India is expected to have 236 million mobile Internet users by 2016, says a new IAMAI-KPMG report. It further projects that mobile internet userbase will reach 314 million by 2017. This doesn’t come as surprise considering the recent MAIT report which said smartphone sales rose 33% during fiscal year 2014-2015.
With increase in smartphone sales, more and more users are accessing Internet through mobile devices. India is expected to have over 500 million internet users by 2017 and there are over 350 million internet users as of June 2015. Considering that telecom operators have significantly reduced 3G tariff to bring it in line with 2G, more and more users are now migrating from 2G to 3G. It is estimated that the 3G subscriber base will reach 284 million by the end of year 2017 while there were approximately 82 million 3G subscribers at the end of year 2014. The 3G user base is projected to grow at a CAGR of 61.3% from 2013-17.
“With more than 300 million internet users, India has the second largest internet user base in the world. But the internet penetration at 19 per cent (approx) is poor and limits the potential. The next wave of growth in penetration of internet will driven by adoption of mobile internet”, says Ashvin Vellody, Partner – Management Consulting, KPMG.
Dr. Subho Ray – President IAMAI reiterated that “It will be non – metros and rural India that will be driving internet growth in India. And this is where mobile internet will be playing a pivotal role.”
The report finds that 2G will continue to be dominant in rural market while 3G and 4G fosters in urban areas for the next few years. There has been a rapid growth of mobile internet in India due to increased internet enabled devices, cheaper handsets and data plans getting cheaper. Mobile phone now serves as the main access point for nearly 38% of the active internet users.
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