Thursday, July 20, 2006

Cost of Internet should be affordable

Since last few months I have observed that cost of using internet has reduced drastically. However, this cost is still too expensive and is not affordable to most of the Indian people.

It is important that Indian people use internet regularly to achieve its tremendous benefits.
To find out how many people use internet is calculated using a scale called internet penetration. As per Internet World Statistics Currently internet penetration in India is only 4.5 % . It means only 4.5% Indians are able to access internet. In contrast, internet penetration is as high as 68.6% in USA. It leads to robust economic growth of United States.

If internet costs are reduced, internet penetration will definitely improve in India as well. Increase in internet penetration will give rise to thousands of business models on internet. Millions of businesses can run their business on internet. It will help Indians to reduce cost of selling goods. Indian businesses can also access international market easily. Increased business will mean that government will also earn handsome taxes. Thus, more internet penetration will lead to higher Gross Domestic Product (GDP) of India.

I suggest Indian government to consider above mentioned aspects and review taxes and restrictions levied on Internet Service Provider (ISP) companies. If government helps these ISPs to spread their network faster and provide services at affordable rates, it will definitely help Indians, Indian economy as well as Indian government in a big way.

Ankush Deore
Chairman and Founder Director,
Deore Consultancy Services Pvt. Ltd.

1 comment:

Anonymous said...

I agree that Internet costs are not affordable in India. But this is not the only thing that will improve the Internet business in India. Running an Internet venture needs more than visitors, for e.g. we need a reliable postal career and it must be efficient, fast and cheap so an items exchange hands properly. A neat way of payments online, so money change hands efficiently -- I almost gave up on getting myself a credit card. We can even add more like we need staff that can be multi-lingual to handle support calls with international standards.

These are few essentials, apart from having consumers and an affordable Internet scheme.