India to have 314 mn Mobile Internet Users by 2017

India-to-have-314-mn-Mobile-Internet-Users-by-2017According to the IAMAI & KPMG Report “India On The Go – Mobile Internet Vision 2017”, India is projected to have 314 million mobile Internet users by 2017 and 236 million mobile Internet users by 2016.

The report proejcts that India will have over 500 million internet users by 2017. As of June 2015, internet users in India stood at over 350 million. According to the Report, 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 CAGR of 61.3 percent from 2013-17. There were approximately 82 million 3G subscribers in India by the end of year 2014 and the number is projected to reach 284 million by end of year 2017.

Commenting on the release of the IAMAI-KPMG report, Ashvin Vellody, partner – Management Consulting, KPMG India said, “With more than 300 million internet users, India has the second largest internet user base in the world. The next wave of growth in penetration of internet will driven by adoption of mobile internet. The mobile internet growth story would be written by the large population in the hinterland and meaningful and compelling content/use cases would enable adoption of mobile internet.”

Speaking at the launch, Dr Subho Ray, president, IAMAI reiterated that growth in the internet space will come from the non-metro and rural areas.

“The advent of low cost smartphones coupled with low mobile tariffs has empowered consumers in the hinterland to use data connectivity and we will seeing more usage of internet from these areas in the months to come,” added Vellody.

As of 2014, the Active Internet User (AIU) base in rural India was 6.7 percent of the overall rural population of 905 million and accounted for 61 million users. 4.4 percent of the total rural population used a mobile device to access the Internet, a figure that stood at a meagre 0.4 percent in the year 2012.

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