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India: Internet Landscape
Internet Usage in India
India's 1.1 billion-large population may seem impressive, but in terms of Internet usage, only a very small portion of the population forms the relevant mass.Infrastructure is of foremost importance in establishing the use of the Internet. It is the basic platform that is needed to be in place before proliferation of the Internet can even start to take place. Currently, a good and stable web infrastructure can be found mostly (or as some argue, only) in urban areas and the big metros of India, so only the urban population is considered relevant.
As most of the content available online is in English, literacy and knowledge of English will also determine the rate of Internet usage. Also, exposure to personal computers, be it PC ownership or access via cybercafes, acts as another factor that limits the growth of Internet users in India.
(Source: I Cube 2007, Internet in India Report by Internet & Mobile Association of India)
At the end of the day, from the 1.1 billion number that we see at first, only 32 million are considered as "active users" of the Internet. This translates to a 3.0% Internet penetration rate in India - half of Algeria's and a third of Azerbaijan's - making it one of the lowest in the world. Of this already small percentage, one must keep in mind also that most of these active Internet users do not have broadband access. Being on a dial-up network limits the bandwidth available, and so it is difficult to access very much aside from the basic communication and email sites. This essentially means that only 3.5 million, or 0.32% of the population has high-speed access to the Internet, and are more likely to use video streaming, online gaming and other such functions which require high-speed connectivity. The Internet and Mobile Association of India (IAMAI) is a non-profit industry body that keeps track of the changing trends within India on Internet usage and broadband adoption rate. They are also responsible for evaluating and recommending standards and practices to the industry, conducting research, creating platforms for it's members, communicating on behalf of the industry and creating a favourable business environment for the industry. To see the full report on the Internet in India, go here.
Statistics
| | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 |
| PCs in use ('000) | 6,000.0 | 7,500.0 | 9,755.5 | 12,627.2 | 16,254.1 | 20,789.8 |
| Online households (millions) | 0.5 | 0.9 | 1.5 | 2.2 | 3.1 | 4.3 |
| PC households online (%) | 5.4 | 8.1 | 10.3 | 13.1 | 15.4 | 17.7 |
| Internet subscribers ('000) | 3,470.0 | 3,640.0 | 4,140.0 | 5,450.0 | 7,000.0 | 9,800.0 |
| Dial-up subscribers ('000) | 3,420.0 | 3,557.6 | 3,999.6 | 5,215.0 | 5,700.0 | 6,300.0 |
| Broadband subscribers ('000) | 50.0 | 82.4 | 140.4 | 235.0 | 1,300.0 | 3,500.0 |
Sources:
1. Broadband Internet subscribers: Euromonitor International from trade sources/national statistics
2. Dial-up Internet subscribers: Euromonitor International from trade sources/national statistics
3. Internet subscribers: Euromonitor International from trade sources/national statistics
4. Online households: Jupiter Research
5. PC households online: Jupiter Research
6. Personal computers (PCs) in use: Euromonitor International from International Telecommunications Union/national statistics
Of all the active users in India, the youth form a significant segment in the growing Internet user base. This may be because the majority of applications and sites are presently created with the youth in mind, and also, the youth are able to adapt easily with the changing times and applications. Another important chunk to take note of comprises the students, who have shown an increasing interest in the Internet.(Source: I Cube 2007, Internet in India Report by Internet & Mobile Association of India)
The predominant function of the Internet in India is e-mail. Over the years, e-mail consistently ranks first in the users' main Internet applications, followed by information-seeking at second place. The exposure to Internet over the years has resulted in many people turning to the Internet to complete even their routine tasks. E-commerce only started to make a significant appearance in 2003, and though it still holds a very small portion of the Internet application market, is poised to increase as the user base is expected to increase over the years.
Furthermore, the popularity of entertainment applications such as online gaming, video downloads and networking sites has increased the share of the entertainment pie.
(Source: I Cube 2007, Internet in India Report by Internet & Mobile Association of India)
One has to keep in mind that many of the applications available on the Internet at present still have a long way to go, as the content found online is mostly in English. However, there are many Indian niche sites created of late, including BigAdda and Snockles, catering to the country's users specifically by overcoming the language and cultural barriers. As sites like these increase, the user base is also expected to increase accordingly.
(Source: I Cube 2007, Internet in India Report by Internet & Mobile Association of India)
Internet Usage and Population Statistics
| Year | Users | Population | % Pen. |
| 1998 | 1,400,000 | 1,094,870,677 | 0.1 % |
| 1999 | 2,800,000 | 1,094,870,677 | 0.3 % |
| 2000 | 5,500,000 | 1,094,870,677 | 0.5 % |
| 2001 | 7,000,000 | 1,094,870,677 | 0.7 % |
| 2002 | 16,500,000 | 1,094,870,677 | 1.6 % |
| 2003 | 22,500,000 | 1,094,870,677 | 2.1 % |
| 2004 | 39,200,000 | 1,094,870,677 | 3.6 % |
| 2005 | 50,600,000 | 1,112,225,812 | 4.5 % |
| 2006 | 40,000,000 | 1,112,225,812 | 3.6 % |
| 2007 | 42,000,000 | 1,129,667,528 | 3.7 % |
(Source: Internet World Stats, Usage & Population Statistics 2007)
The growing Internet penetration rate in India shows that people are becoming increasingly aware of the Internet and are moving towards experiencing it. Currently, 70% of the people in India who are PC literate have used the Internet at some point or another in their life. As India develops its infrastructure and PC literacy increases, more and more people will be exposed to the Internet and experience the convenience it offers. In fact, people from the non-metro areas and smaller towns are also increasingly starting to use the Internet - their contribution to the Internet user base is rising. Also, PC hardware and Internet connection prices have been decreasing over the years as technology advances, bringing the two entities closer within the reach of the less affluent sections of the Indian society. As more users from the non-metro areas and from the lower socioeconomic classes join the Internet community in India, the digital divide is poised to narrow in the years to come.
premanjali |
Latest page update: made by premanjali
, May 30 2008, 5:20 AM EDT
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