61% Annual 3G Growth for India Mobile

India will have 236 million mobile Internet users by 2016 and 314 million by 2017, according to a report by KPMG produced on behalf of the Internet and Mobile Association of India.

India also will have over 500 million total Internet users by 2017. In June 2015, there were more than 350 million Indian Internet users.

The 3G user base in India is projected to grow at a CAGR of 61.3 percent compound annual growth rate  from 2013 to 2017.

There were approximately 82 million 3G subscribers in India at the end of 2014 and will reach 284 million by end of year 2017.

“With more than 300 million Internet users, India has the second largest internet user base in the world,” said Ashvin Vellody, KPMG partner. Still, Internet penetration has reached only about 19 percent.

The next wave of growth will driven by adoption of mobile internet, the report argues.

In 2014, the active Internet user base in rural India was 6.7 percent of the overall rural population of 905 million and accounted for 61 million users.

Some 4.4 percent of the total rural population used a mobile device to access the Internet, up from 0.4 percent in 2012.

But bandwidth might continue to be an issue. The report suggests 2G technologies will dominate in rural areas for at least a few more years.

In June 2014, 38 percent of active Internet users in rural areas did so using their mobile phones as the primary access venue.
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