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Future of Broadband in India

The mother of all announcements proceeded the last parliamentary session. That was the day when the broadband policy was to be announced.

Typical in the style of the government, it was delayed and the unknown faces in the group of ministers decided and sealed our fates as to how Indians would access Internet. Lofty ideals had been proclaimed and a lot of noise was made in the media about the broadband access. Everyone conveniently chose to forget that dialup charges remain the highest in the world still. That is another sob story.

The broadband policy typically defined the broadband as “always on” connection with speeds over and above 256 kbps. Other ways to access the same could either be through ADSL, VSAT or cable. Unfortunately, the recommendations of TRAI were brushed off to protect the monopoly of BSNL and ever-lecherous sarkari officials who are used to plush comforts. Chief among them was the unbundling of the local loop. In lay mans terms, anyone with an ISP license and bandwidth could utilize the unused copper cables and start offering Internet services. Given the spread of BSNL, duplicating infrastructure makes no business sense and hijacks the cost factor. It would have much more sense to unbundle the local loop and allow unlimited competition. This would have ensured that tariffs fall and the end consumer would have benefited.

Another factor that is going to increase the cost of the access is the high service tax. That works out to 10%+ at the present rates. TRAI had recommended the tax holiday for 5 years on the lines of our IT industry. However, that was not to be and it was shot down by the ministry of Finance. Another botched attempt to make Bharat Mata an IT superpower.

VSAT operators could upload or download only at 64 kbps until recently. All this was in the name of national security! It is now that they have been allowed at 512 kbps. This means that any operator offering DTH television can also offer internet services. This would have been a boon to those places, which are yet inaccessible to landlines in far off places. However, a major drawback is that these DTH companies can only offer uplink from Indian satellites. These Indian satellites are expensive and excess capacity exists only on the foreign ones. Another asinine issue, which would increase the costs of access.

The major reason is that consumers have not learnt to speak as a group. This would force these companies to look in the complaints and resolve it. No one likes bad press and I’d suggest make your voice heard.

One major factor for the high cost of the access is the high cost of bandwidth. Infact this country is rolling in excess capacity but has not been utilized so far. Part of the reason is that traditional players like VSNL are sitting over the landing rights of submarine cables and hence act as choke points. Even if one wants to scale up, they are forced to narrow down their requirements. For example, if Sify wants to increase capacity as per its requirements, they lease the bandwidth from VSNL. Hence, VSNL being a competitor itself refuses to allot excess bandwidth. This has a trickle down effect. Often this results in shared bandwidth that many consumers complain of. It is not that companies like Sify are not to be blamed. In the name of greed, they sign off more people than their outdated infrastructure could support. Recently, many ISPs were in spat with BSNL who refused to give them the rights to sell of bandwidth leased from it to corporate customers. In effect, these ISPs were acting as intermediaries. BSNL again decided to protect its monopoly.

As for the home consumer, he is expendable. It is on THEIR terms that we get to access internet. The penalty clauses that come with the downtime of the link or withholding of payments to the defaulting provider, is only available to the corporate customers. The home user has to suffer anyway.

Hence, it becomes imperative to talk the morons into accepting and improving the service levels. Take the matter to the highest level possible if you are not satisfied with the service levels. Never stop complaining if the service levels fall until they are resolved. For everything else, there is a consumer court. However, make sure that you have the facts right and a watertight case.

Broadband still remains a distant dream and everyone is waiting for Reliance to offer broadband access. That is another story.



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16 Comments to “Future of Broadband in India”

  1. Lalit K.Chandak | December 28th, 2004 at 05:57 am

    Abhishek's observations are factual. The Broadband Policy has ended up delivering an egg and is unlikely to make it affordable to the common man.<br><br>Last mile remains a hurdle for the rapid growth of communications. Even while the world is moving rapidly ahead, our policy makers are not finding ways to define rules that can help to spread communication services to 70% of India's population living in rural areas - a prime way to enhance our GDP. <br><br>To overcome this, it is best to make use of India's available infrastructure for spreading Broadband not only through telephone lines but also on power lines - electric lines being the obvious choice since it is far more widespread and touches many homes. We also hv to free bandwidth for Wimax quality Broadband wireless deployments - even open up the 700 Mhz band for enhancing communication all across the country. If these measures require restructuring essential services and defense communcation network for more efficient use of Bandwidth - let this be done ASAP.

  2. Lalit K.Chandak | December 28th, 2004 at 05:27 pm

    Abhishek’s observations are factual. The Broadband Policy has ended up delivering an egg and is unlikely to make it affordable to the common man.

    Last mile remains a hurdle for the rapid growth of communications. Even while the world is moving rapidly ahead, our policy makers are not finding ways to define rules that can help to spread communication services to 70% of India’s population living in rural areas - a prime way to enhance our GDP.

    To overcome this, it is best to make use of India’s available infrastructure for spreading Broadband not only through telephone lines but also on power lines - electric lines being the obvious choice since it is far more widespread and touches many homes. We also hv to free bandwidth for Wimax quality Broadband wireless deployments - even open up the 700 Mhz band for enhancing communication all across the country. If these measures require restructuring essential services and defense communcation network for more efficient use of Bandwidth - let this be done ASAP.

  3. jay | January 2nd, 2005 at 03:57 pm

    I read with interest Abhishek's comments with India's future broadband capabilities. Recall the founder of international satellite operator PanAmSat, the late Rene Anselmo, and his famous position on stupid telecom monoplies when he stated 'truth and technology will overcom bullshit and bureaucracy'. I hope he is right for the sake of the people of India. Note India now has two (2) DTH providers - DishTV & the very recent DD offering - and neither of them are on an Indian satellite - they are both on the Neatherland's based NewSkies satellite NSS-6. With the recent launch of DD's DTH service combined with the Zee/Agrani offering both transmitted on this non-Indian satellite there quite probably is no additional transponder capacity - bandwidth - available with what are the NSS6 'India beams'. When you read the crap that India DTH will offer 140-160 DTH channels, it is just that - crap. Every DTH operator needs one 36Mhz transponder to carry 10-14 digital television programs - depending on the digital compression/quality. Indeed both DishTV & DD are on this satellite because India does not have the capacity on the Insat series. But the visionary India regulators seem to require India licensed DTH operators to transmit only on India satellites? How does this work, do the self serving India telecom bureaucrats now buy transponder capacity from NewSkies and resell it to Dish & DD perhaps at a profit - both stifling competition & increasing costs to the India consumer?? I lead a US investor group that has proposed a 'build, launch & park-in-orbit' delivery of a 12/18 36Mhz Ku-band transponder DTH satellite funded over as long as 14 years at a cost of approximately US$600k per transponder year but with the wisdom of the India regulatory bureaucrats this sort of cost/technology/bandwidth is presently not allowed. If I understand correctly, DTH operators - both of them - must transmit on an Indian satellite?? I do look forward to your comments and certainly what "India satellite" the StarTV-Tata group wiht utilize if they EVER get an India DTH license. Let's hope Rene was correct…<br><br>Jay

  4. jay | January 3rd, 2005 at 03:27 am

    I read with interest Abhishek’s comments with India’s future broadband capabilities. Recall the founder of international satellite operator PanAmSat, the late Rene Anselmo, and his famous position on stupid telecom monoplies when he stated ‘truth and technology will overcom bullshit and bureaucracy’. I hope he is right for the sake of the people of India. Note India now has two (2) DTH providers - DishTV & the very recent DD offering - and neither of them are on an Indian satellite - they are both on the Neatherland’s based NewSkies satellite NSS-6. With the recent launch of DD’s DTH service combined with the Zee/Agrani offering both transmitted on this non-Indian satellite there quite probably is no additional transponder capacity - bandwidth - available with what are the NSS6 ‘India beams’. When you read the crap that India DTH will offer 140-160 DTH channels, it is just that - crap. Every DTH operator needs one 36Mhz transponder to carry 10-14 digital television programs - depending on the digital compression/quality. Indeed both DishTV & DD are on this satellite because India does not have the capacity on the Insat series. But the visionary India regulators seem to require India licensed DTH operators to transmit only on India satellites? How does this work, do the self serving India telecom bureaucrats now buy transponder capacity from NewSkies and resell it to Dish & DD perhaps at a profit - both stifling competition & increasing costs to the India consumer?? I lead a US investor group that has proposed a ‘build, launch & park-in-orbit’ delivery of a 12/18 36Mhz Ku-band transponder DTH satellite funded over as long as 14 years at a cost of approximately US$600k per transponder year but with the wisdom of the India regulatory bureaucrats this sort of cost/technology/bandwidth is presently not allowed. If I understand correctly, DTH operators - both of them - must transmit on an Indian satellite?? I do look forward to your comments and certainly what “India satellite” the StarTV-Tata group wiht utilize if they EVER get an India DTH license. Let’s hope Rene was correct…

    Jay

  5. Sundeep Raina | January 11th, 2005 at 02:56 am

    I fully agree with Mr.Chandak as PLC is the future of communications, anyone ready to break the ice and work in this segment will completely revolutionize the Indian communications scenario; No doubt PLC could be a boon for communications industry. Many vendors are already working on this line and have products ready to be offered only that time will prove how it can bring some change…

  6. Sundeep Raina | January 11th, 2005 at 02:26 pm

    I fully agree with Mr.Chandak as PLC is the future of communications, anyone ready to break the ice and work in this segment will completely revolutionize the Indian communications scenario; No doubt PLC could be a boon for communications industry. Many vendors are already working on this line and have products ready to be offered only that time will prove how it can bring some change…

  7. Mohit | February 13th, 2005 at 02:55 am

    I am studying in UK at the moment. I have broadband connection of 512kbps. Some of my mates have 4mbps. I cannot understand why the heck India is so far behind. All the damn potential that can be harvested via internet is being lost in INdian poilitics. I am with u guys 100% in raising our voice against this problem.

  8. Mohit | February 13th, 2005 at 08:55 am

    I am studying in UK at the moment. I have broadband connection of 512kbps. Some of my mates have 4mbps. I cannot understand why the heck India is so far behind. All the damn potential that can be harvested via internet is being lost in INdian poilitics. I am with u guys 100% in raising our voice against this problem.

  9. shameer | June 8th, 2005 at 05:49 am

    hello <br> detiyal was BRONBAND sevice internet

  10. shameer | June 8th, 2005 at 04:19 pm

    hello
    detiyal was BRONBAND sevice internet

  11. Vikram Sharma | July 13th, 2005 at 01:21 pm

    Why does Indian governement have to screw up everything. Till now look at the telephone department the calls are still metered, there is rationing system for electricity (more you buy more you have to pay per unit). Now they have launched a pervreted broadband service, India redefines broadband by adding limits. Everything here is given in moderation, nothing here in India is in excess ecept for poverty and excessive moderation imposed by our goverment. We earn in rupees and pay in dollars for technology. The people who decide the broadband policies are not the ones who are into Internet. So much for India shining, no one is believing that.

  12. Vikram Sharma | July 13th, 2005 at 11:51 pm

    Why does Indian governement have to screw up everything. Till now look at the telephone department the calls are still metered, there is rationing system for electricity (more you buy more you have to pay per unit). Now they have launched a pervreted broadband service, India redefines broadband by adding limits. Everything here is given in moderation, nothing here in India is in excess ecept for poverty and excessive moderation imposed by our goverment. We earn in rupees and pay in dollars for technology. The people who decide the broadband policies are not the ones who are into Internet. So much for India shining, no one is believing that.

  13. amit kumar biswas | October 20th, 2005 at 05:51 am

    i want know which channel pls mention the channel name will be included in free DTH service or DD DIRECT+ and when this will happened.

  14. amit kumar biswas | October 20th, 2005 at 04:21 pm

    i want know which channel pls mention the channel name will be included in free DTH service or DD DIRECT+ and when this will happened.

  15. AMIT GOGNA | May 23rd, 2006 at 02:43 am

    DTH FULLY FALTOO &amp; BAKWAAAAAAAAAAAAAAAAAAAS

  16. AMIT GOGNA | May 23rd, 2006 at 01:13 pm

    DTH FULLY FALTOO & BAKWAAAAAAAAAAAAAAAAAAAS

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