Low-Cost Internet in India: How India is Bringing People Online

India has made remarkable progress in terms of digital connectivity over the past few years. The country has witnessed an explosive growth in internet users, with the number of internet users expected to reach 974 million by 2025. 

The Indian telecom sector has changed significantly since its separation from the Indian Post and Telecommunication Department in 1985. The sector faced a major setback in 2008 with the 2G spectrum allocation scam, but the 3G and 4G spectrum auctions in 2010 fetched high revenues for the government and enabled operators to offer high-speed data services. In 2016, Reliance Jio's entry with free voice calls and low data prices triggered a price war and consolidation in the sector.

The National Telecom Policy (NTP) in 1994 opened up the sector for private participation, leading to the introduction of cellular and basic services. In 1995, the Telecom Regulatory Authority of India (TRAI) was set up to regulate tariffs and policies in the sector. Implementing the Unified Access Service License (UASL) regime in 2003 allowed operators to provide fixed and mobile services under a single license.

Govt Initiatives for Inexpensive Internet

To address the issue of limited or non-existent internet access in many areas of the country, the Indian government launched the Digital India program in 2015 to provide internet access to all citizens by 2022. The program has focused on expanding the country's digital infrastructure, including building more mobile towers, laying fiber optic cables, and creating public Wi-Fi hotspots. In 2018, the government launched the BharatNet program with the goal of providing high-speed internet to all villages in the country. The program has successfully connected many remote areas of the country to the internet, with over 180,000 Gram Panchayats connected till September 2022.

Intense Competition in the Market

One of the key factors driving down the cost of internet access in India is the intense competition among telecom companies. In recent years, a price war has broken out among telecom companies, with Reliance Jio leading the charge. Jio, which launched in 2016, disrupted the market with its extremely low prices and unlimited data plans. Jio's entry into the market had a domino effect, with other telecom companies such as Airtel and Vodafone-Idea forced to lower their prices to remain competitive. This intense competition has resulted in a significant drop in the cost of internet access for consumers.

Impact on the Society

The low cost of internet access has significantly impacted the country's economy and society. With more people connected to the internet, online services such as e-commerce and digital payments have seen tremendous growth in recent years. In addition to the economic benefits, increased internet access has positively impacted education and healthcare in the country. With online learning platforms and telemedicine services becoming more prevalent, even people in remote areas of the country now have access to quality education and healthcare.

Despite this progress, there are still challenges to be addressed in providing internet access to all citizens. One major issue is the lack of digital literacy among many Indians, particularly in rural areas.

Digital Literacy

Digital literacy refers to the ability to use digital devices and technology to access, create, and share information. It includes basic computer skills like typing, email, and internet browsing. Digital literacy is essential for citizens to participate in the digital economy, access online services, and stay connected with the world. However, in India, a significant portion of the population lacks digital literacy skills.

According to a report by the National Sample Survey Office (NSSO), only 24% of rural households in India have access to the Internet. Even among those with internet access, many people do not have the necessary digital literacy skills to use it effectively. This is a major barrier to the success of the Digital India campaign, which aims to transform India into a digitally empowered society and knowledge economy.

To address this issue, the government has launched various programs aimed at promoting digital literacy. The Pradhan Mantri Gramin Digital Saksharta Abhiyan (PMGDISHA), launched in 2017, aims to provide digital literacy to six crore rural households in India. The program trains individuals on digital devices, such as smartphones and tablets, and basic digital skills, such as accessing online services, making digital payments, and using social media.

The PMGDISHA program has successfully reached millions of people in rural areas and improved their digital literacy. However, there is still a long way to go. Many people in rural areas still lack access to digital devices, such as smartphones and computers. Even those who have access to such devices may not have access to high-speed internet connectivity. This limits their ability to access online services and participate in the digital economy.

Cybersecurity

As more and more people go online, the risk of cyber-attacks and online fraud also increases. According to a report by Norton LifeLock, India ranks second globally in terms of online identity thefts and financial frauds. Cybersecurity threats can result in financial losses, loss of personal data, and even identity theft.

To address this issue, the government launched the National Cyber Security Policy (NCSP) in 2013, which aims to build a secure and resilient cyberspace for citizens, businesses, and the government. The policy outlines a framework for creating a secure cyber ecosystem in India, including establishing a national cyber coordination center and setting up a national cybercrime reporting portal.