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SEPT. 11, 2005
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Changing Equation
Mid-rung Indian pharmaceutical companies such as Lupin, Torrent, Strides Arcolab and others are looking at global acquisitions to bolster their product portfolios and growth prospects. Will the strategy pay off?


State Of Apathy
Lesson from Mumbai: India's cities are dangerously ill-prepared to tackle nature's fury. Here's what India's CEOs think of her urban hell-holes.
More Net Specials
Business Today,  August 28, 2005
 
 
Tomorrow's Internet

The two key drivers which will define tomorrow's internet are broadband networks and mobile phones.

As the Indian internet celebrates its 10th anniversary, one can look at the past decade as a tale of missed opportunities. We should have had 100 million users (we have about a quarter that), we should have had 'real' high-speed broadband available cost-effectively and on-demand (we are just about starting on this), and we should have had a range of innovative services to make the internet a utility in our lives (we are still far away from that).

The internet could have been the transformative force in its wired and wireless forms for both consumers and enterprises-but it hasn't. A lack of vision from policymakers, the high cost of bandwidth, a paucity of venture capital, the relatively high cost of computers, and perhaps most importantly, a dearth of compelling content and innovative services have limited the growth of internet 1.0 in India.

Going ahead, the story can and will be very different. The second decade of the Indian internet will go a long way in fulfilling the promise of the first. Converged next-generation networks will make the 'Evernet'-a ubiquitous, always-available, high-speed network -a reality, limiting the impact of flawed policies. Bandwidth prices are falling rapidly due to competition and a realisation that the more one gives, the more people will want. Venture capital will be increasingly available as India's user base rises and investors see another China-like story in the making. Cheaper computers along with alternative platforms like network computers and mobiles will make access available to much larger numbers. Content and services, too, will become more relevant-completing a positive feedback loop to accelerate reach and usage.

There are two key drivers which will define tomorrow's internet: broadband networks and mobile phones.

The second decade of the Indian internet will go a long way in fulfilling the promise of the first. Converged next-generation networks will make the 'Evernet'-a ubiquitous, always-available, high-speed network envelope-a reality

With an always-on, flat-priced broadband connection, there is no worry about big bills. The internet starts to become more of a utility in people's lives. Broadband will create demand for zero-management network computers, making the computer almost as easy to use as a TV. It will also spur the creation and dissemination of multimedia content, which will drive the twin consumer application areas of education and entertainment. User-generated content in the form of weblogs and podcasts will add a richer tapestry to the internet. For enterprises, broadband will enable software-as-a-service, as application service providers make available integrated stacks of encoded business processes to power the real time flow of information.

Internet-enabled mobile phones will make the new services available to people wherever they are. In emerging markets like India, more people will access the internet from their mobile phone than the computer. The mobile internet will bring connectivity to swathes of India untouched by the data revolution. Mobile phones are also two-way devices-besides displaying received content, they also enable their owners to create content and share it with others almost instantaneously. Thus, photos and videos now don't just get consigned to archives but can spur conversation 'now' between people separated by distance but linked with their mobiles. The mobile phone will be the "social computer" for India's next generation of internet users.

So, from an infrastructure point of view, what does the New and Next Internet portend? What are its characteristics?

Always-on: We are moving in India from a pay-per-use pricing model to a flat rate subscription model (in some cases, with download limits). But the instant availability of the internet connection will fundamentally change the way we use the internet-everything now becomes a few clicks and a few seconds away.

Ubiquitous: The internet will become pervasive. The presence of cellular networks provides computer users the ability to connect from anywhere. In coming years, technologies like WiMax and mesh wireless will blanket much of urban and semi-urban India.

High-speed: The narrowband speeds that we are used to will give way to higher speeds. The worldwide 'wait' will be a thing of the past. What this will do is encourage the use of more media-rich content.

On-demand: As connectivity improves, there will be little difference between online and offline. If it is out there, it is instantly available. This will lead to the rise of centralised services. We will have control over when we want entertainment delivered.

Multi-format: The computer will no longer be the only device accessing the internet. Smartphones with wireless data networks will provide equally viable alternatives. This means that there will be two screen footprints that content providers will need to cater to.

Two-way: The growth of weblogs is a harbinger of the publish-subscribe internet. Readers and surfers will be able to participate in content creation.

Personalised: The internet will also become more individualised as websites (especially search engines and portals) build up sophisticated profiles based on what we do. This will enable targeted advertising.

Not Free: This New Internet will not be built around the free access model that we have been used to. As we find content and services of value, we are more likely to start to pay for them.

This New Internet will make possible path-breaking applications and services. From voice-over-IP, to video-on-demand, which can provide education and entertainment to users when they want it, from software-as-a-service for businesses to automate all their processes to multi-player gaming platforms, the New Internet will create new opportunities-as well as threaten conventional business models. It will force players in computing, consumer electronics and entertainment to tread into each other's territories.

What, then, is the endgame? What will the next decade of the internet bring? This vision for the future is best captured in the concept of a "Mirror World", which was first espoused by David Gelernter in 1991.

Over the past decade, we have been spending an increasing amount of our time in so-called cyberspace. Companies and individuals have created virtual representations of their products and services. Our communications have also moved to conversing with identities (e-mail IDs, IM monickers, SMSing to mobile numbers) rather than directly with people. Mirror Worlds take this to its logical conclusion: we will have a parallel world that we will increasingly inhabit which is a copy of the real world. Today, maps can provide us the spatial copy. But they do not give us the real time component. That is where a mix of next-generation mobiles, sensors and user-generated content will come in and embellish the other world. So, Mirror Worlds are microcosms of all that we see around us-as updated as the real world that they resemble. These Mirror Worlds are accessible to us through screens on the devices we have-our mobiles, computers, and networked TVS.

Ubiquitously available computers, mobile phones and next-generation networks are what will make all this possible. What has been missing are the applications to leverage this emerging new order. This is where lie the opportunities of internet 2.0.

Rajesh Jain is Managing Director, Netcore Solutions Pvt Ltd.
He can be reached at rajesh@netcore.co.in. His weblog is at http://www.emergic.org.

 

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