The Today & Tomorrow of the Internet in India

India's internet penetration may be growing, but it still lacks the quality and accessibility that it needs to truly be considered a success. According to a July 29, 2022 article in Mint, India has 346 million internet users and is projected to reach 900 million by 2025. However, this number does not tell the whole story.

While usage of OTT platforms in rural India is similar to that in urban areas, the internet experience for rural users (as well as densely populated lower middle class areas of urban areas) is not as enjoyable. This is because most Indian households have a data cap of 1.5 GB per day, which is not enough to stream high-quality video content such as a 5-hour T20 cricket match. This is a major problem as this means that most of the Indian households can't stream or watch high-quality videos even if they want to.

Fixed-line broadband is the obvious upgrade, but Home Internet Penetration in India is one of the lowest in the world. This has serious implications, particularly during the pandemic. Children were unable to fully participate in online education, as they did not have access to the internet they needed. In the digital age, affordable unlimited internet should be considered a basic right, rather than a privilege.

The internet industry in India has not seen the same advancements as other sectors, due to the Pipeline models ruling the telecom sector. While Pipeline models have a certain simplicity about them, the ownership of end to end supply chains entail limited reach and high fixed costs. Established Pipeline based telecom players have been around for more than a decade. But, these scalability issues have dampened their enthusiasm to improve India’s meagre 8% home internet penetration, shifting their focus elsewhere.?

There are a lot of suppliers - 1500+ ISPs and 200,000+ small cable operators, who can cater to cable TV connections in potentially 15 crore+ homes. But, being fragmented and unable to harness cutting edge IT, their potential remains unrealised.

A comparison of Platform businesses and Pipeline businesses, is as analogous as comparing apples and oranges. Yes, there are similarities. But, the same way Google has not replaced the University library but, instead, brought a paradigm shift upon the ecosystem - Platforms exist to elevate, not destroy.

As one of the greatest nobel laureates once said - the times, they are a’changin . . . . Follow this page to tune in to the Wiom story, and the 'changin' simmering in India's internet space . . .