Developments in the Communication Sector : Growth of Mobile Internet

Developments in the Communication Sector : Growth of Mobile Internet

Question: For the average Indian, internet access is via mobile only. Elaborate on this with regard to developments in the communication sector.

• A Brookings report has said that for the average Indian, mobile is the only point of internet

• Just 5% of users in India own personal computers

• Comparative number in the US is greater than 90%

• According to an estimate by eMarketer, around more than half of the Indian population will be using mobile phones

• India is one of the most rapidly growing and fastest mobile user bases in the world

• The country’s mobile internet user base is very high so much so that in a span of two years, India will have the largest FB user base on mobile

• A BCG and IAMAI published a report entitled “India@Digital.Bharat” which projects that India will have more than 500 million Internet users by 2018

• The report indicates that the first 100 million took 20 years, next 100 million 3 years and 100 million after that could be within a year

• The last 100 million will differ widely from the first in that they will be older, more rural, more female, more mobile led and more vernacular

• A survey conducted by GlobalWebIndex among 2534 Indian Internet users found that those apps which have relevance for the local market have a leading presence

• Rural India has its own dynamics as WhatsApp and FB are ways to disseminate news

• Mobile has become an important tool for tracking issues such as immunisation as well

• Another BCG report said that the global trend of consumers placing a value on mobile technologies between USD 700 and 6000 per user above the cost of devices and services

• This is more so in emerging markets such as India and China where the consumer reported value of mobile exceeds 40 percent of the average income

• However, an Ericsson ConsumerLab report has noted that affordability is a major barrier to mobile internet adoption

Facts and Stats

• Two thirds to three fourths of the transaction of online companies like Snapdeal is over mobile

• There is a mobile first approach to user adoption

• BCG report has noted that BRIC nations have taken to mobile technologies faster than counterparts in developed worlds