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	<title>Comments on: India’s Consumer Internet Space – Too Crowded?</title>
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	<link>http://gigaom.com/2007/02/16/india-internet-start-ups/</link>
	<description>Trusted Insights and Conversations on the Next Wave of Technology</description>
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		<item>
		<title>By: iLeher &#187; India Internet - status check Catching the Internet Wave in India</title>
		<link>http://gigaom.com/2007/02/16/india-internet-start-ups/#comment-356636</link>
		<dc:creator>iLeher &#187; India Internet - status check Catching the Internet Wave in India</dc:creator>
		<pubDate>Tue, 17 Jul 2007 07:16:04 +0000</pubDate>
		<guid isPermaLink="false">http://gigaom.wordpress.com/2007/02/16/india-internet-start-ups/#comment-356636</guid>
		<description>&lt;p&gt;[...] markets. To me, it looks more like the pre-bubble period (&#8217;97-98) of the US market. A lot of investment is happening, user base is increasing, new companies are coming up - things seem to be moving in [...]&lt;/p&gt;
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		<content:encoded><![CDATA[<p>[...] markets. To me, it looks more like the pre-bubble period (&#8217;97-98) of the US market. A lot of investment is happening, user base is increasing, new companies are coming up &#8211; things seem to be moving in [...]</p>]]></content:encoded>
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	<item>
		<title>By: Martin</title>
		<link>http://gigaom.com/2007/02/16/india-internet-start-ups/#comment-331924</link>
		<dc:creator>Martin</dc:creator>
		<pubDate>Tue, 10 Jul 2007 16:22:39 +0000</pubDate>
		<guid isPermaLink="false">http://gigaom.wordpress.com/2007/02/16/india-internet-start-ups/#comment-331924</guid>
		<description>&lt;p&gt;makemytrip, yatra and cleartrip.com are the big ones that i remember!&lt;/p&gt;
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		<content:encoded><![CDATA[<p>makemytrip, yatra and cleartrip.com are the big ones that i remember!</p>]]></content:encoded>
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		<title>By: techtrends</title>
		<link>http://gigaom.com/2007/02/16/india-internet-start-ups/#comment-331698</link>
		<dc:creator>techtrends</dc:creator>
		<pubDate>Tue, 10 Jul 2007 14:39:37 +0000</pubDate>
		<guid isPermaLink="false">http://gigaom.wordpress.com/2007/02/16/india-internet-start-ups/#comment-331698</guid>
		<description>&lt;p&gt;I agree the market is overcrowded especially in the Web 2.0 space (aggregators or sites that promote high degrees of user interaction), I feel there is a void of good old simple portals and eCommerce sites.&lt;/p&gt;

&lt;p&gt;I&#039;ve provided additional thoughts on my post at http://techtrends.in/2007/07/10/internet-in-india-%e2%80%93-overcrowed-%e2%80%a6-not-in-all-verticals/&lt;/p&gt;

&lt;p&gt;I&#039;m also maintaining a taxonomy of Indian Internet sites at http://techtrends.in/company-index/&lt;/p&gt;
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		<content:encoded><![CDATA[<p>I agree the market is overcrowded especially in the Web 2.0 space (aggregators or sites that promote high degrees of user interaction), I feel there is a void of good old simple portals and eCommerce sites.</p>

<p>I&#8217;ve provided additional thoughts on my post at <a href="http://techtrends.in/2007/07/10/internet-in-india-%e2%80%93-overcrowed-%e2%80%a6-not-in-all-verticals/" rel="nofollow">http://techtrends.in/2007/07/10/internet-in-india-%e2%80%93-overcrowed-%e2%80%a6-not-in-all-verticals/</a></p>

<p>I&#8217;m also maintaining a taxonomy of Indian Internet sites at <a href="http://techtrends.in/company-index/" rel="nofollow">http://techtrends.in/company-index/</a></p>]]></content:encoded>
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		<title>By: India Travel 2.0 Search Engine</title>
		<link>http://gigaom.com/2007/02/16/india-internet-start-ups/#comment-316058</link>
		<dc:creator>India Travel 2.0 Search Engine</dc:creator>
		<pubDate>Fri, 06 Jul 2007 20:06:37 +0000</pubDate>
		<guid isPermaLink="false">http://gigaom.wordpress.com/2007/02/16/india-internet-start-ups/#comment-316058</guid>
		<description>&lt;p&gt;You should definitely try out http://www.ixigo.com for a smarter, smoother travel search experience.&lt;/p&gt;

&lt;p&gt;We are currently the fastest, most comprehensive (14 Airlines, 3 OTAs) and most unbiased travel search engine in the Indian market.&lt;/p&gt;

&lt;p&gt;iXiGO can confidently claim to have the cheapest fares on any given sector on any given date since between the airlines and OTAs we show fares from, we are bound to find the cheapest options for you within a few seconds.&lt;/p&gt;

&lt;p&gt;We show all prices with taxes included, and we dont claim to sell any 99 Rs. tickets because we want consumers to know the absolute price that hits their pockets.&lt;/p&gt;

&lt;p&gt;Finally - try it once, and tell us if any other portal can match our prices, usability, or comprehensiveness for flights.&lt;/p&gt;
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		<content:encoded><![CDATA[<p>You should definitely try out <a href="http://www.ixigo.com" rel="nofollow">http://www.ixigo.com</a> for a smarter, smoother travel search experience.</p>

<p>We are currently the fastest, most comprehensive (14 Airlines, 3 OTAs) and most unbiased travel search engine in the Indian market.</p>

<p>iXiGO can confidently claim to have the cheapest fares on any given sector on any given date since between the airlines and OTAs we show fares from, we are bound to find the cheapest options for you within a few seconds.</p>

<p>We show all prices with taxes included, and we dont claim to sell any 99 Rs. tickets because we want consumers to know the absolute price that hits their pockets.</p>

<p>Finally &#8211; try it once, and tell us if any other portal can match our prices, usability, or comprehensiveness for flights.</p>]]></content:encoded>
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		<title>By: lovely</title>
		<link>http://gigaom.com/2007/02/16/india-internet-start-ups/#comment-197276</link>
		<dc:creator>lovely</dc:creator>
		<pubDate>Sat, 16 Jun 2007 08:31:24 +0000</pubDate>
		<guid isPermaLink="false">http://gigaom.wordpress.com/2007/02/16/india-internet-start-ups/#comment-197276</guid>
		<description>&lt;p&gt;makemytrip, yatra and cleartrip.com are the big ones that i remember!&lt;/p&gt;
</description>
		<content:encoded><![CDATA[<p>makemytrip, yatra and cleartrip.com are the big ones that i remember!</p>]]></content:encoded>
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		<title>By: Sudarshan</title>
		<link>http://gigaom.com/2007/02/16/india-internet-start-ups/#comment-161754</link>
		<dc:creator>Sudarshan</dc:creator>
		<pubDate>Sat, 09 Jun 2007 09:03:11 +0000</pubDate>
		<guid isPermaLink="false">http://gigaom.wordpress.com/2007/02/16/india-internet-start-ups/#comment-161754</guid>
		<description>&lt;p&gt;It has been learnt that significant financial irregularities have been recently uncovered at GVFL involving senior executive Bharat Kanani&#039;s role in company divestments and dissolutions. Kanani was rumoured to be the successesor of GVFL head honcho Vishnu Varshney, whose resignation is being demanded by senior govt of Gujrat officials.&lt;/p&gt;
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		<content:encoded><![CDATA[<p>It has been learnt that significant financial irregularities have been recently uncovered at GVFL involving senior executive Bharat Kanani&#8217;s role in company divestments and dissolutions. Kanani was rumoured to be the successesor of GVFL head honcho Vishnu Varshney, whose resignation is being demanded by senior govt of Gujrat officials.</p>]]></content:encoded>
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		<title>By: iLeher &#187; Chat with the founder and CEO of Seventymm Catching the Internet Wave in India</title>
		<link>http://gigaom.com/2007/02/16/india-internet-start-ups/#comment-88082</link>
		<dc:creator>iLeher &#187; Chat with the founder and CEO of Seventymm Catching the Internet Wave in India</dc:creator>
		<pubDate>Sun, 22 Apr 2007 05:23:02 +0000</pubDate>
		<guid isPermaLink="false">http://gigaom.wordpress.com/2007/02/16/india-internet-start-ups/#comment-88082</guid>
		<description>&lt;p&gt;[...] Bollywood is big. It produces more movies than Hollywood. It sells more tickets worldwide compared to Hollywood. It has more more than double the annual growth rate compared to Hollywood. It was only a matter time that someone took notice of this and did an Indian version of Netflix, the online DVD rental service. Well as it turns out, several did. Seventymm is one of the largest and most VC funded players in this space. We profiled another company Madhouse.in few months back on iLeher. There are several others trying to make a mark in this seemingly lucrative space. And just when you thought the market is getting saturated, the Indian behemoth Reliance announced its entry in this space with BigFlicks.com. Did someone say bubble? Well we&#8217;ll see who (perhaps there is room for more than one?) emerges out as the winner but the activity in this space is peaking because of combination of several factors including growth in Internet penetration and usage, growth in the installed base of DVD players and burgeoning venture funding scene in India. [...]&lt;/p&gt;
</description>
		<content:encoded><![CDATA[<p>[...] Bollywood is big. It produces more movies than Hollywood. It sells more tickets worldwide compared to Hollywood. It has more more than double the annual growth rate compared to Hollywood. It was only a matter time that someone took notice of this and did an Indian version of Netflix, the online DVD rental service. Well as it turns out, several did. Seventymm is one of the largest and most VC funded players in this space. We profiled another company Madhouse.in few months back on iLeher. There are several others trying to make a mark in this seemingly lucrative space. And just when you thought the market is getting saturated, the Indian behemoth Reliance announced its entry in this space with BigFlicks.com. Did someone say bubble? Well we&#8217;ll see who (perhaps there is room for more than one?) emerges out as the winner but the activity in this space is peaking because of combination of several factors including growth in Internet penetration and usage, growth in the installed base of DVD players and burgeoning venture funding scene in India. [...]</p>]]></content:encoded>
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		<title>By: Libran Lover</title>
		<link>http://gigaom.com/2007/02/16/india-internet-start-ups/#comment-88081</link>
		<dc:creator>Libran Lover</dc:creator>
		<pubDate>Sat, 24 Mar 2007 17:47:55 +0000</pubDate>
		<guid isPermaLink="false">http://gigaom.wordpress.com/2007/02/16/india-internet-start-ups/#comment-88081</guid>
		<description>&lt;p&gt;I am not familiar enough with the Indian Internet startups to comment on the bubble there. But what I do know is that the Indian Internet connections (the so-called &#039;cheap broadband&#039; connections) are sub-par. Equally sub-par are the physical facilities and real-world services.&lt;/p&gt;

&lt;p&gt;What is the use of having a jazzy Indian hotel booking website, if the connection is not good enough for most of the general public to access from their homes? If there are not many good hotels, with dependendable and consistent quality service, within reach of most of the middle-class?&lt;/p&gt;

&lt;p&gt;Even Bangalore, the &#039;Silicon Valley of India&#039;, has only a paltry 66 hotels with 4700 rooms! (Source: http://www.hindu.com/2007/02/08/stories/2007020804440200.htm)&lt;/p&gt;
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		<content:encoded><![CDATA[<p>I am not familiar enough with the Indian Internet startups to comment on the bubble there. But what I do know is that the Indian Internet connections (the so-called &#8216;cheap broadband&#8217; connections) are sub-par. Equally sub-par are the physical facilities and real-world services.</p>

<p>What is the use of having a jazzy Indian hotel booking website, if the connection is not good enough for most of the general public to access from their homes? If there are not many good hotels, with dependendable and consistent quality service, within reach of most of the middle-class?</p>

<p>Even Bangalore, the &#8216;Silicon Valley of India&#8217;, has only a paltry 66 hotels with 4700 rooms! (Source: <a href="http://www.hindu.com/2007/02/08/stories/2007020804440200.htm)" rel="nofollow">http://www.hindu.com/2007/02/08/stories/2007020804440200.htm)</a></p>]]></content:encoded>
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		<title>By: Santosh Dasu</title>
		<link>http://gigaom.com/2007/02/16/india-internet-start-ups/#comment-88080</link>
		<dc:creator>Santosh Dasu</dc:creator>
		<pubDate>Sat, 24 Feb 2007 04:03:34 +0000</pubDate>
		<guid isPermaLink="false">http://gigaom.wordpress.com/2007/02/16/india-internet-start-ups/#comment-88080</guid>
		<description>&lt;p&gt;Nice post Om.  Concept arbitrage is not always a bad thing. Some good indian sites pop up this way-  cleartrip, arzoo, bechna, mouthshut and others.&lt;/p&gt;
</description>
		<content:encoded><![CDATA[<p>Nice post Om.  Concept arbitrage is not always a bad thing. Some good indian sites pop up this way-  cleartrip, arzoo, bechna, mouthshut and others.</p>]]></content:encoded>
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		<title>By: Rajiv</title>
		<link>http://gigaom.com/2007/02/16/india-internet-start-ups/#comment-88079</link>
		<dc:creator>Rajiv</dc:creator>
		<pubDate>Wed, 21 Feb 2007 02:32:09 +0000</pubDate>
		<guid isPermaLink="false">http://gigaom.wordpress.com/2007/02/16/india-internet-start-ups/#comment-88079</guid>
		<description>&lt;p&gt;2 comments:&lt;/p&gt;

&lt;ol&gt;
&lt;li&gt;&lt;p&gt;I&#039;d like to differ with your statement about excess money going into Indian Internet startups.  While VCs can pump over $5 mil in a round, it can take Indian companies to profitability and growth, far different from the US where $5 mil is part of an initial &quot;prove something&quot; round.  A strong team of 20 engineers and business execs cost a lot less there.  Also, getting visibility is much easier.  The Indian entrepreneurial market is still nascent compared to the US.  Bangalore is not even close to the Valley yet as it is still more prestigious to join a Fortune 500 operation even if the work is dreadful.  The VCs are just beginning to fill in a key element of the entrepreneurial infrastructure.&lt;/p&gt;&lt;/li&gt;
&lt;li&gt;&lt;p&gt;My company, Position2, is an Erasmic funded startup.  I can tell you firsthand that they are not typical of most VCs.  They typically invest a modest amount of capital and then spend a lot of time with the start-ups.  For us, they helped us identify and acquire what became our Indian operations.  They&#039;ve also worked on-site with our management team on operational processes.  Google&#039;s investment in the fund is a great and relatively inexpensive way to see really early stage stuff in a highly disciplined manner.&lt;/p&gt;&lt;/li&gt;
&lt;/ol&gt;
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		<content:encoded><![CDATA[<p>2 comments:</p>

<ol>
<li><p>I&#8217;d like to differ with your statement about excess money going into Indian Internet startups.  While VCs can pump over $5 mil in a round, it can take Indian companies to profitability and growth, far different from the US where $5 mil is part of an initial &#8220;prove something&#8221; round.  A strong team of 20 engineers and business execs cost a lot less there.  Also, getting visibility is much easier.  The Indian entrepreneurial market is still nascent compared to the US.  Bangalore is not even close to the Valley yet as it is still more prestigious to join a Fortune 500 operation even if the work is dreadful.  The VCs are just beginning to fill in a key element of the entrepreneurial infrastructure.</p></li>
<li><p>My company, Position2, is an Erasmic funded startup.  I can tell you firsthand that they are not typical of most VCs.  They typically invest a modest amount of capital and then spend a lot of time with the start-ups.  For us, they helped us identify and acquire what became our Indian operations.  They&#8217;ve also worked on-site with our management team on operational processes.  Google&#8217;s investment in the fund is a great and relatively inexpensive way to see really early stage stuff in a highly disciplined manner.</p></li>
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		<title>By: IndianBytes.com</title>
		<link>http://gigaom.com/2007/02/16/india-internet-start-ups/#comment-88078</link>
		<dc:creator>IndianBytes.com</dc:creator>
		<pubDate>Mon, 19 Feb 2007 16:38:02 +0000</pubDate>
		<guid isPermaLink="false">http://gigaom.wordpress.com/2007/02/16/india-internet-start-ups/#comment-88078</guid>
		<description>&lt;p&gt;&lt;strong&gt;India&#039;s Consumer Internet Space Too Crowded?&#8230;&lt;/strong&gt;&lt;/p&gt;

&lt;p&gt;posted at IndianBytes.c&#8230;&lt;/p&gt;
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		<content:encoded><![CDATA[<p><strong>India&#8217;s Consumer Internet Space Too Crowded?&#8230;</strong></p>

<p>posted at IndianBytes.c&#8230;</p>]]></content:encoded>
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		<title>By: Ramki</title>
		<link>http://gigaom.com/2007/02/16/india-internet-start-ups/#comment-88076</link>
		<dc:creator>Ramki</dc:creator>
		<pubDate>Mon, 19 Feb 2007 07:57:58 +0000</pubDate>
		<guid isPermaLink="false">http://gigaom.wordpress.com/2007/02/16/india-internet-start-ups/#comment-88076</guid>
		<description>&lt;p&gt;I agree with your views on the Indian startups struggling if they depend solely on advertising. Since most of the work done by Indians on the web is transaction based, if a company can come up with a simple application for this sort of work and for which the Indian user will be prepared to pay Rs.50-100 a month then it will be the killer. Assuming that this application can target around 5 million users and even if 10% are ready to subscribe then it would rake in money.&lt;/p&gt;
</description>
		<content:encoded><![CDATA[<p>I agree with your views on the Indian startups struggling if they depend solely on advertising. Since most of the work done by Indians on the web is transaction based, if a company can come up with a simple application for this sort of work and for which the Indian user will be prepared to pay Rs.50-100 a month then it will be the killer. Assuming that this application can target around 5 million users and even if 10% are ready to subscribe then it would rake in money.</p>]]></content:encoded>
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		<title>By: Rahul</title>
		<link>http://gigaom.com/2007/02/16/india-internet-start-ups/#comment-88073</link>
		<dc:creator>Rahul</dc:creator>
		<pubDate>Mon, 19 Feb 2007 00:03:53 +0000</pubDate>
		<guid isPermaLink="false">http://gigaom.wordpress.com/2007/02/16/india-internet-start-ups/#comment-88073</guid>
		<description>&lt;p&gt;No question that a bubble is building.  At least the travel portals and online rentals companies have transactional revenues.  What amazes me is the number of advertiser-supported social networking companies getting institutional funding.  These companies are fighting for an ever decreasing slice of a pretty small online ad market in India.  Add in a low barrier to entry, and I don&#039;t understand what the investment thesis could be.&lt;/p&gt;
</description>
		<content:encoded><![CDATA[<p>No question that a bubble is building.  At least the travel portals and online rentals companies have transactional revenues.  What amazes me is the number of advertiser-supported social networking companies getting institutional funding.  These companies are fighting for an ever decreasing slice of a pretty small online ad market in India.  Add in a low barrier to entry, and I don&#8217;t understand what the investment thesis could be.</p>]]></content:encoded>
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		<title>By: RYK</title>
		<link>http://gigaom.com/2007/02/16/india-internet-start-ups/#comment-88075</link>
		<dc:creator>RYK</dc:creator>
		<pubDate>Sun, 18 Feb 2007 21:15:26 +0000</pubDate>
		<guid isPermaLink="false">http://gigaom.wordpress.com/2007/02/16/india-internet-start-ups/#comment-88075</guid>
		<description>&lt;p&gt;Aditya, you should contact www.boaindia.com which is a group of angels in India doing pure startups, even napkins !&lt;/p&gt;
</description>
		<content:encoded><![CDATA[<p>Aditya, you should contact <a href="http://www.boaindia.com" rel="nofollow">http://www.boaindia.com</a> which is a group of angels in India doing pure startups, even napkins !</p>]]></content:encoded>
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		<title>By: Hari Swaminathan</title>
		<link>http://gigaom.com/2007/02/16/india-internet-start-ups/#comment-88077</link>
		<dc:creator>Hari Swaminathan</dc:creator>
		<pubDate>Sun, 18 Feb 2007 16:39:21 +0000</pubDate>
		<guid isPermaLink="false">http://gigaom.wordpress.com/2007/02/16/india-internet-start-ups/#comment-88077</guid>
		<description>&lt;p&gt;Jon Beattie - &lt;/p&gt;

&lt;p&gt;Your information on the cost of DSL is inaccurate. it is not $300 (USD) per month, but 300 Indian rupees per month, and from some providers upto about 1000 Rupees per month. In dollar terms, this works to between $6 and $15 per month, which arguably is a very good rate (cheaper than what we pay in the US I may add). The concept of what a broadband connection should deliver in terms of speed remains unclear in India. Most basic broadband connections in India are worse than dial-up connections in the US. Although $6 to $15 per month seems like a &quot;steal&quot; in the US, the average Indian consumer does think a lot before dishing out this money. It may need to come to the $3 mark to reach inflection points (and of course PC penetration). &lt;/p&gt;

&lt;p&gt;A rich broadband user experience will no doubt enhance the net surfing patterns in the US because I agree with Om. Todya&#039;s net users are very transactional - they do their job and get out. Amazingly enough, I find myself doing exactly that when I&#039;m in India and leave all the surfing for when I get back. Better and faster user experience will go a long way in changing some of this.&lt;/p&gt;
</description>
		<content:encoded><![CDATA[<p>Jon Beattie &#8211; </p>

<p>Your information on the cost of DSL is inaccurate. it is not $300 (USD) per month, but 300 Indian rupees per month, and from some providers upto about 1000 Rupees per month. In dollar terms, this works to between $6 and $15 per month, which arguably is a very good rate (cheaper than what we pay in the US I may add). The concept of what a broadband connection should deliver in terms of speed remains unclear in India. Most basic broadband connections in India are worse than dial-up connections in the US. Although $6 to $15 per month seems like a &#8220;steal&#8221; in the US, the average Indian consumer does think a lot before dishing out this money. It may need to come to the $3 mark to reach inflection points (and of course PC penetration). </p>

<p>A rich broadband user experience will no doubt enhance the net surfing patterns in the US because I agree with Om. Todya&#8217;s net users are very transactional &#8211; they do their job and get out. Amazingly enough, I find myself doing exactly that when I&#8217;m in India and leave all the surfing for when I get back. Better and faster user experience will go a long way in changing some of this.</p>]]></content:encoded>
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	<item>
		<title>By: Jon Beattie</title>
		<link>http://gigaom.com/2007/02/16/india-internet-start-ups/#comment-88070</link>
		<dc:creator>Jon Beattie</dc:creator>
		<pubDate>Sun, 18 Feb 2007 07:27:37 +0000</pubDate>
		<guid isPermaLink="false">http://gigaom.wordpress.com/2007/02/16/india-internet-start-ups/#comment-88070</guid>
		<description>&lt;p&gt;Another key problem India faces now is the high cost of home broadband. They are paying about US$300 per month for a DSL connection. Ouch! This is indicative of usage patterns in other more mature markets. When you have to dial-up on a slow modem connection, you use the Internet less. Everyone&#039;s usage patterns change when you&#039;ve got a cheap broadband connection at home. That said, it is only a matter of time in my opinion, but these start-ups will need to plan for a few tough years yet before they start to get the momentum they require. I went to China and India last month, and for a western foreigner, I would choose India over China any day of the week. I personally think India will eclipse China as a market for foreign investors in the short-medium term, although maybe not long term. Key reason, no one in China speaks English, their regulatory environment is alarmingly erratic, and the cultural differences are vast. India has English as the main language, and so the majority of media is already in English, and more importantly they have much more cultural affinity with the west. India is also a democracy, by no means perfect, but this has to be less risky than China. For example, the Chinese government is considering a law that would require all bloggers to register with their ID card number on the website!&lt;/p&gt;
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		<content:encoded><![CDATA[<p>Another key problem India faces now is the high cost of home broadband. They are paying about US$300 per month for a DSL connection. Ouch! This is indicative of usage patterns in other more mature markets. When you have to dial-up on a slow modem connection, you use the Internet less. Everyone&#8217;s usage patterns change when you&#8217;ve got a cheap broadband connection at home. That said, it is only a matter of time in my opinion, but these start-ups will need to plan for a few tough years yet before they start to get the momentum they require. I went to China and India last month, and for a western foreigner, I would choose India over China any day of the week. I personally think India will eclipse China as a market for foreign investors in the short-medium term, although maybe not long term. Key reason, no one in China speaks English, their regulatory environment is alarmingly erratic, and the cultural differences are vast. India has English as the main language, and so the majority of media is already in English, and more importantly they have much more cultural affinity with the west. India is also a democracy, by no means perfect, but this has to be less risky than China. For example, the Chinese government is considering a law that would require all bloggers to register with their ID card number on the website!</p>]]></content:encoded>
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