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2007 South Asian - Broadband and Internet Markets

This annual report offers a wealth of information on the Broadband and Internet markets in Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka.

Subjects covered include:

  • Internet Infrastructure and developments;
  • Internet policies, models and concepts;
  • Regional and International Networks;
  • Internet Market, VPNs and VoIP;
  • National Policies, Government Policies, Regulatory Regimes;
  • Network Players;
  • xDSL, Cable Modem, FttH, Satellite;
  • Wireless Broadband, WiMAX


This Asia market report covers eight countries in the South Asia sub-region. It takes an overall look at the various telecoms markets, together with a particular look at the broadband and Internet segments of the market in each of the countries.a healthy tourist industry, Internet usage has been relatively substantial.

The South Asia markets covered in this report include: Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka.a healthy tourist industry, Internet usage has been relatively substantial.

Generally speaking, the penetration of Internet across South Asia remains low. Broadband access is almost non-existent across much of the sub-region and there are no signs of an early major upturn. The more significant impact of Internet in South Asia is to be found in India and Pakistan, where Internet usage is creeping towards 10% penetration. But for most of the other markets going online has been a struggle. One interesting exception has been the Maldives; with its small population combined with a healthy tourist industry, Internet usage has been relatively substantial.

South Asia - Internet markets - user penetration and subscribers - 2006

Country Internet user
penetration Internet subscribers
(million)
Afghanistan 2% 0.5
Bangladesh 0.3% 0.5
Bhutan 4% 0.03
India 6% 60.0
Maldives 8% 0.03
Nepal 1% 0.2
Pakistan 8% 12.0
Sri Lanka 2% 0.4

(Source: BuddeComm)
Afghanistan
After a period in which the Internet was banned by the Taliban, and even government departments were prohibited from going online, Afghanistan has started to be opened up to the opportunities associated with the world wide web. The market remains very basic for the time being. Whilst it has been difficult to obtain reliable Internet users statistics for Afghanistan, the ITU was reporting an estimated 535,000 at end 2006. There are certainly not many computers in the country, with many areas not even having electricity.

Bangladesh
The Internet came late to Bangladesh with the first connectivity only in 1996. Over the last few years, growth has been dramatic, although obviously from a very low base - the estimated user base was 500,000 by early 2007, representing less than 0.4% penetration. PC penetration is also low, at less than 2%. The country’s first broadband service was launched in 2001 using DSL technology. A cable modem service was also offered at about the same time. But, for the time being, broadband services remain a minor component of the country’s Internet market.

Bhutan
After a late start, Bhutan has been cautiously embracing the Internet. DrukNet, the country’s first ISP, was launched following an agreement between the Bhutanese Government and the United Nations Development Program (UNDP) in March 1999. There were an estimated 30,000 Internet subscribers (4% penetration) in the country at end-2006. Accurate statistical information on Bhutan is difficult to obtain; there is even a huge variation between sources on what is the country’s population.

India
India is a country where the local IT industry in its many forms is booming. It is ironic, therefore, that we find a somewhat ambivalent approach to Internet in this country. Whilst there appears to be considerable enthusiasm amongst the population for the Internet, this is not reflected in subscriptions. There were around seven million subscribers to Internet access services in early 2006, the vast majority being dial-up subscriptions. But most significantly, an estimated 60% of users regularly access the Internet via the country’s more than 10,000 Internet cafes. When it comes to high-speed broadband Internet access, the slow take up rate has also been especially puzzling. In particular, the country’s corporate sector has been surprising lacking in interest, although there are signs that this is changing. In 2006, broadband subscriptions grew by around 200%. This also saw the percentage of Internet subscribers in the country with broadband access jump to 18%. National broadband penetration remained at a depressingly low level of less 0.2%.

The Maldives
Incumbent Dhiraagu provided the first Internet access in the Maldives when it launched its DhivehiNet service in 1996. Although initially offered only on a dial-up basis, Internet usage has been expanded through the setting up of Internet cafes. Broadband Internet arrived when Dhiraagu introduced its DSL service in 2002. By end-2004 the operator had more than 700 broadband subscribers. Although official figures were not available, by end-2006, there were an estimated 25,000 Internet users in the country, which only has a population of 300,000.

Nepal
The Internet user base in Nepal is estimated at less than 200,000 - a lowly penetration of under 1%. On a positive note, however, the population have been able to access Internet for some of the lowest prices in the region. In the meantime, the licensing of a relatively large number of ISPs, combined with the liberalisation of the VSAT data market, has created excellent conditions for the Internet to flourish in the country.

Pakistan
Although Internet access has been available in Pakistan since 1995, take up rates and penetration have remained relatively low. But this was starting to change and by early 2007 user penetration was at around 8%. Following the military regime of General Pervez Musharraf taking control of the country in 1999, an aggressive IT policy was pursued, aimed at boosting Pakistan’s drive for economic modernisation and as well as creating an exportable software industry. Whilst this has been helping boost the popularity of the Internet, there was a long way to go. Even the existence of more than 150 licensed ISPs has not been having a major effect on Internet growth. The broadband Internet market in Pakistan is almost non-existent.

Sri Lanka's
The Internet has also started to take off in Sri Lanka, but coverage and accessibility remains limited (Internet user penetration has been languishing at around 2%) and the sophistication of the services available remains relatively low. The number of ISPs has jumped to 23 over the last few years. Early moves to offer broadband Internet in the country met with only limited success. However, by end-2006, about 20% of Internet subscriptions were broadband-based, possibly signalling a shift in the market. For the country overview, see chapter 9, page 57.

1. FORECASTS
1.1 Internet market forecasts
1.1.1 Notes on scenario forecasts
1.1.2 Afghanistan forecasts - Internet services
1.1.3 Nepal forecasts - Internet services
1.1.4 Pakistan forecasts - Internet services
2. AFGHANISTAN
2.1 Internet market
2.1.1 Overview
2.1.2 Internet cafes
2.1.3 Internet Service Providers (ISPs)
2.1.4 Voice over Internet Protocol (VoIP)
3. BANGLADESH
3.1 Internet market
3.1.1 Overview
3.1.2 MediNet
3.1.3 Village Computer and Internet Program (VCIP)
3.1.4 ISP market
3.1.5 IT development strategy
3.1.6 Voice over Internet Protocol (VoIP)
3.2 Broadband market
3.2.1 Broadband services
3.3 Content and e-services
3.3.1 E-commerce
4. BHUTAN
4.1 Internet market
4.1.1 Overview
4.1.2 ISP market
5. INDIA
5.1 Internet market
5.1.1 Overview
5.1.2 Regulatory issues
5.1.3 ISP market
5.2 Broadband market
5.2.1 Overview
5.2.2 National Broadband Policy 2004
5.2.3 Personal computers
5.2.4 Cable modems
5.2.5 Digital Subscriber Line (DSL)
5.2.6 Wireless broadband
5.2.7 Satellite
5.2.8 Other broadband networks
5.3 Content and e-services
5.3.1 E-commerce
6. MALDIVES
6.1 Internet market
6.1.1 Overview
6.1.2 Competition
7. NEPAL
7.1 Internet market
7.1.1 Overview
7.1.2 ISP market
8. PAKISTAN
8.1 Internet market
8.1.1 Overview
8.1.2 ISP market
8.2 Broadband market
8.2.1 Cable modems
8.2.2 Digital Subscriber Line (DSL)
8.2.3 Wireless broadband
8.2.4 Fibre-to-the-Home (FttH)
8.2.5 Internet via satellite
8.3 E-services
8.3.1 E-commerce
8.3.2 E-government
9. SRI LANKA
9.1 Internet market
9.1.1 Overview
9.1.2 Internet exchange
9.1.3 Public Internet access
9.1.4 Data centres
9.1.5 ISP market
9.1.6 E-commerce
9.2 Broadband market
9.2.1 Overview
9.2.2 Digital Subscriber Line (DSL)
9.2.3 Wireless broadband
10. GLOSSARY OF ABBREVIATIONS


List of Exhibits


Exhibit 1 - Internet Service Providers licences in Afghanistan - 2004 - 2005


List of Tables


Table 1 - Forecast Internet subscriber growth in Afghanistan - lower forecast - 2005; 2010; 2015
Table 2 - Forecast Internet subscriber growth in Afghanistan - upper forecast - 2005; 2010; 2015
Table 3 - Forecast Internet subscriber growth in Nepal - lower forecast - 2006; 2010; 2015
Table 4 - Forecast Internet subscriber growth in Nepal - upper forecast - 2006; 2010; 2015
Table 5 - Forecast Internet subscriber growth in Pakistan - lower forecast - 2005; 2010; 2015
Table 6 - Forecast Internet subscriber growth in Pakistan - upper forecast - 2005; 2010; 2015
Table 7 - Internet statistics in Afghanistan - 2006
Table 8 - Internet users in Afghanistan - 2002 - 2006
Table 9 - Internet subscribers in Afghanistan - 2002 - 2006
Table 10 - Internet user statistics in Bangladesh - 2006
Table 11 - Internet users and No. of ISPs in Bangladesh - 1996 - 2006
Table 12 - Internet subscribers in Bangladesh - 1997 - 2006
Table 13 - Internet user statistics in Bhutan - 2006
Table 14 - Internet users and penetration in Bhutan - 1999 - 2006
Table 15 - Internet user statistics in India - 2007
Table 16 - Internet user growth in India - 1995 - 2007
Table 17 - Internet subscriber growth in India - 1995 - 2007
Table 18 - ISP market in India - leading operators, subscribers and market share - 2006
Table 19 - Broadband statistics in India - 2006
Table 20 - Broadband subscriber growth in India - 2001 - 2007
Table 21 - Broadband subscribers by access in India - 2006
Table 22 - Broadband and Internet subscriber targets in India - 2005; 2007; 2010
Table 23 - Cable modem subscribers in India - 2001 - 2006
Table 24 - DSL subscriber growth in India - 2001 - 2006
Table 25 - Internet user statistics in the Maldives - 2006
Table 26 - Broadband statistics in the Maldives - 2006
Table 27 - Internet users in the Maldives - 1996 - 2006
Table 28 - Internet subscribers in the Maldives - 1998 - 2006
Table 29 - Internet subscribers by access type in the Maldives - 2005
Table 30 - Internet user statistics in Nepal - April 2007
Table 31 - Estimated Internet users in Nepal - 1997 - 2007
Table 32 - Internet subscribers in Nepal - 1999 - 2007
Table 33 - Subscribers and market share of major ISPs in Nepal - April 2007
Table 34 - Internet user statistics in Pakistan - 2006
Table 35 - Internet users in Pakistan - 1995 - 2006
Table 36 - Internet subscribers in Pakistan - 1997; 2000 - 2006
Table 37 - DSL subscribers in Pakistan - 2005 - 2006
Table 38 - Internet user statistics in Sri Lanka - 2006
Table 39 - Internet users in Sri Lanka - 1996 - 2006
Table 40 - Internet subscribers in Sri Lanka - 1994 - 2006

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