Yeah Indians are being cheated by the service providers as they are charging them very heavily and in return not providing the best services possible and now the scenario is everything goes in hand to hand with internet so the consumers are even ready to pay more for the services.
There are two major reasons for this.
A. Taxes - Taxes are extreme. Service Tax, VAT, Spectrum fee, Corporate tax.etc will account for more than 75% of the broadband bill in India.
B. Lack of competition - There are only a dozen or so broadband providers in India, and all of them are pathetic in providing the basic services.
Unless someone organizes mass protests against this system, nothing is going to change.