Abstract

Indi's BroadbandIndustry Focused on Long-term Growth

Because of India's income structure and low PC penetration rates, household broadband growth will be limited for the near future. The Indian government is aggressively promoting development in the telecom industry, and hopes that foreign investment can help spur growth, even out urban/rural discrepancies, and improve education levels. Following the development of the mobile phone industry, increasing broadband penetration will be a major policy focus of the Indian government. 

Long-term Focus on Optical Fiber Networks

India's dilapidated cable broadband networks are a major obstacle to the development of broadband. TRAI hopes that allotment of band space and licenses will stimulate the development of wireless broadband services and help alleviate the insufficiency of last mile cable networks. In the short term WiMAX terminal costs are another obstacle to wireless broadband market. 

In the long term, strengthening optical fiber backbone network volume, quality, and density is the key to broadband development. Using WiMAX to complement this optical fiber backbone and remedy problems with the fixed network is a fast and inexpensive way to build broadband networks.

Stimulating Corporate Markets

India is currently focused on developing its IT software industry, so strengthening corporate service applications and competitiveness is a key for developing broadband. Point-to-point wireless broadband networks are fast, inexpensive, and free from backhaul fees, so developing corporate or vertical market applications is the short term focus of India's wireless broadband market.

Wireless Broadband Paired with Inexpensive PCs

In 2005 the average income in India was US$598; and with the huge gap between the rich and poor, not every household could afford US$10-per-month broadband service. In 2006 only 9% of households had annual incomes of over US$4,200. It is hoped that with governmental and private efforts to stimulate ICT industries, 14% of households will have incomes of US$4,200 by 2010. However this will still act as an obstacle for broadband service development.

To adapt to India's income structure, leading ICT manufacturers are also considering taking advantage of the growth of value-line PCs. Selling wireless broadband modules along with inexpensive PCs could increase potential for broadband applications. Strengthening multimedia performance of mobile devices, developing mobile multimedia applications, and creating a killer wireless application would also help promote wireless development.