BSNL offers free VAS for new broadband subscribers
A limited period offer valid till April 30, 2010
Customers in Hyderabad, especially large upcoming apartment complexes, could benefit from this technology initiative by BSNL. Fiber to the Home (FTTH) delivers broadband on optic Fibre.
A relatively high priced home broadband plan, at Rs. 999 for residents of Ernakulam, Kerala. Looking at the density of WiMAX base stations it is worth exploring this service.
Latest Trends in the Indian Broadband Market
Broadband in India is still a relatively rare fixture in homes around the nation, with the latest figures showing that just over 7.5 million Indians have access to a broadband connection. Before July 2009 the standard definition for broadband speeds was set at 256Kbps, but a proposal from the Telecoms Regulatory Authority of India (TRAI) in that month could see the minimum speed requirements for broadband classification change to 2Mbps. Governmental approval of the alterations is still being sought. The National Internet Backbone is the state-owned infrastructure that provides fixed line broadband to a majority of India`s current customers and it is the state-controlled BSNL group that has the biggest customer base, with other firms selling on wholesale connections to consumers as an alternative.
There are multiple third-party broadband providers active in India, offering fixed line connections and wireless via mobile networking or Wi-Fi. Because of this there is a fair amount of competition, though compared to other regions of the world to price of broadband in India remains high, which partially contributes to its small penetration levels within the general population. However, the Indian authorities are clearly keen to keep pushing the technology forward, with the TRAI`s ambitious plan for redefinition of base level speeds indicating as such.
BSNL
BSNL offers businesses and home users both fixed line and wireless broadband packages. For example, the BSNL 3G services is ideal for those looking for mobile broadband access without the traditional limitations of coverage and download speeds. This also gives you access to extras like mobile television broadcasts and video streaming.
Tata Indicom
Tata offers a range of services, with its Broadband 2.0 package representing the most comprehensive all-round deal on the market. It includes Wi-Fi access at hundreds of hotspots around the country, VoIP calling over the internet and fixed line broadband delivered at high speeds. Tata also became the first provider to offer 100Mbps download speeds, though this is only available in extremely limited areas.
Airtel
Airtel is the largest provider of mobile telephony services in India and is also a respected home broadband provider. With up to 16Mbps download speeds it is also pushing the boundaries, though for the best value you will need to check out the 2Mbps deals and consider the speeds available in your area.
Sify
Independent internet service provider Sify has gone from strength to strength over the past few years and now looks after millions of customers in India. With competitive deals on home broadband connections and generous usage allowances, there is a lot to recommend Sify to your attention.
Because there is clearly a lot of choice on the Indian broadband market, whether you are looking for a fixed line connection or a wireless broadband package for flexibility, it is important to consider providers side by side in order to get the best deal. Always keep in mind your exact needs and try to avoid being sucked in by advertising which cannot always paint an accurate picture of a provider and what they can offer you.
[1]
Tikona Digital Networks launches its 4G Wi –Bro services in Delhi
Though it is debatable whether WiBro is 4G as the definition of 4G itself has not been standardised. WiBro is the South Korean service name for IEEE 802.16e (mobile WiMAX) international standard.
We will soon be covering the tariff plans of Tikona in our service.
[2] $ 72 bn opportunity for mobile broadband technology vendors in 2010
This is a great news for market such as India. All these trends are pointing to a direction in which Mobile Broadband coudl well be the answer to the problem of penetration in markets such as India. Technologically, wireless speeds are catching up the fixed line speeds. With interesting bundling, the entry costs of mobile broadband could be brought down to increase the uptake at dramatic rate.
[3] Average Internet Speed of 879 Kbps
As per the Q3 report on State of Internet, by Akamai, the average connection speed in India was 879 Kbps compared to the global average of 1.7 Mbps.
[1]
TRAI’s latest telecom report: Total Broadband subscriber base has increased from 7.57 million in November-09 to 7.83 million in December-09, there by showing a growth of 3.56%.
[2]
We have come across a topical workshop scheduled for April 2010- Workshop on Research and Action plan for National Broadband Initiative organised by IIMA-Idea Telecom Centre of Excellence (IITCoE) and ICRIER. The workshop agenda covers funded broadband initiatives in other countries, mainly US & Australia, assessment of demand and technological factors.
Do you have any suggestions for topics which you would like us to cover in these pages?
The report titled “Mobile Internet in India” released by IAMAI, estimates the data card market to grow to 2.1 million by 2010-11.
(Source: IAMAI report)
The report brings out another interesting finding through its survey – Cybercafes continue to be the leading internet access points.
Is data card going to be the leading broadband access technology in times to come? We would like to hear your views.
TRAI has released the quarterly performance indicators report for June – Sept 09 quarter. We present to you the snapshots of Indian broadband market interlaced with our opinions.
| Sept 09 | |
| Total Internet/Broadband Subscriber base | 14.63 mn |
| QoQ Growth | 4.13% |
| Broadband Subscribers | 7.21 mn |
| QoQ Growth in broadband | 8.91% |
| ARPU (Dialup internet) | 231.13 |
| Number of Internet telephony services Providers |
32 |
Broadband’s share of total internet/broadband subscriber base is 49.3%.
| Access Technology | Share |
| DSL | 86.53% |
| Cable | 7.28% |
| Ethernet /LAN | 4.42% |
| Fiber | 0.53% |
| Wireless | 0.90% |
| Leased line | 0.32% |
| Other | 0.01% |
Wireless technology’s market share is now 0.9%, led by surge in USB mobile broadband connections.
A concentrated market with top 10 service providers holding 96% market share
Service Provider Market Share
Dial up and non-broadband (<256 Kbps) subscriptions still top the regional markets in Maharashtra, Kerala and Rajasthan.
State-wise Speeds and Subscribers
In the coming article, we will cover the quality of service (QoS) performance of service providers.
In the past five months, we had submitted conference papers on “Choosing the best value broadband service in India” at two premier Telecom conferences. We are delighted to share the moments of success with you
[1] eIndia – India’s Largest ICT event, held at Hyderabad between August 25- 27 2009
Our paper was selected for poster presentation
[2] eAsia – Asia’s premier ICT Event, held at Colombo between December 3- 5 2009
Our paper was shortlisted for conference presentation
Choosing the best value broadband service in India
You could access the abstract of our paper at eAsia Abstracts. To read the full paper, contact us
Cheer on!
This press release – “TTSL, Novatium combine launch cloud computing-based ‘Nova Navigator” set us thinking- Is Indian broadband market ripe to be differentiated on Value-Added Services (VAS)?
A quick stock taking exercise reveals that the following are the typical Value-additive servicsies offered by Broadband Service Providers in India. Often offered on a bundled basis, the perceived value differs from consumer to consumer, and from segment to segment – Consumer to Business.
| Current Typical Broadband VAS | Primary Example | Attractive Segment/Customer Type |
| Security – AV software | Reliance and many others | Consumer |
| Games on demand | Airtel, MTNL | Youth, Consumer |
| BSNL | Consumer | |
| Web Hosting | BSNL | SMB+Consumer |
| storage | BSNL | SMB+Consumer |
| static IP | BSNL | SMB+Consumer |
| Voice bundle – Combo | Many | SMB+Consumer |
| Flexibility of Speed | Reliance | Consumer |
| Educational courses (Maths, coaching, English) | Sify | Consumer |
| TV channels | Tata Photon | Consumer |
| SMS bundle | Primarily, Mobile USB Broadband | Consumer |
| online desktop | Airtel | SMB+Consumer |
Let’s split the broadband market based on technology and see if this makes sense, to eliminate any myopic judgements. USB or PCMCIA data card based Mobile broadband is the buzz segment today. As per this report, the data card market has long crossed 1 million in sales. The air space these days is covered with claims about being the fastest wireless broadband. Plethora of tariffs, confusing brands, unclear wireless technology backend, growing chasm between ideal and realised speeds – a market growing rapidly with a potential risk. Clearly, a high utility broadband segment, it is very early to be differentiated on VAS.
Coming to other segments, the story appears to be equally rosy. But the sad reality i,s the service providers still haven’t covered the service hygienes – Network performance (read Promised speed and realised speed), billing accuracy and customer service promptness. The customer inquiries at our service and other internet feedback channels bring this point out, loud and clear. Customer is not ready to differentiate a service provider based on fancy games being offered. If we believe differentiation is what happens in the mind of consumer, then we are talking about building and selling castles in the air. The need is for service providers to get the basics right – improve the quality of service and you are ensured of increased subscriber base.
Our judgement is clear – there is enough scope to differentiate on quality (of Service) before embracing VAS. We are happy to be countered!
The latest press release by TRAI says, “Total Broadband subscriber base has increased from 7.40 million in October-09 to 7.57 million in November, thereby showing a growth of 2.26 %.” We are not sure if this covers Wireless broadband (Mobile USB).
Point Touch released a report on World Broadband Statistics. This report helps put Indian numbers in perspective. We have lots of ground to cover in terms of broadband density and the pace of new subscriber addition. Interestingly, India features in the top ten countries by subscribers added in Q3 2009.
The growth in Indian broadband market has been modest in the last five years. The unsatisfactory growth has bred stains of information asymmetry and consumer short changing.
With 6.22 million broadband subscribers and a growth rate of 12.68% q-o-q broadband is a poor cousin of mobile in India.
BroadbandGrowth
Distribution of subscriber base is skewed towards top 10 service providers. More service providers do not necessarily mean higher growth.
Distribution of Subscribers
Market Share
Technology choices are wide for residential broadband. The recent launches of Mobile USB/PCMCIA broadband have seen significant market uptake due to convenience and satisfactory speed of service.
Technology Share
In the next post we will look at the tariff plans and analyse whether the plans spell choice or confusion! Stay Tuned!
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