As per the annual I Cube report from the Internet and Mobile Association of India (IAMAI) and IMRB International, the number of active Internet users in India had reached 32 million in September 2007, up only 10.9 million from 21.1 million in September 2006. The report also takes into consideration an obscure and completely irrelevant number of “ever” Internet users (those who have used the Internet at least once in their lifetime) of 46 million in September 2007.

Some things to keep in mind, before you make business decisions based on these numbers: firstly, “active users” are those who’ve accessed the Internet at least once a month. Secondly, this is an estimation based on a survey of 65,000 households in 23 cities(*). Thirdly, the report is commissioned by the IAMAI, which is an industry body representing Internet and mobile companies. One should also keep in mind that the number of dialup Internet subscribers had actually declined in India, from 9,271,031 to 9,224,555, between April and June 2007, and the country added only 750,000 broadband connections between October 2006 and September 2007.

Even Subho Ray, President of the IAMAI sounds worried, saying that 40 percent year-on-year growth (of ever Internet users) is not satisfactory: “If the broadband targets are not met in the Year of the Broadband there is a possibility of missing out on creating a virtuous cycle of better connectivity, better content and more users.”

*- Mumbai, Delhi, Chennai, Kolkata, Bangalore, Hyderabad, Ahmedabad, Pune, Patna, Lucknow, Ludhiana, Coimbatore, Guwahati, Surat, Nagpur, Bhopal, Bhubaneshwar, Durg, Vishakhapatnam, Trichy, Bellary, Panipat, Trisshur and Jalgaon