Fast internet growth slows down further

Submitted by ITV Production on Oct 25

MUMBAI: Broadband is meant to give fast connections, right? In India, that the growth in fast internet access (defined as more than 256 kbps) has been slowing down is a known fact. But it does not seem to be stopping in the downward spiral and there appears to be a further slowing in the growth if one goes by the monthly numbers provided by the Telecom Regulatory Authority of India (TRAI) and by industry. The latest figures released by TRAI for August 2013 show that  the total national broadband subscriber base has increased by a minuscule 0.26 per cent to 15.28 million in the month over the 15.24 million seen in July 2013.

On the whole, if one goes by this growth, then annual growth in broadband subscribers will be at only 3.12 per cent for the whole of 2013. As compared to this, the annual growth in the previous same annual periods was at 16 per cent or so for 2011-2012 and approximately 17 per cent for 2010-2011.

Additionally, TRAI subscription data released for February 2012- 2013 reported  a 10.76 per cent yearly growth; 18.02 per cent growth for February 2011-2012; 17.70 per cent for  July 2011-2012,  and 16.19 per cent for October 2011-September 2012, and 13.33 per cent for November 2011- 2012.

?Clearly, this should prove worrisome for providers of over the top services which are looking at building business models which will result in delivery of video content to these very broadband consumers  in India. But it also shows that there is opportunity for broadband service providers - either fixed line or wirelesss - or in 4G when it becomes operational,? says a media analyst. ?There?s a huge market which can be tapped with more than 100 million cable TV subscribers; more than 700 million handsets. Broadband tariffs need to go down further and a push needs to be made to take it lower down the strata.?

The TRAI data shows that Hathway Cable & Datacom one of India?s more respected MSOs does not seem to be making a lot of progress in signing up new customers (new adds) for its broadband services. Its subscriber base has stayed put at around 0.37 million for around a year. Its stable performance has however meant that it continues to rank among the top five ISPs in the country.

The other ISPs in the top five include: BSNL (9.98 million), BhartiAirtel (1.43 million), MTNL (1.08 million) and You Broadband (0.33 million).

The TRAI has noted that India has 162 ISPs as on 31 August 2013 providing broadband services and only 113 of these provided it with the subscription data, for the rest of the ISPs data from previous month has been retained.

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