Market Information
In FY 2002-03, the total broadband services market was estimated to be Rs
350 crore, which comprised of DSL, cable, Metro Ethernet, and fixed wireless. On
the DSL front, Dishnet DSL has a monopoly but it seems carriers are also waking
up and are planning to provide DSL. Tata and Reliance have very aggressive plans
on broadband and they are presently testing newer technologies and are likely to
deploy them at the earliest.
l Bharti
Infotel: To start with, Bharti Infotel is focusing only on DSL services and
presently has a subscriber base of around 39,000. The company has recently
announced the launch of Wi-Fi service over DSL in Delhi, Haryana, Tamil Nadu and
Karnataka circles. With this launch Infotel, has become the country’s first
fixed line service provider to offer wireless broadband services for residential
and SME customers. Presently, one can get a minimum speed of 128 kbps.
| ISP
Market Size |
| Type |
FY
2002–03 Revenue (in Rs/Cr)
|
| Dial-up |
195 |
| Broadband* |
350 |
| Others** |
740 |
| Total |
1,285 |
| * DSL, Cable,
Metro Ethernet, and Fixed Wireless |
| ** Includes
Internet leased lines, ISDN access, and other corporate
services |
|
| Voice&Data
Estimates |
Cyber
Media Research |
|
|
In addition, Bharti Infotel also plans to foray into the
fourth generation broadband wireless services. The company has conducted
successful trials in Bangalore, Mumbai, and Cochin. Using fourth generation
broadband wireless service one can expect speeds of up to 2 Mbps. Here, Infotel
is planning to use Bharti Cellular’s base station. The company is planning to
launch services in 10 cities. This is based on radio frequency and would operate
on 2.6 MHz frequency band.
l BSNL: The
incumbent carrier has been providing broadband services on a pilot basis in
three cities—Kolkata, Pune, and Bangalore. The services are being provided by
I-Spatial Communications (P) Ltd (I-Spatial or ICPL), a value added
service franchise of BSNL.
Based on DSL technology, the company is proving broadband
services in partnership with partners such as Nortel Networks, Paradyne, Orca
Interactive, Silicon Graphics, and Kasenna. The broadband technology from
I-Spatial is based on Etherloop (R) technology, which harnesses the latent power
of copper media and eliminates any interference of poor quality copper.
Recently, BSNL and KT Corporation have signed a memorandum of
understanding to work on broadband Internet business in India. Both the
companies have agreed to share resources, know how, and capability to operate
broadband business in India. This will give a big push to broadband as BSNL has
around 35 million wireline customers which can be used to provide DSL-based
services with a small incremental cost.
l Reliance
Infocomm: Though, India has achieved a respectable ranking of seven in terms
of tele-density, on the broadband front, the figure stands at 0.02 per 100
people. It seems that Reliance is now working on changing the overall landscape
of broadband in the country. This task was supposed to have been accomplished by
incumbent operators like MTNL and BSNL who already have a lot of copper in
place. To start with, the company is looking at providing broadband for
enterprises.
| Broadband
Scenario in FY 2002–03 |
| Type |
Subscriber Base |
Share (in %) |
| DSL |
28,000 |
53 |
| Cable |
15,100 |
28 |
| Metro Ethernet |
9,000 |
16.9 |
| Fixed wireless access |
1,100 |
2.1 |
| Total |
53,200 |
100 |
| Voice&Data Estimates |
Cyber Media Research |
|
|
Broadband for enterprise is well underway as presently it is
undergoing trial run in Reliance Infocomm and other group companies. Presently
these are working flawlessly and the response is positive.
In the first phase, the company is looking at 52 cities as
large part of business buildings in these cities have been connected by optical
fiber cable based on Gigabit Ethernet technology. All this will help in
providing bandwidth hungry applications to corporates.
In a year’s time, close to 200,000 buildings will be
broadband connected, at the current pace of laying fiber to building complexes.
BSNL already has a presence in a large number of these buildings, while private
players are present in some. But in many buildings, the last mile fiber is not
yet there. So, expectations are that the company will try to reach a million
customers in few months or in a year’s time frame depending upon acceptability
of broadband services by corporate customers.
On the technology front, the company is opting for different
technologies like Gigabit Ethernet, LMDS, DSL, and cable TV, but Infocomm’s
major thrust is on Ethernet. DSL as a technology is too much dependent on
copper.
Reliance Infocomm, being a new player does not have a legacy
network based on copper cable. So, the company’s broadband focus is more on
Ethernet. On Ethernet, speeds of 100 Mbps are possible, as compared to the 11
Mbps speed on DSL.
In the conventional system, one can experience problem in
video conferencing kind of applications but gigabit Ethernet helps in providing
unconstrained bandwidth and one can even surf the Internet at blazing speeds.
In order to utilize the full capacity of the network,
Reliance Infocomm is planning to launch consumer convergence solutions by
providing high speed Ethernet links to 80 million homes. The company is looking
to provide connectivity to this huge base of users in FY 2004–05.
This revolution will help in providing every home with a
range of television channels, high-speed telephony, audio conferencing, video
conferencing, audio on demand, and video on demand. On this front, the company
is working along with Microsoft and is also testing other technologies so that
it can also lay its hand on the very big entertainment market.
l Tata Group:
In the case of Tata, VSNL will be the front end for broadband. So, VSNL will
have Tata Internet, Dishnet DSL (if the company plans to acquire after due
diligence), and Tata Power’s broadband division that has a 600 km OFC network
across Mumbai and Pune. The company is looking at all the technologies—Internet
cable, Ethernet, and DSL for providing broadband services in the country.
The company has also announced the launch of Internet
services through cable TV network in Mumbai. The company has tied up with
several local cable operators who have agreed to connect several homes to VSNL’s
Internet service through their existing coaxial cable network. And very soon,
VSNL is planning to launch this service in more cities.
Presently, the company is offering DSL/ADSL services in
conjunction with Dishnet DSL. The services are available in all its six circles—Delhi,
Andhra Pradesh, Maharashtra, Gujarat, Karnataka, and Tamil Nadu. The company has
also got LoI for Kolkata, Rajasthan, Bihar, Orissa, UP (East), Himachal Pradesh
and Madhya Pradesh. All these circles will also have broadband services by the
end of this year.
Presently, the Maharashtra arm of Tata Teleservices has been
very active on the broadband front. Tata Teleservices (Maharashtra) has
implemented a fiber-to-the-business (FTTB) strategy by laying fiber optic cable
or PMP broadband radio right up to the premises of its customers giving them
high bandwidth scalability.
| Experts
panel |
| A
Sethuraman, director,
business development and marketing, Alcatel India |
| Ruchir
Godura,
country manager and director, South Asia, UTStarcom |
| Sharat
Sinha, head,
marketing-SP, Asia Pacific, Cisco Systems |
| VK
Aggarwal, executive vice president, ICN, Siemens Public
Communication Networks |
|
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