No More A Dream

Internet

lovers received good news in 1994 when VSNL launched internet services

in India. However, the bad news, which still continues even after

a number of private internet service providers (ISP) launched their

services, is the slow downloads experienced by internet users. Most

would agree that sitting in a office on a good day, one might get

a throughput not greater than 10Kbps on a shared account. And on

a bad day just leave behind that good day's throughput in one's

dreams. At home, your access speed dramatically increases, you get

anything between 10Kbps to 45Kbps depending on the modem speed,

ISP and number of users logged on at the ISP's end. High speed and

internet seem residents of two different worlds for a majority of

Indian internet users.

These

speeds do not sound dramatic if one considers download speeds abroad

ranging from 128Kbps (ISDN) to 30Mbps (cable modems). As Frank Christiaens,

VP, Carrier Data Division, Alcatel, says, on hearing about the Indian

normal access throughput, "Let me make you more unhappy. I

get a guaranteed 512Kbps throughput at my house in Singapore and

that too at a reasonable charge."

If

you feel low after hearing this statement from Christiaens, chances

are a majority of the internet users are feeling the same. However,

the good news is that such high-speed access may no longer be a

dream in India.

Across

the globe, companies-telcos, ISPs or cable TV providers-are resorting

to broadband technologies to get high-speed access to homes and

corporates and India may be no exception to this global technology

adoption. However, among the various broadband technologies for

internet in India, like cable, xDSL (digital subscriber line) or

satellite, internet over cable seems to be the best and quickest

option for making the dream of high-speed internet access a reality.

DSL

has made heavy inroads in the developed countries, leveraging on

the wide telephone network, and has given much higher speed levels

compared to the traditional modems or leased lines. However in India,

it will take some time for it to become a common access tool due

to the prohibitive cost factor, which ranges between $400-500 and

poor tele-density. It will definitely make inroads in India but

will certainly not become a mass penetration tool. However, cable

could just become that.

The

cable makes waves



Industry analysts estimate about 30,000 to 60,000 cable operators
with an average size of operation ranging from 2,500-3,000 subscribers

in major metros and 100 at the lower end in rural areas. The majority

of operators service a subscriber base of between 20 and 26 million.

Despite these huge numbers there still exists a further opportunity

of expanding this base if one compares it to the cable penetration

levels of the US and China, which are estimated at 60-65% and 55-60%

respectively. The Indian penetration level stands at about 33-40%.

Also, the existing telecom infrastructure, standing at about 22

million, is inadequate to take on the pent-up demand for the internet.

Moreover, with the existing infrastructure, the old problem of low

speed access to the internet remains a bottleneck.



The sheer reach of the cable operators is a very good reason for
most of the multi service operators (MSO) and other cable players

to think seriously of starting internet operations and take internet

to the masses. All the end-users need is a cable modem for the computer,

or a set-top box for the TV set and they can hook up to the internet

on the same cable line. Since there is no dialup involved, your

telephone line is always free. Moreover, on the cable network you

are always online and wouldn't face the problems of disconnection.

The

chances are you would agree with one frustrated internet user who

says, "Even for sending just a single mail, I have had to connect

about 7-10 times, increasing my telephone bill." However, with

internet over cable, its goodbye to telephone charges for internet

access and the total internet charges could come down significantly.



With an ISP license available to all and sundry, MSOs are no longer
dependant on DoT and MTNL for their last mile connectivity. The

last mile issue continues to be a thorny one between the private

ISPs, and DoT and MTNL. A prospective cable operator can then quickly

start operations without going through the bureaucratic wrangles.

Says, CS Arora, "A complete ISP network independent of the

telcos can be quickly rolled out in this segment." The technology

is quite simple. The MSO would have to install a CMTS (cable modem

termination system) controlling all the cable modems online. Another

investment would be to convert all the amplifiers to a two-way system.

It

doesn't require too much guessing to say that this segment is attracting

not only small local players like Ark Communication in Noida or

Compuwave Interactive Television in Chennai, but also bigger MSOs

like Siticable with its pilot project in Kumaram Park in Bangalore,

Rajan Rajeha's Hathway Cables and Datacom's project in Nariman Point,

Mumbai, among others. Even ISPs providing the regular PSTN connection

are toying with the idea of providing services on their own or tying

up with a MSO. VSNL has tied up with Hathway to provide the services

in South Mumbai. ETH Dishnet is providing similar services to a

few of its clients in Pune.

Says

Amitabh Kumar, Director, Operations, VSNL, "It is a win-win

situation to all the players involved. For the corporate it will

be a huge cost saving, as they need not pay for the DoT leased line

charges and still get good quality through-put, and we could get

twice as much revenue."

The

cable falls short