India’s broadband woes

India's telecom sector is often showcased as a success story in reforms, owing to the mobile revolution. Mobile phones in India have nearly reached the 470 million mark while the total number of phones crossed the half billion mark in September. However, in stark contrast, government policy on broadband and Internet penetration is now an admitted failure.
India barely reached 6.81 million subscribers in August 2009 up from 2.28 million subscribers in March 2007. Where Internet is concerned, DoT's presentation shows 14.39 million subscribers up from 9.2 million subscribers in March 2007 (see chart).

This points to a policy overhaul for increasing Internet and broadband access. Typically, broadband and Internet access go hand in hand with wireline penetration, but unlike most of the world, including developed and developing countries, India's wireline sector has remained stagnant at 38 million lines for many years. This is in sharp contrast to the fast-growing wireless or mobile phone sector. Unfortunately, however, broadband access on wireless at current data speeds in 2G has serious limitations.

Experts point out that cost of acquiring a PC in India is still high. Other challenges include prohibition of VoIP by ISP's which is awaiting Govt approval despite specific recommendations by Trai for nearly two years, and governments' inability to share its existing wireline infrastructure with private players for delivering broadband access.