India has the potential to reach the target of 10.5 million broadband subscribers by 2010, according to a study by IBM Business Consulting Services conducted for the Confederation of Indian Industry (CII). The study also said the drivers for this growth will come from growing demand in the urban areas, with about 10 million subscribers from this category itself. |
The report suggests that to attain this growth, the government should put in place a legal framework that will give confidence to investors to make huge investments to achieve this target. |
It has also called for legislating convergence of services with less regulatory and licensing requirements. The CII report also suggests that to promote the growth of broadband in the country, the government should exempt it from all the customary taxes, duties and other levies. |
Pointing out that the government is required to put in place a customer-oriented regulator, the CII paper also suggests government take steps to create demand through financial support mechanism. |
Giving its suggestions to the service providers, the report puts forward a model wherein the incumbent players can look at reducing costs through partnership with third party service providers. |
"There is also a need for support from the government in making available public goods that are required for sustainable, cost effective and speedy rollouts. These include spectrum for wireless solutions and time and cost effective right of way arrangements for various technological solutions, says the report. |
The report also says that the industry should look at a low priced entry model to maximise market acceptability and should ensure availability f value added content and services from the beginning itself. The report says that such a step would ensure mass market penetration and faster subscriber offtake. |
According to the report, availability of god content is required to ensure growth of the sector with medium term and significant investments by the players. It also suggests significant investments in developing content in education, health and entertainment amongst others. |
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