According to leading management consultancy McKinsey, the number of Internet users in India is expected to jump five fold to about 450 million by 2015 from its current level of about 81 million. Digital consumption is also likely to increase to about US$9.5 billion. These are the projections in a recent McKinsey Quarterly article by Laxman Narasimhan titled ‘Can India lead the mobile Internet revolution?’.

Despite only 7 percent of India’s large population having access to the Internet currently, the paper suggests that the elements are in place for India to be a truly mobile digital society. It is very likely that the PC will be by-passed and Internet access will mainly be through the mobile phone. Not only does the Indian consumer have a large appetite for digital content, but also other key elements necessary to usher in the mobile digital revolution seem to be getting in place now: both cost of access as well as mobile devices is going down and there is a growth in wireless networks. The article forecasts that by 2015, almost 41% of the 450 million internet users will be accessing the Internet through their mobile phones only, with only 21 percent accessing the Internet via their PC alone. The shift towards mobile Internet access couldn’t be more pronounced.

Here’s an exerpt from the article which argues why India may be on the way towards the mobile Internet revolution.

“There’s enough development in devices, networks, operating systems, and operator strategies to suggest that India is on track to resolving the challenge of affordable, easy Internet access. The average price of smart phones that deliver much richer content, including video, is falling rapidly—already nearing $125, significantly less than the cost of PCs. Mobile devices also are inherently easier to operate than PCs, and the ability to access Web sites with a single touch or a voice command (critical given India’s high illiteracy rate) is becoming a reality. Finally, Indian operators are starting to offer innovative rate plans for mobile data use, addressing criticisms of the prices of data plans and their perceived opaqueness. Cheaper, easier access for all is on the cards.”

Mobile content creators and marketers will have their hands full and up the ante significantly to take advantage of the mobile Internet opportunity, be it in the type of content created, the ease of use, and its presentation in new and interesting formats. Offering local language content will be essential in a country that is both diverse and has to contend with high levels of illiteracy. There will also be a need for development of payment systems and creation of innovative business models and revenue streams that will balance free and paid content offerings.

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