Broadband services in India

Despite a strong market of a billion plus population, broadband penetration in India remains at a pathetic rate of 0.3% penetration. This is in stark contrast to the mobile penetration (estimated at a rate of 8 million handsets per month). Typically broadband internet is delivered over fixed lines, co-ax, fiber optic and copper cables. Given the depth of penetration of fiber optic and copper cables in India, the abysmal broadband rates come as no surprise.

There is a desperate need for broadband access in India and it is seen be many experts as the gateway to the next economic boom in the world's largest democracy. Given the technological hurdles of fixed line broadband, there has to a wireless alternative. With the government opening up the 3G spectrum shortly, leading mobile players will soon offer broadband offerings at 3G speeds. Wimax is another option. Tata communications (erstwhile VSNL) and Reliance communications are offering broadband wimax services. Though pure wimax is a completely mobile solution (and would be a godsend technology for India), these operators are testing a fixed-wireless based wimax. On paper, the technology is touted to outsell other forms of broadband and seems to provide the much needed broadband impetus to the country, over a course of 2-3 years. However the initial launch of Tata Wimax in Bangalore was plagued with issues. This article is a testament of the horrible services offered. Even after a year of launching, Tata Wimax has not been able to garner any customer loyalty albeit several sales people trying to lure newer customers. Pathetic customer service, frequent disconnections, installation time of nearly two weeks are some of the major complaints people have had.

Even if a technology such as wimax cannot be implemented to provide the basic broadband connectivity in India - I wonder, what else will ?

Is cable broadband the answer ? May be, but the Indian cable industry is filled with small time cable operators who run the cable 'headends' from small apartments or homes. However, cable offers the greatest advantage in India - last mile fixed wire connectivity. Practically every home in India has cable TV. I haven't seen numbers for the cable penetration but it sure will be pretty high. All that's needed is operator consolidation and equipment roll out. Seems simple, not highly capital intensive. I wonder why nobody's taken this step, or have they ?