Netflix will have a positive effect in countries like India. Their entry will help force ISPs to upgrade their infrastructure and increase average speeds. The benefits will hopefully trickle down to all internet users!
Thats like saying entry of BMW in India will force upgrade of road infrastructure. I do not see how or why entry of Netflix will force ISPs in anyway. ARPU for Cable TV in India is ~Rs 300 so Netflix is twice as expensive there. In sharp contrast to US where Netflix will probably will be the cheapest streaming service.
>Their entry will help force ISPs to upgrade their infrastructure and increase average speeds.
I'm from a country with a similar profile (South Africa) and I can tell you it definitely won't do anything of the sort. They just throttle the hell out of you as an incentive to upgrade.
Very unlikely. Unless they start offering movies in Indian languages (Hindi, Tamil & Telugu to start with), the amount of traffic will not be high enough to justify ISPs to upgrade.