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.

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