We all know the power of internet and how it can change our lives. So I skip the topic.  But in India, even after 10 of the internet introduction, the bandwidth prices are high. The primary reasons are


High cost of international leased line

Our ISPs need to connect India to the international internet hubs (USA, Singapore, Hongkong etc) using the submarine fiber optic cable or through satellite links. This bandwidth price is still high compared to the rest of the world. And only 3 companies who can provide fiber optic bandwidth to India. They are VSNL, Bharti, Reliance and REACH.  When VSNL was under government control, it had the monopoly over all the international links and kept the prices high.  But when Bharti started its Chennai Singapore fiber-optic link,  everybody thought that the prices will come down. Prices came down to some extend, but still they are high.


Lack of local content in India

Over 85% of the content (Web pages, emails, etc) we access today are coming from outside the country. Most of the India related content (including many Government websites) are hosted in USA and other countries. So we are forced to use the expensive international links to access the India related content. Today its cheaper to host a website in the USA compared to hosting it in India. One of the main reasons for the high cost for web hosting in India is high bandwidth cost for internet connection in India. It’s a chicken and egg problem.  How can the web hosting in India be encouraged? Please check the “Domestic only bandwidth” Page.


Poor Routing policies of the ISPs

It’s a shame that even after 10 years of Internet in India, the ISPs have not learnt to exchange the Internet traffic among them within India. Some of them exchange their Internet traffic using their foreign networks in USA or Singapore. The government setup a Internet Exchange (Something like a telephone exchange) in 2003, but it has not solved the problem yet. You can find more information about this topic on the “internet exchange” page.




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