Why is hi-speed internet in India so costly?

[ArcanaOccult]

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]

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]

wow Sushubh, that was informative. I thought the reason for the high price of internet in India because this is India...lol

 

[Sushubh]

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...

 

[Ryan]

That and bandwidth costs are sky high, even if you have your own backbone.

 

[Sushubh]

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 😉

 

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[vishalrao]

Some stuff to read : "The World's Within Reach" http://www.thehindubusinessline.com/ew/200...82900030100.htm

 

[pawanrh]

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!

 

[vishalrao]

hehe same time post... see mine above 8-P

 

[pawanrh]

oooh! just missed by few second!p.s.I just moved into the regulars group! Yippee

 

[GAURAV7777]

but reliance has so much bandwidth they bought flag network and many others like itthen y is it still so expensive

 

[Sushubh]

they do not have a network in place like vsnl to offer it to bulk users.

 

[pawanrh]

Originally posted by Sushubh@Aug 29 2005, 11:20 PM
they do not have a network in place like vsnl to offer it to bulk users.
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[/quote]
Not long before they do! They have the Largest Optic Fibre network in India!

 

[sachin214]

I think the Indian ISP are going two perform worse than their american counterparts even after acquiring most of there assets .1.The ailling american ISP had closed down and sold there assets because they over estimated the demand and had too much bandwidth to offer,which ultimated costed them dear cos they cud not bear the ever rising maintainace.Well in india due to its population the demand cud be rising ,also they are banking in BPOs but ,unless they set up efficient delivary of the bandwidth and price it smartly they will meet the same fate too.

 

[coolbuddy_79]

we're reaching there slowly and steadily...so the name of the game is now, just wait and watch 🙂