Wi-Fi is enabling innovative and flexible business operations, supporting economic development and improving quality of life across India. Wi-Fi's performance, security and affordability, combined with growing access to broadband internet connectivity are contributing in India's ongoing economic growth.
PC Ownership and Broadband Connectivity
In other geographic markets, Wi-Fi adoption has followed on the heels of a large installed base of computers and widespread broadband internet connectivity. Following economic liberalization policies adopted by the Indian government in 1991, Indian citizens started seeing growth in per capita income and a corresponding increase in spending power.
Computer sales in India starting showing impressive growth in 2002 powered by increased spending power and falling equipment prices. The Information Technology and Office Products Survey (ITOPS) industry report released by the Manufacturers Association for Information Technology (MAIT) reporting on the six months ending September 2008 shows lowered growth expectations for computer sales, but notebooks still account for about 25 percent of all computer sales in India, with notebook sales being split equally between the consumer and enterprise markets.
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The preference for notebook computers is growing, and the trend is especially pronounced in small and medium-sized enterprises (SMEs) and smaller cities. In the six months ending September 2008, SMEs accounted for over 63 percent of the notebooks purchased by enterprises, and smaller cities contributed to three-fourths of the total notebook sales in the enterprise category.
Wi-Fi comes standard in nearly all notebook computers and as a result even with flat sales forecast for 2008-2009 the equipment base that includes Wi-Fi capability is substantial and growing.
The Indian government has made efforts to foster growth in broadband internet subscribers. The Telecom Regulatory Authority of India (TRAI) and Department of Telecom (DOT) have targeted increased broadband internet access for enterprises and home users as a critical driver to the socio-economic development of India.
The broadband policy of 2004 set a target of nine million broadband subscribers by end of 2007. While the current number is well short of the target, the broadband subscriber base has shown steady growth with a year-over-year growth rate similar to cellular subscribers.
A large part of this growth is driven by the enterprise segment - according to the ITOPS industry report for the six months ending September 2008 businesses account for 28 percent of entities using the internet. MAIT defines an entity as an "establishments/individual with internet connection; an entity may have multiple users. Business entities have embraced broadband connectivity – approximately 75 percent of business entities with internet access have broadband connections.
Also of note, Internet connectivity is extending into second-tier metropolitan areas with business connectivity approaching 50 percent in the top 16 metro areas.