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Indian Internet Challenges

December 17th, 2009 · 8 Comments

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

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8 responses so far ↓

  • 1 Indian Internet Challenges « Internet Cafe Solution // Dec 17, 2009 at 6:52 am

    [...] Continued here:  Indian Internet Challenges [...]

  • 2 Indian Internet Challenges // Dec 17, 2009 at 10:06 am

    [...] See the rest here: Indian Internet Challenges [...]

  • 3 Rohit Varma // Dec 17, 2009 at 3:03 pm

    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 Kaushik // Dec 17, 2009 at 5:57 pm

    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 WindyCity // Dec 17, 2009 at 9:49 pm

    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?

  • 6 uberVU - social comments // Dec 19, 2009 at 10:36 am

    Social comments and analytics for this post

    This post was mentioned on Twitter by rajeshbarnwal: Indian Internet Challenges http://bit.ly/6WFiqc

  • 7 Ankit Jain // Dec 20, 2009 at 11:21 pm

    BSNL’s netPC is there to help cut the high cost barrier.

    I did an analysis on where does India stands on Internet. Take a look at http://ankitjain.info/ankit/2009/12/20/india-internet-language/

    - Ankit

  • 8 Derick Thomas // Jan 14, 2010 at 2:09 pm

    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.

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