G Krishna Kumar, Bangalore-based telecom executive, said the widening of internet user base in India will lead to Google improving its advertisement revenues, which currently constitutes over 90% of its total revenue."By enabling internet access to more people, Google's ad revenue can be strengthened," he said.
The Project Loon and Internet Sathi too will help in further penetration of internet in the country, which would translate into higher advertisement revenues for the company.
"Still over 50,000 villages in India don't have internet access and the Project Loon provides a sudden opportunity for enabling Internet access. How well Google is able to handle the operational problems that they would encounter will be critical," he said.
Krishna Kumar pointed that if the system developed by Google is robust enough then it will certainly help the government's Digital India. He said the business model between the search company and the telecom companies (telcos) would also be critical for its success.
In Indonesia, Google recently tied-up with telcos for offering Internet services through Project Loon.
"It will be interesting to see how this will play out and can provide learning for Google's plan to implement in other countries (like India)," he said.
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