Broadband Internet in India

Of late, every telecommunication companies in India - both mobile and otherwise - are talking about providing broadband internet services to Indian population. By looking at the number of media adds, one may get the impression that India is at the brink of a communication revolution - broadband internet and lower rates. Hey wait a second, are you talking about India?. How could - in a so-called free market with dominating socialistic economic ideology with ill qualified politicians at the helm of policy making - this be possible?. Actually it isn't!. Under the much hyped broadband policy lies the fundamental flaw in even getting the definitions right. According to Indian broadband policy, a connecting speed of 256Kbps is termed as broadband. Wake-up you moron's, the world is talking in Mbps. Not only that, take a look at the tariffs. They are excruciatingly high. Let me tell you this, any broadband connections which costs more than 5% of monthly percapita based on PPP of GDP is worth not having it. The so called social development - which the government is saying - will never be achieved.

The percapita GDP of an average Indian is $2900 (CIA World FactBook - 2004 est.). Any broadband internet service which costs more than $12.00 (Rs. 540 @ Rs.45/$) will not be viable for the predominately middle-class Indian households. Of course the business will manage with any cost as long as they get the speed promised. They actually account this expenditure in their balance sheet in calculating their profit and thereby tax. On other hand, poor middle-class consumers will have to pay their incometax separately and pay an additional service tax on the internet charges. This is "VERY BAD ECONOMICS ".