HOME > BUSINESS > India falling behind China in Internet usage – report

India falling behind China in Internet usage – report

India has fallen behind China in Internet usage in the last few years as the Chinese government invested aggressively in promoting Internet in the country, while India did not, a report by a prominent international brokerage said. It said India, at the end of last year, was where China was in the year 2007.

internet-penetration-india-2013-china
“The gap in overall penetration between the two has increased over the past few years. We believe China internet usage benefitted from sustained, large-scale government investment that so far has not occurred in India,” the report said.

As a result, China now has an average Internet company market capital of $319 per Internet user, compared to about $15-16 in India.

China took 6-7 years to reach 10% internet penetration in 2006, after which its penetration rate trebled, to over 34% in 2010. India’s penetration rate was 10% in 2011, and rose to about 17% in 2013 and could reach 25% by 2016.

“Over the past five years, the gap in terms of user numbers and the penetration rate between India and China has widened,” said the report.

In the next three years, India’s Internet user base would increase to about 300-400 million users, with 175-200 million daily active users, the brokerage said. China already has about 650 million users.

Interestingly, desktop user additions have almost halted owing to stagnation in the PC market and users adapting to new devices such as smartphones and tablets, the brokerage said.

In 2012, mobile accounted for 10-20% of user traffic for most internet companies in India. In 2013 most companies have 20-30% of traffic from mobile, with leading companies even reporting figures of 30-40%.

“In the next two years the leaders could have as much as 50% of traffic from mobile; the company expects usage to rise as high as 70-75% over the next 3-4 years,” it said.

The report pointed out that though the Indian government too tried to drive growth by investing projects like the national fibre backbone, the project has been delayed.

“Effective government plans and investments could help drive increased internet usage in India and bridge the gap with China, in our view,” it said.

Follow ULTRA.news
Vodafone offers 1GB/day for 84 days at Rs 509 Vodafone has unveiled five pan-India plans, the highlight of which is the new Rs 509 plan that gives 1 GB per day and unlimited calls for 84 days (12 weeks).The pack is priced only Rs 50 higher than the equivalent plan by Reliance Jio, which is priced at Rs 459.Before th...
Boosted by Jio’s success, Mukesh Ambani unveils his future plans Mukesh Ambani, India's richest man, said telecom was the first of his big bet, and he will now use his resources to solve problems in three other difficult areas -- agriculture, education and healthcare.Speaking at the HT Leadership Summit, Ambani said his primary motivation...
Just Dial app downloaded 23,871 times every day; profit rises Online classifieds company Just Dial said its app was downloaded an average of 23,871 times per day during the three months ended September.This was nearly thrice the number of app downloads during the same three months of 2016, showing the impact of the company's TV campaig...
Google’s AWS rival cloud services come to India Google has opened its first data center for third-party cloud services in India at Mumbai.This will enable developers to host their applications, websites and other IT projects within India, enabling faster response times for their customers in the country.Before this, th...
Ramco wins multi-million managed services deal from British MNC Bank Cloud-based enterprise software provider Ramco Systems said it won a multi-million dollar order from a big British MNC financial group to provide managed payroll services.Ramco will help the company, part of the FTSE 100 index, to consolidate its payroll operations in 14 co...
Moody’s to train SBI employees to appraise loan applicants State Bank of India, the country's largest bank, said Moody’s Analytics will train its employees to source, appraise and monitor loans.SBI employees will be granted the Moody’s Analytics Certificate in Commercial Credit (CICC) as part of the program.The program has been...
Tata Elxsi to bring Unity gaming platform to enterprise Tata Elxsi, the hardware design company from the Tata stable, has tied up with Unity Technologies to set up a center that will develop solutions based on the Unity visualization engine.The Unity platform is arguably the most widely used engine for developing mobile phone gam...
Nucleus Software wins loan software order from Finova Capital NBFC Nucleus Software, which provides IT solutions for financial services companies, said its loan management solution has been selected by Finova Capital, a Jaipur-based Non-Banking Financial Company (NBFC) to digitise its lending business.Founded in 2015, Finova Capital offers ...
Google will create an iPhone rival with Pixel – expert Google was forced to enter the smartphone hardware business as makers of Android smartphones have largely failed to develop a product that can compete against the iPhone, an industry expert said, adding that the result of union could rival what Apple has to offer."With tight...
Wipro wins seven-year deal from European utilities co Innogy IT services provider Wipro said it has been awarded a seven-year contract by European energy company Innogy SE to manage their data center and cloud services.Wipro will help the company, which focuses on renewables, grid & infrastructure and retail, to rationalize, virtuali...
Wipro’s IT to power McLaren’s sports car business Bangalore-based Wipro won a high-profile client by signing up McLaren Technology Group, the company behind the successfull McLaren Formula 1 racing team.As part of the multi-year partnership, Wipro will deploy its HOLMES artificial intelligence platform to boost the producti...
IT companies using illegal tactics to force workers to resign: FITE The Forum for IT Employees, arguably the IT workers rights organization with the largest number of well-wishers and supporters, accused IT companies of using illegal and unethical means to force their workers to submit their resignations.In a meeting with Maharashtra Chief Mi...
Vodafone slashes 4G offer prices after Airtel, Idea reveal explosion of data Vodafone India renewed efforts to promote its cut-price voice and data offerings in recent days as the latest quarterly numbers from rivals Idea Cellular and Bharti Airtel suggested they had given out bigger discounts in the April-June period than anyone had expected.Earlier ...
BSNL halves 2Mbps unlimited plan to Rs 599 from 1,199 Faced with a slowdown due to the emergence of the pan-India competitor Reliance Jio, state-owned Bharat Sanchar Nigam Ltd has halved the price of its unlimited 2 Mbps DSL broadband plan to 599 per month.BSNL NEW UNLIMITED BROADBAND PLANThe player was earlier offering unl...
Wipro opens Artificial Intelligence research facility in Israel University IT and outsourcing services provider Wipro said it will use students at Israel's largest university to jointly conduct research into artificial intelligence.The company inked an agreement with Tel Aviv University, Israel's largest institution of higher learning which is home ...
IT woes to bring down real estate rentals in Bangalore, IT hubs With IT sector witnessing subdued sentiment amidst pressure on hiring and annual pay rise for employees, the country's software and services hubs such as Bengaluru, Hyderabad, Chennai, Pune and Noida-Gurgaon in NCR are expected to see 10-20 per cent reduction in the housing rents...
TCS to create apps on Siemen’s IoT platform MindSphere Tata Consultancy Services said it will create applications on MindSphere, the cloud-based, open IoT operating system from Siemens.TCS CEO Rajesh GopinathanIoT stands for 'Internet of Things' and refers to connectivity between two machines over the Internet, with zero h...
Tech Mahindra net profit down 31% due to rupee, poor growth Tech Mahindra said its revenue fell 0.8% quarter on quarter in the three months ended March to Rs 7,495 crore, while net profit fell 31% to Rs 588 cr.In dollar terms, revenue rose 1.3% quarter on quarter and in constant currency terms, it was up 0.9% QoQ.In dollar ter...
Times Group introduces ‘exclusive’ content online for subscribers Times Group, India's largest media group, has taken a step towards what may eventually be a paid model for online news by introducing 'exclusive' content for registered users.For now, registration and membership is free. Users can sign in using their Facebook or Google ID...
SpiceJet introduces self check-in for baggage in Mumbai SpiceJet has introduced self check-in for baggage at Mumbai’s Chhatrapati Shivaji domestic airport.Customers flying with SpiceJet can now simply check-in their baggage at the self-service kiosks themselves up to 45 minutes prior to the departure time."Independent of...