A large population, rise in consumer income and spend due to the strong economic growth, and low telephony penetration levels have contributed to making India become one of the fastest growing telecom markets in the world. The state-owned BSNL (Bharat Sanchar Nigam Ltd.), in terms of number of subscribers, it is the 7th largest telecom company in the world. It is also the first and largest operator is India.
Few years back, as the Internet spins a world wide web of interconnectivity around the globe, as it grows literally by the hour, India is struggling, not to catch up but to keep from falling further and further behind. Connection rates ran as low as 5% (you might get connected once for every 20 dialups ) and users were frequently cut off. However, the rates for this kind of pathetic level of service were among the highest in the world. Domestic Internet users paid about $2 per hour, for lease lines, those few companies that could afford them, costs over $2000 per month for just a 64 Kpbs line. By the end of year 1998, after 3 years of government monopoly, there were barely 150,000 Internet connections in India.
Today, the government monopoly of the Internet service is over. Dozens of Internet Service Providers have set up shop, triggering a price war and an big improvement of service. Users are now estimated more than 42 million, with a growth predicted to reach 70 million in the next five years. Many small Internet kiosks have been set up even in small towns. Governments, both State and Central are promoting for growth in the Internet sector. A lot of small tuition centers have pushed computer software courses of variable quality are now in a hard sell scramble to push Net related content.