property in the field of telecom products and solutions.
Stringent Evaluation Criteria
The evaluation process focuses on several critical parameters, including the technical viability of proposed solutions, market size, and their impact on the target consumer segment. Additionally, the evaluation considers factors such as potential for import substitution, originality, and national significance. Go-to-market strategies and the expertise of the project teams are also pivotal in this assessment.
Funding Innovation
To date, the government has disbursed Rs 300 crore to nearly 400 companies under the TTDF scheme. These companies are actively working on advancing technologies related to 5G, 6G, backhaul radio, consumer premise equipment (CPE) for mobile and satellite communication, telecom network cybersecurity, routers, and various other areas.
Expanding Horizons with Chipset Development
In the latest round of TTDF applications, the DoT extended an invitation for proposals regarding the development of chipsets used in telecom equipment. The government’s focus includes six types of chipsets for telecom network equipment and end-user devices. This initiative encompasses chip development for next-generation broadband CPE, 5G modems, radio chips for dongles, IoT products, satellite communication equipment, and digital signal processors for 5G infrastructure.
Budgetary Commitment and Future Plans
At present, 5% of annual collections from the Universal Services Obligation Fund (USOF), roughly Rs 500 crore, is allocated to the TTDF scheme. The TTDF scheme extends its benefits to domestic companies, startups, academic institutions, and micro, small, and medium enterprises involved in telecom technology development. The government is exploring the possibility of increasing funding allocation from the USOF to facilitate more high-quality proposals and expedite the indigenization of telecom products and solutions.
Envisioning Substantial Fund Allocation
In December 2022, Communications Minister Ashwini Vaishnaw expressed the government’s intent to raise the fund allocation from Rs 500 crore to a substantial Rs 3,000-4,000 crore annually. This ambitious step aims to make funds readily available to the entire industry, promoting innovation and self-sufficiency.
Milestone-Based Support
Applicants under the TTDF scheme receive funding over a maximum of two years in four instalments, contingent on agreed-upon project milestones. The initial grant, comprising 15% of the total amount, is provided at the contract signing stage. The remaining funds are disbursed upon successful project completion and submission of the final report, including prototypes or products.
Nurturing Innovation
Beyond financial support, the government extends mentorship and incubation assistance, along with technical advisory services, to companies throughout the project’s duration. This comprehensive approach underscores the commitment to nurturing innovation in India’s telecom technology landscape.
