The Hindu Business Line : Budget boost for browsing-on-the-move

Bangalore, March 2 Enhanced excise duties on packaged and customised software as well as continuing uncertainty on the extension of tax holidays for software technology parks beyond the deadline that is now just a year away: Together they ensured that the information technology sector’s reaction to last week’s Central Budget has been largely muted and less than euphoric.

But amidst the encircling gloom, there has been one unexpected goody -- even if the precise reason for this selective largesse is not quite apparent: the slashing from 16 per cent to zilch of the excise duty on wireless data cards.

Corporate customers

Largely used by corporate customers who would like their mobile executives to be available via the Web, any time, any place, these data cards are supplied by most leading mobile service providers including Airtel, Reliance, Tata Indicom and Vodafone.

Once connected to what is known as the PCMCIA slot of the laptop PC, these cards use the cellular telephone network to access the Internet.

Can work with desktops

Since 2007, all Indian wireless data card providers have offered the option of a card with a Universal Serial Bus or USB type connector. This does double duty: when one is not on the move, it can be plugged into any desktop PC to get instant Web access.

Typically in India these wireless cards cost between Rs 2,500 – Rs 3,000, and all the providers offer a variety of services: subscriptions of around Rs 600 - Rs 700 will get you one month’s Net access with up to 1 GB of downloads; more to be charged extra. For Rs 1,000 or so, most providers offer unlimited access.

Surfing speeds in India are rather slow and are typically around 150 kbps. However, some providers promise broadband speeds of 2-3 gbps in foreign locations -- albeit at a stiffer download premium.

By allowing the wireless card providers to slash the cost of the key hardware by around Rs 450, the budget may give a boost to this small niche in Net access -- while the technology and the means used by the aam aadmi to become ‘connected’ remains untouched by this budget.

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