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Chart: Indian Internet Service Provider Revenues – Mar 2011 To Dec 2012

The total revenue of Internet Service Providers as reported by the Telecom Regulatory Authority of India (TRAI) for the quarter ending December 2012, was Rs 2978.85 crores, down by 0.53% from Rs 2,994.62 crore during the quarter ending September 2012.

Some highlights:

– The total revenue of ISPs over the last two years from March 2011 to December 2012 has increased only by 10.92%. This is despite the increase in the Internet usage in India. A report released by Mary Meeker, a partner at Kleiner Perkins Caufield & Byers (KPCB), had noted that as of December 2012, India has 137 million Internet users. Note that internet users does not necessarily mean that they are internet subscribers as well.

– Also note that for the last few quarters India has seen a steady increase in wireless subscriptions but a steep decrease in wireline subscription, indicating that people have dropped out of the Internet services instead of switching to wireless.

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– The fact that the ISPs did not see a significant increase in revenue indicates two things — either ISPs are not adding enough subscribers to sustain healthy or required revenue growth; or that the bandwidth cost for the consumers could have decreased bearing no effect on the revenue for ISPs.

ISP Revenues


Data Source: TRAI

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