Bandwidth is expensive because the company providing it has to bring high-speed internet from the ISP to your device, install cables into the ground, hire skilled labor to maintain the system, pay the electricity bills, and handle the upgrading of the network when the ISP reaches its capacity.

What is the price of bandwidth?

At present, an STM-1 (155 MBPS connectivity) is being sold at ₹12 lakh to a heavy-volume bandwidth user and for ₹20 lakh to a medium user.

Why is bandwidth so expensive?

The fiber in the ground, and the politics of getting that fiber into the ground is the expensive part. The other part (the actual hardware) is getting cheaper at a rate that is mind-blowing. Once you get around the first, then you can charge PRETTY MUCH whatever you want.