Is India Broadband story losing steam?

In my earlier blog “Unrealistic National Telecom Policy vision to achieve 70% Teledensity by 2017 & 100% by 2020“; I categorically highlighted the optimistic forward looking projection regarding the potential subscriber base in next 5 to 7 years. Based on TRAI Feb 2013 monthly subscriber data, it is evident that even with 160 license holder and 116 service providers; the YoY growth of 10.76% in subscriber addition is too week. The projections made in NTP-12 require India to grow by triple digit to achieve target by 2017. On the contrary, the released report shows decrease in total subscriber from 15.01 to 15 Mn. In a country, where price point instead of performance play a central role in consumer decision making process, I believe the current broadband price points are still high to attract higher adoption. As I highlighted earlier in my other blog posts that Indian government imposes high double digit taxation on telecom service also contributes in higher price point of current broadband services from service providers. For the benefit of ecosystem player including the inclusive growth of country, government should offer tax breaks or other incentives on infrastructure deployment in low adoption cities to propel higher subscriber base. It would not only have positive impact on the consumer social awareness, potential and will inflict positive business opportunities for ecosystem player. At the end of the game, higher volume and higher business for ecosystem would contribute in government coffers through lower tax. In the above scenario, it would be win-win for all.

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Visionary Leader with 22 years of multi-functional experience - combine astute tactical, strategic, business, technology and industry skills in ICT domain at domestic and international level (Wired/Wireless/ networks /platforms/ connected device) .... More

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