The success of India’s broadband policy will depend on the government clearly articulating the strategic role it expects broadband to play in delivering socio-economic gains to all stakeholders.

Different users leverage the intrinsic functionalities of a broadband network differently. The more common uses are high-speed, always-on access to the internet, efficient net search, accessing rich media sites (news, entertainment, sports etc), research-based download of files, business-based connectivity, including downloads, financial services, distribution of user-generated content, etc. Experience tells us it is only after a country has specified the prime mover applications from a strategic perspective that robust support for ubiquitous, cost-effective broadband networks comes about at the political, bureaucratic and consumer levels. As is well known, the initial lukewarm response to broadband in USA was due to the absence of such a national perspective.

Korea promoted broadband as a means to (i) enabling its electronics and IT industry to assume technology and manufacturing leadership, and (ii) using ICT for economic and social gain. While the popularity of multi-player games from their PC Bangs (cybercafes) is well-known, it was the tremendous emphasis placed on education that encouraged families to see broadband service as a meaningful investment. Significant support was provided by the government.

As for Japan, in 2000 the ministry of public management, home affairs, post & telecommunications (MPHPT) established rules for local loop unbundling and co-location. Yahoo! BB bundled VoIP with subscriptions allowing free calls to other Yahoo! BB users and cheap calls to regular phones in Japan and internationally. However, subscribers still had to keep their other phone for incoming calls. Popularity of VoIP-based services and requirement to better interconnect PSTN and IP-based services led to Japan taking a unique regulatory approach to numbering plan allocation for IP terminal devices.

Voice calls are rapidly becoming IP-based and progressively cheaper. A VoIP-centric battle is being fought between telcos and cable companies in the US. A popular software called Skype Out, downloaded by over 30m subscribers, enables them to make calls from their PDA-cum-mobiles and PCs to landline phones anywhere in the world. For popular destinations such as the US, the calls cost only 1.5 cents (50 paise) a minute from anywhere in the world. Shortly, subscribers may be able to download Skype Out on GPRS/WiFi enabled mobile phones. Indian policy needs to strike a balance between protecting/encouraging investments in traditional infrastructure and leveraging cost-effective IP-based technologies to achieve socio-economic objectives.

At a global level, HP, Intel, Microsoft and Sony are at the forefront, with their digital entertainment platforms. Archival content is being readied for quality IP-based storage and delivery onto a variety of consumer premises equipment, including LCD PCs & TVs, digital video recorders & PDAs, mobile phones, etc. Shortly, Digital Fountains’ core technology may enable transport of TV channels globally over the internet at broadcast quality level. Korea Telecom is starting IP-based transport of 100 TV channels with help from Digital Rapids. Sumitomo Electric Networks is doing the same for NTT in Japan. Qualcomm is creating the necessary infrastructure in the US for delivering high quality video channels onto mobile phones by 2006.

Having put out a broadband policy, the government here needs to consider the following:

One, how to bring together people, markets, goods and social groups using broadband networks. Two, how to make broadband low-cost, ubiquitous and an item of mass consumption. Three, how to encourage initial capital expenditure, ahead of mass adoption. Four, selection of the prime mover(s). The policy must deliver targets for the incumbents and private operators’ use of cable-cum-wireless (return path on wireless as demonstrated by IIT Chennai & Midas Communications) should broadband-enable urban India at the earliest.

The importance of necessary fiscal support cannot be over-emphasised. From a policy perspective, improved education/learning and connectivity for SMEs could well become the prime mover for urban India.

Rural broadband could well be at the heart of many of the objectives spelt out in the government’s common minimum programme. Enhanced skill sets (academic and vocational), improved non-farm employment, e-health & governance, etc require cost-effective connectivity. Results from the deployment of home-grown solutions like CorDect suggest policy and budgetary support for largescale deployment. Perhaps policy support for connecting such niche rural networks with BSNL’s network could take rural India forward by leaps and bounds.

Typically, broadband networks will be walled gardens. However, rapid growth after the initial phase may require a strong interconnect regime.

Broadband will contribute significantly to socio-economic development, as did the telegraph, telephone, wireless, radio & TV broadcasting, geo-stationary satellites, computer communications, optical communications, Internet and mobile telephones. It has grown to 125m subscribers worldwide, as on June 30, a growth of 10% over the previous quarter. The USA at 29m, China at 19m, Japan at 16m and S Korea at 12m are the big four broadband countries in the world. If India achieves the policy-led target of 20m by 2010, it could well replace S Korea.

The author is partner, Strategic Management Services & past chairman, CII national broadband economy committee.