Market cap of AOL is larger then combined market cap of Bhart, MTNL and VSNL.
What does it have that MTNL/Airtel don't?
1. Money
2. Technical capability
3. Focus on comsumer broadband
And yes, it has challanges in terms of last mile. But those can be overcome in big cities if you have money.
And even if they fail, thats allright.
Its presence will force Airtel / MTNL to move faster in their operations. Some good things "might" happen:
1. Airtel might be forced to inject more money in buying bandwidth
2. MTNL might be forced to move at a better pace in its purchasing process
3. VSNL/AOL might investigate things like WiMax/WiFi combination for last mile
4. Normal people might recognize need for broadband if AOL spends $$$ on adverts
If ANY of things will happen or not, I don't know.
But one more player (and one with DEEP pocket
http://www.google.com/finance?cid=655621) is definetly a good thing in current market.