State of the Internet in India (Part 3)

The two not-so-obvious things that can help the Internet growing again in India are:

  • The Internet and mobile need to be thought of as a combo for services. It will be some time before Internet ad revenues are large enough to sustain the portal. (They are aboutRs 500-600 crore, with about three-quarters going to Google, Yahoo and Rediff.) The mobile should not be thought of as an isolated business, but in fact should be combined with the Net for whatever services are planned (content, classifieds, communities, commerce, gaming…). This creates a path to get higher audience numbers.
  • Companies need to think of multi-monetisation.  On the Net, there are three primary options to make money: subscriber pays, ads and transaction fees. A fourth can be business services. It is critical that in the short-term the focus be on maximising the number of revenue streams that can help get the money in, thus minimising the need for external capital and increasing the longevity of the business.

Thus, according to me, a consumer-centric Internet business that thinks Net and mobile natively, and does multi-monetisation of its audience and technology platform is what has the greatest chance of succeeding in India. This is also an opportunity for newcomers without legacy to come in and disrupt the incumbents.

So, which spaces to enter? We will discuss that tomorrow.

19 thoughts on “State of the Internet in India (Part 3)

  1. True. But then everyone has taken the “goodies” for free. Free email, Free content etc etc.

    Indiatimes relies on bikini clad women to garner “eyeballs”. Much of the content lacks depth and is primarily geared for the lowest common denominator.

    The cyber cafes sustain their business on the “free pron” sites in the mofussil towns dotting across India. For most of the folks, having a computer means moving ahead in life but stuck with legacy system of “Windows” has it’s associated downturn.

    The ISP’s are prefer to carry the plain vanilla traffic by not being a part of the “content creation” deals. Hence the metered “broadband” in order to avoid any fancy You Tube downloading by the customers and their archaic systems to break down.

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