Why is bandwidth expensive in India?
Posted by Abdul Vasi on 01 Jun 2009 at 9:08 pm | Tagged as: General, Hosting
A datacenter is a location that any major network or business must have to operate their online and network systems. The datacenter houses all of the hardware and physical data space of every network. Usually IT professionals man these datacenters 24 hours a day for maximum security and facilitation. In the United States, it is easier to operate a data center because there are no international bandwidth laws involved.
Indian datacenters have to juggle the use of bandwidth from many different sources, most of which are about 90 percent unreliable. The main difference between datacenters in India and datacenters in the United States is that the United States datacenters are a lot more localized and have a lot more usable bandwidth and space than most Indian datacenters.
Why is bandwidth expensive in India?
Bandwidth is expensive in India for several reasons. One of the most important reasons that bandwidth is expensive in India is because there are very few local suppliers of bandwidth. This means that bandwidth must be purchased from other countries, using international prices. The use of international pricing for bandwidth is astronomically higher than that of a local server.
The other reason why bandwidth is expensive in India is because the few local providers that offer bandwidth still charge at the international rate. This means that even when using a local provider, the prices remain the same. Most local bandwidth providers are also unreliable, which makes it necessary to purchase more bandwidth than necessary to cover the unreliable aspects of the process.
Something that normally would not take much bandwidth will take more in India just because of the lack of regulation in the system. The providers of the local bandwidth also do not seem to recognize the importance of increasing their networks to allow more people in India to use bandwidth from local servers. This keeps the cost much higher than it should be purely on a supply and demand level.
How can it be fixed?
The best way to fix this issue is to offer more regulations for the providers of Indian bandwidth. If the servers were required to offer more reliable and faster service, then that would make more people choose local providers rather than international ones. There are also other regulations that could be added to make the process of starting a local bandwidth provider easier. This could be making the licenses easier to get, or combining the different licenses into one.
Another way that the expense of bandwidth in India could be decreased is if the Indian government offered tax breaks to providers of reliable bandwidth in local locations. This would entice businesses to work out of India, as well as consumers to use the bandwidth provided by the local companies. When more companies provide a service, then the cost also goes down.
The Indian government is considering offering a government-operated bandwidth system that would also provide cheaper, more reliable Internet in India. Without these systems it is unlikely that bandwidth in India will ever be inexpensive.

Indian the use of bandwidth from many different sources, most of which are about 90 percent unreliable
Darshan
BPO Solutions