Internet in India

1.3 Internet is slowly permeating into the non metros

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People from non metro and small towns are increasingly experiencing their tryst with this new medium. This is evident from the fact that their contribution to Internet user
base is increasing. As more users from, the non metros show their interest in becoming a part of the Internet Community the digital divide is poised to reduce in the
years to come.

The following list gives the contribution to internet user base from different types of locations

YEAR --------------------------- 2000 ---- 2001 ---- 2003 ---- 2004 ---- 2006 ---- 2007
Top 6 metros ------------------- 77% ---- 58% ---- 55% ---- 55% ---- 41% ---- 38%
Other metros ------------------- 13% ---- 15% ---- 19% ---- 20% ---- 20% ---- 21%
5-10 Lakh population cities ---- 4% ---- 7% ---- 7% ---- 6% ---- 10% ---- 12%
2-5 lakh population cities ---- 6% ---- 20% ---- 20% ---- 19% ---- 29% ---- 29%

* - Figures reported for 2007 are for Sep 2007, all the other figures are for March in the respective years

This change is due to increasing computer literacy and awareness and good word of mouth of this medium.

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1.3 Internet is slowly permeating into the non metros

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1.2 Internet trials show a 40% growth over last year

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PC literacy in India has shown a steady year on year growth since 2004. Various initiatives taken by GOI and other private players along with the growth of IT/ITES industry in India have contributed to a rocketing 300% growth over 2000 and 10% growth over last year.

Knows Computers ( Figures in Millions)

Year Knows Computers ( Millions)

2000 ------ 15.8
2001 ------ 30.8
2003 ------ 42.2
2004 ------ 52.9
2006 ------ 59.0
2007 ------ 65.0

More and more people are now experiencing Internet. 70% of the people who know computer have used Internet in their life which is a very healthy sign for Internet in India. It shows that people are becoming aware of the Internet and are moving
ahead to experience it.

Claimed Internet User( Figures in Millions)

Year Claimed Internet User( Millions)

2000 ------ 4.9
2001 ------ 8.7
2003 ------ 11.9
2004 ------ 16.4
2006 ------ 32.2
2007 ------ 46.0

People have started realizing that Internet can serve as a one stop point for all their needs. Be it communication, entertainment, shopping, information search, Internet serves as a panacea for all their requirements. This has led 70% of the
ever users to glue themselves to the Internet and access it on a regular basis.

Active Internet User( Figures in Millions)

Year Active Internet User( Millions)

2000 ------ 2.2
2001 ------ 4.3
2003 ------ 7.5
2004 ------ 11.2
2006 ------ 21.1
2007 ------ 32.0

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1.1 The relevant mass of Internet users in India

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Internet in Urban India

Urban Population -- 250 Mn
Literate Population -- 205 Mn
English Knowing -- 77 Mn
PC Literate -- 65 Mn
Claimed User -- 46 Mn
Active User -- 32 Mn

Looking at the Indian population from the perspective of Internet usage, urban population forms the relevant mass.

As most of the content available over the Internet is in English, familiarity with English acts as a major factor driving Internet usage.

India being a home for 22 odd regional languages, Internet is largely limited to those familiar with English. This opens an opportunity for vernacular content to
increase and thus tap the non English speaking literate People.

Exposure to PC usage acts as another factor limiting the growth of Internet users in India. A significant increase is expected in Internet penetration due to increasing focus on literacy, PC education and vernacular content in the coming years.

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1.0 The Growing Cyber Universe in India

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“Internet is so vast & influential that it surpasses the
differences of age, SEC, gender and town class”

0.2 Glossary of Terms Used

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PC Literate: PC Literates have been defined as those who know how to use a PC. While this term does not signify the extent of PC usage, it essentially means that a computer literate is able to work on a PC without assistance.

Ever User: Ever user of Internet is someone who has used the Internet at any point in time. This gives us a clear indication as to how many Indians have atleast experienced the Internet once in their lifetime.

Active User: Active user of Internet is someone who has used the Internet at least once in the last 1 month.

Internet Non User: Individual who has not accessed the Internet at any point in time.

Internet Non Owner: Household which does not own an Internet connection.

Top 8 Metros: The top 8 cities in India in terms of population.

Small Metros: Other towns which are not a part of top 8 metros but have more than 1 Million population.

Non Metros : Towns with a population between 0.5 million1 Million Towns.

Small Towns: Urban Centers with a population of less than 0.5 million.

Socio Economic Classification: Socio-economic classification (SEC) indicates the affluence level of a household to which an individual belongs. Socio economic classification of an urban household is defined by the education and occupation of the chief wage earner (CWE) of a household. SEC is divided into 8 categories A1, A2, B1, B2, C, D, E1, and E2. (In decreasing order of affluence). I-Cube 2007 survey covers all the SECs in top 8 metros and SEC A, B and C in other centers.

School Kids: All those studying in school above 8 years of age. Most students will be in the age group of 8-17 although a small proportion will be over 18 years.

College Going: All those studying in college (graduate, post-graduate and doctoral). Most students will be in the age group of 18-23 although a proportion will be below 18 and over 23 years.

Young Men: These are men in the age group of below 35 years who are not school or college student. This segment includes all those who are employed as well as unemployed.

Older Men: These are men in the age group of 35 to 58 years and include all in this age group whether employed or not.

Working Women: These are women in the age group of 18years to 45 years and employed outside home.

Housewives: These are women below 45 years age and not working. This segment includes housewives as well as non-working young women who are not school or college students.

Stickiness Index: Stickiness Index is a composite of how often a media is accessed and how much time is spent on it.

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0.1 Introduction

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The year 2007 has been declared as the ‘Broadband year’ by Indian government. Various initiatives are been undertaken to increase PC and Internet penetration. People have started to realize the importance of Internet in their lives where it is not just a communication mode to email, chat and get information but has become an enabling tool to perform various tasks over Internet like learning, networking, shopping, gaming and expressing themselves in the form of blogs to the extent of establishing a virtual world for themselves.

Thus, it is important to map the Indian market for its cyber movements. IMRB International along with IAMAI takes a pioneering role and presents a reports bouquet ‘Internet in India 2007’, which captures the minutest details of how and where Internet is heading. Internet in India (I-cube) reports are based on a primary survey conducted across 30 cities, amongst 65,000 individuals, making it one of the largest researches in the domain.

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0.1 Introduction
0.2 Glossary of Terms Used

1.0 The growing cyber universe in India
1.1 The relevant mass of Internet users in India
1.2 Internet trials show a 40% growth over last year
1.3 Internet is slowly permeating into non metros
1.4 Internet is also going down the affluence divide
1.5 Youth drives the Internet domain

2.0 Touch points for Internet usage
2.1 Continuous growth of PC owners & Internet subscribers
2.2 Office is becoming more popular as a point of access
2.3 The convenience, cost & content sought trade off

3.0 Internet has become a part and parcel of our lives
3.1 The evolving role of Internet
3.2 Web 2.0 is the new buzzword for Internet
3.3 Applications used over Internet vary across demographics
3.4 Measuring the stickiness Index

4.0 Enablers for Internet industry
4.1 Essentials for Internet expansion
4.2 Pushing the Internet non users
4.3 Pulling the Internet users

A1.0 Annexure 1: Sample and methodology
A1.1 Target segment and city selection
A1.2 Household listing interview sampling procedure