Smart TVs to drive broadband

Despite intense competition from cash-rich telecom players in the data space, broadband companies would survive the day due to increased data consumption through smart televisions, which entail heavy data usage.

“The data usage pattern is gradually changing. Now most of data is consumed for watching videos. While a majority of users still watch videos on mobile devices or computers, we are an increasing a trend of people using data to watch their television. A large number of people, who busy with their profession, are watching their TV programmes at their leisure on smart TV, which requires higher data download speeds,” said ACT Fibernet CEO Bala Malladi.

Apart from smart TVs, the advent of devices like Chromecast have opened up the possibility of converting all ordinary LED TVs into smart-internet enable televisions, which increase the demand for high speed broadband exponentially.

“This could lead to higher demand from tier2 and tier-3 cities,” he said.

The demand from smart TVs, Mr Malladi feels, will increase the subscription of broadband companies as spectrum-based service providers could not ensure consistent speed due to varying user demand.

While he admits to a short term impact from the data-focused telecom players on broadband usage, Mr Malladi believes that in the longrun the entry of big players would help his company as those companies would attract more people towards the internet and the same people would later shift to broadband when they need higher internet speeds for watching television, playing high-definition online games, etc.

On its part, Bengalurubased ACT Fibernet, the third largest broadband internet service provider in India, plans to expand to northern parts of the country.