Indian Internet Challenges

Continuing on the theme from yesterday’s post, some numbers about Digital India and the Indian Internet:

  • PCs: 30 million (growing 8+ million / year), equally split between Homes, SMBs, Large Enterprises+Govt
  • Internet: 50 million (growing 10+ million/year), with 6 million broadband (256 Kbps) connections. About 50% access from cybercafes
  • Ads: Rs 700 cr ($150 million; 3% of media spend)
  • Transaction drivers: Tickets, Trades, Matrimony

The reality is that it is hard to make money on the Indian Internet.

  • Top 4 Indian portals losing about Rs 150 cr a year
  • Largest Indian Net co (InfoEdge) sales growth slowing
  • Need to look beyond Advertising revenues, but few clear options
  • Flat-priced Broadband (Rs 250-500 for 1 Mbps) availability is still very limited

28 thoughts on “Indian Internet Challenges

  1. Pingback: Indian Internet Challenges « Internet Cafe Solution

  2. Pingback: Indian Internet Challenges

  3. Rajesh,

    My two bits. We need a new organization/think tank/authority that can provide a framework to advise and execute on growing this Internet market specific to the Indian situation ? One concern is that the malaise may spread over to the mobile Internet later as well.

  4. Hmm..

    – Think the top portals are comfortable wuth losing money for the next 3-4 years.

    – The cost of PC’s, though at sub 15k levels, is still not within the reach of a large section of the population. Broadband connectivity is not the issue. A lot of work and transactions can happen over dial-up also !

    – A good way to look beyond advertising is niche content but portals don’t seem to be taking too many risks in this direction.

  5. Rajesh,
    Local usage and innovative thinking is needed. Classic example is your idea of “samachar.com”. Why do you think it was great success ? And, why similar is not achieved till this date? I think ‘cos right from name it was local and it was simple. What do you say? Can we see something like that in near future in Indian Internet Universe?

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  7. One reason which I find is the number of people who are serious about entrepreneurship. In the recent years, there has been an increase in the number of startups in India — but many of them are not properly guided. There is no mechanism to promote and help these people. And I have seen some people doing these people just for money — they have no passion for what they are doing.

    Another thing is that, the content which is generated in India will be limited to a very small set of people – because of the language barrier. In China, they have a common language for one nation.

  8. Understanding their Appeal. Web difficulties can be intriguing to teenagers, who can be both hasty and attracted to conduct that draws consideration, particularly in web-based social networking.

  9. That order. She found a bride for her son on the internet, and I’m sure you know the rest. Interestingly, the other Indian women viewed her as rather backwards.

  10. M not comfortable hearing. I think they’re very. quot;just for the fun of it and such’ are opening. see it as a portal, an invitation for… topped out in those.

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