What is the impact of Internet Outage on the Society?

Internet Shutdown

Table of Contents

Humans have gotten accustomed to internet usage so much that its value has risen to the same levels of food and air. It has become a lifeline for humans in many ways. Most of the work today cannot be carried out without using the internet at some stage.

For businesses, integrating the internet and similar technologies has become a must to stay ahead in the market. As such, it is important to analyze the impact of internet outage on society.

impact of internet outage

So, now let’s see what does internet shutdown mean. Internet Outage is the failure of internet services on a large scale due to cyber-attacks or infrastructure failures.

How does Internet shutdown work? Well, imagine a scenario in which there are problems at internet service-providing companies like infrastructure or system error, due to which internet services are put on maintenance or halt.

In that case, these situations are termed Internet outage. Also, another example is, if servers are hacked, and internet services stop working. Internet blackout or Internet Shutdown are other terms that can be used for the same. 

Computer troubleshooting issues or System failure

With the growth in the adoption of the internet worldwide by individuals, businesses, education platforms, and many more, the importance of the virtual space skyrocketed. There have been over 100 instances of internet shutdown in India in 2020. Which gives rise to a question if our country has digitally adapted or not?

For a fact, according to Statista statistics, India saw a rise in Internet penetration from a mere 4% in 2007 to 45% in 2021. This means that right now, around half of the population is dependent on the internet for their day to day tasks.

The reason for the other half not adopting the internet may include lack of infrastructure, monetary issues or connectivity problems.

Key takeaways

  • Meaning of internet outage – Global Internet Outage is the failure of internet services on a large scale due to cyber-attacks or infrastructure failures.
  • Impact of Internet Outage on society as the internet has already become an integral part of our life.
  • Learn importance of integration of online technologies as it has become a part of each and every work.
  • Future decisions that needs to be taken like improve infrastructure, pattern analysis & pre-announcements, etc.

Integration of Internet

Due to the COVID-19 Pandemic, the need for digitization and technology adoption has grown exponentially. It has become important to stay up-to-date with the emerging technologies.

Integration and use of Internet in various things.

In the past year, the country was under complete lockdown to protect the people against the virus, a normal way of working was not possible for many.

Online shopping buyers and sellers might not have been affected deeply by this situation, but for fieldwork businesses, it was a challenging time.

Industries like Tour & travel, Airline, and transportation sectors had to shut down their operations. Few companies that decided to operate in these times had to integrate the use of online technologies within their businesses.

This was the only way to make sure the company didn’t run in loss and survive in the market. With the use of the internet, work from home was an alternative option for many.

For example, most of IT work revolves around using a computer for working, which can be done easily at home. People can connect with each other for work through the use of Cloud Computing and other similar internet services.

Working from comfort of home by using Internet.

Apart from businesses, for individual’s internet has become a really convenient tool for information gathering. For any query, people’s first reaction is to look up the internet. Even the Indian education system heavily depends on internet to provide knowledge to students nowadays.

It has also become an integral part of many people’s lives. You will find the use of the internet in daily tasks like alarm & notification reminders, mobile, smart TVs, calls & messaging, learning, etc. But in these cases, these tasks have many alternative ways available for doing them. 

It’s 2021 and by now Cloud Storage has emerged as one of the most convenient and efficient methods to store data online. And something like an Internet Outage can cause a lot of financial loss for many. Let us look at some of its impact.

Impact of Internet Outage on society and sectors

In any sector, you can find the use of internet services at some stage of operation. Let’s talk about the education sector. Online virtual learning is the new way of teaching.

Companies are switching to digital marketing rather than a physical promotion (like promotions in malls). Due to the lockdown, online booking and home delivery have seen a rapid increase in their usage. Even in vehicles, you will find internet usage nowadays, like the use of the internet for GPS.

Just imagine what an Internet Outage can mean for the sectors mentioned above. With no possible way of teaching, the education system will crumble down. Worldwide promotion of a product via digital marketing is possible only because of the internet .

But due to Internet Outage, the range of people to which companies can reach out will drastically decrease. Next, online and delivery services won’t be able to function at all, their whole premise of operation depends on the use of internet services.

GPS tracking software used in vehicles. Impact of Internet outage

Lastly, just imagine that you need to reach your destination, and for directions, you are solely dependent on Google Maps. Now, I understand that even with Internet Outage happening, you can still ask others for directions but this way of working will just lead to a wastage of time and you will not be able to identify the authenticity of the information.

All the above problems just bring to light how valuable the internet is and how harmful an internet outage can be.

Effects of Internet Outage on Economy

Internet Outage has a widespread impact on the economy. The first and most important will be a monetary loss. Today, with most of the tasks dependent on the internet, an outage can cause disruptions in workflow and indirectly lead to losses.

Disruptions will also mean that there will be a decrease in productivity, efficiency, and morale levels. Businesses will have to immediately search for other methods of doing a particular job, which will increase expenses.

See the correlation between internet outage and economy in the above image. Practically, the impact on the manufacturing industry will be low as compared to Banking, E-Commerce, and travel industry. It will have a varied effect on the economy of different sectors.

Internet outages will result in decreased productivity and increased costs. It will affect the revenues and ultimately, the growth of the country. 

Internet shutdown can cost companies to lose billions. One such instance in India – A decision from authorities to lower the band speed and apply an internet shutdown resulted in monetary losses of around $ 2.88 billion.

One positive impact will be that, with companies not able to reach out to far places (which was possible with Digital Marketing), local dealers will have more chances to deal in business.

Recommendations for Future

Recommendations or advise for internet outage

With frequent connectivity issues or internet shutdowns, it is highly important to make preparations for the future.

  • Have other forms of communication lines (Telecomm) installed as a backup that can be used in the scenario of internet shutdown.
  • If there is a pattern in internet outages, people and businesses should plan their activities accordingly. These time ranges when outage occurs, can be assigned as free time or work that doesn’t depend on internet use can be carried out.
  • Pre-announcements or notifications will help employees and partners to be prepared for issues and reduce losses.
  • Improve internet connectivity, digital security as well as physical hardware infrastructure with the latest updates in technology.
  • Sharing technology and experience of big companies with startups. So that more service providers can be generated.


The internet and similar technologies are here to stay, and they will keep developing in the future. It is practically impossible to get rid of or reduce their usage.

The benefits of internet technology outweigh the adverse effects by a long shot. Therefore it is important to analyze the impact of internet outage on society.

With innovations in the IT sector, it will only lead to more dependence on the internet. And this will only make Internet Outages an even bigger threat.

The benefit of the internet, such as an increase in productivity, efficiency, and gaining a bigger market, is very advantageous. But at the same time, a situation like an Internet Outage will lead to massive losses. So, people will just have to learn to adapt.

It’s better to chart out future backup plans until the IT system’s reliability increases. Keeping this issue in mind, the immediate thing to do will be to come up with alternative methods of doing work.

Also, not only for your own company but the same methods should be shared with collaborating companies and partners for a quick response in such situations.

If child companies wait for the parent company to make a decision, in this valuable time, loss keeps piling up. As such, a quick precautionary response is a necessity. These precautionary methods can save billions for a company in such situations. 

Frequently asked questions

What is the internet outage?

Internet Outage is the failure of internet services on a large scale due to cyber-attacks or infrastructure failures.

What are the benefits of the Internet?

Increased productivity and cost reductions are the most significant benefits.

How does the Internet shutdown affect the economy

Monetary loss is the biggest issue. According to Top10VPN, a loss of $4.01 billion was recorded globally for internet shutdown issues.

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