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Internet literacy and usage is quite low even in urban India: PwC Report

According to a report titled ‘Innovation in Telecom’
conducted by PricewaterhouseCoopers (PwC), even in the urban regions in India, internet
literacy is quite low, and so is the usage. “It will take a generation for data
usage to pick up. Non-voice services, including value added services and SMS
form just five to 15 per cent of total operator revenues, which goes to over 50
per cent for operators in major countries. The number for mobile data would be

According to a report titled ‘Innovation in Telecom’
conducted by PricewaterhouseCoopers (PwC), even in the urban regions in India, internet
literacy is quite low, and so is the usage. “It will take a generation for data
usage to pick up. Non-voice services, including value added services and SMS
form just five to 15 per cent of total operator revenues, which goes to over 50
per cent for operators in major countries. The number for mobile data would be
still lower,” the report added.

According to the report, rural tele-density has still not
reached the targets and the Universal Service Obligation (USO) Fund created for
the telecom industry has not been utilised adequately. “Most product
innovations still originate from the Western economies while Indian companies
seem to be content adopting them. One of the reasons is lack of proper research
infrastructure, education and investment,” the report said.

“Talent is one drawback we severely face in
India. While India produces twice as many engineering graduates as the United
States, only less than five per cent have basic vocational skills essential for
fruitful employment. Only about 25 per cent graduates in India have the skills
that deem them fit to work for multinational companies. This is because most
institutes in India are built with the idea of meeting the demand for graduate
education, focused on enrolling as many students as possible,” the report
added. The report also expresses concern about the anxiety among telecom sector
investors about clarity in telecom policy.

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