Why is hi-speed internet in India so costly?

amogh_gulwady

Viking Warrior
[OP]
Regulars
Dec 17, 2004
402
0
THis is question is boggling my mind ever since I got my cablenet connection.....Yesterday I was reading an article in the TOI about 10 years of the internet in India......In 1995, when VSNL first offered internet....it was like 15000 rupees for 100 hours!! When my dad bought a net connection first time in 1999 it was sumthing like 3000 bux for 100 hours......As of today, the most common *broadband plan* is 64 Kbps, costing around 700 bux(unlimited)....Compare this to the UK or the US, where the most common plan is 512k unlimited costing $15 or thereabouts.....Father, why hast thou forsaken us???? :(
 

Sushubh

Administrator
Oct 29, 2004
416,962
12,935
Gurugram
coz indian companies have to buy bandwidht from third party companies from singapore and usa and we do not have enough users to spend money in our own backbone. its improving though.
 

shouvik

www.clubhost.in
Regulars
Jun 21, 2005
949
6
Delhi -NCR
wow Sushubh, that was informative. I thought the reason for the high price of internet in India because this is India...lol
 


Sushubh

Administrator
Oct 29, 2004
416,962
12,935
Gurugram
well i am not very accurate but that is the basic reason. government next spent money in creating the internet backbones. vsnl and reliance purchase bandwidht in bulk from private companies based in other countries and than resell it. its a complicated business. bharti and reliance are two private firms which i believe now have their own backbones... not sure though...
 

Sushubh

Administrator
Oct 29, 2004
416,962
12,935
Gurugram
but u can be more flexible in prices. being a datacenter and being a reseller is a different thing :) hughes is in a much better position to offer cheap broadband than sify ;)
 


pawanrh

Regular
Regulars
Aug 18, 2005
153
0
Also Maintaining their own Backbone In a country like India, where the infrastructure image Haunts every Industry, would be a very expensive thought, unless the Govt decides to subsidise it! Also most ISPs will always quote "We rely on major internet backbones"! Maybe its just easier to resell Bandwidth than serve through their own backbone!