Internet user base to touch 503 million in India by 2017: Report

Tribune News Service

New Delhi, July 20

Led by a growth of 27.8% annually in mobile phone users, India is projected to have 236 million mobile internet users by 2016, with the figure reaching 314 million by 2017.

A report brought out by Internet and Mobile Association of India (IAMAI) and KPMG, the country will have about 503 million internet users by 2017, 'India On The Go - Mobile Internet Vision Report 2015' pointed out.

The overall internet user base (wireline and wireless) in the country stood at approximately 350 million as on June 2015 and is estimated to touch 503 million by 2017, it said.

The mobile internet users are likely to reach 314 million in the same period, it added.

"The number of mobile internet users in India was approximately 159 million in 2014. This number is expected to continue to grow rapidly and reach 314 million by the end of 2017, registering a CAGR of 27.8% for the period 2013-2017," the report said.

In India, over 50% of internet users are mobile-only internet users, it said.

While the rural growth story will likely be written by 2G, in urban India, demand would be of high speed technologies such as 3G and 4G.

Many telecom operators are investing in developing 3G and 4G networks to cash in on this demand. It is estimated that there were approximately 42 million 3G subscribers in India by the end of year 2013 and the number is projected to reach 284 million by end of the year 2017.

The report said 2G user base in India is projected to decline in the coming years as more and more customers are expected to migrate from 2G to 3G.

The 3G user base in India is rapidly gaining market and is projected to grow at a compound annual growth rate (CAGR) of 61.3% from 2013-17.

As per the report, rural India is steadily moving towards a more internet friendly and exploratory mindset. As of 2014, the active internet user (AIU) base in rural India was 6.7% of the overall rural population of 905 million and accounted for 61 million users.

"4.4% of the total rural population used a mobile device to access the internet; a figure that stood at a meagre 0.4% in 2012," the report said.