Internet user base leaps by 54% to 38.5 million

MUMBAI: As an indicator to the success of the government’s broadband policy, the country’s internet user base has increased by a whopping 54% to 38.5 million in 2005-06 from just 25 million in 2004-05.

According to a report by Internet and Mobile Association of India (IAMAI), which was formerly known as the Internet and Online Association of India, the country’s total e-commerce market was estimated to grow by over 100% to Rs 2,300 crore by 2006-2007 from Rs 1,180 crore in 2005-2006.

Following the government’s new policy, broadband prices have plunged to as low as Rs 199 per month, thus allowing internet usage to become widespread in the country.

The boom in the internet can also be attributed to the IT and Telecom ministry’s pursuit to launch low-priced computers.

The ministry, in association with hardware manufacturers, has been aiming to introduce computers priced below Rs 10,000 for the masses.

To overcome the hurdle of content in regional languages, the ministry has already kicked off several initiatives towards development of language fonts.

Reduction in licence fees and revenue sharing agreement from 15% to 6% has also enabled new players like Gailtel, Railtel and Powergrid to foray into the broadband.