Internet penetration expected to rise with 3G services roll-out

Mobile phone infobox

3G to transform internet adoption in India

India’s record of internet penetration is currently not very good. It stands at 7% i.e. only 7% of our population has access to internet.

But, our asset i.e. telecom is soon set to change that. India has the second largest telecom sector globally and more people are opting to surf the internet over mobile handsets.

Presently the data rates of internet on phone were not very high, but with the roll out of 3G, high speed browsing on mobile phones is going to be very much accessible on mobile phones. This will include video streaming and conferencing.

To push development in a country like India, e-governance is the key. HT Mint reports

Private firms are also pushing their services on the net, such as for bank transactions or booking movie, rail and air tickets, as they try to keep a hold on operational costs.

The statistics are in favour of mobile phones.

  • Cellphone Subscribers: 752.19 million as of December 2010
  • Internet Users: 80 million Internet users
  • Broadband Users: 11 million users
  • Mobile phone penetration: 63.22% in December, 2010

Presently India has missed its target for broadband penetration.

Mint Reports

In 2007, then president A.P.J. Abdul Kalam said that by 2010 India would have 40 million Internet users and 20 million broadband subscribers. R. Chandrashekhar, secretary, department of telecommunications (DoT), said India missed the target because of difficulties in setting up nationwide connectivity, but that could be resolved with the roll-out of wireless technologies such as 3G services.

A huge barrier in India’s low penetration of internet and particularly broadband is the low penetration of personal computers (PCs).

Mint reports

“This is mainly due to the issue of affordability,” Citi Investment Research and Analysis said in a September report.

PC penetration in India was at 4% of its population in 2009, compared with 20% in China, 89% in the US and 98% in Japan.

A basic computer costs at least Rs. 10,000-15,000, whereas mobile phones, even 3G-enabled devices capable of fast Internet browsing, can be bought for about Rs. 5,000.

The country’s largest telecom operators, Bharti Airtel Ltd, Vodafone Essar Ltd and Reliance Communications Ltd, which spent thousands of crores of rupees for 3G licences, are expected to start rolling out the services soon.

Mint further reports

About 15% of Internet users in India access the Web through their mobile handsets—“a trend likely to pick up with the increased take-off in smartphones and the advent of 3G,” Citi said in its report referring to 2009 data.

It is being predicted that the number of 3G subscribers would cross 107 million mark by 2015, with a compunded annual growth rate of 190% between 2011 and 2015. This would make the 3G penetration close to 13% by 2015.

3G’s acceptance will certainly give a boost to the Indian Economy.

Internet penetration expected to rise with 3G services roll-out – Technology – livemint.com.

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2 Responses to Internet penetration expected to rise with 3G services roll-out

  1. Pingback: Internet penetration expected to rise with 3G services roll-out … | Telecom Carriers

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