broadband penetration in India

What could be done to increase the broadband penetration in India? Arguably, this is not an easy question that could be answered. This perhaps brings head all the previous posts where in I had mentioned about the regulatory mess and telecom muddle. As to how TRAI is basically ineffectual in enforcing minimum standards and how the telecom operators are happy to line their pockets with money.

The benefits of increasing Internet penetration are manifold. It has been conclusively shown that increase in the telecom sector leads to growth in the GDP. This fact should not be lost to the policy makers. While in media, the companies tend to pat on their backs to congratulate themselves about the increase in telecom density, the truth is far from what is made up. It is difficult to pinpoint any factor that may bring about an increase in the broadband reach. I shall try and lay out a case for the same.

There is felt demand for any goods and the supplier sidesteps in to fulfill the same. This is the fundamental rule of economics. Once the demand is robust enough, supply side has to stand up to expectations. However, in India, supply in terms of telecom operators has taken it lightly so far. There is minimum stress on the quality of the services. Back it up with ineffectual regime and you have a disaster. This is what is being replicated across board.

Literacy is one factor that can fuel the demand for the same. As literacy grows, it brings about a critical viewpoint towards the prevailing issues in the society. Access for the same is mandatory for health care indicators and overall growth of the economy. Any nation cannot claim itself to be a “superpower” as long as the quality of the manpower resources cannot stand up to scrutiny. It is shameful that after 50+ years of independence we have one of the largest burdens of illiterates in this country.

The reasons cannot be accounted here though. Broadband access through cheap computers holds the real potential to replace the traditional methods of teaching. Fact is that existing ways to teach do not factor in the involvement of either teachers or students. In that case, audio visual content can vastly enhance the delivery of educational materials to the children with the option for a feedback on the same. I can foresee streaming audio visual content through existing optic fiber cables in the rural primary schools. This coupled with other incentives could really increase the outreach of the Sarv Siksha Abhiyan that is being planned by the government.

For this, I propose open scale architecture of networks, which are easy to update. The best possible solution is Linux. Windows based Operating System would create a headache for licensing and updates. Given the customizability of Linux in local languages, it would make much more sense to lay stress on traditional knowledge systems rather than teaching alien concepts to children. What basically is required is the open box thinking, rather than moth eaten hair brained ideas that rot in mountains of files all over.

This is only possible if the taxation is reduced. This year’s budget has tried to address this pressing problem, without any headway. The fact is that we need cheaper chips and motherboards, rather than fancy Intels running Windows. Most of the computers are designed with the object of keeping gaming in mind. However, Open Source projects have given a credible answer to the pressing digital divide. It might be possible to set up IIT’s K-Yan which provides a perfect tailor made solution to the obviate the need for a computer. It has built in projector with a DVD player and a computer. Produced on a mass scale it could be real cost effective solution. However, for that we need to weed out the taxes and give a tax holiday. For all the idiocy in Bangalore, the IT capital of India, a sizeable tax could be collected from the millionaires. Media has become woolly eyed and goes in raptures as and when either Infosys or Wipro is mentioned.

This brings us to the next aspect. If India really is the IT nation with companies like Infosys and Wipro serving the western companies, why not force them to branch out to have a stable Operating System based on Linux? A food for thought? The brain capital could be utilized better hiving off separate divisions for development of India specific computer. Simputer was a great concept but never really took off. For all their claims, let Mr. Murthy declare his intent to give something back to this country in a sizeable and significant manner, rather than chase foreign companies who are not loyal anyway. More than money, Mr. Murthy, you could earn goodwill.

To make this happen, we need bandwidth. TRAI reduced the international bandwidth rates, which brought my earlier contention in clear focus. At the heart of these companies, profit-making motive is the real reason. While corporate customers are able to negotiate down to earth prices, higher access costs are passed on to the customers, based on the assumption to pay indefinitely. However, despite the media hoopla behind the TRAI’s action, the most important factor is to reduce the domestic bandwidth rates. Once the local access charges are reduced, it would make real sense to end consumer. As long as it does not happen, TRAI is fooling itself that broadband would really increase. For the same reason, there would not be fall in the International Long Distance rates because much depends on the carriage fees and termination charges. Ultimately, the core issue needs to be addressed.

For all this, the equipment needs to be manufactured in India. This budget did allocate a paltry sum to C-Dot, the sick manufacturing arm of the government, but clearly much needs to be done to bolster research and development in telecom equipment. Importing the same benefits only the foreign companies and leads to outflow of foreign exchange. The incremental costs are higher as a result needed for maintenance.

These are some suggestions to increase the broadband spread. As I mentioned much needs to be done to spur on growth and generate demand to really affect the rapidly growing digital divide.

Discuss on: Sify Broadband, Tata Indicom, Airtel Broadband, Reliance Broadband, MTNL – BSNL Broadband, Dial Up, Others

This post was submitted by Dr. Abhishek Puri on the Broadband Blog on Techwhack.

Tags: Airtel, Airtel Broadband, API, Broadband, Broadband access, BSNL, BSNL Broadband, Digital Divide, DoT, DTH, DVD, EDGE, India, Internet, Linux, manufacturing, Media, MTNL, Open Source, Opera, operating system, Reliance, Reliance Broadband, Tata, Tata Indicom, Telecommunications India, TRAI, Windows

A Few Questions on Indian Telecom

This little anecdote goes about 6 years back. I was studying a remote corner of India, untouched by technology or civilization. Interestingly it was overnight from the IT capital of this nation, Bangalore. Every Sunday my mother used to call me back. At that time, mobile telephony had just started off in New Delhi. Under these circumstances, I developed a keen interest in the telecom scene just to keep myself updated about the falling Subscriber Trunk Dialing rates.

As it took a long time, two years hence and during my third year I got an Airtel connection. The Short Messaging Service was a rage and it made my life a lot easier. I could stay in touch with my family and there was a drastic reduction in the long distance rates. I was made to believe that increasing foreign direct investment in the telecom sector is good for this country. Of course, I was naïve to believe this propaganda.

Before I left that place, Calling Party Pays regime had been announced. Reliance was on the verge of rolling out their network pan India. Of course much had changed since I finished my course and by now. I remember that it was a frustrating wait at the local cyber cafe with a screwed up dial up. In the middle of opening up any mail attachment, the connection used to break off in the middle. I have paid astronomical access charges for the same on an hourly basis. There in I developed revulsion for the government initiatives.

The purpose of the foregoing account is that if 6 years have passed from then until now, for me nothing really has changed in the “happening place on earth”. Naivete gave way to deeper understanding as to how these companies are intent on lining their own pockets; the customer be damned. Finally, after search for a decent platform to air my concerns, I landed up here.

A few questions that I would like to ask which mainstream media would never ask. Herein lies the power of blogging. Blogs can give voice to ordinary people like you and me. And of course an alternative platform from the mainstream media.

I would like to ask them all as to why they have signed up the “leading cricketers” for their ad campaigns? Barring BSNL, whose ad spends goes to the lowest tender? That reflects in their media exposure in terms of shoddy advertising. Is it to signify that just like the Indian Cricket team, they are not reliable when they are expected to perform the most? Almost every telecom operator pays out huge amount of endorsement fees to sign them up. In order to make the most of the deals, they end up clogging the sponsorships. Admittedly, advertising is essential. However, have you ever realized the effect of the advertisements anyway? If your highly paid MBA has reeled of statistics that number of subscribers has increased, there are few reasons for the same. First is the churn that you all hate. The second aspect is that potential customers really have no choice in most of the GSM markets. It is either Airtel or Idea or Hutch or BSNL. Is there anything major to differentiate any one of them? Except maybe the brands, the quality of services for all is pathetic.

A question to BSNL. Sir, why are you sitting tight over broadband resources? Do you feel that end customer is an idiot to sign up broadband that has a stupid 1 GB download limit? In that case, why not make dial up cheaper? We are paying out one of the highest access charges for the same. Do you know how difficult is it to get the work done out of the ordinary linemen?

In the same vein, Mr. Bharti, could you answer that why did you approach the courts asking for refund on the migration fee to unified license? Despite the fact that you knew that the fee is non-refundable? What a waste of the precious court time and litigation costs. Who benefited out of the exercise? Well, you know that one!

This one for Sify. Sir, do you know that there are a lot of “admirers” here? We have a whole forum dedicated for your antics. I am sure that getting a NASDAQ listing would have meant something. Is it that your employees have not heard of the word Customer or the word “broadband”? Sir, have you ever been to a rickety broken down iWay? Where speeds as slow as 10 kbps is called as “broadband”. What have you done that you are not hauled up under falsifying claims? I mean you have proved the saying wrong that you can fool ALL the people ALL the time!

This question for Reliance. Sir, why did you have to change the international numbers into local calls to avoid paying the Access Deficit Charge? I am sure that you can make much more money by keeping the rules of the game straight, isn’t it? In any case, let us see the lid blowing off in the face of the other operators who have silently maintained a BIG silence about the whole issue. Now everyone has become smart after Department of Telecom installed a toll free number to investigate the “breach of security”. As Business World, had carried out an article on you, about the complex financial engineering that you did putting in the Reliance’s shareholders money in your telecom venture and making huge profits out of the same. Do you feel that is a perfect case study for business schools?

This question for TRAI. Sir, with due respect, when would you start exerting yourself in the interests of the consumers? Sir, do you have any idea about the problems that we have to face while accessing telecom services? In case we have to complain against the service providers, they do not care two hoots for the customer. The promised dream that customer would be the king, has gone really sour.

This question to the media. With all due respect, to this profession, why do not you all stand up to your conscience and report the way it is to be done? I mean do you really feel that India is an IT superpower? Does money thrown in by NASSCOM or their ilk have such an influence that you are ready to give them a paid media exposure? Do you know how asinine is the state of affairs is? Try stepping in the shoes of a common man, perhaps then you would realize how supposed telecom revolution has sorely missed its mark.

I really wish that I get some word of official communication. The stakeholders do not believe in being answerable to even themselves. 5 years hence, I do not want to be even more cynical.

Discuss on: Sify Broadband, Tata Indicom, Airtel Broadband, Reliance Broadband, MTNL – BSNL Broadband, Dial Up, Others

This post was submitted by Dr. Abhishek Puri on the Broadband Blog on Techwhack.

Tags: Access Deficit Charge, Advertisement, Advertising, Airtel, Airtel Broadband, API, Broadband, BSNL, BSNL Broadband, Department of Telecom, DoT, GSM, Hutch, India, Internet, mainstream media, Media, Mobile, MTNL, Opera, Reliance, Reliance Broadband, Tata, Tata Indicom, Telecommunications India, Telecommunications India, TRAI

Insanities in Indian Telecom

Much has happened in the past few months. I could sit back and report on every single issue. However, I had to wait for the final resolution on the same. The first and the foremost is that Reliance has had to pay out the fine it was forced on them for the non-payment of the dues. BSNL blew the lid on the “scam” that involved changing the caller ID from abroad to local calls in order to avoid paying the access deficit charge.

Well, I really doubt whether the ones in BSNL are really smart enough to pull this out. I believe that it is the dirty tricks department of the other operators who might have tipped off. Now we get to hear that Department of Telecom too has jumped in the fray and issued notices to Reliance on the same. After getting no relief from the TDSAT and Supreme Court, it had to pay up the fine or risk loosing its license.

Herein, Reliance has kept its lawyers extremely busy over the past few months. I am not taking sides over who is wrong and who is not, but so far, the media has been focusing totally on Reliance. The left parties, given their animosity to Reliance demanded removal of the TRAI chief for good. I fail to understand that how the removal is going to prevent what has been happening for the past few months. Well, with moth eaten brains and even worse ideas, everyone chose to ignore the basic reason behind the diversion of calls. It is simply Access Deficit Charge.

In my earlier columns too, I have been raising this particular point that ADC does not help the telecom industry in anyway. Instead, it diverts the real resources to spread telecom far and wide. Given the onus on the government owned agencies, they ought to have spread the rural telephony far and wide. How much time you need? 50 years is not sufficient? Despite the ADC component in place, we have seen growth of mobile phones rather than fixed line telephony. BSNL is loosing its telephone connections on a rapid scale that is not reported widely in the media. Perhaps because it is paid exposure anyway. ADC is unfriendly and anti competitive. BSNL declared a profit of almost 5000 crores. Much of it was the ADC component that was reflected in their books.

Obviously, as it happens, there is bogey of national security that has been raised. Clearly, once the ADC goes off and BSNL is not subsidized indirectly, we could see some semblance of sanity there. Free form competition would bring down the prices considerably. For too long we have had to suffer at the hands of ill designed and badly implemented policies of Department of Telecom. For heavens sake! Leave this alone and think of the end consumer.

Broadband is officially a non-starter. BSNL did introduce and barring a few exchanges that were covered, only a few people are utilizing the same. The download limits kick on in by June 30. 1 GB of download limit is asinine. Rs.2 per MB is proposed to be levied thereafter. That means that another GB of data would cost you almost Rs.2000/- If that is the rough calculation, factor in the tax that you would have to pay on your phone bills. After the download limit kicks in, use your broadband not even for checking you email. See the modem and kick yourself on your stupidity to invest in one. However, there is a BIG if here. If, the prices for the bandwidth gets cut down or TRAI wakes up from its slumber and actually decides to take pro consumer action, then it might just make sense to invest in one. Be prepared though to put up with a lousy customer care and technical support. Or well, you could bribe someone to help you out. In India, anything is possible.

Reliance has come out with its anniversary offer. It is offering the double of the talk time when you recharge for the same. Looking back, these people can be justifiably proud of themselves and pat themselves on their backs. They have expanded at a breakneck speed and got their fundamentals absolutely right.

Well, the GSM majors Airtel and Idea were forced to eat crow recently. In a rare proactive step taken by TRAI, they were forced to refund the money taken on behalf of the migration fee. The migration fee was ostensibly taken for shifting from one plan to another. If that sounds rude, it really is. Who gave them right to do so? I fail to understand that why their licenses were not cancelled for dereliction of duties and anti consumer action. All these companies were asked to do was to refund the fee. Anywhere else, they would have to pay a penalty with interest on the same. It really is a shame that anything goes in the name of doing business. Why would these people need fancy people to endorse their products? Are they falling short of money? Or they wish to hire another army of morons and intellectually challenged idiots to serve them?

Over and above, there is enough muck that can be raised at these people. In the name of telecom services, there is much more than that meets the eye. I hope that one-day customer would truly be the king. Until that time happens, I do not want that illusion for myself at least.

Discuss on: Sify Broadband, Tata Indicom, Airtel Broadband, Reliance Broadband, MTNL – BSNL Broadband, Dial Up, Others

This post was submitted by Dr. Abhishek Puri on the Broadband Blog on Techwhack.

Tags: Access Deficit Charge, Airtel, Airtel Broadband, API, Broadband, BSNL, BSNL Broadband, Department of Telecom, DTH, GSM, Idiots, India, Media, Mobile, mobile phones, MTNL, Opera, Reliance, Reliance Broadband, scam, Tata, Tata Indicom, Telecommunications India, Telecommunications India, TRAI