India to be 2nd largest Net mart in Asia: Study
The Times of India, (PTI, New Delhi), July 22, 2000

India will emerge as the second-largest Internet market in Asia after China with 70 million users by 2003, investment bank Goldman Sachs has said in a research report.

"We expect resident Indians to constitute the second -largest group of Internet users, after China by 2003." The bank said in its research report on rediff.com, the first Indian Web site to get listed on an overseas stock exchange.

Goldman Sachs said that Indian Internet users will be more than 70 million within the next three years, rising by 130 per cent compounded annual growth rate from the 0.5 million users recorded at the end of 1998.

India's Net market, though still in its infancy, is one of the largest Internet opportunities in the world. The government's support for technology and the Internet will lead to lower cost for access increased Net usage, the report said.

On the revenue streams of Web sites,the bank said fragmented markets and India's multilingual characteristics should favour the growth of Internet advertising.

Also, an undeveloped shopping culture favours one-stop Web sites like rediff, which should attract the wealthy NRI market.

Goldman Sachs said that China will have 80.5 million users by 2003, while Japan with 58 million users will be overtaken by India. India had a mere 2.3 million users till 1999, while Japan was placed much above with 222 million during the same period.

Internet users in Asia, excluding India and China, will total 58 million by the end of 2003, the report added.

India's technology sophistication and lower access charges for users (with even free ISPs) will be the factors that will drive Internet usage in the country, Goldman Sachs said.

Further, alternative models of access like cable TV, alternative access mediums like mobile phone and proliferation of Internet kiosks will push the Net boom in India.

"There are already in excess of 10,000 Internet kiosks in India. most of whom are charging less than a bottle of Coca-Cola for an hour of Net usage." according to the study.

On the emergence of cable TV as a driving force for Net usage, the report said, "Internet via cable TV has a lot of potential in India given the fact that there are about 25 million cable and satellite households (translating into about 100-125 million viewers) relative to a PC base of about four million.

"Adoption of cable TV by Indian households has been one of the biggest success stories in technology and media in India," it added.(PTI)