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Digital revolution: India comes of age

Last updated on: December 31, 2010 11:40 IST

Digital revolution: India comes of age

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Shivani Shinde & Priyanka Joshi in Mumbai

India's digital world has witnessed tremendous growth in the past decade.

The telecom sector, in particular, saw an explosive growth in its mobile subscriber base, cheaper mobile services and the introduction of mobile number portability and 3G services.

The entertainment sector also took to the trend with more and more Indians logging onto the world wide web. However, the broadband subscriber base is still low.

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TELECOM

The decade certainly belonged to the telecom sector.

While the average revenue per user continued a downward trend, India logged the fastest growing mobile user base globally, after China.

The mobile user base has grown 110 times since 2001. However, the landline user base fell considerably.

INTERNET

While Indian users made their presence felt on the Internet, the overall Internet subscriber base in India remained disappointing.

The problems that plagued 2001 seemed to persist.

At present, Internet penetration is approximately 0.8 per cent, while the country's teledensity stands at 60.99 per cent (September 2010).

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Digital revolution: India comes of age

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2001

  • Nine million total Internet subscriber base in 2001
  • 31 million PC literate <FONT face=Arial size=2><IMG height=91 src="http://im.rediff.com/news/2010/dec/yearend-logo3.gif" width=103 align=right border=0></FONT>

2010

* Prediction based on calculations on available data

  • 88 mn claimed Internet users as of Sept 2010.
  • March 2011 expected to touch 100 mn claimed users
  • 2020: 500 mn expected Internet users.


Source: Internet and Mobile

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NET CASTS ITS WEB WORLD WIDE

Some important developments of the decade.

2001-2004

  • Digital ads less than 1% of India Inc's ad budgets
  • Google sets up its R&D centre in Bengaluru
  • Baazee.com acquired by eBay for around 250 crore (Rs 2.5 billion)
  • Online matrimonial sites touch 4 million subscribers

2005-2007

  • Internet user base clocks 54% growth from 38.5 million.
  • eCommerce market touches Rs 7,080 crore by 2007
  • 32 million handsets being used in India
  • 4.6 million Indian  access online banking

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2008-2010

  • Google gains mind share and user share
  • 45 mn active Internet user in India in 2008
  • Facebook enters India in 2009
  • MS launches Bing; Google launches Chrome
  • IPL3 ties up with YouTube for live streaming
  • Internet advertisement to be 4.4% of corporate India
  • Facebook takes over Orkut and Google

Source: IAMAI, Trai, Juxt Consult, Ficci Frames 2010

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Image: Prime Minister Manmohan Singh.

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Digital revolution: India comes of age

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2011 AND BEYOND

Subho Ray, president, Internet and Mobile Association of India

The mobile and Internet industry looks at 2011 with hope.

What to expect: eCommerce based on value proposition will see significant growth.

  • M-commerce will not match up to expectations but remain as an option.
  • Broadband and Internet users will grow, and the focus will be on providing connections to small towns and rural areas.
  • 3G will allow better user experience. Search for the "killer App" will remain illusive.
  • Stakeholders will walk the talk on providing unlimited connectivity at limited cost.

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DIGITAL ENTERTAINMENT

While television rules, PCs, mobile handsets and iPods make headway. Bollywood went global and movies were simultaneously released on the web.

2000-2003

2000, direct to home services introduced, DD added 4.6 mn users

  • 2001, HBO, History Channel, Nickelodeon, Cartoon Network, VH1 and Disney enters India
  • 2003, Dish TV launches services in October 

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2004-2006

  • M&E industry touched Rs 30,800 crore (Rs 308 billion) in 2004, growing at CAGR of 19 per cent.
  • 2005, FDI in radio sector. Reliance enters entertainment and radio
  • 2006-07, IPTV launched by MTNL/BSNL

2007-2009

From just 3 per cent user base in 2007, DTH subscriber base touch 20 mn by '09

  • Real Images, UFO and E-City equips over 3,000 theaters with digital technology
  • Digital marketing replaces traditional promotional activities
  • 2008, Home video market, cable & satellite rights rake in Rs 714 crore (Rs 7.14 billion)
  • Gaming industry tracks revenue of Rs 650 crore (Rs 6.5 billion) in 2008

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2010

  • Entertainment sector estimated at Rs 22,200 crore (Rs 222 billion), music industry shrinks to Rs 1,000 crore (Rs 10 billion) from Rs 1,350 crore (Rs 13.5 billion) in 2007
  • Time window reduced for movie releases in theatres and on DTH. Colours pays Rs 250 cr for rights of 30 Hindi films
  • Facebook, YouTube and Twitter key part of movie marketing
  • 3,000 digital screens have helped simultaneous release in more centres

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2011 AND BEYOND

Amit Khanna, chairman, Convergence Committee of Ficci

The next decade will be truly the first 'Convergence Decade'. In a digital world lines between various entertainment platforms will start fading.

A film will have different versions, to be enjoyed on different media. Access of voice, data and video will be ubiquitous and through various platforms.

Similarly, we will use different devices to entertain and inform, and transact. Over all per capita spend on leisure will rise sharply.

Finally, even as pan-global entertainment (movies, television, games) will rise, there will be an even stronger resurgence of regional media and content.



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