LIRNEasia‘s Teleuse at the Bottom of the Pyramid study has been widely cited in an excellent piece by Thomas K. Thomas of the Hindu Businessline on Indian telecom operators push to go to rural areas where they were reluctant to do so before. Currently, a village with as little as 1000 persons is considered commercially viable for connecting to the network. Call of the Village Thomas K. Thomas, Hindu Businessline, April 2, 2007 [.
The Study of India’s Universal Service Instruments by LIRNEasia researchers Payal Malik & Harsha De Silva, critiqued the Indian government’s policy that made only fixed line operators eligible for USO funds: As of today, the government is giving USO fund support to only the fixed line operators offering services in the rural areas. The over defining terms in the law is a bad idea in a rapidly evolving technology environment, though this correction has been suggested it is quite possible that the previous auctions have left huge amounts of rents that have been appropriated by the incumbent. In an industry that manifests the potential for rapid technological change and innovation, such as telecom, an economic analysis of a problem should not focus too narrowly or exclusively on the best use of society’s resources from the standpoint of today’s technology and resource availability i.e. static economic efficiency but should be viewed from a dynamic perspective.
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.