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India Likely to Miss 9 Million Broadband Users by?07
Oct 09, 2007

India’s leadership in fastest growing telecom connections has proved ineffective. The target of the industry to have 9 Million users by 2007 end is likely to remain unfulfilled due to service providers.

According to the news published by
The Economic Times, it is found that despite the fastest growth globally in terms of telecom connections in India, number of broadband users is lagging behind, and is likely to miss the aim of having 9 Million customers by the end of 2007.

The Telecom Regulatory Authority of India’s (TRAI) latest data reveals that the total broadband connections, by the end of July 2007, had reached 2.47 Million with 50,000 new subscribers. This implies that the country would require 1.3 Million additional subscribers each month to meet its aim of a huge subscriber base.

The initial target for the industry was to subscribe three million broadband users by the end of 2005 but it had already been missed. And still, after one and a half years of deadline, the target hasn’t been met.

The sluggish broadband penetration pace in the country is due to service providers because their focus is principally on wired broadband access through existing copper loops and cable TV network in urban areas. With coverage area limited to 3-4 Kilometers from the telephone exchange or access point, DSL and other wired broadband technologies are used mainly in towns and cities. Rural areas are completely ruled out by the service providers since they are unable to get decent Average Revenue Per Unit (ARPU).

Another reason preventing the wide distribution of broadband in India is the inability of cable broadband service to offer faster connections and their inability to improve the user experience. GSM and Code Division Multiple Access (CDMA) can’t be used for broadband access since they are radio technology and Edge technology can give the maximum speed of 144 Kilobits per second only.

An analyst at
RNCOS says, “Indian telecom market is struggling to achieve broadband connectivity at full speed and the path of growth is not free of challenges. The main elements that will make India a broadband rich country are lower costs, cutting the distance between people and markets, goods that are using broadband for e-trade and most crucially for selecting prime movers or applications. But the most important thing to make the broadband common among the masses is to improve the experience of broadband users”.

Related Market Research Reports:
Middle East Broadband Forecast to 2010|
Middle East and Africa Broadband Sector Analysis (2007)
Russian Broadband Market Forecast (2005-2012)