Source: The post is based on an article “Internet blues for media” published in Business Standard on 20th January 2023.
Syllabus: GS 3 – IT and Computer
Relevance: reasons behind declining internet users in India
News: There has been a decrease in the use of the internet by the people. This article discusses the reasons behind low consumption of the internet by Indians.
What is the reason behind low use of the internet in India?
The prices of smartphones have gone up due to the chip shortage in the market and due to the supply constraints.
As per the IDC data, the Indian smartphone market declined 10 per cent year-on-year in the third quarter of 2022. This was the lowest third-quarter figure since 2019.
The prices of smartphones have also affected the internet growth in India because a smartphone is the first way into the internet and a primary device to go online.
What will be the effect of low use of the internet in India?
It will have ripple effects and its effects will be felt across sectors, including education and banking.
It will also affect online advertising because if fewer people will be online there will be fewer views on the advertisement which will bring uncertainty for both advertisers and digital businesses.
Further, the number of people using broadband has remained at the same level for two years now.
As per the Telecom Regulatory Authority of India (TRAI) data, internet growth fell down by 4 percent in 2021 and by June 2022 the growth in internet subscribers was less than 1 per cent compared to the same quarter in 2021.
What is the way ahead?
According to the telecom analysts, the chip capacity will improve in the second half of 2023. This will ease the demand-supply situation making chips accessible for entry-level smartphones.
Hence, the price of smartphones will fall with more people getting access to phones and the internet.
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