The Hindu : Business : Poor Internet use

Online edition of India's National Newspaper
Thursday, Jul 08, 2004

Business

Business

Poor Internet use

By Our Special Correspondent

NEW DELHI, JULY 7. The Economic Survey has expressed concern over the stagnation of Internet use, both dial-up and broadband. One problem inhibiting dialup Internet use is lack of flat-fee unlimited access tariff plans for fixed line telephony. At the same it notes that the growth of broadband has been a `vexing problem' for many countries.

The Survey hopes that a recent initiative by the Telecom Regulatory Authority of India would result in a suitable solution.

The Survey took note of the setting up of National Internet Exchange of India in Chennai, Noida, Mumbai and Kolkata. This would ensure switching of Internet traffic within the country.

The Survey also stressed the need for higher volume of voice telephony and asked the Government to take steps to push up the low level of Internet user base and tele-density.

It felt that if the 40 per cent growth registered in 2003-04 continued during the current and the next fiscals, the total number of lines would reach 150 millions. Yet the tele-density will be only about 14 by end March 2006. However, it took note of an optimistic assessment of 17 by the end of 2005-06 on the back of high growth rates being seen in the mobile segment.

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