How does that scale? Because that sounds awesome if compared to just my own phone plan. But if you say that also fills the role of my home internet, then it's about 1TB too little.
Usually home internet is via other providers, who also have cheap plans. For instance, ACT Giga is 1Gbps, 2.5 TB for about 100 USD per month. Post this limit, speeds usually drop to 1Mbps.
That's the absolute top-end of the plans they have in Bangalore. It's around 2000INR (<30$) per month for a much more moderate 150Mbps / 875GB per month plan. And consider that a lot of the urban crowd we are talking about here will be sharing the cost with 1-3 others, considerably bringing down costs.
$100 the cost of a 1Gbps Verizon FiOS subscription in the US (though theoretically your data transfer is unlimited and not capped at 2.5TB). Seems reasonable to me but I don't know what that equates to when you factor in purchasing power parity.
Even for the young employed folks this is quite the sum. The fact is though, that over the course of an average month it's pretty hard to hit these caps. Its about 800 hours of Netflix HD streaming, and you're probably not going to be able to watch that much just at home.
In all tier 1 cities, which are at least 10, you can get 100Mbps broadband with about 750GB to 1TB data for close to 20 dollars a month. In villages (at least 100 thousands of them) and small towns (roughly 8 thousand of them) where most population resides, the story is different. Only wired broadband provider for them is govt. owned named BSNL whose service is quite unreliable.
4G high speed wireless is accessible everywhere for cheap though.
You're right in that "most" Indians probably do not have broadband access / 4G access. But the urban centers certainly do,and they have enough by way of people to become a huge market. To put it in context, there are at least 46 cities with population > 1M (2011 census), and the top 7 cities by population will certainly have access to broadband as well as cheap 4G. These 7 will account for 50M - 55M in population. In comparison, the US has 10 cities with > 1M population ( as far as I can see on Wikipedia). So even when you account for the lesser internet penetration in India as a whole, the number of people who can possibly access streaming services is quite large.
