Telegeography research shows bandwidth to India surging

17 Mar 2004

A new report by Telegeography forecasts that India’s international submarine cable capacity will have grown 17-fold in just three years, from 31Gbps in 2001 to 541Gbps by the end of 2004. India missed out on the bandwidth boom of the late 1990s, which put vast international capacity across the Atlantic and Pacific but left the sub-continent relatively isolated. As a combined result of market liberalisation, access to capital and increased end-user demand, India is no longer stranded. Companies such as Tata Indicom, Reliance Infocomm and the Bharti Group have all financed new cable construction. For the moment, however, access to this bandwidth comes at a premium. Telegeography’s research shows that capacity prices from the US to India are still five to ten times higher than on the US to Hong Kong route. According to Alan Mauldin, Telegeography’s Senior Analyst, the increase in capacity and number of competing cable systems will all help to drive the price of bandwidth down to India. ‘In other parts of Asia, prices declined by 60% or more in the last year. This could easily be repeated on Indian routes for years to come’ Mauldin added.