Moving in a narrow band

The Department of Telecommunications (DoT) has set itself a targetof nine million broadband subscribers by the end of this year "� declared as the 'Year of Broadband'. The projected figure, however, appears to be way off the mark.

What hasn't happened in the last three years can't take place in seven months, say analysts. Last April, broadband figures stood at 1.4 million. This April, the figures stand at 2.43 million "� a 73.6 per cent jump.

While there is a growth "� 0.13 million connections were added during April 2007 as compared to 0.09 million added during March 2007 "� it is a mere 5.65 per cent. Even if the current pace is achieved, the figure will touch around 4.21 million by April 2008.

However, reaching the nine million figure by the year end would imply a 270 per cent jump which analysts opine is not achievable. Globally, there are an estimated 300 million broadband users.

The uptake of broadband has been lagging despite the fact that the infrastructure is in place. Consider this. More than 4.5 lakh route km of optic fibre has been laid by BSNL/MTNL and over 1 lakh route km by private operators like Reliance and Bharti.

Moreover, according to NASSCOM's Strategic Review 2007 Software and services (IT-BPO) exports are expected to exceed $31.3 billion in FY 2006-07, a 32.6 per cent growth. With such growth, continuous, high-speed Internet connectivity for IT should be the norm rather than the exception.

Industry players feel the government has not been in the forefront in pushing for the adoption of broadband. Many argue the applications required to run on broadband are missing.

"Relevant content in vernacular languages, and the like, needs to be developed for broadband to take off. Also, there are multiple issues like PC pricing. A lot needs to be done in terms of better service offerings and not just access devices, says Arpita Pal Agrawal, associate director TICE Advisory Services of PriceWaterhouseCoopers (PwC).

The only service that has been launched so far is the Internet Protocol Television (IPTV). But again industry experts feel that neither the government nor the players are interested in finding out the uptake of such services. The other key factor is price.

Mahanagar Telephone Nigam Limited (MTNL) recently introduced Internet Protocol Television (IPTV). There are just under 1,000 subscribers for MTNL's IPTV offering.

"We have been engaged in consolidating our networks for the IPTV offering. Soon we will step up the advertising," says Piyush Agarwal, Broadband and IPTV, MTNL.

He insisted that MTNL's broadband service had re-defined broadband "� 256 kbps to 2 Mbps. "Competition in this sector will aid broadband's cause," he adds.

Why should a user pay more for the same service that they might access on their mobile phones for half the price and better quality?, ask analysts.

"I think the acceptance of IPTV by the users in India will be a test run for broadband. Its penetration can happen only if the eco-system is also available. By eco-system, I mean the required applications that can be accessed through broadband," said Alok Shende, vice-president ICT practice, Frost and Sullivan.

Poor computer penetration in India is adding to the bandwidth woes. While there are 22 million PCs, there are over 170 million cellphones in the country.

"The Indian broadband story will go the Japanese way"� that is based on mobility"� unlike the US which is application service provider (ASP) model," predicts Shende.

Arpita Pal Agrawal, associate director TICE Advisory Services of PwC said, "Though broadband access prices on a PC would be about Rs 250 compared to a much smaller number on the mobile, there are some applications like your child using broadband connection to search for his/her homework which are more conducive to a PC-based access."

The other problem with the already existing infrastructure is the connectivity that they can offer. Shende notes that optic fibre networks of private and government players are not comparable.

Reliance has laid down an inter-city pipe, which means that it can provide connections across cities while BSNL/MTNL's network extends to within cities as well.