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Broadband Subscriber Gap 10 Mln Likely against 20 Mln Target by 2010: ASSOCHAM
Tuesday, July 17, 2007

Gap between target and achievement to accomplish broadband penetration in India will go over 10 million by 2010, until per PC availability at Rs.10,000/- with adequate infrastructure is made available to rural folk to connect them with urban and semi-urban population, according to The Associated Chambers of Commerce and Industry of India (ASSOCHAM).

In a Paper brought out jointly by ASSOCHAM & Frost & Sullivan on `Broadband in India’, to be released on Wednesday, it has been highlighted that there is a need for household PC penetration with much increased awareness in the absence of which broadband household penetration is less than 1% even now.

It expresses surprise that in last 7 years, India could provide broadband connectivity to less than 2.5 million subscribers as against its target of 3 million, 9 million and 20 million for 2005, 2007 and 2010 respectively.

Commenting on the Paper, ASSOCHAM President, Mr. Venugopal N. Dhoot said that in order to overcome many hurdles, the best strategy for spreading broadband would be to make use of India’s available infrastructure. It needs to be done not only through telephone lines but also through power lines. The electric line will become the most obvious choice for spreading broadband since it is far more widespread and touches many homes.

Until this happens, the target and achievement of broadband penetration will have a gap of 10 million against the targeted figure of 20 million by 2010.  However, the Paper projects that the broadband subscriber market is expected to increase to 30.1 million by 2013 with its growth expected to touch 8.9%.

It says that the challenge for any service provider is to optimize its network and enhance user experience. For instance, one of the major issues facing broadband  networks  is  the congestion  created  by peer-to-peer traffic on those networks. Peer-to-peer traffic on a broadband network can be anywhere from 50 to 85 percent. The networks are not designed for that kind of traffic on which the service providers have no control. This creates an entirely new paradigm for how traffic is generated and controlled on the network.

For broadband to have a reach all across the country (both in urban as well as rural areas), the service providers will have to look into various emerging technologies mainly wireless. All the available broadband technologies should be promoted by the government.

Another challenge for rural broadband would substantial and relevant content for the diversified Indian population, without which the success possibility of broadband in rural areas is very low. The government should play a leading role in developing and deploying applications (e-governance, e-education, agricultural services, healthcare services, etc) that could be used masses especially in rural areas. Apart from this, service providers should also be encouraged develop rich local content the same way they are encouraged for rural telecom expansion (fixed lien, mobile & broadband) through the USO fund.

The advanced wireless technologies, such as WiMax and 3G, are expected to drive the broadband growth in the country. These technologies been successful in different part of the world and India could also leverage them to achieve the next level of telecom revolution. In short term, the government should release the required spectrum to roll out the WiMax and 3G services as these services would help in reducing the digital divide and help in achieving the economic growth through out the country.

The Paper pointed out that in 2006, around 83% broadband subscribers were on DSL technology, were as remaining 17% were accessing broadband using Cable modem, Ethernet LAN, Fiber and Radio. Wired technology such as DSL can reach only up to 5 kilometers from the central office and since India does not have a comprehensive wired infrastructure in place, it makes wired broadband expensive and unrealistic option for rural areas.

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