1

FacilitatingFacilitating

CitiusCitiusCitiusCitius, , , , AltiusAltiusAltiusAltius, , , , FortiusFortiusFortiusFortius(Faster, Higher, Stronger)

IIIInternet IIIIn IIIIndia

presents

| | IMRBIMRB

In Association with Internet & Mobile Association of India (IAMAI)Internet & Mobile Association of India (IAMAI)Internet & Mobile Association of India (IAMAI)Internet & Mobile Association of India (IAMAI)

2

9Internet User - Year 2008 (All India)3.1

10Emerging Rural Internet Market3.2

15-18

8-14

5-7

4

4.0

3.0

2.0

1.0

18The Convenience, Cost & Content Sought Trade-off4.3

17Rise in the Internet Access From Office4.2

16Continuous Growth of PC Owners and Internet Subscribers4.1

Internet Access Points

14Youth Continues to Drive the Internet Growth3.6

13Far-Reaching Internet Services3.5

12Growth Rate of Internet Penetration - Urban3.4

11Urban Internet Market 3.3

Growth of Internet in India

Glossary of Terms Used

Introduction

Table of Contents Table of Contents Table of Contents Table of Contents

3

36Criteria for Selecting Districts in the StatesA2.2

35Criteria for Selection of StatesA2.1

34-36Annexure: Study Methodology & Sampling Procedure – RuralA2.0

33Sample Size of Households Covered for ProfilingA1.3

26Essentials for Internet Penetration – Rural6.3

25Essentials for Internet Penetration – Urban6.2

28-33Annexure: Study Methodology & Sampling Procedure - Urban A1.0

24Barriers for Internet Usage6.1

27Likeliness of Usage of Different Applications6.4

23-27Enablers of Internet in India6.0

31-32Household Listing Interview Sampling ProcedureA1.2

29-30Target Segment and City SelectionA1.1

22The Growing Stickiness Index5.3

21Preference of Applications Vary among Demographic Segments5.2

20Increasing Share of Pie for Online Entertainment5.1

19-22Important Internet Applications5.0

Table of Contents Table of Contents Table of Contents Table of Contents

4

1.0 Introduction

India has witnessed continuous growth in the Internet adoption in certain sections of society -predominant patterns exist mostly in urban areas. Internet users have started utilizing this technology not merely for information search or communication but also for leisure activities.

Different online applications like entertainment – gaming, movies and music as well as user-generated content on the web has made Internet a virtual world. Over the web, users are interacting, learning and building relationships. Rural areas of the country, however, have just started to recognize the importance of this medium.

Various technological developments are redefining options of accessing the Internet. These technologies are expected to play a vital role in enabling improved adoption of the Internet across different geographies. The emerging technologies such as WiMAX, 3G and WiBro promise to provide a last mile connectivity and allow new access points such as PDAs and kiosks.

This report aims to map the growth of Internet in India. It is a part of a syndicated study conducted annually by IMRB International in association with IAMAI.

Internet in India (I-Cube) reports are based on a primary survey conducted across 30 cities - among 20,000 Households, 90,000 individuals, 1000 SMEs and 500 Cyber Cafes. To extend the scope of this study, we have carried out this research across 100 rural centers to understand Internet behaviour in rural areas.

This extensive exercise makes this study one of the largest researches in the Internet domain in India.

5

2.0 Glossary of Terms Used

PC Literate: Individuals who know how to use a PC. While this term does not signify the extent of PC usage, it means that a computer literate is able to work on a PC without assistance.

Claimed User: An individual who has used the Internet at any point in time in the past. This gives us a clear indication as to how many Indians have experienced Internet at least once in their lifetime. These may also be called as ‘Ever Users’.

Active User: An individual who has used the Internet at least once in the last 1 month.

Internet Non-User: An individual who has not accessed Internet at any point in time.

Internet Non-Owner: An individual who belongs to a household which does not own an Internet connection.

Top 8 Metros: The top 8 cities in India in terms of population.

Small Metros: Cities which are not a part of top 8 metros but have more than 1 Million population.

6

2.0 Glossary of Terms Used

Non-Metros : Towns with population between 0.5 million to 1 Million.

Small Towns: Towns with population of less than 0.5 million.

Socio-Economic Classification (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 decreasing order of affluence).

School-Going Kids: Kids studying in school and above 8 years of age. They are in the age group of 8-17, although, a small proportion could be over 18 years.

College-Going Students: Youths studying in college (graduate, post-graduate and doctoral). Most students are in the age group of 18-25, although, a small proportion will be below 18 and over 25 years.

7

2.0 Glossary of Terms Used

Young Men: Men in the age group of 21-35 years who are not school or college-going students. This segment includes all those who are employed as well as unemployed.

Older Men: Men in the age group of 36-58 years employed or otherwise.

Working Women: Women in the age group of 21-58 years and employed outside home.

Non Working Women: Women in the age group of 25-58 years of age and are not working. This segment includes housewives as well as non-working young women who are not school or college-going students.

Stickiness Index: Stickiness Index is a composite of how often a media is accessed and how much time is spent on it.

8

3.0 Growth of the Internet in India

9

Total Population ~ 818 Mn*

Total Literate Population ~ 573 Mn*

Total English Knowing~ 149 Mn*

Total Computer Literate ~ 87.1Mn

*- Source-NRS 2006(Population with 12 years of age and above)

3.1 Internet User: Year 2008 (All India)

UrbanClaimed Internet users~50 Mn Active Internet Users~36 Mn

March 2008

September 2008 (Est.)

RuralClaimed Internet users~5.5 Mn Active Internet Users~3.3 Mn

UrbanClaimed Internet users~57 Mn Active Internet Users~ 42 Mn

Rural estimates not available

10

Approximately 70% of Indian population reside in Rural areas of the country. Literacy rate in the rural areas has been reported at 65%.

Interestingly, English-speaking population in Rural India is only 63 Mn which is 17% of the total literate population. The I-Cube research estimates that nearly 15.1 Mn Population in the rural areas are computer literate. Of which, 5.5 Mn have used the Internet in the past.

With nearly 0.6% of penetration in the total population, there are 3.3 Mn Active Internet users. Non-Government Organizations (NGOs), GOI initiatives, community service centers and CSR activities byprivate companies have played a significant role in ensuring this penetration.

Considering such high levels of literacy rate coupled with relatively low English-speaking population, it is imperative to provide need-based online applications. These applications need to be in vernacular/regional language and preferably with TTS (Text to Speech) capabilities to ensure high adoption of the Internet. It would be better if visual symbols, graphics and rich media are used todevelop applications in rural areas.

However, would India have bandwidth to support it across rural infrastructure?

3.2 Emerging Rural Internet Market

*- Source-NRS 2006

5.5 MnRural Claimed Internet Users

3.3 MnRural Active Internet Users

15.1 MnRural Computer Literates

63 Mn*Rural English-Speaking Population

368 Mn*Rural Literate Population

568 Mn*Rural Population

818 Mn*Total Indian Population

11

With 250 Mn urban population in India, 82% of them are literate and of these, only 31% are English-speaking.

However, of 86 Mn (42% of 205 Mn), 84% are PC-literate. This indicates that PC literacy and usage are highly associated with English-speaking ability.

As urban Internet penetration reaches a saturated level there is a need for innovative information delivery which could ensure increase in the time spent on the Internet.

User generated content such as blogs, TLC (Trying out, links andcommunities) could help in increasing time spent over the Internet (i.e. conversion of light users to heavy Internet users).

Other critical utility applications like E-commerce could help in furthering Internet non-users towards adopting this medium.

128 Mn of the Urban population has not adopted the medium due to non-familiarity with English language, which forms the potential target segment for usage of vernacular content on the web.

3.3 Urban Internet Market

*- Source-NRS 2006

50 Mn – March 200857 Mn – September 2008 (Est.)Urban Claimed Internet Users

36 Mn – March 200842 Mn – September 2008 (Est.)Urban Active Internet Users

72 Mn – March 200885 Mn – September 2008 (Est.)Urban Computer Literates

86 Mn*Urban English-Speaking Population

205 Mn*Urban Literate Population

250 Mn*Urban Population

818 Mn*Total Indian Population

12

3.4 Growth Rate of Urban Internet PopulationBase: All India (Urban)(All figures in Million)

85

72

65

62

53

42

31

16

59

2000

2001

2003

2004

2006

Mar-07

Sep-07

Mar-08

Sep-08

Growth in computer-literacy in urban India has increased in the year 2008 compared to 2007. This indicates continued acceptance of technology in the lives of people, in addition, to decrease in prices of PC and hardware.

Com

pute

r Litera

te

70% of computer literates have used Internet in the past - a healthy sign for Internet industry in India. Government Initiatives, online E-commerce applications and entertainment are the main applications other than Information search for fueling this growth.

Cla

imed Inte

rnet

User

42

36

32

29

11

8

4

2

21

2000

2001

2003

2004

2006

Mar-07

Sep-07

Mar-08

Sep-08

Compared to previous years, the growth rate in Active Internet users for year 2008 has reduced. This is a sign of possible saturation in the urban Internet market. This seems to be a right time to explore opportunities in the rural market.

Active I

nte

rnet

User

57

50

46

42

16

12

9

5

32

2000

2001

2003

2004

2006

Mar-07

Sep-07

Mar-08

Sep-08

Such estimates were not possible for rural India as we have started studying rural Internet pattern from the current year only.

13

3.5 Far-Reaching Internet Services

77%

58% 55% 55%

41% 38% 37%

13%

15% 19% 20%

20%21% 21%

4%

7% 7% 6%

10% 12% 12%

5%

20% 20% 19%29% 29% 30%

2000 2001 2003 2004 2006 2007 2008

Top 8 Metros Other Metros 5-10 lakh towns Less than 5 lakh towns

46 Mn32 Mn16 Mn12 Mn9 Mn5 Mn 50 Mn

49%41% 40% 41% 42% 39% 37%

29%

32%31% 29%

35%33%

32%

15%17%

18% 18%

21%23%

23%

6% 9% 12% 11%3% 5% 9%

2000 2001 2003 2004 2006 2007 2008

SEC A SEC B SEC C SEC D&E

46 Mn46 Mn32 Mn32 Mn16 Mn16 Mn12 Mn12 Mn9 Mn9 Mn5 Mn5 Mn 50 Mn50 Mn

There is an increase in the number of claimed Internet users over the years across all town classes.

Compared to last year, percentage of claimed users across different town classes remained similar for this year.

This shows that people from non-metros and smaller towns are getting exposed to this medium.

Increase in the number of claimed Internet users in the SEC D&E shows that Internet has started to reach the bottom of the pyramid i.e. to the less affluent classes of the society.

This rise in the subscriber base could be because of:

• Higher literacy levels, and

• Decrease in the prices of PCs

Base: All India Claimed Internet Users (Urban)(All figures in Million)

Base: All India Claimed Internet Users (Urban)(All figures in Million)

14

19% 16% 15% 12% 14% 12%

23% 27% 26%26% 21% 27%

26% 26% 27% 32%33%

30%

13%15% 17% 15% 15% 14%

9%8% 7% 9% 11% 11%

10% 7% 8% 6% 6% 6%

2001 2003 2004 2006 2007 2008School going kids College going Young men

Older men Working women Non working women

3.1 Mn 4.9 Mn 7.5 Mn 13.2 Mn 15.4 Mn 17.9 Mn Since the adoption of new technologies and services is high among young generation, most of the content over the Internet is focused on the age group of 18-35 years.

There is a significant increase in the percentage of college-going students in the Active Internet user base compared to the other demographic segments. Such an increase could be due to various information searches required for academic, entertainment or employment purposes.

Other sticky applications like user-generated content and social networking websites are attracting the youth of the country and helping them to explore virtual world comprising different experiences.

Online entertainment is evolving as the major driver for propelling growth of the Internet among young generation. Specifically, online gaming is major growth area in this vertical with huge investments by content providers and developers.

3.6 Youth Continue to Drive the Internet Growth Base: Active Internet users (Urban)30 cities in 2007-0826 cities in 200622 cities in 200416 cities in 2000 - 2003

15

4.0 Internet Access Points

16

4.1 Continuous Growth of PC Owners and Internet Subscribers

461732

1,073

1,5501,886

2,550

3,861

7,805

5,723

288

4,846

25126 318

624837

1,0251,304

2,927

3,878

58%

54%51%

76%

68%

62%

54%

43%

27%

9%

1997 - 98 1998 - 99 1999 - 00 2000 - 01 2001 - 02 2002 - 03 2003 - 04 2005-06 2006-07 2007-08

PC Owners Internet Subscribers % PC Owners with Internet subscription

Base: All India PC & Internet Owning HHs (Urban)Figures in ‘000

There has been 36% growth in PC Owners over the last year. This could be due to fall in PC prices and increase in the awareness of benefits in using a PC.

An increase of 25% in the number of Internet subscribers over the past year has been observed. This increase is in part due to penetration of the Internet in the less affluent classes of the society and smaller towns.

Also, higher popularity of user-generated content like blogs, reviews and social networking websites like facebook.com, orkut.com have lead to continuous increase in this penetration levels.

Role played by CSR activities of private companies, Community service centers and NGOs working in ICT (Information and communication technology) area helped in higher PC and Internet penetration in rural areas.

However, there has been a decline in the proportion of PC owner with the Internet subscription - 62% compared with the last year which was at 68%.

17

4.2 Rise in the Internet Access from Office

Base: Active Internet users (Urban )30 cities in 2007-200826 cities in 200622 cities in 200416 cities in 2000 - 2003

43%44%

52%46%

39% 36% 37%

22%

30%23%

27%

31%30% 26%

30%

19% 20%20%

22%25% 27%

6%

4% 3% 5% 6% 7% 8%8%3% 2% 2% 2% 2% 1%

2000 2001 2003 2004 2006 2007 2008

Cyber café Home Office School/College Others

1.4 Mn 3.1 Mn 4.9 Mn 7.5 Mn 13.2 Mn 15.4 Mn 17.9 Mn

Cyber cafe has been the main access points of Internet over the years. There is a marginal increase over the last year in the percentage of users who use it as the main access point.

Continued high share of cyber café in Internet use can be attributed to factors such as:

• Lesser PC penetration in the SEC D&E homes

• Growth of online gaming market in India

Office is becoming more popular point of access which is not necessarily a healthy sign for the growth of Internet Industry in India as there are finite types of online applications that an office user can access; due to restrictions levied by IT units.

Interestingly, there is an increase in the Internet access from School/Colleges. This could be due to the introduction of computer education and permission to access the Internet from academic laboratories.

18

37%

61%

49%

27%21%

18%

49%

26%

20%

27%

24%31%

23%

40%

27%46% 44%

58%

8%

15%

3%

2%1%

20%

1%

3% 1% 1%1%1% 4%

All 30 cities School goingkids

College goingstudents

Young men Older men Workingwomen

Non-workingwomen

Cyber café Home Office School/College Others

4.3 Convenience, Cost & Content Sought Trade-Off

2.2 Mn 4.8 Mn 5.4 Mn 2.5 Mn 2 Mn 1 Mn 17.9 Mn

Expectedly other demographics segments like young men access the Internet mainly through office.

Except in case of non-working women, share of home as main access point does not amount to a high percentage as it is convenient to them.

Preference for the primary access point is a function of the following 3 C’s: Convenience, Cost & Content sought

Cyber cafés are the dominant point of access among school-going kids and college students. Since cyber café is the cheapest source of access providing more privacy regarding content.

Base: Active Internet users in 30 cities Surveyed (Urban)

19

5.0 Important Internet Applications

20

5.1 Increasing Share of Pie for Online Entertainment

Online communication applications like Email and Chat are the main purposes of accessing the Internet followed by information search.

With the increase in the usage of the Internet, E-Commerce applications like online bill payment, online ticket booking etc. are gaining more popularity.

Online entertainment is another key driver for the growth of the Internet in India with download services for online gaming, music and video.

“India Gaming Summit”, recently organized in the year 2008, has witnessed the launch of ‘Gaming revolution’ in India and laid a foundation for developing gaming ecosystem in India.

13%Internet Telephony/Video Chat/Voice

Chat

13%Online NEWS

20%Online banking

21%Book railway tickets on the Internet

21%Financial information search

32%Music/Video on the Internet

37%Online jobsites

41%Online Gaming

46%Text Chat

49%Educational information search

76%General information search

91%E-mail

%Purpose of Internet access

Base: 17.9 Mn Active Internet users in 30 cities Surveyed (Urban)

21

5.2 Preference of Applications Vary Among Demographic 5.2 Preference of Applications Vary Among Demographic

SegmentsSegments

*0.14 Mn not stated

53%

31%

44%

61% 62% 65%56%

7%

8%

9%

7% 5%4%

5%

24%

39%

31%

18% 20% 18%27%

9% 20% 10% 5% 5% 2% 6%

7% 6% 9% 8% 9% 5%1%

All 30 cities School goingkids

College goingstudents

Young Men Older Men WorkingWomen

Non workingWomen

E-mail Chat Information Entertainment E-Commerce

17.9 Mn 2.2 Mn 4.8 Mn 5.4 Mn 2.1 Mn2.5 Mn 1 MnThere is a clear preference for different online applications across demographic segments.

Preference of these demographics is well understood by the service providers.

Over the years, young generation has remained a main target segment for content providers.

Email is the most popular application among most of the demographic segments followed by information search.

Over the years, Internet has been evolving as a platform not only for communication but also for various other applications such as learning, shopping, gaming and self-expression in the form of blogs/forums.

Base: Active Internet users in 30 cities Surveyed (Urban)

22

5.3 The Growing Stickiness Index

21% 25%17%

23% 28% 25% 24%

23% 14%

15%

18%18% 19% 20%

26%25%

24%

21%22% 23% 23%

19%21%

21%

23% 15% 18% 18%

7% 11%16%

10% 13% 12%

3% 3% 4% 3% 4% 3% 2%11%9.3

5.6

4.86.2

8.2

6.9

2000 2001 2003 2004 2006 2007 2008

Daily 4 -6 times/ week 2-3 times/week

Once a week 2-3 times/month < Once a month

Average hours/week

1.4 Mn 3.1 Mn 4.9 Mn 7.5 Mn 13.2 Mn 15.4 Mn 17.9 MnInternet is on its way of becoming a mass media as the user base as well as time spent using this media has been increasing.

Two-third of the active Internet users are accessing the Internet at least 2-3 times a week.

Average hours per week has increased over the last year with relatively higher margin, which is a very positive sign for the growth of Internet industry in India.

*0.4 Mn not stated

Stickiness Index is increasing over the last year with significant increase in average hours spent per week as well as frequency of access.

Base: Active Internet users in 30 cities Surveyed (Urban)30 cities in 2007-0826 cities in 200622 cities in 200416 cities in 2000 - 2003

23

6.0 Enablers of Internet in India

24

6.1 Barriers for Internet Usage

11.7%8.9%

5.5%

47.5%

5.2%

There is no need forit/Don’t know how it

can be useful

Cyber café chargesare high

There are no goodcyber café’s nearby

Dial up cost ofinternet access ishigh from home

I need guidance

Top 5 barriers for Internet usage

The major barriers leading to measured growth of the Internet in India have been low awareness and higher cost of accessing the Internet.

With the continued technological innovations in the area of Internet, cost of accessing the Internet is expected to go down in the coming future with greater speed of access.

Innovative content delivery and provision of need-based applications like Online bill payment, Online ticket booking etc. will help in creating awareness among Internet non-users and will act as a driver for Internet usage.

Community service centers, private companies and NGOs are playing important role in creating awareness of Internet in rural area.

Base: 6.9 Mn Claimed users not yet Active Users30 cities surveyed in 2008 (Urban)

25

6.2 Essentials for Internet Penetration - Urban

Accessible on Disparate Devices

• Mobile subscriber base in India has crossed 300Mn in September 2008. Value-added services in providing Internet connectivity and related content over mobile phones could ensure “on the go” access to the World Wide Web.

Internet -InteractiveMedium

Accessible On Disparate Devices

Evolved Content Technology

• Consequently, there is a need for measurement initiatives to evaluate the media engagement among the Internet users.

Evolved Content

• To ensure continued usage of the Internet in urban areas, advanced content/applications through rich media needs to be delivered over the Internet:

– Televisions/Movies over the Internet

• Further, online entertainment, specifically gaming will also ensure continued penetration and persistence in using the Internet.

• To tap the non-English speaking urban population and less affluent social classes, vernacular content could help to further the Internet growth

Internet as an interactive medium

• Urban markets have started using Internet as one of the interactive media. As a result, advertising on digital medium has started to gain importance. Internet, is slowly, becoming a part of the media plan.

Technology

• Emerging technologies like WiMAX, WiBro and 3G will enable BWA (Broadband Wireless Access) at much higher speed anywhere and anytime.

• These technologies will act as a platform in introducing high-end applications such as IPTV.

26

6.3 Essentials for Internet Penetration - Rural

Awareness/Training

Access

Content Technology

Access

• Higher cost of Internet access and PCs are major hindrance in accessing the Internet. Kiosks installed by NGOs, CSCs, and some of the private companies with their CSR initiatives are few of the alternatives available with them.

Content

• Online applications that help rural dwellers in providing information related to their skilled/unskilled occupation could help Internet penetration (Need-based applications)

• As large part of the population is not familiar with the English language, there is a huge scope for introduction of vernacular content over the web.

Technology

• Higher cost of access and proximity of the point of access are acting as barriers for Internet penetration in rural India.

• Emerging technologies like WiMAX, 3G and WiBro will offer last mile connectivity at relatively low costs.

Awareness / Training

• Not understanding the usefulness of this medium is acting as one of the main barriers for not using the Internet in rural areas.

• Further, there is a part of population that is aware of the Internet but need guidance in utilizing the potential of this medium.

27

6.4 Likeliness of Usage of Different Applications

Communication

Informational Services

31%31%53%Access information

(general info, news etc)

16%15%41%Post resume/bio data on Job site for self or any other person

9%6%36%

Post resume/bio data on Matrimonial site for self or any other person

4%2%17%

Access government services like Passport Enquiry, File Income Tax Returns, etc

5%6%33%Making telephone calls through Internet/ Voice Chat

27%35%57%Text Chat/ Instant Messenger

70%75%94%Email

Likely to use

Usage Aware

Entertainment

8%5%26%Invest in shares and stocks

4%3%33%Buy products online

8%4%40%Accessing bank accounts through the Internet

7%1%30%

Bill payment through Internet ( For electricity/credit card etc)

5%2%36%Booking Airline tickets through the Internet

20%13%57%Booking Railway tickets through the Internet

E-Commerce

16%18%42%

Watch movies clips/music video/cricket highlights on the Internet

20%22%52%Play video games

Likely to use

Usage Aware

Base: 6.9 Mn Claimed Internet users (not yet Active) in 30 urban cities surveyed

Infrequent users are likely to use the Internet for communicating through Email and Instant Messaging, utilising search engines for general information and news, play games as well as book railway tickets online. Effective delivery of these sets of content will help them in converting to active Internet users.

28

A1.0 Annexure : A1.0 Annexure :

Study Methodology & Sampling ProcedureStudy Methodology & Sampling Procedure--Urban Urban

It was ensured that a randomness is included in deciding the Internet penetration characteristics in the country.

Further, a pan-India approached was adopted wherein cities that model Internet behaviour in all parts of the country were considered

29

A1.1 Target Segment and City Selection

For sampling purposes, we extensively used the previous rounds of the I-Cube reports that have laid down the universe of the Claimed and Active Internet Users in the country

The previous rounds of the I-Cube reports have indicated that majority of the market is still limited to the Metros

Census of India 2001 indicates that there are 35 Cities with more than 1 Million population in India. In this round of survey, we have covered all the top 8 cities as well as 22 other cities

Below are the cities that have been covered in this research:

Cities by Strata

Top 2 Metros Delhi & Mumbai

Next 2 Metros Chennai & Kolkata

Other 4 Metros Bangalore, Hyderabad, Ahmedabad & Pune

8 cities Patna, Cochin, Baroda, Lucknow, Ludhiana, Coimbatore, Jaipur, Indore

Other 14 cities Allahabad, Chandigarh, Guwahati, Surat, Nagpur, Bhopal, Bhubaneshwar, Durg, Vishakhapatnam, Trichy, Bellary, Panipat, Thrissur, Jalgaon

30

A1.1 Age & Demographics of Respondents

Internet Users

Claimed Internet Users

Active Internet Users

8-17 yearsSchool Going Kids

18-25 yearsCollege Going Students

Non Working Women

25-58 years

Older Men

Working Women

21-58 years

21-35 yearsYoung Men

36-58 years

31

A1.2 Household Listing Interview Sampling Procedure

Quota sampling procedure was followed to cover households belonging to SEC A, B and C category in each of the 30 cities short-listed and SEC A, B, C, D & E in each of the top 8 metros

Selection of households was made based on random starting addresses identified from electoral rolls

Care was taken to ensure even geographical spread in identifying the starting addresses across the cities selected

32

A1.2 Household Listing Interview Sampling Procedure

Aim of conducting detailed interview with CWE was to understand ownership of IT and Internet related products at home currently and in future

Based on this household survey, we managed to profile (age, gender, occupation, education, computer knowledge & Internet use) about individuals in households

From all the individual claimed users we asked the question whether they have used Internet in last one month. We identified those saying “Yes” as an Active Internet User. These Active Internet Users were administered the detailed interviews for Internet Usage

Listing Questionnaire

With CWE/person who is aware of usage on IT products/durables in HH

Detailed InterviewWith Active Internet Users

33

2489655Indore

2090565Jaipur

8 Cities

Next 4 Metros

Top 4 Metros

1798552Coimbatore

2713712Ludhiana

2510667Lucknow

1952555Baroda

2322705Cochin

2552658Patna

29461018Pune

32891018

Ahmedabad

35791068Hyderabad

31701046Bangalore

37431153Chennai

38321156Kolkata

36231156Delhi

39251181Mumbai

IndividualsHouseholdsCities

1721

1558

1564

1646

1962

1679

2499

2301

2217

2144

1994

2063

2275

1944

Individuals

Rest 14

Cities

557Chandigarh

485Jalgaon

475Panipat

427Thrissur

501Bellary

564Trichy

556Vishakhapatnam

557Durg

696Bhubaneshwar

556Bhopal

564Nagpur

558Surat

669Guwahati

568Allahabad

HouseholdsCities

A1.3 Sample Size of Households & Individuals Covered for Profiling

34

A2.0 Annexure : A2.0 Annexure :

Study Methodology & Sampling ProcedureStudy Methodology & Sampling Procedure--Rural Rural

35

A2.1 Criteria for Selection of StatesA2.1 Criteria for Selection of StatesA2.1 Criteria for Selection of StatesA2.1 Criteria for Selection of StatesA2.1 Criteria for Selection of StatesA2.1 Criteria for Selection of StatesA2.1 Criteria for Selection of StatesA2.1 Criteria for Selection of States

Firstly, states were divided in terms of their population levels

For appropriate representation, we selected states having high and medium

population

Then, literacy rates were examined for all the states and compared against the population

The states were divided and selected as having high, medium or low literacy

levels

Next, we compared per capita income of various states

The states were segregated as having high, medium and low per capita

income with respect to the population of these states

Following these, we compared states on the basis of population of disadvantaged groups

36

Step 1Selection of Districts

Out of the all districts in a state, a sample of 6 districts were covered ensuring a geographical spread across the state. It was ensured that the chosen districts would adequately represent the population of a particular state

A2.2 Criteria for Selecting Districts in the StatesA2.2 Criteria for Selecting Districts in the StatesA2.2 Criteria for Selecting Districts in the StatesA2.2 Criteria for Selecting Districts in the StatesA2.2 Criteria for Selecting Districts in the StatesA2.2 Criteria for Selecting Districts in the StatesA2.2 Criteria for Selecting Districts in the StatesA2.2 Criteria for Selecting Districts in the States

Step 2Selection of villages within the district

6 villages were selected within a district. Out of these villages, 2 each were of low population (< 1500), medium population (1500 – 2500) and high population (>2500). A village is divided into a group of hamlets (cluster of houses). The map of every village was drawn with the help of the ‘Mukhiya/Sarpanch’ of that village. The hamlets were numbered in a clockwise manner and one hamlet from each village was chosen randomly

Step 3Selection of respondents

Rural respondents from 6 villages across every selected district were interviewed. There was also a split on the basis of the strata of the respondents depending on their SEC classification

37

II--Cube 2008: Setting Record Straight!Cube 2008: Setting Record Straight!

Coverage of 30 Urban

and 100 rural centers

Representation of SEC

A, B, C, D & E

households

Covering more than

22,000 households,

90,000 individuals, 1000

SMEs & 500 Cyber Café

owners

Capturing the peaks and troughs of the market since 1998

Accurate forecasts reported till 2010

Tested methodology for weighting and All India projections

Endorsed by industry associations & major portals / ISPs in India

Six months unlimited

customization

Freely interact with

analysts and gain from

their market perspective

Key trends & breaks

available in a software

Key numbers reported

from year 2000 onwards

38

II--Cube 2008: The Achievements ! Cube 2008: The Achievements !

Internet penetration and

usage In Rural India

Online behaviour of SMEs

Adoption of WiMax / 3G /

Mobile Broadband / etc.

Proliferation of User

Generated Content

Online transactions

including online insurance,

loans, bill payment, etc.

Exclusive segmentation

of Internet Users (I-Cube

segments)

Drill down available:

I-Cube Segments

Town Class

SEC

Frequency of Use

Maturity of Usage

Point of Access

Content Accessed

2 level combinations

possible

39

Project Lead

Balendu Shrivastava

Project Analysts

Niti AgarwalAnnup Varkey Rohit Gangwal

Balendu ShrivastavaGroup Business Director, eTechnology Group|IMRB

‘A’ Wing, Mhatre Pen Building Senapati Bapat Marg, Mumbai

Tel : (91)-22-24233675Fax: (91)-22-24323800Email: balendu.shrivastava@imrbint.com

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Insights Directors

Tarun AbhichandaniDhaval Thaker