Tags: Broadband in India, Reliance, Tata

Government rulings might result in a bandwidth boom in India

Internet service subscribers in the country can confirm that there is certainly a lack of bandwidth in the Indian market. Most ISPs in India promise the world but only manage to deliver a percentage of speeds.

However, this could change in the coming times as a result of government moves that have set the stage for open competition and expected price cuts.

Market experts believe that India could soon become one of the most bandwidth-competitive countries in the world.

Telecom Regulatory Authority of India has been trying to push amendments to the international long distance licenses so that more operators could enter the market.

And late last year, the Indian government accepted the recommendations for the re-sale of bandwidth.

Amitabh Singhal, CEO of Telxess Consulting Services spoke about this development: “There will be a price reduction in the cost of bandwidth, which will not only help bandwidth-dependent companies like call centers, business process outsourcing [BPO] firms, telecom and media companies compete with the global majors, but also make India one of the most bandwidth-competitive countries in the world.”

TRAI chairman Nripendra Misra added: “This will enhance competition in international private leased circuits through the entry of resellers, who will be non-facility based operators.”

India currently has three submarine cable companies which supply bandwidth to various ISPs in the country. These are Tata group-owned VSNL, Reliance-owned Flag telecom and Bharti Tele-ventures.

Sanjiv Bhagat, CEO of AT&T Global Networks India had this to say on the new developments: “While AT&T has already been operating a successful India business for over six years in alliance with VSNL, the move will enable us to further strengthen our commitment to customers in India. Moreover, with the sharing of cable landing infrastructure, we can ensure a higher quality of service that MNCs are used to.”

Virgil Palmer, chairman of the AT&T Asia-Pacific advisory council added: “India is a high-priority market for just about every global MNC. And I believe that this will be a major factor in helping to attract further foreign investment and expansion into India.”