Q.What are the barriers for increasing mobile internet usage in the current user base?

Incentives. Despite the increasing utility of the Internet in providing access to information,
opportunities, and resources to improve quality of life, there remain large segments of the offline
population that lack a compelling reason to go online. Barriers in this category include a lack of
awareness of the Internet or use cases that create value for the offline user, a lack of relevant
(that is, local or localized) content and services, and a lack of cultural or social acceptance. The
root causes of these consumer barriers include the high costs that content and service providers
face in developing and localizing relevant content and services and their associated business
model constraints, low awareness or interest from brands and advertisers in reaching certain
audiences, a lack of trusted logistics and payment systems (thereby limiting Internet use cases
such as e-commerce and online banking), low ease of doing business in specific regions (thereby
impeding development of local or localized content and services), and limited Internet freedom
and information security.

Even as adoption of mobile internet is becoming more widespread, affordability and

digital literacy have emerged as the key barriers.

According to a report released by Ericsson Consumer Lab on Tuesday, only 10 per cent of
mobile internet users feel they understand their data plan perfectly and are able to make
accurate judgment when deciding on a plan.

Also, nearly 88 per cent of 2G consumers felt that mobile broadband is too expensive, 53
per cent felt that mobile broadband adds no value and 48 per cent believe there is no
difference between 2G and 3G speeds.

The study was conducted between September 2014 and January 2015 covering 15,000
urban households and people aged between 15 to 75 years, which includes face-to-face
interviews with nearly 4,500 smartphone users.

Nearly 63 per cent of the users reported that they faced quality and reliability issues, such
as lost connections and inconsistent network speeds while using mobile networks indoors,
while 68 per cent of consumers said they face app-related issues, such as lengthy lag time,
apps taking a long time to refresh, maps failing to load and session failures while they are
commuting or are outdoors.

The study noted that such problems are more common in mid-size and small towns
compared with large` cities

Q.What are the barriers for mobile internet usage in India for semi-urban and rural India? What
are possible solutions and how must the eco-system (devices, pricing, speeds, content etc.)
change?
However, after meeting with a number of people across India, listening to experiences and
the challenges they face every day only serves to highlight the obstacles that keep citizens
from the advantages of mobile internet.
1. One great example is Manoj, a 22-year-old who owns a phone but currently only
uses it for calls and texts with family. The wider benefits of the mobile internet are
unknown to him. Manoj is an entrepreneur working to support his family. He works
hard and long hours to provide his young daughter with an education and means of
bettering herself. To this end, he runs two businesses; a shop selling womens
garments, and troubleshoots his customers cable network issues and he also
delivers newspapers.
2. Manoj is aware of the benefits of connectivity. Hes calculated that he earns an
additional Rs 20 from cable customer voice calls that he receives. Yet his business
and family could benefit even further from the internet, if he were only aware of its
potential. These entrenched barriers to advancement are symptomatic of the wider
Indian issue surrounding digital skills.
3. There are logistical efficiencies to be realised by Manoj. For instance, every other day
he spends two hours cycling around the markets at lunchtime, purchasing new stock
for his shop. This activity could be conducted over a mobile handset, saving him both
time and money. In turn, Manoj could then reinvest in his family and businesses,
helping him in his goal to send his daughter to school.

User capability. This category includes barriers such as a lack of digital literacy (that is, unfamiliarity
with or discomfort in using digital technologies to access and use information) and a lack of
language literacy (that is, the inability to read and write). The root cause of such literacy barriers is
often an under-resourced education system.

Infrastructure. Barriers in this area include a lack of mobile Internet coverage or network access in
addition to a lack of adjacent infrastructure such as grid electricity. The root causes of these
consumer barriers include limited access to international bandwidth; an underdeveloped national
core network, backhaul, and access infrastructure; limited spectrum availability; a national
information and communications technology (ICT) strategy that doesnt effectively address the
issue of broadband access; and under-resourced infrastructure development.

Countries in this group include Egypt, India, Indonesia, the Philippines, and Thailand, each of which
faces medium to high barriers to Internet adoption. The countries in this group rank in the lowest
two quartiles in several categories in the Internet Barriers Index, with their greatest challenges
lying in the incentives and infrastructure barrier categories. Home to an offline population of more
than 1.4 billion individuals, this group had an aggregate Internet penetration rate of 19 percent in
2013.

Low incomes and affordability. In this area, the predominant barrier is the low income of
individuals in the offline population. This barrier is exacerbated by the high costs associated with
providing access to the Internet for these populations, which are disproportionately rural. The low
incomes reflect the poor economic circumstances of large segments of the offline population,
often including unemployment and the need for economic development, employment, and
income growth opportunities in their regions. At the same time, there is often a lack of adjacent
infrastructure (such as roads and electricity), thereby increasing the costs faced by network
operators in extending coverage. Several other factors can contribute to high costs of service for
device manufacturers and network operators, including taxes and fees, and, in the case of some
countries, an unfavorable market structure.

3. How can we explore the data user count in India and take data users to 500 Million at an
industry level?

Nations around the world have recognized the transformational impact of bringing more of their

population online and are moving aggressively on several fronts to do just that. Governments are

setting ambitious goals for mobile-Internet coverage and investing to extend fixed-broadband

infrastructure and increase public Wi-Fi access. At the same time, network operators and device

manufacturers are exploring ways to further reduce the cost of access and provide service to

underserved populations. In addition, content and service providers are innovating on services

that could improve the economic prospects and quality of life of Internet users.

Going forward, sustained, inclusive Internet user growth will require a multipronged strategy

one that will depend on close collaboration among players across the ecosystem, including

governments, policy makers, nongovernmental organizations, network operators, device

manufacturers, content and service providers, and brands.

The potential of nationwide digital literacy is so profound that the Indian government launched the

National Digital Literacy Mission (NDLM), as an integral part of the Digital India campaign, to help

combat the digital skills gap in India. The NDLM is set to provide ICT training to 1 million people, in
 its first phase, and provide critical digital skills training to at least one person in each household by

2020.

The digital skills gap needs to be tackled, urgently, for a number of important socio-
economic reasons. Mobile phones enhance lives and enable Indian citizens to feel more
autonomous and connected. These devices also enable access to education, employment
opportunities, financial services and healthcare information.
As the case of Manoj proves, the solution doesnt lie in simply increasing mobile phone
ownership; it lies with collaboration between governments, mobile operators and third
parties to educate the population.
Only when every citizen is empowered to use the mobile internet in ways that directly
benefit their own lives, and the lives of their communities, can the whole of India participate
equitably in the thriving global knowledge economy.
The enormous potential digital inclusivity offers means that bold steps need to be
taken. While measures taken on by the government are certainly a step in the right
direction, the mobile industry, policy makers and other key stakeholders need to work
together, ensuring everyone can realise the benefits of mobile services.
To this end, together with Idea Cellular, Telenor, the Digital Empowerment Foundation
(DEF), 2CV Research Ltd and Point of View, the GSMA is taking positive actions to reduce the
digital skills barrier in India through the launch of the Mobile Internet Skills Training Toolkit
(MISTT). The toolkit has been developed for MNOs, NGOs, development organisations and
governments who want to provide training to improve peoples basic knowledge and
understanding of how the mobile internet can benefit them directly.
The toolkit provides an introduction to using the mobile internet on an entry level
smartphone through three services: WhatsApp, YouTube and Google, with important
information about safety and cost included as well.
Due to the potential impact, clear market need and government buy-in, the GSMA and its
partners are piloting the toolkit in Maharashtra, ensuring communities are equipped with
the skills necessary to reap the benefits of a digital economy.

To establish the preconditions for transforming the Internet into a much more dynamic engine of

growth for India, a variety of stakeholders will need to collaborate on five key initiatives:

Extend Internet infrastructure beyond the tier-one cities, to semiurban and rural parts of India.
 Make Internet access and usage less expensive.

Encourage large-scale digital literacy to promote user engagement.

Introduce Internet-based applications in all parts of the economy, including nontraditional

areas, such as agriculture, education, energy, health care, and public utilities.

Create a favorable environment for Internet businesses, both to encourage start-ups and to

scale existing companies.

Case:

Revenue from mobile broadband users has slowed down in the current year, and is forecasted to
further slowdown in the next few quarters.

The growing range of new services and applications indicate a ten-fold increase in mobile broadband
users between 2013 and 2019 worldwide.

But the current indicators for India only show a 4-fold increase in customer base.

Slowing subscriber numbers, as well as competitive and regulatory pressures, have led to a
slowdown in industry revenue growth in recent years.

The industry needs to reach a critical mass of 500 Million quick enough for increased revenue
growth.

Faster industry level mobile data subscriber growth is the key to bring back the high revenue
growth.

The current trends show that India has the third highest Mobile subscriber base in the world but has
only 36% mobile data penetration.

Further, the penetration in India is majorly in the metros and urban areas (45% penetration). The
potential in semi-urban and rural markets has not tapped into (currently a penetration of 25%).

Socio-economic factors are important in driving data usage base in semi-urban/ rural India.

The 2014 price reduction in 3G data service charges showed a huge impact on increasing usage
base. Now, the question is whether affordability is the only barrier.

Is the industry simplifying the solution to this complex problem through price cuts or is that the
only way?
Kailash also needs to determine whether the slow revenue growth in semi-urban and rural markets
is also because the current eco-system (device, service and content) is not relevant to the particular
market segment.

The current user base has been averaging at 110 - 150 MB of data use per user per month even after
the launch of high speed internet (3G and 4G) services.

Good mobile internet experience has been highlighted as an issue. Different segments of users
define a good internet experience differently, ranging from Network speeds to account
management and customer service.

http://www.thehindubusinessline.com/-info-tech/mobiles-tablets/three-in-five-smartphone-users-
use-mobile-internet-in-urban-india/article7150535.ece

Purpose of mobile internet among rural and urban users:

Mobile internet penetration stood at 23% for the whole country, says the report.

According to TRAI, there were 988.7 million mobile connections in India as of August 2015.

The report, Mobile Internet in India 2015, surveyed individuals from 35 Indian cities and
towns, and found significant differences in rural and urban user behaviour on mobile
internet. For 80% of the 219 million urban mobile internet users, online communication was
the top reason for accessing the internet on their devices. Entertainment was top priority
for only 30% of these users.

Among rural users, on the other hand, 52% said their primary reason for accessing the
internet was entertainment. Communication and social networking stood at 37% and 39%
respectively. Abheek Biswas, who was a part of the research team, says that communication
could be lower down the rankings due to a preference for "offline" consumption of content.

"We have found that rural users do not like to keep their data services on at all times. They
prefer to use it to download videos and then opt for offline viewing," says Biswas, who
points out that the gap between the share of communication and entertainment is not large
in rural areas.
E-commerce in India has seen some big-ticket investments and glowing projections. Late last
year, Goldman Sachs estimated India's e-commerce market to cross 100 billion USD by
2020.

The just-released report says that only 13% urban mobile internet users and 1% rural users
shop via mobile internet. "A lot of final transactions are not happening on mobile. There is
still some apprehension among people about transacting on mobile. But online shopping is
gaining traction and the numbers might look completely different next year," says Biswas

https://news.nextbigwhat.com/rural-india-internet-connectivity-297/

http://timesofindia.indiatimes.com/tech/tech-news/Only-9-of-rural-India-has-access-to-mobile-
internet-Report/articleshow/50840296.cms

http://www.vserv.com/smartphone-adoption-india-going-beyond-age-income-barriers/

https://community.data.gov.in/growth-of-internet-users-in-india-and-its-impact-on-our-life/

http://www.mckinsey.com/industries/high-tech/our-insights/offline-and-falling-behind-barriers-to-
internet-adoption

http://tech.firstpost.com/news-analysis/60-percent-of-mobile-internet-users-face-network-
problems-in-india-says-study-265331.html

http://money.cnn.com/2016/03/09/technology/india-internet-access/

RURAL CONNECTIVITY:

According to an IAMAI report released in November of 2013, the number of internet users in India
had reached 205 million in October 2013 of which 68 Million were rural Internet users. The report
also mentions that rural India saw a 58% YOY growth in internet usage. 70% of the active rural
internet users access internet using mobile phones, while 32% use internet only through mobile. The
Community Service Centers and Cyber Cafes are the main point of access for 40% of them.

Project Loon was named so by Google mainly due to enormity of the project and the
seemingly outlandish mission goals. Project Loon developed by Google uses high altitude
balloons floating in the stratosphere at approximately 20 kilometers about the surface to
create an aerial wireless network that provides 3G like data transmission speeds.
Project Loon uses software algorithms to determine where its balloons need to go, then
moves each one into a layer of wind blowing in the right direction. Wind layer, wind speed
and directions are identified using data from National Oceanic and Atmospheric
Administration (NOAA).

Each balloon can provide internet connectivity to a ground area of about forty square
kilometers in diameter using LTE. To use LTE, Project Loon partners with
telecommunications companies to share cellular spectrum so that people will be able to
access the Internet everywhere directly from their phones and other LTE-enabled devices.
Balloons relay wireless traffic from cell phones and other devices back to the global Internet
using high-speed links operating in the ISM 5.8 GHz band.

The balloons are made out of polythene and are durable enough to last about 100 days in the
stratosphere.

The Loon Project was pilot tested in New Zealand with a small group of pilot testers. The
service provided connectivity to a small area in New Zealand and has since evolved to
include more geographies under its coverage. The Loon Project is considered to be very
helpful when it comes to providing services in calamity struck areas.

The number of mobile Internet users in India is expected to grow over 55 per cent to 371 million by
June this year, driven by strong adoption in rural parts of the country, industry body IAMAI said.

Mobile Internet userbase in the country has steadily increased from 238 million in
June last year to 306 million at the end of December 2015, a report by Internet and
Mobile Association of India (IAMAI)- IMRB International said.
Of the 306 million internet users, 219 million users are from urban part of the
country. The userbase saw a growth of 71 per cent year-on-year. On the other
hand, the userbase in rural India went up 93 per cent from December 2014 to reach
87 million at the end of December 2015.
The report found subscribers in urban India using mobile Internet mostly for online
communication (80 per cent), social networking (74 per cent), entertainment (30
per cent), online shopping (13 per cent) and online ticketing (11 per cent).
In rural India, 52 per cent said they used Internet for entertainment, 39 per
cent for social network, 37 per cent communication, one per cent for online shopping and
0.4 per cent for online ticketing.
The report also found the share of mobile Internet spend (out of average monthly
bill) has increased to 64 per cent in 2015 as compared to 54 per cent in 2014.
This is despite the average monthly bill reducing to the extent of 18 per cent in
2015 (Rs 360) compared to the previous year (Rs 439 in 2014).

Infrastructure
India simply lacks the routers, fiber optic links and servers needed to
expand access. Few public Wi-Fi spots exist, and broadband connections
with faster speeds require infrastructure that is rarely found in urban low-
income areas, much less rural ones.
Mobile Internet connections aren't much better.
Users often find gaps in network coverage depending on their location.
Those who live in slums, for example, "often have to trek down the hill [and]
come down to the main road to access the network," said Hutokshi Doctor,
director of the CCDS.
Gender
There is a large gender gap among India's internet users. While 27% of
India's men use the internet, only 17% of India's women do, according to
Pew.
The CCDS researchers found a wide range of gender issues related to
Internet access. Many women are expected to stay at home, and do not
have control over their own finances. When women are able to use the
Internet, they are often closely monitored by male family members.
One woman interviewed as part of the CCDS study said that people in her
neighborhood don't like to see girls using mobile phones because it "does
not look good."
"People in our settlement have certain views about girls and the community
thinks that if girls are on the mobile, they are not conforming to community
culture."
Related: How jewelry is keeping women in India safe
As a result, many women rely on male relatives who have smartphones for
access.
"There's this conception that the internet is an unsafe space for women,
simply because they will be led astray and exploited," Doctor said.
Affordability
Being able to afford an Internet-connected device can be tough in a country
where 75% of the population earns less than 5000 rupees ($74 dollars) per
month.
Some users get around this barrier by purchasing secondhand
smartphones, which are generally cheaper, Doctor said. However, less
expensive devices come with less memory and comprehensive data plans
are still difficult for many people to afford.
"They're 18 rupee-packages, 5-rupees packages," she said. "You can
imagine the kind of data transfer that's available."
At these lower levels, it's hard to stream videos or audio.
Awareness
Surveys suggest many Indians lack a basic understanding of the Internet.
According to a 2015 survey conducted by the Internet and Mobile
Association of India, about a fifth of respondents who lived in urban areas
and three quarters of rural residents said they didn't know about the
internet and therefore did not use it.
Doctor says that Internet usage and access is related to education. "You
learn how to use the Internet from your peers," she said. "If your friends are
only accessing Facebook, YouTube and Whatsapp, then that's where you'll
stay."