StartupTalky

Tag: broadband connectivity

  • What is BharatNet Project and How Startups can participate in it?

    The Rural areas in India are still deprived of the fast internet connections as well as e-services that are available to the Urban population of the country. India has been advocating the concept of Digital India for a very long time and it has been really successful in the Urban areas of the country, whereas there has always been a digital divide between the urban and rural population. In order to solve this problem, the Union Cabinet has come up with a project. In this article let’s look at more information about it.

    Bharat Net – Latest News
    How can Startups participate in BharatNet?
    What is BharatNet Project?
    Advantages in Rural India due to BharatNet
    Advantages bought in through the PPP model
    FAQ

    BharatNet – Latest News

    Bharat Net has recently announced to widen its connection and services to around 3.61 lakh villages in around 16 different states in India. The broadband connection will be offering a high-speed data and enable better access to the rural India towards e-services that are offered by various Government Agencies.

    Bharat Net will also enable the rural population to attend online classes, OTT, e-commerce, skill development, tele medicine and other applications of the broadband service.

    The Union Cabinet had conveyed on 30 June 2021 that it would launch a revised implementation strategy of the broadband service through a Public Private Partnership in 16 states of the country.

    How can Startups participate in BharatNet?

    The Union Cabinet has announced that this expansion procedure is going to be undertaken through a Public Private partnership model, this will enable the startups to take part in the bidding process and provide their services in setting up the connection.

    The revised strategy includes not the creation but also the upgradation, maintenance, operation and utilization of the broadband service. The company which will be receiving the tender will have to undertake everything.

    The tender will be decided based on a competitive bidding process and the estimated maximum viability gap funding that was approved by the Union Cabinet for the public private partnership is INR 19,041 crores.

    What is BharatNet Project?

    BharatNet is said to be connecting all the inhabited villages beyond gram panchayat under this project in the 16 states. The 16 states that are approved by the Union Cabinet include Kerala, Karnataka, Himachal Pradesh, Rajasthan, Haryana, Punjab, Madhya Pradesh, Uttar Pradesh, Assam, West Bengal, Manipur, Meghalaya, Tripura, Arunachal Pradesh, Mizoram and Nagaland.

    As per the estimation, around 3.61 lakh villages will be covered under this project which includes Gram panchayats. The Union Cabinet has also given permission to provide the services to other inhabited villages in different states as well as Union Territories.

    The Department of Telecommunication has announced to work out the modalities for the remaining villages in the other states and the Union Territories.

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    How BharatNet will impact Rural India

    The extension in the reach of the broadband services that is reliable will enable better access to the e-services that are provided by the Central and the State governments.

    The main advantage is that there would a source of revenue that will be generated from the rural India through different sources which include the proliferation of broadband services to individuals and institutions, fiberisation of mobile towers, e-commerce, sale of dark fiber and many more.

    The extension will also enable to reduce the gap between the Urban and Rural divide of digital access and will increase the achievement of Digital India. The penetration and proliferation are also expected to increase income generation as well as direct and indirect employment in the rural sectors.

    Advantages bought in through the PPP model

    The PPP model will bring in a lot of consumer friendly advantages that include the use of innovative technology for the consumers by the private sector, faster development of network and quick connectivity to the consumers, OTT services and other variety of services to the consumers, access to all online resources, faster deployment of network and quick connectivity to consumers.

    The PPP model is also expected to bring an equity investment and is also expected to raise resources towards the capital expenditure.

    Conclusion

    The PPP model towards Bharat Net will improve the quality of service, customer experience, efficiency, entrepreneurship, leverage private sector enterprise and capacities for accelerating achievement for digital India.

    FAQ

    What is Bharat Net project initiative?

    BharatNet project is a project to provide on demand, affordable broadband connectivity in rural areas. BharatNet is said to be connecting all the inhabited villages beyond gram panchayat under this project in the 16 states.

    Who has the largest fiber network in India?

    State-owned Bharat Sanchar Nigam Limited (BSNL) has the largest fiber network which is nearly 8 lakh km long.

  • Jio’s Journey Towards Dominating The Data Market

    Reliance Jio has fulfilled its dream of taking over the data market and the 4G space in India. From December 2015 up to 2020 the marketing and growth strategies employed by Jio have enabled this company to emerge with giant like proportions and establish itself as a leader in Indian telecom space. Bharti Airtel was next with a share of 24%, while Vodafone Idea was third. State-owned BSNL commanded more than half of the market share in wired internet subscribers.

    Reliance Jio now leads the chart by grabbing 52.3 per cent of the overall data market share, followed by Bharti Airtel at 23.6 per cent share in the quarter ended March 2020. According to the Telecom Regulatory Authority of India (Trai) the number of internet subscribers in India increased to over 743 million at the end of March 2020, with a growth rate of 3.4 per cent on a sequential quarter basis. Around 97% of the subscribers use mobile devices for internet access. Vodafone Idea held the third position as its internet subscriber market share at 18.7 per cent for the period in reference.

    Which is why the number of wireless internet subscribers stood at 720.7 million, while the wired internet subscribers were 22.4 million. Internet access with a minimum capacity of 512 kilobits per second or more is defined as broadband connectivity. The top five service areas in terms of internet subscriptions wired and wireless were Maharashtra (63.01 million), Andhra Pradesh including Telangana (58.65 million), UP (East) (54.60 million), Tamil Nadu (51.64 million).

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    Jio’s journey to success

    Reliance Jio Infocomm Limited was founded in 2007. In 2010, it acquired 95% of Infotel Broadband Services Limited. In 2010, it acquired 95% of Infotel Broadband Services Limited. This lesser known company was attractive because of the service and opportunities it offered in exchange for the price tag. The IBSL is what allows Reliance to develop its 4G network all over the country.

    Reliance Jio first product was the Lyf smartphone which was launched in the India markets in 2015, which did not generate sufficient demand. In 2016, brought Reliance Industries Limited 42 annual general meetings. It was here that Ambani first announced his plans to take over the 4G space in India, with the launch of Reliance Jio.

    number of subscribers increasing from 2017 to 2019
    number of subscribers increasing from 2017 to 2019 

    Jio takes over the market

    The reason for jio’s successful marketing strategy is that it is unilateral and is the same service offered for free. The initial scheme that accompanies the launch off jio was free services till March 2017. With this scheme each individual was given access to free SIM cards with free voice calling and free 4G data to fulfil their browsing skills.

    Reliance Jio reached its goal of 100 million subscribers in February 2017 just within 170 days and by June 2017 it had 200 million subscribers, thus making a record for the fastest growth of users. As of December 2019, Jio is the third largest telecom service provider in the world and has a network of close to 400 million subscribers.

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    The rise and rise of Jio

    Before jio, people paid between Rs.200 and Rs. 500 for limited 3G mobile data. In jio case the company had an advantage as the product was free when it was introduced, it disrupted the entire telecom space in India and brought high speed data to the general public. People were now streaming movies watching videos, video calling all from their mobile phones.

    jio's profit in 2019 and 2020
    jio’s profit in 2019 and 2020

    The six month free period served as an opportunity for the company to test put their product and the use the data from that period to optimize its network to the need of the consumers. When dual sim became popular, it became easy for individuals to retain their Jio SIM cards and use them for mobile data while also keeping their original phone numbers for other purposes. The company brought out new products like 4G enabled phones, broadband services, TV services and many others.

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    Increasing Numbers

    Generating a demand and created a customer base is the first step. Then comes the task of long term retention. For Jio the referral stage was particularly important as other telecom service providers had not caught up with a 4G network of that magnitude. With coverage in all 22 telecom circles, Jio became the largest mobile network operator in India by 2019.

    In the financial year 2019 -2020 profits have increased by 88%. Revenue increased by approximately 40% and EBIT rose by 64%. In fact, during the corona virus pandemic, Jio reported that data usage on their network increased by over 50%. Jio has also launched in September 2016, along with the Jio music app, video streaming app and other accompaniments.

    The JioPhone was launched in August 2017, with subsequent models being introduced in 2018 and in 2020. These phones are created to answer the complementary demand for affordable 4G compatible phones, generated by the original demand for 4G data. For the manufacturer of these phones, Jio has partnered with Google. Apart from this the company has also launched Wi-Fi routers and other electronics.