Mobile Broadband to reduce Digital Divide in India

I have come across many people who were confused between rural connectivity and digital divide, to clarify this, let me start with defining the digital divide. Digital Divide refers to the gap between people with effective access to digital and information technology and those with very limited or no access at all causing unequal acquisition of various skills. This leads to the knowledge divide among the people and exclusion of a section of people in the society. By this definition, there are lots of people in metros and other cities, where the connectivity is almost pervasive, who do not have access to the information and communication technologies.

Figure 1. Number of Connections in India per 100 (Source: TRAI, June 2009)

Indian government tried hard (announce plans) to increase number of broadband connections for effectively providing access to ICT thereby reducing the digital divide. When Dayanidhi Maran was the Minister of Communications & Information Technology in 2007, he set a target of 20 million broadband connections by 2010, and 9 million by the end of 2007 (1). Today we are in the middle of year 2009 and number of broadband connections at 6.4 million (Fig.1.).

The number people connected in India is 33% (33 people have either fixed, mobile or broadband connection for every 100people), this number is even lower in villages at 12.62% while urban connectivity is relatively better at 81%. This shows that the digital divide in India is rather high making large section people almost excluded from the society (Fig.2).

Figure2. Connectivity in India per 100 (Source: TRAI, Dec 2008)

There are many reasons why Maran’s target was not met. Keeping the political reasons aside, the following are some of the key barriers for the broadband penetration in India:

1. Lack of Connectivity: We have less than 40 million fixed connections and availability of DSL connectivity is limited in most of the places. Even mobile coverage in India is at 60% (covers 60% of the Indian population) and is lower than Pakistan and South Africa, which are at over 90% (Fig.3).
2. Lack of computers (expensive): We earn 10 times less than a person in US but we have to pay double the price to buy a computer in India compared to US
3. Illiteracy and lack of knowledge of usage of computers
4. Higher Monthly subscription cost (min Rs. 500 ($12))
5. Lack of (appealing) applications for a common man

Interestingly these limitations can be overcome with the Mobile Broadband service

Figure 3. Mobile Coverage in Developing Countries

In India mobile connectivity is huge success and volumes brought the devices and subscription charges to lower and affordable by most of the daily wagers. I strongly believe that this would be repeated for the broadband penetration as well.

1. Connectivity/Coverage: Easy to provide with mobile technologies, low cost and incremental deployment
2. Mobile Devices: Indians buy expensive phones, it's becoming a status symbol.
3. Usability of the Mobile Devices: Most of the people know how to operate mobile phones and people are becoming more and more knowledgeable in using smart phones.
4. Subscription Fee: A common man in India who is not affordable to have a landline at his home has a mobile phone may be with prepaid subscription. A similar thing could occur for broadband connectivity as well. If Mobile Network Operators (MNOs) deploy more efficient technologies like LTE and WiMAX, MNOs can provide the broadband service at lower cost, and the broadband connectivity penetration will increase.
5. Lack of (appealing) applications for common man - Lots people use mobile phones for entertainment, especially music, videos, movies, cricket and social networking.

Figure 4. Telecom Growth in India (Source: TRAI, May 2009)

Fig. 4 shows that the Fixed connections are decreasing while Mobile and Broadband connections are growing linearly. India should depend on Mobile technologies like LTE and WiMAX for providing broadband connectivity than fixed connectivity solutions.