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Tableofcontents
Details Objectivesofthereport Introduction Glossaryoftermsused InternetgrowthinIndia
UrbanInternetusers:Year2009 GrowingurbanInternetpopulation Internetservicesreachingfarandwide PervasiveInternetpenetration YouthdrivingtheInternetusage

Pagenumber 4 5 7 9
10 11 12 13 14

InternetAccessPoints
InternetusersexploringdifferentmediumofaccessingInternet

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16

Tableofcontents
Details ImportantInternetApplications
VariouspurposesofaccessingInternet Preferenceofonlineservicesacrossdemographicsegments Internetisgraduallybecomingaroutineforusers Internetgainingacceptanceindailylives

Pagenumber 17
18 19 20 21

Annexure:StudyMethodology&Samplingprocedure
Targetsegmentandcityselection Samplingprocedure FacetoFaceinterviewprocedure Samplesizeofhouseholds&individualscoveredforprofiling

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23 24 25 26

Objectivesofthereport
This report is a part of a syndicated study conducted annually by eTech Group | IMRB InternationalinassociationwithInternetandMobileAssociationofIndia(IAMAI) ThereportaimstomapthegrowthandthecharacteristicsofInternetusageinIndia It details out the usage of Internet in India among different demographics and geographic segmentsoveraperiodoftime ItreflectsonvariousapplicationsandservicesusedovertheInternetthroughvariouspoints ofaccess InternetinIndia(ICube)reportsarebasedonaprimarysurveyconducted Across31cities Among19,000Householdsand68,000individuals 1000SMEsand 500CyberCafes ThisextensiveexercisemakesthestudyoneofthelargestresearchintheInternetdomainin India.

Introduction
There has been a steady growth of Internet adoption in India. The penetration rates,however,continuetobelowat24%ofthetotalurbanindividuals TheInternethasreachedtheremoteurbanpockets(smallmetrosandtowns)and is being actively used by lower socioeconomic classes (SEC C, D &E). This development has been more striking this year as the combined usage of these geographies and classes have overtaken top cities and higher socioeconomic classesinnumbers Inthesedevelopments,however,youthcontinuetodrivethesurgeinInternetuse andformmajorportionofthetotalusers.Amongyouths,theInternetisprimarily beingusedforsearchinggeneralinformationandforentertainment Whilethetraditionalavenue(CyberCaf)inaccessingInternetcontinuetoremain strong, a definite pattern of using online services through mobile phones and kiosksisemerging

Introduction
Internetisincreasinglybeingusedforentertainmentpurposes including downloading music or videos, socializing through social networking sites (Facebook, Orkut) and expressing ones own opinions and views through microblogging (Twitter) and usergenerated content (Wikipedia, Video andphotosharing)sites
Even celebrities and politicians have chosen blogging sites to stay in touch withtheirfansandairtheirviews

WithreleaseofmoresuchkindsofservicesintheoffinglikeGoogleBuzz, interestingpatternofusagecouldoccurinthecomingyears Further, given the limited options for speed and bandwidth limits, the industry is eagerly awaiting the 3G auctions by the regulators. With improved options, Internet usage is bound to change towards further progressivegrowth

Glossaryoftermsused
ActiveUser:AnindividualwhohasusedtheInternetatleastonceinthelast1month.

ClaimedInternetUser/InternetEverUser: AnindividualwhohasusedtheInternetatanypointintimein thepast.Thisgivesusa clearindicationastohowmanyIndianshaveexperiencedInternetatleastonceintheirlifetime.

InternetNonOwner:AnindividualwhobelongstoahouseholdwhichdoesnotownanInternetconnection.

InternetNonUser:AnindividualwhohasnotaccessedInternetatanypointintime.

PCLiterate:AnindividualwhoknowshowtouseaPC.WhilethistermdoesnotsignifytheextentofPCusage,itmeansthata computerliterateisabletoworkonaPCwithoutassistance.

SocioEconomicClassification(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 decreasingorderofaffluence).

Glossaryoftermsused

Geographic Segment

InternetGrowthin India

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UrbanInternetusers:Year2009
TotalPopulation~818Mn* UrbanPopulation~266Mn* UrbanLiteratePopulation~217Mn* TotalEnglishKnowing~91Mn* TotalComputerLiterate~87Mn

March2009
Urban Claimed Internet users ~63 Mn Active Internet Users ~46 Mn

September2009(Est.)
Urban Claimed Internet users ~71 Mn Active Internet Users~ 52 Mn *Source:NRS2006 (Populationwith12yearsofageandabove)

Nearly 25% of Indian population stay in cities. Out of which, 32% of them are PC Literate. Of the PC Literate population, 72% claim to have used Internet. Of these claimed users, 73% are actively using Internet(haveusedInternetinpast1month).ThepenetrationofInternetusageislowat24%(Claimed InternetUsers/UrbanPopulation)amongurbanindividuals.

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GrowingurbanInternetpopulation
Base:AllIndia(Urban) (AllfiguresinMillion)

PC Users have increased from 72 Mn in 2008 to 87 Mn in 2009. The reason can be attributed to penetration of PCs in smaller townsandlowerSECclasses. Withincreasingaffluenceandliteracylevels,peoplearegradually gettingacquaintedtothethirdscreen.
(est.)

Claimed Internet users increased by 26% from March 2008. This growthishigherthanwhathasbeenwitnessedinthepastyears. Today, every telecommunication provider is providing internet service packaged with other services at affordable rates. With sprawling cyber cafes and easy availability of broadband connection,Internetisnowinreachofcommonindividuals.

(est.)

Active internet Users form 73% of the Claimed Internet Users signifying increasingly important role of Internet for daily activities. Services for entertainment and information search are encouraging claimed Internet users to become regular users of theInternet.

(est.)

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Internetservicesreachingfarandwide
From 5% in 2000 to 36% in 2009, Internethassurelymadeanimpact inlivesofsmalltown. Given the continuous growth of Internet users over the years, the smaller towns have overtaken Top 8 Metros in Internet Usage. This clearly indicates that the Internet has reached to remote masses in urbanIndia. Increasing number of Cyber Cafes and government initiatives of e kiosks has created interest among smalltownpeople. The presence of the Internet is widespread, however, given the limited numbers it falls short of beinganallinclusivemedium.
Base:AllIndiaInternetEverUsers(Urban) (AllfiguresinMillion)

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PervasiveInternetpenetration
Internet is gradually penetratingamonglowerSEC classes. SEC C, D and E combined together account for 35% of the Internet user population which is more than SEC A an encouraging signtowardswideradoption ofthismedium.Theshareof SEC B has remained constant overtheyears. Such increases can be attributed to higher literacy rates, easy availability and affordability of Internet access. ThoughlowerclassesformconsiderablepartoftheInternetusers,penetrationamongthemis stilllowgiventhatthereisahighpopulationbaseintheseclassescomparedtotopSECs.Internet surelyhaslongwaytogotomakeanimpactintheirlives.
Base:AllIndiaInternetEverUsers(Urban) (AllfiguresinMillion)

5Mn

9Mn

12Mn

16Mn

32Mn

46Mn

50Mn

63Mn

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YouthdrivingtheInternetusage
School and college students contribute 44% of the internet usage. Along with young men, they account for72%ofInternetusage. Although Internet growth has seeped into lower SEC classes and smaller towns, youth still continue to drive the Internet usage as traditionally they are the early adopters of any newtechnology. Students mostly use Internet services for educational information search andentertainment. To sustain this growth, more projects like Holeinthewall, Sarva Siksha Abhiyan (SSA) and One Laptop Per Child(OLPC)thataimatdisseminating computer education among youth shouldbedeveloped.
3.1Mn 4.9Mn 7.5Mn 13.2Mn 15.4Mn
Base:ActiveInternetUser(Urban) 2009:31Cities 2008:30Cities 2006:26Cities 2004:22Cities 20002003:16Cities

17.4Mn

21.6Mn

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InternetAccess Points

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InternetusersexploringdifferentmediumofaccessingInternet
Base:ActiveInternetUser(Urban) 2009:31Cities,2008:30Cities,2006:26Cities, 2004:22Cities,20002003:16Cities

A large proportion of users access Internet from office and cyber cafe. Cyber cafes continue to dominate the share (37%) among various sources. However, accessing Internetthroughhomeshassteadily declinedovertheyears. Thisalsoindicatesthatalthoughthe number of cyber cafes have shrunk in Metros, users in small towns still access Internet mainly through this public avenue. As more businesses adopt Internet as their key infrastructure, accessing Internet throughofficescontinuetorise.

1.4Mn

3.1Mn

4.9Mn

7.5Mn

13.2Mn

15.4Mn

17.4Mn

21.6Mn

This year an interesting pattern has emerged with 4% of users accessing this medium through alternative sources such as Mobiles and Kiosks. In future such access is largely dependent upon the telecomregulationandenvironmentinthecountry.

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ImportantInternet Applications

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VariouspurposesofaccessingInternet
2008
91 76 49 32 46 37 41 21 21 13 13 20
Base:ActiveInternetUser(Urban) 2009:31Cities 2008:30Cities

2009

Internetasamediumforsocializingandleisureactivitieslike downloadingmusicand videos are gaining space than other services. Additionally, searching educationrelated information has increased substantiallycompared to the previous year. This could be due to the availability of academic materials fromeducationboardssuchasCBSEeBooksandalsotherecentintroductionofonlineexaminationsfor centralizedtestssuchasCAT.

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Preferenceofonlineservicesacrossdemographicsegments
Overall, there has been a gradual shift in preference of online services across demographicsegments.Email service has gone down in all thesegments. As working professional access is mainly through office, they tend to utilize Internet for communication and searching various types of information. To a limited extent,theyalsoindulgeinE Commerceservices. Expectedly, school and college students use Internet forsearchinginformationand forentertainmentpurposes.
Base:ActiveInternet User(Urban) 2009:31Cities 2008:30Cities 2006:26Cities 2004:22Cities 20002003:16Cities

21.6Mn

3Mn

6.58Mn

6.12Mn

2.71Mn

1.77Mn

1.42Mn

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Internetisgraduallybecomingaroutineforusers
Almost half of the Internet users are online at least 46 times/week.
1.4Mn 3.1Mn 4.9Mn 7.5Mn 13.2Mn
Base:ActiveInternetUser(Urban) 2009:31Cities 2008:30Cities 2006:26Cities 2004:22Cities 20002003:16Cities

15.4Mn

17.4Mn

21.6Mn

Internet plays an integral role in daily life. Ranging from communication to shopping, a huge gamut of activities are just a click away. This has led to increased frequency of Internet usage among Internetusers. With more businesses adopting Internet, working population accesses Internet at least 46 times/week. However, students usually accessthis medium at least onceaweek.

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Internetgainingacceptanceindailylives
Internet usage has gone up from 9.3 hrs/week to 15.7hrs/weeki.e.asteep70%rise. Internet is percolating into the daily lives of people. The reason can be attributed toinnovative content delivery, better applications and their increased popularity. Internetofferslotsofservicestopeopletocarryout theirdaytodayactivitiesthatenticeuserstodevote more time to the medium, leading to increase in timespentontheInternet. Primarily, ease of communication and obtaining information on wideranging aspects are compelling users to hook onto the Internet. Downloading music, videos and socializing through Internet have becomepopularamongyounggeneration.
Base:ActiveInternetUser(Urban) 2009:31Cities 2008:30Cities 2006:26Cities 2004:22Cities 20002003:16Cities

Withrisingusagepattern,inthenearfutureitwillbeinterestingtoseehowInternetasamedia emergesincomparisonwithTelevisionandRadio.

Annexure: StudyMethodology& SamplingProcedure

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Targetsegmentandcityselection
For sampling purposes, we extensively used the previous rounds of the ICube reportsthathavelaiddowntheuniverseoftheClaimedandActiveInternetUsers inthecountry Census of India 2001 indicates that there are 35 Cities with more than 1 Million populationinIndia.Inthisroundofsurvey,wehavecoveredallthetop8Metros aswellasother23cities Belowarethecitiesthathavebeencoveredinthisresearch:
CitiesbyStrata Top4Metros Other4Metros SmallMetro (Morethan1MillionPop.) NonMetro (Between0.5to1MillionPop.) SmallTown (Lessthan0.5MillionPop.) Delhi,Mumbai,Chennai&Kolkata Bangalore,Hyderabad,Ahmedabad&Pune Patna, Cochin, Baroda, Lucknow, Ludhiana, Coimbatore, Jaipur, Indore, Surat, Nagpur, Bhopal, Vishakapatnam, Faridabad Guwahati,Bhubaneshwar,Raipur,Chandigarh Kolhapur,Bellary,Thrissur,Panipat,Gurgaon,Noida

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Samplingprocedure
QuotasamplingprocedurewasfollowedtocoverhouseholdsbelongingtoSECA, BandCcategoryineachofthe31citiesshortlistedandSECA,B,C,D&Eineach ofthetop8metros Selectionofhouseholdswasmadebasedonrandomstartingaddressesidentified fromelectoralrolls Care was taken to ensure even geographical spread in identifying the starting addressesacrossthecitiesselected Basedonthishouseholdsurvey,wemanagedtoprofileindividualsintermsofage, gender,occupation,education,computerknowledge&Internetuse Fromalltheindividualsinhousehold,weaskedthequestion
WhethertheyhaveusedPC WhethertheyhaveusedInternetever WhethertheyhaveaccessedInternetinlastonemonth. We identified those saying Yes to all the above as an Active Internet User. These ActiveInternetUserswereadministeredthedetailedinterviewsforInternetUsage

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FacetoFaceinterviewprocedure
LISTINGQUESTIONNAIRE

DETAILEDINTERVIEW
DoesnotKnowPC KnowsPC KnowsPC + AccessedInternetEver KnowsPC + AccessedInternetinlast onemonth

NonUser

PCUser

ClaimedInternetUser

ActiveInternetUsers

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Samplesizeofhouseholds&individualscoveredforprofiling
Cities Mumbai Top 4 Delhi Metros Kolkata Chennai Bangalore Hyderabad Other 4 Metros Ahmedabad Pune Patna Cochin Baroda Lucknow Small Metro Ludhiana Coimbatore Jaipur Indore Faridabad Households 1090 1096 1212 1078 932 926 904 850 513 536 512 512 512 512 515 514 249 Individuals 4230 4031 4263 3748 3241 3462 3171 3135 2187 1874 1656 2075 2046 1763 2095 1729 769 Surat Nagpur Bhopal Vishakapatnam Guwahati Raipur Bhubaneswar Chandigarh Kolhapur Gurgaon Noida Bellary Thrissur Panipat Total Cities Households 513 519 516 512 500 500 499 507 440 180 182 430 443 443 18,647 Individuals 1886 1990 2033 1712 1731 2023 1752 1712 1512 638 469 1512 1510 1695 67,650 Small Town s Non Metro Small Metro

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BalenduShrivastava GroupBusinessDirector, eTech Group|IMRB IMRBInternational A Wing,Mhatre PenBuilding Senapati Bapat Marg,Mumbai Tel:(91)2224233902 Fax:(91)2224323800 Email:balendu.shrivastava@imrbint.com