Dial-up continues to be the most preferred way to access the Internet in India but broadband is slowly closing down the gap.
As per a new study by TRAI (Telecom Regulatory Authority of India), percentage of dialup subscribers declined to 66 % in March 2006 from 84 % year-on-year & came down to 60 % in June 2006.
India had around 7.7 million Internet subscribers by June 2006. Around 20 % of those were using broadband to access the Internet, but the segment is witnessing a fast growth rate boosted by cheap tariffs and easy & economic installation options as most broadband connections in India are DSL (digital subscriber lines) connections, provided as an add-on over existing fixed line connections, thereby reducing installing costs.
In order to attract more customers, operators are offering exciting packages while some are even providing installations at zero or very low cost.
As per RNCOS report "Indian Telecom Sector Analysis (2006-2007)", "The Internet Access Market in India is all set to grow twice the existing value, with the increase in de-regularization, literacy level, increasing consumer awareness, PC penetration etc. Broadband Wireless Market in India is all set to take off in a big way. Over 70% of the households in India have no access to wired lines and the number of mobile phone users far outnumbers PC owners. Such a scenario presents a very good opportunity for Wireless Broadband Services."
However, broadband connections in India are still very much behind target. Till 2005, 3 million subscribers were aimed but just 0.18 million broadband subscribers were achieved. At the end of October 2006, number of broadband subscribers was around 1.9 million & is not likely to reach 2007-end target of 9 million.
Among the major hindrances in the Indian broadband sector is the speed at which broadband is provided. Though the tariffs have reduced significantly, the speed of the connection is still insufficient to justify its price. Moreover, improper & false billing and slower connection speeds (than specified by the ISP) are the key challenges for the sector.
A cost-effective & scalable technology like WiMAX is needed to achieve these set targets. WiMAX has the potential to offer a perfect solution with long-range, wireless & scalable broadband solutions, which can be quite successful in Indian market.
Related Market Research Reports:
Global Mobile TV Forecast to 2010
American Mobile Handset Market Analysis (2006-2009)
Mobile Handset Industry Asia (2004-2009)
