Indian government has endured stormy opposition when Videsh Sanchar Nigam Ltd (VSNL), its international telecoms arm, was privatized in early 2000. Since then, through merger and acquisition along with new build-outs, the Indian carriers – Tata, Reliance and Bharti – dominate the global connectivity business. Moreover, each submarine cable linking Asia with the Middle East, Africa and Europe hops in India due to its location. Therefore, like Japan in transpacific and the United Kingdom in transatlantic routes, India could emerge as a formidable transoceanic telecoms connectivity hub in the region. That has not happened, primarily, due to the Indian carriers’ mindless obsession for dominance.
India’s regulator has launched a public consultation on – “Delivering Broadband Quickly: What do we need to do?” TRAI has identified many bottlenecks across the broadband supply chain in India. It is, however, mute on the duopoly of Tata and Bharti over the submarine cable landing stations. TRAI underscores the rationalization of right-of-way. It should have revealed that some states charge as high as INR 1.
Asia’s median wholesale price of Internet bandwidth is now more than four-times expensive than Europe’s. In LIRNEasia I have been working with ESCAP to formulate a Eurasian terrestrial cable initiative. The objective is making Asia’s submarine cables highly resilient by adding a meshed transcontinental overland optical fiber network. It will make Asia’s wholesale IP-transit bandwidth cost either at par or lesser than Europe’s. Broadband in Asia, regardless fixed or mobile, will grow like mobile voice.
> Bhairti Airtel may revise low-cost strategy in Africa > > In Telecom.paper 29-02-2012 > > [Mobile World Congress 2012] > Bharti Airtel may devise a new strategy for the African market, following what it termed an unexpected response to its low-cost model developed in India. According to the Daily Nation, the mobile company told participants at the Mobile World Congress in Spain that it was surprised to find that the African market did not increase its talk-time, which was critical to supporting its low-cost model. MD Sunil Mittal said unlike India, they were surprised that in Africa, lower tariffs could not increase volumes. In Africa, subscribers use the money saved on lower calling rates to buy food and not to talk more.
The shoe is yet to drop in terms of South-Asia-like retail prices, but Bharti is beginning to move out its famed outsourcing model to Africa. The story emphasizes IBM, but one has to be understanding of the US-centric NYT. I.B.M.
Multiple submarine cables with multiple landing stations, owned by different entities, don’t offer competitive wholesale international bandwidth in India. Today a chunk of 10-gigabytes bandwidth varies between $5 million and $9 million in India while it’s being sold from $1.5 million to $1.7 million in other Asian markets. It’s a huge challenge for the world’s fastest growing telecoms market where broadband penetration remains a national embarrassment.
The Hindu Businessline, Thomas K Thomas, New Delhi , July 13Increasing usage of broadband and Internet-based services has prompted Indian international bandwidth providers to raise their capacity by 95 per cent over a one-year period. According to the Telecom Regulatory Authority of India, bandwidth owned by various gateway service providers such as VSNL, Reliance Communication and Bharti has gone up to 12.7 Giga bytes in March 2006 compared to 6.5 Giga bytes at the end of the previous financial year. Explaining the growth, Mr Kiran Karnik, President, Nasscom, said: “Bandwidth requirement is largely being driven by the IT industry, particularly the BPO sector, and also rapid Internet adoption at homes.