Abstract

India, home to 1.2 billion people with a GDP growth of 9 percent, has been experiencing flat to modest growth of broadband services in the past decade despite the fact that the country continues to add 8-10 million cellular connections per month. In this article, we examine the reasons that affect the high cost of broadband in India and the steps required to reduce the cost. We also argue that the usage-based pricing model, which is used widely for billing retail customers, is hampering the growth of local content and services. In contrast, a flat-rate pricing model would spur demand for broadband services and enable content providers to target the local and emerging market. We study the Indian telecommunication scenario from a pricing and technology perspective to understand what the driving forces are for business to prosper. We then discuss the Indian landscape from a metro/access/core networks perspective. The technology choices and the methods of deployment are considered followed by an analysis of the service-centric model adopted by providers.

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