Net users in India to zoom — Study

NEW DELHI, MAR 17: Internet subscriber base would grow almost 100 per cent during the year with the total number of users crossing the one...

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NEW DELHI, MAR 17: Internet subscriber base would grow almost 100 per cent during the year with the total number of users crossing the one million mark by 2000-end and 7.5 million by end 2003, a market reseach has predicted.

The internet subscriber base, which was pegged at half a million in 1999, would grow at a compounded annual growth rate (CAGR) of 95 per cent between 1999 and 2003, an International Data Corporation (IDC) study said today.

IDC study found that the highest growth would be witnessed in the home segment where the Internet base would grow at a whopping 163 per cent. The commercial segment comprising of the small, large and medium businesses, government, education and research organisations would achieve a CAGR of 57 per cent. IDC said by the end of 2001 there would be a nearly equal subscriber base for the home and commercial segment.

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"The Internet subscriber growth would be positively influenced by the adoption of unlimited internat access model (pay a fixed amount for a period and use internet as much as a person wanted) by Internet Service Providers (ISPs) in India," it said.

Although a few ISPs have announced this model, a majority of ISPs would adopt it by the end of 2000, IDC added.

IDC said factors like constant drop in the multimedia PC prices had contibuted to the growth of personal computers shipments in the home segment and this would continue to grow unabated in the coming years as well.

"An increase in PC installed base in the home segmentwould have a direct impact on the home Internet subscriber base," the study said.

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The study said by end of 2001, internet access throughcable would be available in most of the cities with a population of more than one million. This would lead to a healthy growth of internet over cable.

A drop of cable modem prices by 30 per cent in the nexttwo years was another factor which would help in the adoption of Internet access through cable modems in homes as well as small and medium businesses, it said.

"By end of 2002, all major ISPs would be offeringInternet access in mass customised packages which would help the consumer in picking up a package of his choice," IDC said adding by the first quarter of 2001, most of the basic service providers would start revenue sharing with various ISPs.

"This is expected to push the overall cost of Internetaccess downwards and basic service providers operaring in the internet access domain would be the first to adopt this model, IDC added.