Internet Industry Update The Indian Story

 India  Telecom- A Persistent Success Story  Poor Cousin-Internet  The Great Digital Divide  Internet Demographics  Usage Pattern of internet  Catch 22 Situation  Further Analysis/Insights on Access  Customized Global Drivers  Government’s Intervention  March of Technology  The Public Internet Access Points  Conclusions for Emerging Nations

Total Population ~ 1200 Mn Total Population ~ 818 Mn(above 12 yrs) Total Urban Population ~ 266 Mn Total Rural Population~ 568 Mn Total Literate Population ~ 573 Mn Total English Knowing ~ 140 Mn Total Computer Literate ~ 87.1 Mn

Pay per Use Model Cheap handsets Low Denomination Cash cards Indian Telecom Statistics (July'10) Total telephone subscriber base Tele-density58.17 Fixed-line user base35.96 Wireless user base (GSM+CDMA+WLL Monthly additions (Wireline + Wireless) Broadband subscribers9.77

 Total Claimed Internet Users ~ Mn  Total Active Internet Users ~ 60 Mn  Total Broadband Users ~ 9.7 Mn  Internet Penetration ~ 7% As of 2009, only 7% Indian households have ownership of a PC at home Source :TRAI As of 2009, only 3% Indian households have ownership of Internet

1 out of 3 computer user still not using internet Most new broadband connections are ‘replacement’ Only 13%of existing internet users prefer to read in English 4 out of 5 online Indian are in the ‘prime’ age of their life (19-35 years) 3 out of 4 belong to the ‘consuming’ and ‘aspiring’ class Half of all Internet users are employed Their average monthly family income is 3.2times the national average

Source: IAMAI Rural Broadband & ICUBE Report Overall Usage Pattern Rural Usage Pattern

Government Public Internet Access Technology

National eGovernance Plan Mission Mode Projects State Wide Area Networks State Data Centre Common Service Centre Govt has identified 27 Mission Mode Projects SWAN to be setup across All States to Connect Rural India SDC’s,1 in each State CSC’s to Connect 1 lakh villages. Already 77,000 estd. Setup of the National eGovernance Portal

3G Spectrum Auction and Roll Out Successful BWA Auction and Allocation Wireless Broadband Roll out in Remote Areas Roll out of Mobile Broadband Boost to mVAS and mCommerce

The mantra of emerging world-Sachet Marketing Cybercafé/ CSC’s Provides Outreach Sharing Cost Sharing Assistanc e Sharing PC Address Language & Education Barrier Sharing ISP revenue A business model-Franchisee: iWays –Cybercafé brand of Sify, India’s first private ISP.

Declare Internet as an essential Service USO fund of 7 Bn along with other social schemes to be devoted for connecting India on Fiber Encourage Bond between ISP and PIA to address security issues Government Intervention Supported by mobile VAS and mobile Commerce Alignment with hot spots March of Mobile Encouraged as it is Assistance mode and motivation for many. Cash Card to be accepted and promoted for all Govt. services/ applications to over come credit card challenge Promote Public Internet Access USO Funds to be used to promote Digital Literacy along with ISP’s and PIA’s Certification and Vernacular content to be promoted to meet community needs Digital Awareness Programmes

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