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Mobile services

Digital Illiteracy Hinders India Internet Adoption

Digital illiteracy has emerged as a key obstacle to the adoption of mobile broadband in India, according to a recently released report from Sweden's Ericsson.

A headline finding of "The Changing Mobile Broadband Landscape" is that nearly 48% of consumers believe there is no difference between 2G and 3G in terms of connection speed. Moreover, around 30% of consumers do not know how to use smartphones and digital services, while 53% reckon mobile broadband will not add any value to their lives.

These findings follow the publication of a recent Mckinsey Report (part of the "Digital Inclusion Report 2014" released by the GSMA) revealing that nearly 69% of Indian consumers indicated lack of awareness was their main reason for not using Internet services.

These statistics suggest Indian service providers are doing a poor job of educating consumers about the benefits of mobile broadband.

Emerging Internet services are a very different ballgame from plain old voice, which can be used with little education and training. The high levels of illiteracy in India appear to be compounding the challenge for the country's operators.

Nevertheless, some service providers have recently started making an effort to address this problem. Vodafone India , for example, has been opening up mini stores in rural areas. Also known as Laal Dukaan (Red Shops), these are usually managed by a resident of the area and have become important touch points for subscribers to learn more about mobile broadband.

Idea Cellular Ltd. is another operator that has been active on the educational front. Its Har Mobile Par Internet (Internet on every mobile) initiative, launched last year, provides step-by-step digital literacy lessons using interactive voice response (IVR) technology. The IVR lessons cover basic topics like how to open Gmail and Facebook accounts.

"There has [sic] been approximately 500 tutorial activations per day since the launch of the IVR tutorial, making a clear business case for Idea to continue providing the tutorials," said Idea in the GSMA's Digital Inclusion Report.

As of December 2014, Idea had 12.9 million 3G subscribers but a total of 28.5 million who were using a 3G-enabled device, suggesting that lack of education may be affecting its bottom line.

Uninor , a smaller player, does not own a 3G network but has been making efforts to educate consumers in rural areas about mobile and Internet services. So far, it has launched 200 Grahak Shiksha Kendras (Customer Education Centers) that allow subscribers to learn more about these various technologies.

Another Uninor initiative, called Project Prayaas, led to a 12% increase in the number of customers using Internet services on their handsets. The operator now plans to extend the project to more than 400 semi-urban and rural locations in Uttar Pradesh (West) in 2015. Customers will be shown how mobile Internet services can help to improve their quality of life.

Next page: The Dawn of 4G

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DHagar 5/8/2015 | 4:40:55 PM
Re: Difference between 2G and 3G Gagandeep, interesting problem.

I agree with you that the problem is lack of knowledge and they will not value the speed and added features if they don't even know the value yet of being "connected".  I think the one carrier's approach to planting the seed by having initial users in rural communities will be effective.  Another idea might be to have a consumer service (ie government services, school, food, healthcare, entertainment) work with the carriers and offer a service of value to the consumers.  I think the opportunity to be "connected" might drive the interest in the use of the internet and open their world; then the faster connections and added value will have meaning.
Gagandeep Kaur 5/8/2015 | 5:46:04 AM
Re: Difference between 2G and 3G 3G coverage is now much better than what it was even a year back. But even so the subscribers (with 3G devices) are unwilling to move to 3G because they dont see value. Telcos in India have focused on the point that 3G speed is better than 2G but speed is hardly of any significance when the consumer doesnt know what and how to use internet?? 
GeeKv2 5/8/2015 | 4:45:57 AM
Difference between 2G and 3G Users think 2G and 3G are the same because they dont experience any difference. Network planning is so bad that it doesnt payoff to have 3G when the service you get is equivalent to 2G.

The carriers are to blame for the user's misconconceptions, not illiteracy.
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