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.
– 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.
– 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.
Data Source: TRAI
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