Future of Indian Broadband Sector

Mon, 09 September 2019 6:18

The fact is not unknown that technology is progressing at a very fast pace, and it is slowly paving its way into broadband. Recently, Jio has debuted into the Indian broadband scenario with the best offerings which went as a surprise to the end users. In this century, the internet has become an important part of our lives, and we can also say that it would be difficult to live without it even for a day. The users are amazed to witness the progress in the broadband sector as the users are able to do more than just surfing on the internet, they can now do a video call at any time, they can get live news on what’s going around the world, they can buy things online, they can visit places by playing a video, thanks to the evolving broadband sector they can do all of these things just by a flick of their finger. As a result of this, the popularity and demand for broadband services is increasing among the consumers, and it is becomes more exhilarating and exciting with the free unlimited data made available by the broadband providers. So what does India have to offer in terms of types of broadband services?

The basic types of broadband technology available in India are:

  • Cable modern : Coaxial cables are used to provide broadband services, and the transmission speed if of 1.5 mbps
  • Fiber: Fiber technology converts electric signals carrying data to light and transports it through transparent glass fibers, and can provide minimum speed of 70mbps
  • Wireless: Longer range directional equipment is used to provide internet services, and the best speed provided by wireless is of 100mbps
  • Digital Subscriber Line: DSL is one of the fastest internet technology, and the transmission speed can range from several hundred kbps to million bits per second

Future Like For These Broadband Technologies

  • Cable Broadband to Create More Jobs And Economic Growth

We all know that India is the second largest populated country in the world, so how much of the population has access to cable broadband? It was reported that the cable services are accessible in over 200 million homes and only half of them actually use it. Moreover, the cable broadband in the country is based on standard DOCSIS, and the technology is expected to have a bright future in the urban areas as about 75 to 80% of the homes in the urban areas are predicted to have access to cable broadband in next few years. This is a good news, as the equipment is readily available, affordable, easy to install, and can be easily repaired. In addition, government is planning to completely digitalize the country in the next 5 years, the challenge arises to implement a decent connection in the rural areas. To address to the problem, the government has opted to use cable based broadband and has already invested over INR 1000 crores for the same.

  • Reliance Industries to Introduce Fiber Broadband Services

On the 42nd annual general meeting, the chairman of Reliance Industries has announced to roll out fiber services in India by September 5th.  Moreover, the subscription of Jio Fiber is expected to start at INR 700 per month, and the transmission speed offered by Jio will be 100mbps. In addition, for the ‘power users’ the top end plan is priced at INR 10,000 with the speed of 1Gbps. Apart from this, the company is planning to use ‘Narrowband internet of things’ or NBIoT with smart sensors which will have the potential to connect the whole of India.  The plan will be commercially available by the start of 2020, and the company claims that there will be more than a billion IoT devices available in the country.

Strategies of the Market Players to Sustain in the Arena

With increasing technological advancements, many new market players have entered the competition. In short, there are a lot of options for the consumers to choose from and to draw consumers towards their services, market players are introducing attractive schemes at cheaper prices. Moreover, leading broadband providers in India are Hathaway, Joister connect, Hayai, ACT Fibernet, and you broadband among others. In addition, the strategy is the most important aspect where everything narrows down, and what decides which company is likely to sustain in the cut-throat competition.

  1. One of the most basic strategy followed by the market players to sustain in the competition is to provide free trial, and free installation services to their customers for a few months (differs from company to company). If the consumers like the services they can continue with the network, and if they don’t they’re free to discontinue.
  2. Main objective of every market player is to expand their infrastructure. Basically, all of these broadband providers have a standard network in the urban areas, however, to expand their services across India these providers are offering huge data, with better speed at very attractive rates

What is the Price Structure?

  • Hathaway: Hathaway broadband provides its services in 13 cities, and plans to expand its services in all the major places in India. We have found out that the ‘price and plan’ of the broadband is drastically different in different regions. For instance, in Maharashtra, Hathaway is providing 50mbps of speed with fair usage policy (FUP) of 25 GB at INR 850 per month. Whereas, in Hyderabad, the company is providing 50 mbps of speed with ‘no FUP’ at INR 499 per month.
  • Joister Connect: Offers its services in 18 cities. In Mumbai, the company is providing 30 mbps of speed at INR 6000 a year, whereas, in Pune, the company is providing the same speed at INR 6500 a year.
  • ACT Fibernet: Currently, ACT is offering its services in 19 cities. In Bengaluru, the company is providing 100 mbps of speed at monthly rental of INR 1159. In Ahmedabad, it is providing the same speed at the monthly rental of INR 749.
  • You Broadband: Founded in 2001, you broadband provides its services in 22 cities. The monthly rental of the broad band in Chennai is INR 1199, for 1200 GB with the speed of 150mbps, whereas in Aurangabad, it is providing the same speed and data at INR 1829.

We can clearly see a pattern that is followed by these companies to sustain in the arena.

Conclusion

It is true that India is witnessing a change in its broadband sectors, however, the change is taking place at a very slow rate. If compared to other countries, we can see that India is quite behind in terms of internet. The government and the leading companies are working hand in hand to walk the broadband sector of India into a progressive way, and on that basis, we can hope that the broadband sector will have a sound future.