What is the reason for the poor state of internet connectivity in India?

(NOTE: Non residents of India are also invited to post their views)

Most of you know that the rate of broadband penetration in India is very low. Also, the people who do have broadband are not satisfied with the speed and quality. Most of the connections have download limits, which defies the purpose of having a broadband connection. The tariffs are high as compared to other countries. For example, atleast two ISPs (not naming any) give Rs 250(around $6) per month connections which give speeds "upto" 2 mbps. While this might seem cheap, consider the fact that one has a download limit of 1 GB and the other ONLY 400 MB! One ISP offers uncapped connections but with a speed of only 256 kbps, for Rs 900(around $21) a month. Another offers an uncapped plan with speeds upto 2 Mbps, for Rs 20,000 ($ 468)!! And I don't even know about the private players, the ISPs I've mentioned above are government-run.

What do you think is the reason for such outrageous prices and inhuman speeds in the Indian broadband scene? Also please tell me what connection you have, its speed, download limit and how much you pay for it, in your local currency and in U.S. dollars. Even if you don't have any comments, just tell me about your connection.