Financial Daily from THE HINDU group of publications
Wednesday, Dec 21, 2005
Financial Daily from THE HINDU group of publications Wednesday, Dec 21, 2005 |
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Broadband Info-Tech - Telecommunications Bandwidth segment is laggard here Thomas K. Thomas
New Delhi , Dec. 20 WHILE India can boast of a number of players in the mobile market, it lags behind when it comes to competition in the international bandwidth segment. While countries such as the UK and the US have more than 30 operators offering international bandwidth, in India there are only three. While the Tata-managed Videsh Sanchar Nigam Ltd controls over 75 per cent of the international bandwidth market, Bharti and Reliance Infocomm have 17 per cent and 8 per cent share respectively. In contrast, in developed markets such as France, there is heavy competition among the 34 operators. One of the reasons for the low number of operators has been the high entry fee for offering international bandwidth. As per the existing licence regime, only international long-distance operators can offer international bandwidth for which there was a licence fee of Rs 25 crore until last month, when it was brought down to Rs 2.5 crore. In European markets, operators do not have to pay entry fee for offering bandwidth. India also lags in the ownership of landing cables. While in the US, 22 cable landing stations are owned by 17 companies, in India two companies control the five cable landing stations. Lack of access to cable landing stations has created a bottleneck for bandwidth seekers in the country. In India, there are only eight cables touching the shores.
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