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The Internet and Mobile Association of India (IAMAI) has released the I Cube Report in which it states that the Internet penetration of people who have used the Internet at least once was 46 million at the end of September. Compared to the figure for September 2006, which was 32.2 million, this is a growth of more than 40 per cent. The number of active Internet users (who log on to the Internet at least once a month) is pegged at 32 million for 2007. Compared to 25 million active Internet users in September 2006, the growth here is slower at 28 per cent.
The report, conducted in association with IMRB, says that the number of people who can use the Internet unaided has tripled over the past seven years, and stands at 65 million. It adds that 70 per cent of the people who know how to use a computer have used the Internet at least once in their lifetime.
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Subho Ray |
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Anurag Gupta |
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Manish Agarwal |
Dr Ray added that the growth in Internet penetration, especially broadband, needs to match that of the mobile. “Broadband growth has fallen out of everybody’s agenda,” he said. IAMAI has not shared any broadband figures, but according to the Telecom Regulatory Authority of India (TRAI), there were 2.69 million broadband connections at the end of October – though only 4.7 lakh broadband connections were added in the first six months of 2007. In October 2006, the number of broadband connections stood at 1.92 million, a growth of 40 per cent, though on a small base figure.
An Indiatimes spokesperson said that the Internet penetration figures were encouraging, but added that “the concern for broadband penetration is valid because a lot of rich media content is being developed by content providers and there is not enough Internet access”. The spokesperson added that though the mobile has better accessibility and better connection, there is a lack of content on the medium.
According to Anurag Gupta, managing director of internet marketing agency, dgm India, there aren’t enough Internet service providers (ISPs) providing broadband in the country. “The market can’t grow off one or two players. When there are more players and greater connectivity, the content will follow,” he said. Gupta estimates that the growth in Internet penetration is around 2 per cent month-on-month currently, and he expects it to double over the next few years.
For content providers and online publishers, broadband connectivity also means that the engagement of their users with the site improves. Manish Agarwal, vice-president, marketing, Rediff.com, explains, “For (online) media companies, there are two things which are important – there should either be more users or the users should spend more time on the site. And the users will spend more time on the site only if they have good connectivity and they can explore more aspects of the site.”
Agarwal adds that if connectivity increases in Tier II and III cities, more users will get on to the Internet and the medium will benefit. Agarwal also gives the analogy of the growth of mobiles in India. “It’s like putting up more towers to improve connectivity so that more people latch on to the mobile. The Internet will grow in the same way once infrastructure for connectivity improves.”
The general consensus in the industry is that the number of active Internet users in India is 25-30 million. However, broadband penetration is important for a lot of online services to take off, especially e-commerce and multimedia content like online videos and live streaming. Whether India will achieve its target of 20 million broadband connections by 2010 is still an open question.
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