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Access to the Internet is extremely expensive for users in India. The average price a customer pays for Internet access in US or Europe or even parts of APAC is about $20 for unlimited dial-up access, which amounts to about $240/year. Comparatively, users in India pay about $400 per year for only 500 hours of access, in addition to call charges. By Indian standards (the average income), this is an impossible figure for most people to spend on Internet Access. This situation may be about to change. Until recently, Internet services in India were under the monopoly of the only ISP in the country, Videsh Sanchar Nigam Ltd. (VSNL). This was part of the regulations of the Department of Telecommunications (DoT), as directed by the Indian government. After years of discussion, finally last month the Indian Government licensed to DoT for privatization of the Internet market in India, opening up the forces of competition. Of the 150 or so major telecommunications providers and ISPs said to be lined up to enter India's Internet service market, some of the big names include MCI, Motorola, British Telecom, Sprint, CompuServe, Datapro, Bharti Telecom and Satyam Infohighway. One analyst I spoke to felt that up to 250 ISPs will spring up in the next 2-3 years, and felt that India could well become an "IT Super Power" in 5 years. Thanks to the privatization of the Internet market – the cost of Internet access is expected to drop considerably. This deal also has other benefits tagged on to it - it means potentially more ISPs with better Internet services driven by competition, more access points, less access time due to too many people accessing few busy lines. In fact, one ISP I spoke to, Bharti Internet, is already in talks with the iPass global roaming association to become a member soon after they launch service in the next few months. Bharti Internet is also in talks with several network operators in Delhi, Bombay, and Bangalore to provide 'Direct Internet Access', which means that customers can bypass analog phone lines and the 20-second modem training time it requires and be routed to the Internet directly. In the broader picture, privatization may well spur up the Indian market in terms of the Internet activity, web-based Internet services, Indian web-sites, e-commerce in the region, etc. I could already see interest spurred in Internet activity. When I visited Bangalore, one popular place seemed to be the ‘Coffee Day Cyber Cafe’. Internet access comes with a hot cup of coffee and the whole deal cost less than $2 for half an hour and $4 for an hour! It seemed like a good rendezvous for the younger set, to hang out with friends and browse the Internet. |