Because you cant suddenly jump from 1-2 mbps to 25 mbps it requires a lot of investment in infrastructure and i can kind of understand why companies are not ready to make that kind of investment. The average indian will not pay more than 1000 for a broadband connection. Thats less than $20. While investment cost in india is more than that in us. How will they recover the cost?
This wasnt exactly the crux of your earlier reasoning. But anyways.
iinm, there were reports from some person working at VSNL, that the amount of bandwidth India purchases, more than 50% goes unused. That is, these ISP people dont release the bandwidth for the consumers. Secondly, another report did mentioned how BSNL is purchasing the bandwidth at unjustified rates. The plan that i have with me for BSNL is pretty much equivalent to what Airtel is offering (cost, usage and FUP). So i can extend the same scenrario to these pvt companies as well (Bandwidth wastage and/or unjustified expenses). Prices/Tariffs should have been far less.
As far as i understand, it is pretty much like artificial inflation achieved by hoarding.
We have the infrastructure, we have the bandwidth. Only that these people at ISPs want us to keep purchasing at exorbitant prices so that they can reign in more profits.