Friday, June 10, 2022

Internet: for the benefit of all

Government should create a conducive environment for private sector to function. Private sector, on the other hand, should refrain from price gouging and should ensure equitable exchange of value.

Internet has helped to bring in the benefits of technology advancements to people. However the access to internet depends on the availability of mobile handsets and affordable mobile plans for all. Similarly, if a person plans to use internet to study or work, a stable wired broadband and a personal computer is required.

In that end, both government and private sector is putting in efforts to create the infrastructure of wired broadband through fibre optical network. Laying down underground optical fibre cables to the vast length and breadth of a state is capital intensive. Managing and running the network is also an expense. But, the returns on such an investment are equally good. Population which has access to digital world exhibits better productivity; thus improving the gross output of goods and services.

In India, BSNL, MTNL and VSNL have helped bring broadband access to customers and businesses thus enabling digital transactions. Newer entrants like Jio are providing faster wireless connectivity and wired broadband access across the length and breadth of the country. In this light, the Kerala FON is a fresh approach of government driven effort to ensure last mile affordable digital connectivity. 

In Baltimore city of Maryland state in the United States, a similar effort to ensure last mile digital connectivity for all is in progress. https://www.bloomberg.com/news/articles/2022-06-07/baltimore-eyes-federal-funds-for-municipal-broadband 

Private sector has the speed to deploy resources and new technology and government has the wider mandate to ensure affordability and accessibility of the benefits of modern day innovations to address the needs of people. It is therefore, a decision of whether a government is able to create conducive policies to nudge industry to satisfy the needs of all. 

$60 bn company growing at 3% vs $8 bn company growing at 30% YoY

 Intersection is likely in 2032-2033 i.e. in 8 years from today.