20 m broadband connections by 2010 disconnected

20 m broadband connections by 2010 disconnected

Harsimran Singh NEW DELHI

THE government target to achieve 20 million broadband connections in India by 2010 is indeed lofty considering that at present there are just about 2.2 million connections. To achieve a target of 20 million would mean a compounded annual growth rate of 200% per annum. Some might argue that it is not improbable. But it’s imperative to note that the Broadband Policy of 2004 set a target of three million broadband subscribers by 2005, which the government has not been able to meet even now.
For 2007, the Department of Telecom has again set up a target of nine million broadband subscribers and 18 million internet subscribers. At present, the broadband subscriber count is estimated to be 2.2 million (actual Trai figures have not yet been released). To achieve the nine million broadband subscribers target set for this year, the subscriber base will have to almost treble in the remaining seven months, a very ambitious task. Last year, the subscriber base grew by 8.35 lakh subscribers.
Minister for IT and telecommunication Dayanidhi Maran had recently said that for 2010 broadband subscriber base will grow to 20 million and the internet subscriber base to 40 million. Though the government is thinking of making broadband free in two years, experts cite content and cost of equipment as major reasons for low penetration.
One reason is that the sub-Rs 10,000 PCs failed to attract buyers. A PC with a decent configuration costs about Rs 14,000. Even at this price point, PCs have failed to pick up in the rural market where broadband could have promoted IT literacy. The 16% duty on computers also remains a deterrent.
Wireless growth has reached areas which don’t have roads or proper schools. Broadband can uplift the poor and illiterate but lack of adequate local content is a bottleneck.
Integrating e-governance services with entertainment and literacy can promote broadband growth but the government has failed in its job as recommended by Trai in 2004. Trai had also suggested income tax rebate on broadband rentals and 100% depreciation on computers in 2004, along with local loop unbundling of BSNL. But the recommendations still remain on paper.
With 35 million cable TV connections, 1.4 million PCs and 121 million telephone connections as in 2006, broadband can bring a revolution in India, but it hasn’t. The US leads all countries with 56.5 million broadband subscribers followed by China (28 million), and Japan (24.2 million).
In terms of broadband penetration, however, Hong Kong leads in Asia-Pacific at 73.03%. South Korea’s comes next at 67.32%, followed by Taiwan (55.05%). India at less than 0.25% broadband penetration is far behind, despite the fact that the country has the lowest broadband tariffs.