The Q&A part of the India Digital Summit opened up with a couple of tough questions, but really no answers: “We’ve seen lots of presentations, lots of people who’ve started Internet companies that are bleeding. Everything was dependent on number of users – the claimed users from the IAMAI and IMRB was 45 million users. China is easily 100 million plus in terms of users. An ISP or an OS company like Microsoft (NSDQ: MSFT) is essentially responsible for growth. The other issue is of newer technology in the market – computer parts still have duty.” The next comment, again for Ramamurthy Sivakumar, MD South Asia for Intel (NSDQ: INTC) to respond to: “We’ve been talking about critical mass for the whole of last year. But where is the usage? If there’s no usage, what’s the point of connectivity. You didn’t compare stats between India and China, so shouldn’t you be making projections of growth on the basis of a population comparison?
Sivakumar, earlier in the session had put the onus for the lack of growth of broadband in what was “the year of the broadband” clearly on the entire ecosystem. He said there needs to be a national consensus, and for the Industry to take up the issue. He showed graphs likening GDP growth to the growth of broadband, and said that lack of broadband infrastructure could make India uncompetitive. The frustration with Internet speeds and response time is universal. Sivakumar also added that 40 percent of computer buyers in India last year bought laptops. He also make a pitch for WiMax, but what probably irked most, was his projection that India will have 500 million Internet users in India, with 100 million broadband connections and 100 million broadband enabled devices by 2012. Hence the questions above were directed at him. His response: “today you can buy a PC for Rs. 13000. In 2008, we’re going to do a quantum jump in addressing the low cost market. There was a time when people used to ask when a PC will be less than Rs. 50,000. Prices go down.”
The Telecom minister A Raja was conspicuous by his absense from the IAMAI India Digital Summit: perhaps indicative of the governments (lack of) interest; and nothing of any significance to report from his speech which was read out in absentia, except that the government will run Internet awareness campaigns in schools, workshops in smaller towns, “device measures of increasing home and office use” (what does that mean?) and run media campaigns about the benefits of Internet.
P.s.: Quite a few people have asked me about the location, so in case you’re not sure of it: the conference is at the Intercontinental Grand on Barakhamba Road (Connought Place)
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