Internet Market in India in 2008_A Report by IMRB for IAMAI

8/14/2019 Internet Market in India in 2008_A Report by IMRB for IAMAI

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1

FacilitatingFacilitating

CitiusCitiusCitiusCitius, ,,, AltiusAltiusAltiusAltius, ,,, FortiusFortiusFortiusFortius(Faster, Higher, Stronger)

IIII nte rnet IIII n IIII nd ia

presents

|| IMRBIMRB

In Association with Internet & Mobile Association of India (IAMAInternet & Mobile Association of India (IAMAInternet & Mobile Association of India (IAMAInternet & Mobile Association of India (IAMA


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2

9Internet User - Year 2008 (All India)3.1

10Emerging Rural Internet Market3.2

15-18

8-14

5-7

4

4.0

3.0

2.0

1.0

18The Convenience, Cost & Content Sought Trade-off 4.3

17Rise in the Internet Access From Office4.2

16Continuous Growth of PC Owners and Internet Subscribers4.1

Internet Access Points

14Youth Continues to Drive the Internet Growth3.6

13Far-Reaching Internet Services3.512Growth Rate of Internet Penetration - Urban3.4

11Urban Internet Market3.3

Growth of Internet in India

Glossary of Terms Used

Introduction

Table of ContentsTable of ContentsTable of ContentsTable of Contents


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3

36Criteria for Selecting Districts in the StatesA2.2

35Criteria for Selection of StatesA2.1

34-36Annexure: Study Methodology & Sampling Procedure RuralA2.0

33Sample Size of Households Covered for ProfilingA1.3

26Essentials for Internet Penetration Rural6.3

25Essentials for Internet Penetration Urban6.2

28-33Annexure: Study Methodology & Sampling Procedure - UrbanA1.0

24Barriers for Internet Usage6.1

27Likeliness of Usage of Different Applications6.4

23-27Enablers of Internet in India6.0

31-32Household Listing Interview Sampling ProcedureA1.2

29-30Target Segment and City SelectionA1.1

22The Growing Stickiness Index5.3

21Preference of Applications Vary among Demographic Segments5.2

20Increasing Share of Pie for Online Entertainment5.1

19-22Important Internet Applications5.0

Table of ContentsTable of ContentsTable of ContentsTable of Contents


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4

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 thistechnology not merely for information search or communication but also for leisure activities.

Different online applications like entertainment gaming, movies and music as well as user-generated 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 torecognize the importance of this medium.

Various technological developments are redefining options of accessing the Internet. Thesetechnologies are expected to play a vital role in enabling improved adoption of the Internet acrossdifferent geographies. The emerging technologies such as WiMAX, 3G and WiBro promise to provide alast 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 conductedannually by IMRB International in association with IAMAI.

Internet in India (I-Cube) reports are based on a primary survey conducted across 30 cities - among20,000 Households, 90,000 individuals, 1000 SMEs and 500 Cyber Cafes. To extend the scope of thisstudy, we have carried out this research across 100 rural centers to understand Internet behaviour inrural areas.

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


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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 withoutassistance.

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 atleast 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 anInternet 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 Millionpopulation.


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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 theaffluence level of a household to which an individual belongs. SEC is definedby the education and occupation of the chief wage earner (CWE) of ahousehold. SEC is divided into 8 categories - A1, A2, B1, B2, C, D, E1, andE2 (in decreasing order of affluence).

School-Going Kids: Kids studying in school and above 8 years of age. Theyare in the age group of 8-17, although, a small proportion could be over 18years.

College-Going Students: Youths studying in college (graduate, post-graduate and doctoral). Most students are in the age group of 18-25,although, a small proportion will be below 18 and over 25 years.


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Young Men: Men in the age group of 21-35 years who are not school or college-going students. This segment includes all those who are employed as well asunemployed.

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 outsidehome.

Non Working Women: Women in the age group of 25-58 years of age and are notworking. This segment includes housewives as well as non-working young womenwho are not school or college-going students.

Stickiness Index: Stickiness Index is a composite of how often a media is accessedand how much time is spent on it.


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3.0 Growth of the Internet in India


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Total Population ~ 818 Mn*

Total Literate Population ~ 573 Mn*

Total English Knowing~ 149 Mn*

Total Computer Literate ~ 87.1Mn

*- Source-NRS 2006(Population with 12 years of age and above)

3.1 Internet User: Year 2008 (All India)

UrbanClaimed Internet users~50 MnActive Internet Users~36 Mn

March 2008

September 2008 (Est.)

RuralClaimed Internet users~5.5 Mn

Active Internet Users~3.3 Mn

UrbanClaimed Internet users~57 MnActive Internet Users~ 42 Mn

Rural estimates not available


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Approximately 70% of Indian population reside in Rural areas of thecountry. Literacy rate in the rural areas has been reported at 65%.

Interestingly, English-speaking population in Rural India is only 63Mn which is 17% of the total literate population. The I-Cube researchestimates that nearly 15.1 Mn Population in the rural areas arecomputer literate. Of which, 5.5 Mn have used the Internet in thepast.

With nearly 0.6% of penetration in the total population, there are 3.3Mn 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 thispenetration.

Considering such high levels of literacy rate coupled with relativelylow English-speaking population, it is imperative to provide need-based online applications. These applications need to be invernacular/regional language and preferably with TTS (Text toSpeech) capabilities to ensure high adoption of the Internet. It wouldbe better if visual symbols, graphics and rich media are used todevelop applications in rural areas.

However, would India have bandwidth to support it across rural infrastructure?

3.2 Emerging Rural Internet Market

*- Source-NRS 2006

5.5 MnRural Claimed Internet Users

3.3 MnRural Active Internet Users

15.1 MnRural Computer Literates

63 Mn*Rural English-Speaking Population

368 Mn*Rural Literate Population

568 Mn*Rural Population

818 Mn*

Total Indian Population


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With 250 Mn urban population in India, 82% of them are literateand of these, only 31% are English-speaking.

However, of 86 Mn (42% of 205 Mn), 84% are PC-literate. Thisindicates that PC literacy and usage are highly associated withEnglish-speaking ability.

As urban Internet penetration reaches a saturated level there is aneed for innovative information delivery which could ensureincrease in the time spent on the Internet.

User generated content such as blogs, TLC (Trying out, links andcommunities) 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 infurthering Internet non-users towards adopting this medium.

128 Mn of the Urban population has not adopted the medium dueto non-familiarity with English language, which forms the potentialtarget segment for usage of vernacular content on the web.

3.3 Urban Internet Market

*- Source-NRS 2006

50 Mn March 200857 Mn September 2008 (Est.)Urban Claimed Internet Users

36 Mn March 200842 Mn September 2008 (Est.)

Urban Active Internet Users

72 Mn March 200885 Mn September 2008 (Est.)

Urban Computer Literates

86 Mn*Urban English-Speaking Population

205 Mn*Urban Literate Population

250 Mn*Urban Population

818 Mn*Total Indian Population


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3.4 Growth Rate of Urban Internet PopulationBase: All India (Urban)(All figures in Million)

85

72

65

62

53

42

31

16

59

2000

2001

2003

2004

2006

Mar-07

Sep-07

Mar-08

Sep-08

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, todecrease in prices of PC and hardware.

C o m p u

t e r

L i t e r a

t e

70% of computer literates have used Internet inthe past - a healthy sign for Internet industry inIndia. Government Initiatives, online E-commerce applications and entertainment arethe main applications other than Informationsearch for fueling this growth.

C l a i m e

d I n

t e r n e

t U s e r

42

36

32

29

11

8

4

2

21

2000

2001

2003

2004

2006

Mar-07

Sep-07

Mar-08

Sep-08

Compared to previous years, the growth rate inActive Internet users for year 2008 hasreduced. This is a sign of possible saturation inthe urban Internet market. This seems to be aright time to explore opportunities in the rural

market. A c t i v e

I n t e r n e

t U s e r

57

50

46

4 2

16

12

9

5

3 2

2000

2001

2003

2004

2006

Mar-07

Sep-07

Mar-08

Sep-08

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


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3.5 Far-Reaching Internet Services

77%

58% 55% 55%

41% 38% 37%

13%

15% 19% 20%

20% 21% 21%

4%

7% 7% 6%

10% 12% 12%

5%

20% 20% 19%29% 29% 30%

2000 2001 2003 2004 2006 2007 2008

Top 8 Me tros O ther Metros 5-10 lakh towns Less than 5 lakh towns

46 Mn32 Mn16 Mn12 Mn9 Mn5 Mn 50 Mn

49%41%

40%41% 42%

39% 37%

29%

32% 31% 29%35%

33%32%

15%17%

18% 18%

21%23%

23%

6% 9% 12% 11%3% 5% 9%

2000 2001 2003 2004 2006 2007 2008

SEC A SEC B SEC C SEC D&E

46 Mn46 Mn32 Mn32 Mn16 Mn16 Mn12 Mn12 Mn9 Mn9 Mn5 Mn5 Mn 50 Mn50 Mn

There is an increase in the number of claimed Internet users over the yearsacross all town classes.

Compared to last year, percentage of claimed users across different town classesremained similar for this year.

This shows that people from non-metrosand smaller towns are getting exposed tothis medium.

Increase in the number of claimedInternet users in the SEC D&E showsthat Internet has started to reach thebottom of the pyramid i.e. to the lessaffluent classes of the society.This rise in the subscriber base couldbe because of:

Higher literacy levels, and

Decrease in the prices of PCs

Base: All India Claimed Internet Users (Urban)(All figures in Million)

Base: All India Claimed Internet Users (Urban)(All figures in Million)


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19% 16% 15% 12% 14% 12%

23% 27% 26%26% 21% 27%

26% 26% 27% 32% 33% 30%

13%15% 17% 15% 15% 14%

9%8% 7% 9% 11% 11%

10% 7% 8% 6% 6% 6%

2001 2003 2004 2006 2007 2008School going kids College going Young men

Older men Working women Non working women

3.1 Mn 4.9 Mn 7.5 Mn 13.2 Mn 15.4 Mn 17.9 MnSince the adoption of new technologies andservices is high among young generation,most of the content over the Internet isfocused on the age group of 18-35 years.

There is a significant increase in thepercentage of college-going students in theActive Internet user base compared to theother demographic segments. Such anincrease could be due to various

information searches required foracademic, entertainment or employmentpurposes.

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

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

3.6 Youth Continue to Drive the Internet GrowthBase: Active Internet users (Urban)30 cities in 2007-0826 cities in 200622 cities in 200416 cities in 2000 - 2003


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4 1 Continuous Growth of PC Owners and Internet Subscribers


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4.1 Continuous Growth of PC Owners and Internet Subscribers

461732 1,073

1,5501,886

2,550

3,861

7,805

5,723

288

4,846

25 126318

624 837 1,025

1,304

2,927

3,878

58%54%

51%

76%

68%

62%

54%

43%

27%

9%

1997 - 98 1998 - 99 1999 - 00 2000 - 01 2001 - 02 2002 - 03 2003 - 04 2005-06 2006-07 2007

PC Owners Internet Subscribers % PC Owners with Internet subscripti

Base : All India PC & Internet Owning HHs (Urban)Figures in 000

There has been 36% growth in PCOwners over the last year. This couldbe due to fall in PC prices and increasein the awareness of benefits in using aPC.

An increase of 25% in the number of Internet subscribers over the past yearhas been observed. This increase is inpart due to penetration of the Internetin the less affluent classes of thesociety and smaller towns.

Also, higher popularity of user-generated content like blogs, reviewsand social networking websites likefacebook.com, orkut.com have lead tocontinuous increase in this penetrationlevels.

Role played by CSR activities of private companies, Community service centers and NGOsworking in ICT (Information and communication technology) area helped in higher PC andInternet penetration in rural areas.

However, there has been a decline in the proportion of PC owner with the Internetsubscription - 62% compared with the last year which was at 68%.

4 2 Rise in the Internet Access from Office


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4.2 Rise in the Internet Access from Office

Base: Active Internet users (Urban )30 cities in 2007-200826 cities in 200622 cities in 200416 cities in 2000 - 2003

43%44%

52%46%

39% 36% 37%

22%

30%23%

27%31%

30% 26%

30%

19% 20% 20% 22%25% 27%

6%4% 3% 5% 6% 7% 8%8%

3% 2% 2% 2% 2% 1%

2000 2001 2003 2004 2006 2007 2008

Cyber caf Home Office School/College Others

1.4 Mn 3.1 Mn 4.9 Mn 7.5 Mn 13.2 Mn 15.4 Mn 17.9 Mn

Cyber cafe has been the main accesspoints of Internet over the years. Thereis a marginal increase over the lastyear in the percentage of users whouse it as the main access point.

Continued high share of cyber caf inInternet use can be attributed tofactors such as:

Lesser PC penetration in the SECD&E homes Growth of online gaming marketin India

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

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

4 3 Convenience Cost & Content Sought Trade Off


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18

37%

61%

49%

27%21% 18%

49%

26%

20%

27%

24%31%

23%

40%27%

46% 44%

58%

8%

15%

3%2%1%

20%

1%3% 1% 1%1%1% 4%

All 30 cities School goingkids

College goingstudents

Young men Older men Workingwomen

Non-workingwomen

Cyber caf Home Office School/College Others

4.3 Convenience, Cost & Content Sought Trade-Off

2.2 Mn 4.8 Mn 5.4 Mn 2.5 Mn 2 Mn 1 Mn17.9 Mn

Expectedly other demographics segments like young men access the Internetmainly through office.

Except in case of non-working women, share of home as main access point does notamount to a high percentage as it is convenient to them.

Preference for the primary accesspoint is a function of the following3 Cs: Convenience, Cost & Content sought

Cyber cafs are the dominantpoint of access among school-going kids and college students.Since cyber caf is the cheapestsource of access providing moreprivacy regarding content.

Base: Active Internet users in 30 citiesSurveyed (Urban)


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5.0 Important Internet Applications

5 1 I i Sh f Pi f O li E t t i t


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5.1 Increasing Share of Pie for Online Entertainment

Online communication applications likeEmail and Chat are the main purposes of accessing the Internet followed byinformation search.

With the increase in the usage of theInternet, E-Commerce applications likeonline bill payment, online ticket bookingetc. are gaining more popularity.

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

India Gaming Summit, recentlyorganized in the year 2008, has witnessedthe launch of Gaming revolution in Indiaand laid a foundation for developinggaming ecosystem in India.

13%Internet Telephony/Video Chat/VoiceChat

13%Online NEWS

20%Online banking

21%Book railway tickets on the Internet

21%Financial information search

32%Music/Video on the Internet

37%Online jobsites

41%Online Gaming

46%Text Chat

49%Educational information search

76%General information search

91%E-mail

%Purpose of Internet access

Base: 17.9 Mn Active Internet users in 30cities Surveyed (Urban)

5.2 Preference of Applications Vary Among Demographic5.2 Preference of Applications Vary Among Demographic


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5.2 Preference of Applications Vary Among Demographic pp y g g pSegmentsSegments

*0.14 Mn not stated

53%

31%

44%

61% 62% 65%56%

7%

8%

9%

7% 5%4%

5%

24%

39%

31%

18% 20% 18%27%

9% 20% 10% 5% 5% 2%6%

7% 6% 9% 8% 9% 5%1%

All 30 cities School goingkids

College goingstudents

Young Men Older Men WorkingWomen

Non workingWomen

E-mail Chat Information Entertainment E-Commerce

17.9 Mn 2.2 Mn 4.8 Mn 5.4 Mn 2.1 Mn2.5 Mn 1 MnThere is a clear preference fordifferent online applicationsacross demographic segments.

Preference of these demographicsis well understood by the serviceproviders.

Over the years, young generationhas remained a main targetsegment for content providers.

Email is the most popularapplication among most of thedemographic segments followed

by information search.

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

Base: Active Internet users in 30 citiesSurveyed (Urban)

5 3 The Growing Stickiness Index


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5.3 The Growing Stickiness Index

21% 25% 17%23% 28% 25% 24%

23% 14%15%

18% 18% 19% 20%

26%25%

24%21%

22% 23% 23%

19%21%

21%23% 15% 18% 18%

7% 11%16%

10% 13% 12%3% 3% 4% 3% 4% 3% 2%

11%9.3

5.6

4.86.2

8.2

6.9

2000 2001 2003 2004 2006 2007 20

Daily 4 -6 times/ week 2-3 times/weekOnce a week 2-3 times/month < Once a monthAverage hours/week

1.4 Mn 3.1 Mn 4.9 Mn 7.5 Mn 13.2 Mn 15.4 Mn 17.9 MnInternet is on its way of becoming amass media as the user base aswell as time spent using this mediahas been increasing.

Two-third of the active Internetusers are accessing the Internet atleast 2-3 times a week.

Average hours per week hasincreased over the last year withrelatively higher margin, which is avery positive sign for the growth of Internet industry in India.

*0.4 Mn not stated

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

Base: Active Internet users in 30 citiesSurveyed (Urban)30 cities in 2007-0826 cities in 200622 cities in 200416 cities in 2000 - 2003


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6.0 Enablers of Internet in India

6.1 Barriers for Internet Usage


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6.1 Barriers for Internet Usage

11.7%8.9%

5.5%

47.5%

5.2%

There is no need forit/Dont know how it

can be useful

Cyber caf chargesare high

There are no goodcyber cafs nearby

Dial up cost of internet access ishigh from home

I need guidance

Top 5 barriers for Internet usage

The major barriers leading to measuredgrowth of the Internet in India have beenlow awareness and higher cost of accessing the Internet.

With the continued technologicalinnovations in the area of Internet, costof accessing the Internet is expected togo down in the coming future withgreater speed of access.

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

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

Base: 6.9 Mn Claimed users not yet Active Users

30 cities surveyed in 2008 (Urban)

6.2 Essentials for Internet Penetration - Urban


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6.2 Essentials for Internet Penetration Urban

Accessible on Disparate Devices

Mobile subscriber base in India has crossed 300Mn inSeptember 2008. Value-added services in providingInternet connectivity and related content over mobilephones could ensure on the go access to the WorldWide Web.

Internet -Interactive

Medium

AccessibleOn Disparate

Devices

EvolvedContent Technology

Consequently, there is aneed for measurementinitiatives to evaluate themedia engagement amongthe Internet users.

Evolved Content

To ensure continued usage of the Internet in urban

areas, advanced content/applications through richmedia needs to be delivered over the Internet: Televisions/Movies over the Internet

Further, online entertainment, specifically gaming willalso ensure continued penetration and persistence inusing the Internet.

To tap the non-English speaking urban population andless affluent social classes, vernacular content couldhelp to further the Internet growth

Internet as an interactive medium

Urban markets have started using Internet as one of the interactive media. As a result, advertising on digitalmedium has started to gain importance. Internet, isslowly, becoming a part of the media plan.

Technology

Emerging technologies like WiMAX, WiBro and 3G willenable BWA (Broadband Wireless Access) at muchhigher speed anywhere and anytime.

These technologies will act as a platform in

introducing high-end applications such as IPTV.

6.3 Essentials for Internet Penetration - Rural


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Awareness/Training

Access

Content Technology

Access

Higher cost of Internet access and PCs are majorhindrance in accessing the Internet. Kiosks installed byNGOs, CSCs, and some of the private companies withtheir CSR initiatives are few of the alternativesavailable with them.

Content

Online applications that help rural dwellers inproviding information related to their skilled/unskilledoccupation could help Internet penetration (Need-basedapplications)

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

Technology

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

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

Awareness / Training

Not understanding the usefulness of this medium isacting as one of the main barriers for not using theInternet in rural areas.

Further, there is apart of population thatis aware of the Internetbut need guidance inutilizing the potential of this medium.

6.4 Likeliness of Usage of Different Applications


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g pp

Communication

Informational Services

31%31%53%Access information(general info, news etc)

16%15%41%Post resume/bio dataon Job site for self orany other person

9%6%36%Post resume/bio dataon Matrimonial site forself or any other person

4%2%17%Access governmentservices like PassportEnquiry, File IncomeTax Returns, etc

5%6%33%Making telephone callsthrough Internet/ VoiceChat

27%35%57%Text Chat/ InstantMessenger

70%75%94%Email

Likely touseUsageAware

Entertainment

8%5%26%Invest in shares andstocks

4%3%33%Buy products online

8%4%40%Accessing bank accountsthrough the Internet

7%1%30%Bill payment throughInternet ( Forelectricity/credit card etc)

5%2%36%Booking Airline ticketsthrough the Internet

20%13%57%Booking Railway ticketsthrough the Internet

E-Commerce

16%18%42%

Watch movies clips/musicvideo/cricket highlights onthe Internet

20%22%52%Play video games

Likelyto use

UsageAware

Base: 6.9 Mn Claimed Internet users (not yet Active) in 30 urban cities surveyed

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.


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A1.0 Annexure : A1.0 Annexure :

Study Methodology & Sampling ProcedureStudy Methodology & Sampling Procedure --UrbanUrban

It was ensured that a randomness is included in deciding the Internetpenetration characteristics in the country.

Further, a pan-India approached was adopted wherein cities that model Internetbehaviour in all parts of the country were considered

A1.1 Target Segment and City Selection


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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 InternetUsers in the country

The previous rounds of the I-Cube reports have indicated that majority of themarket is still limited to the Metros

Census of India 2001 indicates that there are 35 Cities with more than 1 Millionpopulation in India. In this round of survey, we have covered all the top 8 citiesas well as 22 other cities

Below are the cities that have been covered in this research:

Cities by StrataTop 2 Metros Delhi & Mumbai

Next 2 Metros Chennai & Kolkata

Other 4 Metros Bangalore, Hyderabad, Ahmedabad & Pune8 cities Patna, Cochin, Baroda, Lucknow, Ludhiana, Coimbatore, Jaipur,

Indore

Other 14 cities Allahabad, Chandigarh, Guwahati, Surat, Nagpur, Bhopal,Bhubaneshwar, Durg, Vishakhapatnam, Trichy, Bellary, Panipat,Thrissur, Jalgaon

A1.1 Age & Demographics of Respondents


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g g p p

Internet Users

Claimed InternetUsers

Active InternetUsers

8-17 yearsSchool GoingKids

18-25 yearsCollege GoingStudents

Non WorkingWomen

25-58 years

Older Men

WorkingWomen

21-58 years

21-35 yearsYoung Men

36-58 years

A1.2 Household Listing Interview Sampling Procedure


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Quota sampling procedure was followed to coverhouseholds belonging to SEC A, B and C category ineach 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 randomstarting addresses identified from electoral rolls

Care was taken to ensure even geographical spread inidentifying the starting addresses across the citiesselected



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g p g

Aim of conducting detailed interviewwith CWE was to understandownership of IT and Internet relatedproducts at home currently and infuture

Based on this household survey, wemanaged to profile (age, gender,occupation, education, computer

knowledge & Internet use) aboutindividuals in households

From all the individual claimed userswe asked the question whether theyhave used Internet in last onemonth. We identified those saying

Yes as an Active Internet User .These Active Internet Users wereadministered the detailed interviewsfor Internet Usage

Listing Questionnaire

With CWE/person who isaware of usage on IT

products/durables in HH

Detailed InterviewWith Active InternetUsers

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


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2489655Indore

2090565Jaipur

8 Cities

Next 4Metros

Top 4Metros

1798552Coimbatore

2713712Ludhiana

2510667Lucknow1952555Baroda

2322705Cochin

2552658Patna

29461018Pune

32891018Ahmedaba

d

35791068Hyderabad

31701046Bangalore

37431153Chennai

38321156Kolkata

36231156Delhi

39251181Mumbai

IndividualsHouseholdsCities

1721

1558

1564

16461962

1679

2499

2301

2217

2144

1994

2063

2275

1944

Individuals

Rest14

Cities

557Chandigarh

485Jalgaon

475Panipat

427Thrissur

501Bellary

564Trichy

556Vishakhapatnam

557Durg

696Bhubaneshwar

556Bhopal

564Nagpur

558Surat

669Guwahati

568Allahabad

HouseholdsCities

p g


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A2.0 Annexure : A2.0 Annexure :

Study Methodology & Sampling ProcedureStudy Methodology & Sampling Procedure -- RuralRural

A2.1 Criteria for Selection of States A2.1 Criteria for Selection of States A2.1 Criteria for Selection of States A2.1 Criteria for Selection of States A2.1 Criteria for Selection of StatesA2.1 Criteria for Selection of States A2.1 Criteria for Selection of StatesA2.1 Criteria for Selection of States


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Firstly, states were divided in terms of their population levelsFor appropriate representation, we selected states having high and mediumpopulation

Then, literacy rates were examined for all the states andcompared against the population

The states were divided and selected as having high, medium or low literacylevels

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

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

A2.2 Criteria for Selecting Districts in the States A2.2 Criteria for Selecting Districts in the States A2.2 Criteria for Selecting Districts in the States A2.2 Criteria for Selecting Districts in the States A2.2 Criteria for Selecting Districts in the States A2.2 Criteria for Selecting Districts in the States A2.2 Criteria for Selecting Districts in the States A2.2 Criteria for Selecting Districts in the States


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Step 1Selection of Districts

Out of the all districts in a state, a sample of 6 districts were coveredensuring a geographical spread across the state. It was ensured that thechosen districts would adequately represent the population of a particularstate

Step 2Selection of villages

within the district

6 villages were selected within a district. Out of these villages, 2 eachwere of low population (< 1500), medium population (1500 2500) andhigh 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 aclockwise manner and one hamlet from each village was chosenrandomly

Step 3Selection of respondents

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

II --Cube 2008: Setting Record Straight!Cube 2008: Setting Record Straight!


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Coverage of 30 Urban

and 100 rural centers

Representation of SECA, B, C, D & Ehouseholds

Covering more than22,000 households,90,000 individuals, 1000SMEs & 500 Cyber Caf

owners

Capturing the peaks andtroughs of the market

since 1998

Accurate forecastsreported till 2010

Tested methodology forweighting and All Indiaprojections

Endorsed by industryassociations & majorportals / ISPs in India

Six months unlimited

customization

Freely interact withanalysts and gain fromtheir market perspective

Key trends & breaksavailable in a software

Key numbers reported

from year 2000 onwards

II --Cube 2008: The Achievements !Cube 2008: The Achievements !


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38

Internet penetration and

usage In Rural IndiaOnline behaviour of SMEs

Adoption of WiMax / 3G / Mobile Broadband / etc.

Proliferation of UserGenerated Content

Online transactionsincluding online insurance,

loans, bill payment, etc.

Exclusive segmentationof Internet Users (I-Cube

segments)Drill down available:

I-Cube SegmentsTown ClassSECFrequency of UseMaturity of UsagePoint of AccessContent Accessed

2 level combinationspossible

Contact Us For Subscriptions


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39

Project Lead

Balendu Shrivastava

Project Analysts

Niti AgarwalAnnup VarkeyRohit Gangwal

Balendu ShrivastavaGroup Business Director,eTechnology Group|IMRB

A Wing, Mhatre Pen BuildingSenapati Bapat Marg, Mumbai

Tel : (91)-22-24233675Fax: (91)-22-24323800Email: [email protected]

Insights Directors

Tarun AbhichandaniDhaval Thaker

Documents

Internet Market in India in 2008_A Report by IMRB for IAMAI