Huge opportunities provided by the low penetration of broadband and the launch of advanced services will lead to boom in the Indian broadband and IPTV market.
The recently held Convergence India 2009 concluded that the Indian telecom sector is set to see another boom after the mobile boom. This boom will be triggered by the IPTV (Internet Protocol TV) and broadband, as reported by ZDNet Asia.
At the end of December 2008, India’s broadband subscriber base stood at 5.45 Million against 5.28 Million in November 2008, according to TRAI. Furthermore, 4.18 Million people were accessing Internet via DSL connection, 0.12 Million were connected with Ethernet LAN and 0.46 Million were using Cable Modem at the end of September 2008. India also had 0.05 Million Fiber broadband users of which 0.018 Million were Leased Line subscribers.
The prospective growth in the Indian telecom market is due to the immense opportunities existing in the country on account of low penetration of broadband. While 50% of Indians have mobile connections, merely 1% of them use broadband. Now the country is eyeing on wireless data transmission services i.e. WIMAX (Worldwide Inter-operability for Microwave Access).
In the modern world, convergence is the key attribute with nearly all aspects of communication converging digitally into mobile handsets. Moreover, the communication technology can significantly reduce the digital gap between rural and urban India.
Furthermore, video is going to be the next major traffic generator in the networks. For the first time in India, entertainment is being provided via IPTV. Earlier in 2009, telecom operators like Bharti Airtel, MTNL, BSNL and Reliance Communications enhanced their service portfolios by adding IPTV services to their kitty.
However, spectrum remains a challenge for the service providers as it is yet to be allocated by the government. Additionally, lower broadband connectivity is another major challenge. The computer usage should be improved to increase the job opportunities in the country.
According to a Research analyst at RNCOS, “There is an immense growth potential in the Indian broadband sector. This sector can also repeat the stupendous growth displayed by the country’s mobile telephony sector. The market’s re-emergence is being well-supported by the positive response of the consumers. Moreover, the launch of 3G services will add on to the growth of India’s IPTV and broadband market.”
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