Tuesday, July 28, 2009

Broadband and India - New market opportunity?

Yesterday I saw a writeup on net that average broadband speed in NI (Northern Ireland) is 4.1 Mbps while for whole UK it is 3.6Mbps. In india MTNL and BSNL offers top speed of 2 Mbps (when saying top, it is available to retail customers as well in practical). May be it is just my unknowingness, but I have not seens anyone saying that they have seen anything near 1Mbps from airtel, reliance or TATA in India.
Today there was news about Airtel that it is gowing to aggressively reduce its broadband tariff, upto 43% cut in existing. MTNL and BSNL are following lead by further reducing their prices if Airtel actually does it. While there is no one cheaper than BSNL and MTNL, post sell services which forms a major factor for wowing customers could bring Airtel in front while it is already biggest private mobile service provider in India.
Anyway, in this post I wanted to put forth idea of what it could mean for India in future? When we are talking computers and internet, there is still a lot to grow in india. It is mainly people related to software industry and their relatives who are actually buying PCs and using internet. factors contributing to it are -
1. Awareness - people are not aware of what all can be done through internet.
2. Litteracy - only a portion of our population know how to use PC and browse internet. Forget about if they can actually go to website they need and use services provided there.
3. Cost - Average income per person in india is still 3000 per month and this is a news :(.

Now with cost coming down and already plans being laid to reduce PC prices could mean better reach to more people in india. Opportunities it presents -
1. Increase in domestiv market - Internet is fastest way to reach people if you are selling anything - given that people are using it. With internet within reach of more people, sellers will start putting more and more information on internet.
2. Web market - Most of selling happens in india in person. Now people will start buying from net as well and new market areas and competetive ground will imerge from internet.
3. Increase in courier services - As selling will increase, it will require a better supply chain management in india. While DHL and Fedex both collabarating with indian partners, they will be planning to grab their shares.
4. Small website development market - For all above there will be need to develop websites on small scale and cost effective way. Indian young people can gearup to do this by using tools and creating expertise in this area.

While I am myslef is in software line, it sounds a good idea to get in touch with young force who is willing to do point 4 above and that could be a start of small company for serving india:). what do you say?