Very informative Mr. Mgcarley. Who is responsible for the pricing in India, and why are they so high then?
No one entity is responsible per se...
Tata, Bharti and Reliance own all 7 of the cables that go in and out of India (up from 5 last year and 4 in 2008... and actually Tata and Bharti are both in consortiums, but that's beyond the point):
[*]i2i - Bharti
[*]SE-ME-WE3: Tata
[*]SE-ME-WE4: Bharti & Tata
[*]FLAG/SAFE - Reliance
[*]SEACOM: Tata
[*]EIG: Bharti
[*]I-ME-WE: Bharti
[/list]
Being that ownership of said cables is private, they can charge what they like. Oh, and Tata/VSNL is also a pretty big culprit cause irrespective of the cable system in use, they own the rights to all the landing stations, so this doesn't help.
Even though prices fell by some 60% between 2006 and 2008, and further in 2009, they merely fell from the exosphere to the mesosphere: they're still very high, and for a bandwidth hungry country (and one that's supposed to be some kind of tech-Mecca), this is not good.
Hopefully the downward trend in pricing continues through 2010 with even more international capacity becoming available and thus in some weird way more competition (as they can no longer bitch about lack of international capacity, even though this hasn't be a problem for about 5 years anyway).
As far as the NIXI pricing, this is probably also a result of the consortium. Although my traffic might interchange with another ISP at NIXI, my Rs25 actually goes to the other ISP, as NIXI itself is supposed to be non-profit - it's a man-in-the-middle more than anything else.
The other thing to take in to account is the price of the local loop. It can be astronomical in some places. Not for MTNL or BSNL, I'm sure, but for private players definitely. Plus many ISPs pay off cable operators a slice of revenue. Plus to have an ISP license we have to send something like 8% of our revenue to the
DoT. Everyone wants their share, and the customer suffers for it with shoddy service, slow speeds and high prices.