02/06/2016 8:33 PM IST | Updated 15/07/2016 8:27 AM IST

India Pips US In Number Of Internet Users

Indian consumers check their mobile telephones at a free Wi-Fi Internet zone in Mumbai on February 23, 2016. India is the world's second-largest mobile market and notched up its billionth mobile phone subscriber in October, according to the country's telecoms regulator. But in poorer Indian states such as Bihar, 'teledensity' -- the penetration of telephone connections for every hundred people -- is as low as 54 percent, with a stark urban-rural divide. AFP PHOTO/ INDRANIL MUKHERJEE / AFP / INDRANIL MUKHERJEE (Photo credit should read INDRANIL MUKHERJEE/AFP/Getty Images)

With 277 million people using internet, India has surpassed the United States in terms of the number of internet users and is now trailing only to China, according to a latest research report.

According to the annual Internet Trends Report by Mary Mecker of investment firm Kleiner Perkins Caufield & Byers, India is growing at 43% every year when it comes to internet usage as against a flat growth seen across the world.

The holistic report pegs the total number of global users at three billion which is growing at 9% annually, slower than what it was in the past few years.

Interestingly, the penetration of internet in India is just 22%, offering huge headroom for growth in internet usage in the country, especially over mobile. Although it is a huge opportunity, customer acquisition in India is challenging considering the poor infrastructure and low incentives, the report highlights.

The report also captures the trend in smartphone market that has seen a slowdown in growth. There is around 21% growth in users and just 10% rise in shipments, down from 31% and 28% respectively, the report shows.

Asia-Pacific continues to be a bright spot for these smartphone sellers with more than half (52%) of the world’s smartphones sold in the region, up from 34% in 2008.

At $158 per unit, India has the lowest average smartphone cost.

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