| IMRB

In Association with Internet & Mobile Association of India (IAMAI)

presents

Facilitating

Citius, Altius, Citius, Altius, Fortius
(Faster, Higher, Stronger)

Internet In India
1

Table of Contents
1.0 2.0 3.0 Introduction Glossary of Terms Used Growth of Internet in India 3.1 3.2 3.3 3.4 3.5 3.6 4.0 Internet User - Year 2008 (All India) Emerging Rural Internet Market Urban Internet Market Growth Rate of Internet Penetration - Urban Far-Reaching Internet Services Youth Continues to Drive the Internet Growth 4 5-7 8-14 9 10 11 12 13 14 15-18 16 17 18

Internet Access Points 4.1 4.2 4.3 Continuous Growth of PC Owners and Internet Subscribers Rise in the Internet Access From Office The Convenience, Cost & Content Sought Trade-off

2

Table of Contents
5.0 Important Internet Applications 5.1 5.2 5.3 6.0 Increasing Share of Pie for Online Entertainment Preference of Applications Vary among Demographic Segments The Growing Stickiness Index 19-22 20 21 22 23-27 24 25 26 27 28-33 29-30 31-32 33 34-36 35 36

Enablers of Internet in India 6.1 6.2 6.3 6.4 Barriers for Internet Usage Essentials for Internet Penetration – Urban Essentials for Internet Penetration – Rural Likeliness of Usage of Different Applications

A1.0

Annexure: Study Methodology & Sampling Procedure - Urban A1.1 A1.2 A1.3 Target Segment and City Selection Household Listing Interview Sampling Procedure Sample Size of Households Covered for Profiling

A2.0

Annexure: Study Methodology & Sampling Procedure – Rural A2.1 A2.2 Criteria for Selection of States Criteria for Selecting Districts in the States

3

1.0 Introduction
India has witnessed continuous growth in the Internet adoption in certain sections of society predominant patterns exist mostly in urban areas. Internet users have started utilizing this technology not merely for information search or communication but also for leisure activities.

Different online applications like entertainment – gaming, movies and music as well as usergenerated content on the web has made Internet a virtual world. Over the web, users are interacting, learning and building relationships. Rural areas of the country, however, have just started to recognize the importance of this medium.

Various technological developments are redefining options of accessing the Internet. These technologies are expected to play a vital role in enabling improved adoption of the Internet across different geographies. The emerging technologies such as WiMAX, 3G and WiBro promise to provide a last mile connectivity and allow new access points such as PDAs and kiosks.

This report aims to map the growth of Internet in India. It is a part of a syndicated study conducted annually by IMRB International in association with IAMAI.

Internet in India (I-Cube) reports are based on a primary survey conducted across 30 cities - among 20,000 Households, 90,000 individuals, 1000 SMEs and 500 Cyber Cafes. To extend the scope of this study, we have carried out this research across 100 rural centers to understand Internet behaviour in rural areas.

This extensive exercise makes this study one of the largest researches in the Internet domain in India.

4

2.0 Glossary of Terms Used
PC Literate: Individuals who know how to use a PC. While this term does not signify the extent of PC usage, it means that a computer literate is able to work on a PC without assistance.

Claimed User: An individual who has used the Internet at any point in time in the past. This gives us a clear indication as to how many Indians have experienced Internet at least once in their lifetime. These may also be called as ‘Ever Users’.

Active User: An individual who has used the Internet at least once in the last 1 month.

Internet Non-User: An individual who has not accessed Internet at any point in time.

Internet Non-Owner: An individual who belongs to a household which does not own an Internet connection.

Top 8 Metros: The top 8 cities in India in terms of population.

Small Metros: Cities which are not a part of top 8 metros but have more than 1 Million population.
5

2.0 Glossary of Terms Used
Non-Metros : Towns with population between 0.5 million to 1 Million. Small Towns: Towns with population of less than 0.5 million. Socio-Economic Classification (SEC): A classification that indicates the affluence level of a household to which an individual belongs. SEC is defined by the education and occupation of the chief wage earner (CWE) of a household. SEC is divided into 8 categories - A1, A2, B1, B2, C, D, E1, and E2 (in decreasing order of affluence). School-Going Kids: Kids studying in school and above 8 years of age. They are in the age group of 8-17, although, a small proportion could be over 18 years. College-Going Students: Youths studying in college (graduate, postgraduate and doctoral). Most students are in the age group of 18-25, although, a small proportion will be below 18 and over 25 years.

6

2.0 Glossary of Terms Used
Young Men: Men in the age group of 21-35 years who are not school or collegegoing students. This segment includes all those who are employed as well as unemployed. Older Men: Men in the age group of 36-58 years employed or otherwise. Working Women: Women in the age group of 21-58 years and employed outside home. Non Working Women: Women in the age group of 25-58 years of age and are not working. This segment includes housewives as well as non-working young women who are not school or college-going students. Stickiness Index: Stickiness Index is a composite of how often a media is accessed and how much time is spent on it.

7

3.0 Growth of the Internet in India

8

3.1 Internet User: Year 2008 (All India)
Total Population ~ 818 Mn* Total Literate Population ~ 573 Mn*

Total English Knowing~ 149 Mn*

Total Computer Literate ~ 87.1Mn

March 2008
Urban Claimed Internet users~50 Mn Active Internet Users~36 Mn Rural Claimed Internet users~5.5 Mn Active Internet Users~3.3 Mn

September 2008 (Est.)
Urban Claimed Internet users~57 Mn Active Internet Users~ 42 Mn Rural estimates not available *- Source-NRS 2006 (Population with 12 years of age and above)

9

3.2 Emerging Rural Internet Market
Approximately 70% of Indian population reside in Rural areas of the country. Literacy rate in the rural areas has been reported at 65%. Interestingly, English-speaking population in Rural India is only 63 Mn which is 17% of the total literate population. The I-Cube research estimates that nearly 15.1 Mn Population in the rural areas are computer literate. Of which, 5.5 Mn have used the Internet in the past. With nearly 0.6% of penetration in the total population, there are 3.3 Mn Active Internet users. Non-Government Organizations (NGOs), GOI initiatives, community service centers and CSR activities by private companies have played a significant role in ensuring this penetration. Considering such high levels of literacy rate coupled with relatively low English-speaking population, it is imperative to provide needbased online applications. These applications need to be in vernacular/regional language and preferably with TTS (Text to Speech) capabilities to ensure high adoption of the Internet. It would be better if visual symbols, graphics and rich media are used to develop applications in rural areas. However, would India have bandwidth to support it across rural infrastructure?
3.3 Mn Rural Active Internet Users
*- Source-NRS 2006

818 Mn* Total Indian Population

568 Mn* Rural Population

368 Mn* Rural Literate Population

63 Mn* Rural English-Speaking Population

15.1 Mn Rural Computer Literates

5.5 Mn Rural Claimed Internet Users

10

3.3 Urban Internet Market
818 Mn* Total Indian Population

With 250 Mn urban population in India, 82% of them are literate and of these, only 31% are English-speaking. However, of 86 Mn (42% of 205 Mn), 84% are PC-literate. This indicates that PC literacy and usage are highly associated with English-speaking ability. As urban Internet penetration reaches a saturated level there is a need for innovative information delivery which could ensure increase in the time spent on the Internet. User generated content such as blogs, TLC (Trying out, links and communities) could help in increasing time spent over the Internet (i.e. conversion of light users to heavy Internet users). Other critical utility applications like E-commerce could help in furthering Internet non-users towards adopting this medium. 128 Mn of the Urban population has not adopted the medium due to non-familiarity with English language, which forms the potential target segment for usage of vernacular content on the web.
50 Mn – March 2008 57 Mn – September 2008 (Est.) Urban Claimed Internet Users 250 Mn* Urban Population

205 Mn* Urban Literate Population

86 Mn* Urban English-Speaking Population

72 Mn – March 2008 85 Mn – September 2008 (Est.) Urban Computer Literates

*- Source-NRS 2006

36 Mn – March 2008 42 Mn – September 2008 (Est.) Urban Active Internet Users

11

3.4 Growth Rate of Urban Internet Population
Sep-08

Base: All India (Urban) (All figures in Million)
85 72 65 62 59 53 42 31

Computer Literate

Growth in computer-literacy in urban India has increased in the year 2008 compared to 2007. This indicates continued acceptance of technology in the lives of people, in addition, to decrease in prices of PC and hardware.

Mar-08 Sep-07 Mar-07 2006 2004 2003 2001 2000 16

Claimed Internet User

70% of computer literates have used Internet in the past - a healthy sign for Internet industry in India. Government Initiatives, online Ecommerce applications and entertainment are the main applications other than Information search for fueling this growth.

Sep-08 Mar-08 Sep-07 Mar-07 2006 2004 2003 2001 2000
5 9 12 16 32 42 46 50

57

Sep-08

Active Internet User

Compared to previous years, the growth rate in Active Internet users for year 2008 has reduced. This is a sign of possible saturation in the urban Internet market. This seems to be a right time to explore opportunities in the rural market.

42 36 32 29 21 11 8 4 2

Mar-08 Sep-07 Mar-07 2006 2004 2003 2001 2000

Such estimates were not possible for rural India as we have started studying rural Internet pattern from the current year only.

12

3.5 Far-Reaching Internet Services
Base: All India Claimed Internet Users (Urban) (All figures in Million) 5 Mn 9 Mn
20% 7% 15%

12 Mn
20% 7% 19%

16 Mn
19%

32 Mn

46 Mn

50 Mn

There is an increase in the number of claimed Internet users over the years across all town classes. Compared to last year, percentage of claimed users across different town classes remained similar for this year. This shows that people from non-metros and smaller towns are getting exposed to this medium.

5% 4% 13%

29% 6% 20% 10%

29%

30%

12%

12%

20% 77% 58% 55% 55% 41%

21%

21%

38%

37%

2000 Top 8 Metros

2001

2003 Other Metros

2004

2006

2007

2008

5-10 lakh towns

Less than 5 lakh towns

Base: All India Claimed Internet Users (Urban) (All figures in Million) 5 Mn
6% 15% 17% 18% 18%

9 Mn
9%

12 Mn
12%

16 Mn
11%

32 Mn
3% 21%

46 Mn
5% 23%

50 Mn
9%

23%

Increase in the number of claimed Internet users in the SEC D&E shows that Internet has started to reach the bottom of the pyramid i.e. to the less affluent classes of the society. This rise in the subscriber base could be because of: • Higher literacy levels, and

29% 32% 31% 29% 35% 33% 32%

49% 41% 40% 41%

42%

39%

37%

• Decrease in the prices of PCs

2000 SEC A

2001

2003 SEC B

2004

2006 SEC C

2007

2008 SEC D&E

13

3.6 Youth Continue to Drive the Internet Growth
Base: Active Internet users (Urban) 30 cities in 2007-08 26 cities in 2006 22 cities in 2004 16 cities in 2000 - 2003

Since the adoption of new technologies and services is high among young generation, most of the content over the Internet is focused on the age group of 18-35 years.

3.1 Mn

4.9 Mn

7.5 Mn

13.2 Mn

15.4 Mn

17.9 Mn

10% 9% 13%

7% 8% 15%

8% 7% 17%

6% 9% 15%

6% 11% 15%

6% 11% 14%

There is a significant increase in the percentage of college-going students in the Active Internet user base compared to the other demographic segments. Such an increase could be due to various information searches required for academic, entertainment or employment purposes.

26%

26%

27%

32%

33%

30%

23%

27%

26%

26%

21%

27%

19%

16%

15%

12%

14%

12%

2001 2003 School going kids Older men

2004 2006 College going Working women

2007 2008 Young men Non working women

Other sticky applications like user-generated content and social networking websites are attracting the youth of the country and helping them to explore virtual world comprising different experiences.

Online entertainment is evolving as the major driver for propelling growth of the Internet among young generation. Specifically, online gaming is major growth area in this vertical with huge investments by content providers and developers.

14

4.0 Internet Access Points

15

4.1 Continuous Growth of PC Owners and Internet Subscribers
Base: All India PC & Internet Owning HHs (Urban) Figures in ‘000

There has been 36% growth in PC Owners over the last year. This could be due to fall in PC prices and increase in the awareness of benefits in using a PC. An increase of 25% in the number of Internet subscribers over the past year has been observed. This increase is in part due to penetration of the Internet in the less affluent classes of the society and smaller towns. Also, higher popularity of usergenerated content like blogs, reviews and social networking websites like facebook.com, orkut.com have lead to continuous increase in this penetration levels.
9% 288 25
1997 - 98

76% 68%

7,805

62% 58% 54% 54% 51% 43% 5,723

4,846
3,861

3,878

2,927
27% 1,886 1,550 1,073 461 732 2,550

126

318
1999 - 00

624

837

1,025

1,304

1998 - 99

2000 - 01

2001 - 02

2002 - 03

2003 - 04

2005-06

2006-07

2007-08

PC Owners

Internet Subscribers

% PC Owners with Internet subscription

Role played by CSR activities of private companies, Community service centers and NGOs working in ICT (Information and communication technology) area helped in higher PC and Internet penetration in rural areas. However, there has been a decline in the proportion of PC owner with the Internet subscription - 62% compared with the last year which was at 68%. 16

4.2 Rise in the Internet Access from Office
Cyber cafe has been the main access points of Internet over the years. There is a marginal increase over the last year in the percentage of users who use it as the main access point.
Base: Active Internet users (Urban ) 30 cities in 2007-2008 26 cities in 2006 22 cities in 2004 16 cities in 2000 - 2003 1.4 Mn
8% 6% 19% 30% 23% 20% 20% 22% 25% 27% 3% 4%

3.1 Mn
2%

4.9 Mn
3% 2%

7.5 Mn
2% 5%

13.2 Mn
6%

15.4 Mn
2% 7% 1%

17.9 Mn
8%

Continued high share of cyber café in Internet use can be attributed to factors such as: • Lesser PC penetration in the SEC D&E homes • Growth of online gaming market in India

30% 22%

27% 31% 30% 26%

52% 43% 44%

46%

39%

36%

37%

2000 Cyber café

2001 Home

2003

2004 Office

2006

2007

2008 Others

School/College

Office is becoming more popular point of access which is not necessarily a healthy sign for the growth of Internet Industry in India as there are finite types of online applications that an office user can access; due to restrictions levied by IT units.

Interestingly, there is an increase in the Internet access from School/Colleges. This could be due to the introduction of computer education and permission to access the Internet from academic laboratories. 17

4.3 Convenience, Cost & Content Sought Trade-Off
Base: Active Internet users in 30 cities Surveyed (Urban)

Preference for the primary access point is a function of the following 3 C’s: Convenience, Cost & Content sought

17.9 Mn
1% 8%

2.2 Mn
3% 15% 3%

4.8 Mn

5.4 Mn
1% 1%

2.5 Mn

2 Mn
1% 1% 1%

1 Mn
4% 2%

20%

27% 20% 27%

46%

44% 58% 40%

Cyber cafés are the dominant point of access among schoolgoing kids and college students. Since cyber café is the cheapest source of access providing more privacy regarding content.

26% 24% 61% 49% 37% 27% 21% 18%

31% 23% 49%

All 30 cities

School going College going kids students Home

Young men

Older men

Working women

Non-working women Others

Cyber café

Office

School/College

Expectedly other demographics segments like young men access the Internet mainly through office. Except in case of non-working women, share of home as main access point does not amount to a high percentage as it is convenient to them.
18

5.0 Important Internet Applications

19

5.1 Increasing Share of Pie for Online Entertainment
Base: 17.9 Mn Active Internet users in 30 cities Surveyed (Urban)

Online communication applications like Email and Chat are the main purposes of accessing the Internet followed by information search.

Purpose of Internet access E-mail General information search Educational information search

% 91% 76% 49% 46% 41% 37% 32% 21% 21% 20% 13% 13%

With the increase in the usage of the Internet, E-Commerce applications like online bill payment, online ticket booking etc. are gaining more popularity.

Text Chat Online Gaming Online jobsites

Online entertainment is another key driver for the growth of the Internet in India with download services for online gaming, music and video.

Music/Video on the Internet Financial information search Book railway tickets on the Internet Online banking

“India Gaming Summit”, recently organized in the year 2008, has witnessed the launch of ‘Gaming revolution’ in India and laid a foundation for developing gaming ecosystem in India.

Online NEWS Internet Telephony/Video Chat/Voice Chat

20

5.2 Preference of Applications Vary Among Demographic Segments Base: Active Internet users in 30 cities
Surveyed (Urban)

There is a clear preference for different online applications across demographic segments. Preference of these demographics is well understood by the service providers.

17.9 Mn

2.2 Mn

4.8 Mn

5.4 Mn

2.5 Mn

2.1 Mn

1 Mn

7% 9%

1% 20%

6% 10%

9% 5% 18%

8% 5% 20% 5%

9% 2% 18%

5% 6%

24% 39%

27% 4% 5%

31% 7%

7%

9%

Over the years, young generation has remained a main target segment for content providers.

8% 61% 53% 44% 31% 62%

65% 56%

Email is the most popular application among most of the demographic segments followed by information search.

All 30 cities E-mail

School going College going kids students Chat

Young Men

Older Men Entertainment

Working Women

Non working Women E-Commerce

Information

*0.14 Mn not stated

Over the years, Internet has been evolving as a platform not only for communication but also for various other applications such as learning, shopping, gaming and self-expression in the form of blogs/forums.

21

5.3 The Growing Stickiness Index
Base: Active Internet users in 30 cities Surveyed (Urban) 30 cities in 2007-08 26 cities in 2006 22 cities in 2004 16 cities in 2000 - 2003

Internet is on its way of becoming a mass media as the user base as well as time spent using this media has been increasing.

1.4 Mn

3.1 Mn

4.9 Mn

7.5 Mn

13.2 Mn

15.4 Mn

17.9 Mn

3% 7% 19%

3% 11% 21%

4% 16%

3% 10% 23%

4% 13%
8.2

3% 12% 18%
6.9

2% 11%
9.3

15%

18%

Two-third of the active Internet users are accessing the Internet at least 2-3 times a week.

21%
5.6

26% 25%

4.8

6.2

21%

22%

23%

23%

24%

Average hours per week has increased over the last year with relatively higher margin, which is a very positive sign for the growth of Internet industry in India.

23%

14% 15%

18%

18%

19%

20%

21%

25%

17% 2003

23%

28%

25%

24%

2000

2001

2004 4 -6 times/ week 2-3 times/month

2006

2007

2008

Daily Once a week Average hours/week

2-3 times/week < Once a month
*0.4 Mn not stated

Stickiness Index is increasing over the last year with significant increase in average hours spent per week as well as frequency of access. 22

6.0 Enablers of Internet in India

23

6.1 Barriers for Internet Usage
Base: 6.9 Mn Claimed users not yet Active Users 30 cities surveyed in 2008 (Urban)

The major barriers leading to measured growth of the Internet in India have been low awareness and higher cost of accessing the Internet.

47.5%

Top 5 barriers for Internet usage

With the continued technological innovations in the area of Internet, cost of accessing the Internet is expected to go down in the coming future with greater speed of access.

11.7% 8.9% 5.5% 5.2%

There is no need for Cyber café charges it/Don’t know how it are high can be useful

There are no good cyber café’s nearby

Dial up cost of internet access is high from home

I need guidance

Innovative content delivery and provision of need-based applications like Online bill payment, Online ticket booking etc. will help in creating awareness among Internet nonusers and will act as a driver for Internet usage.

Community service centers, private companies and NGOs are playing important role in creating awareness of Internet in rural area. 24

6.2 Essentials for Internet Penetration - Urban
Internet as an interactive medium Accessible on Disparate Devices

• Urban markets have started using Internet as one of the interactive media. As a result, advertising on digital medium has started to gain importance. Internet, is slowly, becoming a part of the media plan. • Consequently, there is a need for measurement initiatives to evaluate the media engagement among the Internet users.

• Mobile subscriber base in India has crossed 300Mn in
September 2008. Value-added services in providing Internet connectivity and related content over mobile phones could ensure “on the go” access to the World Wide Web.

Internet Interactive Medium

Accessible On Disparate Devices

Evolved Content
Evolved Content

Technology

Technology • To ensure continued usage of the Internet in urban areas, advanced content/applications through rich media needs to be delivered over the Internet:
– Televisions/Movies over the Internet

• Emerging technologies like WiMAX, WiBro and 3G will enable BWA (Broadband Wireless Access) at much higher speed anywhere and anytime.

• Further, online entertainment, specifically gaming will also ensure continued penetration and persistence in using the Internet. • To tap the non-English speaking urban population and less affluent social classes, vernacular content could help to further the Internet growth

• These technologies will act as a platform introducing high-end applications such as IPTV.

in

25

6.3 Essentials for Internet Penetration - Rural
Awareness / Training Access

• Not understanding the usefulness of this medium is acting as one of the main barriers for not using the Internet in rural areas. • Further, there is a part of population that is aware of the Internet but need guidance in utilizing the potential of this medium.

• Higher cost of Internet access and PCs are major hindrance in accessing the Internet. Kiosks installed by NGOs, CSCs, and some of the private companies with their CSR initiatives are few of the alternatives available with them.

Awareness/ Training

Access

Content

Technology

Content

Technology

• Online applications that help rural dwellers in providing information related to their skilled/unskilled occupation could help Internet penetration (Need-based applications)

• Higher cost of access and proximity of the point of access are acting as barriers for Internet penetration in rural India.

• As large part of the population is not familiar with the English language, there is a huge scope for introduction of vernacular content over the web.

• Emerging technologies like WiMAX, 3G and WiBro will offer last mile connectivity at relatively low costs.

26

6.4 Likeliness of Usage of Different Applications
Base: 6.9 Mn Claimed Internet users (not yet Active) in 30 urban cities surveyed

Aware Communication Email Text Chat/ Instant Messenger Making telephone calls through Internet/ Voice Chat 94% 57%

Usage

Likely to use

Aware Entertainment

Usage

Likely to use

75% 35%

70% 27%

Play video games Watch movies clips/music video/cricket highlights on the Internet

52%

22%

20%

42%

18%

16%

33%

6%

5% Booking Railway tickets through the Internet 31% Booking Airline tickets through the Internet

E-Commerce 57% 36% 13% 2% 20% 5%

Informational Services Access information (general info, news etc) Post resume/bio data on Job site for self or any other person Post resume/bio data on Matrimonial site for self or any other person Access government services like Passport Enquiry, File Income Tax Returns, etc 53% 31%

41%

15%

16%

Bill payment through Internet ( For electricity/credit card etc) Accessing bank accounts through the Internet Buy products online

30%

1%

7%

36%

6%

9%

40% 33% 26%

4% 3% 5%

8% 4% 8%

17%

2%

4%

Invest in shares and stocks

Infrequent users are likely to use the Internet for communicating through Email and Instant Messaging, utilising search engines for general information and news, play games as well as book railway tickets online. Effective delivery of these sets of content will help them in converting to active Internet users.

27

A1.0 Annexure : Study Methodology & Sampling Procedure-Urban
It was ensured that a randomness is included in deciding the Internet penetration characteristics in the country. Further, a pan-India approached was adopted wherein cities that model Internet behaviour in all parts of the country were considered

28

A1.1 Target Segment and City Selection
For sampling purposes, we extensively used the previous rounds of the I-Cube reports that have laid down the universe of the Claimed and Active Internet Users in the country The previous rounds of the I-Cube reports have indicated that majority of the market is still limited to the Metros Census of India 2001 indicates that there are 35 Cities with more than 1 Million population in India. In this round of survey, we have covered all the top 8 cities as well as 22 other cities Below are the cities that have been covered in this research:
Cities by Strata Top 2 Metros Next 2 Metros Other 4 Metros 8 cities Other 14 cities Delhi & Mumbai Chennai & Kolkata Bangalore, Hyderabad, Ahmedabad & Pune Patna, Cochin, Baroda, Lucknow, Ludhiana, Coimbatore, Jaipur, Indore Allahabad, Chandigarh, Guwahati, Surat, Nagpur, Bhopal, Bhubaneshwar, Durg, Vishakhapatnam, Trichy, Bellary, Panipat, Thrissur, Jalgaon 29

A1.1 Age & Demographics of Respondents

School Going Kids Claimed Internet Users College Going Students

8-17 years

18-25 years

Internet Users

Young Men

21-35 years

Older Men Active Internet Users

36-58 years

Working Women

21-58 years

Non Working 25-58 years Women

30

A1.2 Household Listing Interview Sampling Procedure

Quota sampling procedure was followed to cover households belonging to SEC A, B and C category in each of the 30 cities short-listed and SEC A, B, C, D & E in each of the top 8 metros

Selection of households was made based on random starting addresses identified from electoral rolls

Care was taken to ensure even geographical spread in identifying the starting addresses across the cities selected

31

A1.2 Household Listing Interview Sampling Procedure
Aim of conducting detailed interview with CWE was to understand ownership of IT and Internet related products at home currently and in future
With CWE/person who is aware of usage on IT products/durables in HH

Based on this household survey, we managed to profile (age, gender, occupation, education, computer knowledge & Internet use) about individuals in households

Listing Questionnaire

Detailed Interview

With Active Internet Users

From all the individual claimed users we asked the question whether they have used Internet in last one month. We identified those saying “Yes” as an Active Internet User. These Active Internet Users were administered the detailed interviews for Internet Usage
32

A1.3 Sample Size of Households & Individuals Covered for Profiling

Cities
Mumbai Top 4 Metros Delhi Kolkata Chennai Bangalore Next 4 Metros Hyderabad Ahmedaba d Pune Patna Cochin Baroda 8 Cities Lucknow Ludhiana Coimbatore Jaipur Indore

Households
1181 1156 1156 1153 1046 1068 1018 1018 658 705 555 667 712 552 565 655

Individuals
3925 3623 3832 3743 3170 3579 3289 2946 2552 2322 1952 2510 2713 1798 2090 2489

Cities Chandigarh Allahabad Guwahati Surat Nagpur Bhopal Bhubaneshwar Durg Vishakhapatnam Trichy Bellary Thrissur Panipat Jalgaon

Households 557 568 669 558 564 556 696 557 556 564 501 427 475 485

Individuals
1944 2275 2063 1994 2144 2217 2301 2499 1679 1962 1646 1564 1558 1721 Rest 14 Cities

33

A2.0 Annexure : Study Methodology & Sampling Procedure-Rural

34

A2.1 Criteria for Selection of States
Firstly, states were divided in terms of their population levels
For appropriate representation, we selected states having high and medium population

Then, literacy rates were examined for all the states and compared against the population
The states were divided and selected as having high, medium or low literacy levels

Next, we compared per capita income of various states
The states were segregated as having high, medium and low per capita income with respect to the population of these states

Following these, we compared states on the basis of population of disadvantaged groups
35

A2.2 Criteria for Selecting Districts in the States

Step 1 Selection of Districts

Out of the all districts in a state, a sample of 6 districts were covered ensuring a geographical spread across the state. It was ensured that the chosen districts would adequately represent the population of a particular state

Step 2 Selection of villages within the district

6 villages were selected within a district. Out of these villages, 2 each were of low population (< 1500), medium population (1500 – 2500) and high population (>2500). A village is divided into a group of hamlets (cluster of houses). The map of every village was drawn with the help of the ‘Mukhiya/Sarpanch’ of that village. The hamlets were numbered in a clockwise manner and one hamlet from each village was chosen randomly

Step 3 Selection of respondents

Rural respondents from 6 villages across every selected district were interviewed. There was also a split on the basis of the strata of the respondents depending on their SEC classification

36

I-Cube 2008: Setting Record Straight!

Coverage of 30 Urban and 100 rural centers Representation of SEC A, B, C, D & E households Covering more than 22,000 households, 90,000 individuals, 1000 SMEs & 500 Cyber Café owners

Capturing the peaks and troughs of the market since 1998 Accurate forecasts reported till 2010 Tested methodology for weighting and All India projections Endorsed by industry associations & major portals / ISPs in India

Six months unlimited customization Freely interact with analysts and gain from their market perspective Key trends & breaks available in a software Key numbers reported from year 2000 onwards

37

I-Cube 2008: The Achievements !

Internet penetration and usage In Rural India Online behaviour of SMEs Adoption of WiMax / 3G / Mobile Broadband / etc. Proliferation of User Generated Content Online transactions including online insurance, loans, bill payment, etc.

Exclusive segmentation of Internet Users (I-Cube segments) Drill down available: I-Cube Segments Town Class SEC Frequency of Use Maturity of Usage Point of Access Content Accessed 2 level combinations possible
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Contact Us For Subscriptions
Balendu Shrivastava Group Business Director, eTechnology Group|IMRB ‘A’ Wing, Mhatre Pen Building Senapati Bapat Marg, Mumbai Tel : (91)-22-24233675 Fax: (91)-22-24323800 Email: balendu.shrivastava@imrbint.com

Project Lead Balendu Shrivastava

Insights Directors Tarun Abhichandani Dhaval Thaker

Project Analysts Niti Agarwal Annup Varkey Rohit Gangwal

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