Jul 19, 2007 12:50
The sad state and near future of broadband in India
Posted by VeerChand Bothra
According to a study carried out by industry body Assocham, India is likely to miss the broadband subscriber base target of 20 million by 2010 set by the Government.
There are about 2.5 million broadband subscribers in the country as of June 2007, as against the target of 3 million by 2005. Therefore, one does not need a study to predict that we will miss the 2010 target.
The study said the target of reaching 20 million users can be achieved only after PCs with a price tag of Rs10,000 are made available to the rural masses. I think there are five requisites for broadband growth in India:
In the absence of the above, rural masses with purchasing power are likely to prefer a mobile since it offers connectivity with their loved ones as well as business benefits. The best part about mobiles is it takes only about a couple of hours to charge them for a day's work. Except in metros like Mumbai and Delhi where the electricity situation is really bad, with power cuts ranging for 4-8 hours everyday.
Also, not much content is available in Indian languages. Making content available in India's national language Hindi will cover only half the country's population. There are other states like Gujarat, Maharashtra, Bengal, Karnataka, Tamil Nadu, Andhra Pradesh and Kerala whose population demand content in their regional languages. Companies looking to provide Internet content in Indian languages can take a cue from the plethora of regional-languages TV channels on air.
Internet connection with a minimum speed of 256Kbps is considered as broadband here. The study pointed out that in 2006, around 83 percent of broadband subscribers were on DSL technology, with the remaining 17 percent accessing broadband using cable modem, Ethernet LAN, fiber and radio.
In the absence of an extensive wired infrastructure, wireless technologies like 3G and WiMax can be very useful in driving broadband growth in the country. The following comments from Bharti Airtel's CEO are relevant in this regard.
There are about 2.5 million broadband subscribers in the country as of June 2007, as against the target of 3 million by 2005. Therefore, one does not need a study to predict that we will miss the 2010 target.
The study said the target of reaching 20 million users can be achieved only after PCs with a price tag of Rs10,000 are made available to the rural masses. I think there are five requisites for broadband growth in India:
- Home PCs available under Rs10,000 ($250)
- Reliable electricity
- Always-on unlimited download plans
- Indian language content
- Utility, government and consumer services
In the absence of the above, rural masses with purchasing power are likely to prefer a mobile since it offers connectivity with their loved ones as well as business benefits. The best part about mobiles is it takes only about a couple of hours to charge them for a day's work. Except in metros like Mumbai and Delhi where the electricity situation is really bad, with power cuts ranging for 4-8 hours everyday.
Also, not much content is available in Indian languages. Making content available in India's national language Hindi will cover only half the country's population. There are other states like Gujarat, Maharashtra, Bengal, Karnataka, Tamil Nadu, Andhra Pradesh and Kerala whose population demand content in their regional languages. Companies looking to provide Internet content in Indian languages can take a cue from the plethora of regional-languages TV channels on air.
Internet connection with a minimum speed of 256Kbps is considered as broadband here. The study pointed out that in 2006, around 83 percent of broadband subscribers were on DSL technology, with the remaining 17 percent accessing broadband using cable modem, Ethernet LAN, fiber and radio.
In the absence of an extensive wired infrastructure, wireless technologies like 3G and WiMax can be very useful in driving broadband growth in the country. The following comments from Bharti Airtel's CEO are relevant in this regard.
Stating that the proposed 3G services would be different from that of the western world, Mittal said: "Government should not look at it as sexy urban services. On the other hand, it is the only way to provide broadband services to the rural areas. GSM is a narrowband and we can't provide high-speed broadband through GSM. 3G is like DSL speed on broadband."
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