India Data Traffic – The Broadband Story


Published on

Current status of data usage in India.

Published in: Business, Technology
1 Like
  • Be the first to comment

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

India Data Traffic – The Broadband Story

  1. 1. India Data Traffic – The broadband story Excerpts from Nokia Siemens Networks MBIT Index
  2. 2. India- Mobile Data Traffic• Total Mobile data traffic in India has grown by 54% (December 2011 – June 2012) – 3G data has registered 78% growth – 2G data has registered 47% growth• This indicates that mobile data in India is doubling every 12-14 months• Mobile data is the next big growth driver as subscriber additions continue to slow down in India
  3. 3. Metrics on Data: 2G versus 3G
  4. 4. Who says 3G is a disappointment?• 3G is outpacing 2G in data traffic growth• Contribution of 3G traffic to total mobile data traffic has risen steadily from 20% to 25% over last 7 months• 3G growth rate more than doubled due to recent tariff cuts• Drop in tariffs has spiked adoption – From December 2011 to May 2012, 3G traffic grew by 7% month on month – May 2012 to June 2012, 3G traffic grew by 17%• Clear spike due to the 3G tariff cuts in May indicating the price elasticity of 3G tariffs and the future potential of 3G uptake• As 3G tariffs reduce, coverage increases and devices become more affordable, 3G growth will accelerate
  5. 5. Pan India Level Mobile data trends 2G Mobile data usage (GSM) in India by applications (June 2012)On average, each 3G user consumes 4 times more datathan each 2G user indicating 3G as an acceptablealternative for broadband in terms of speeds andexperience Web browsing is the killer application on mobile dataHowever, 2G data will continue to meet the needs of a Contribution from audio & video haslarger proportion of end users. Hence operators will need increased from 13% in Februaryto continue to Invest and harvest their 2G networks. 2012 to June 2012 14% of current 3G mobile data driven by audio, video and image uploads
  6. 6. Category level mobile broadband trends Circle Tiers Population covered Contribution to Total Mobile data Metros 11% 21% Category A 35% 36% Category B 40% 36% Category C 14% 7%• Category B and below circles are driving India’s mobile broadband story – Indicating extreme need for information empowerment through broadband – Dearth of fixed broadband – Increasing network coverage driving this data growth
  7. 7. Category level Mobile broadband trendsCircle Tiers Population Contribution to 2G Data 3G Data Comment Covered Total Mobile growth growth data Metros 11% 21% 24% 81% 3G at 10-12% device penetration  Substitution effectCategory A 35% 36% 46% 70% 3G device penetration @ 5%Category B 40% 36% 55% 87% Strongest demand for mobile dataCategory C 14% 7% 107% 70% The base effect inflates the numbers
  8. 8. Where is 3G data being consumed?• Peak hour for 3G is between 10PM to 11PM indicating, that a large proportion of users access 3G services at home for personal entertainment
  10. 10. 3G coverage in residential areas• Mobile data users consume data mostly at home during non- working hours.• Operators need to focus on in-building coverage and ensuring good speed and quality of experience in these areas, perhaps target residential areas with limited fixed broadband reach
  11. 11. Driving penetration of affordablesmart-phones and 3G enabled devices• Entry barrier for 3G adoption in India is higher as a large proportion of users need to replace their handset to access 3G and data services• While operators in other markets, subsidize and bundle devices, Indian operators need to look at new business models to improve smart phone penetration
  12. 12. Bridging the gap in data affordability and speed• “Perceived” gap between 2G and 3G tariffs is higher than the perceived difference between 2G and 3G speeds.• Operators needs to bridge this affordability gap by offering for money plans, sachet plans, applications based plans as well as investing in improving the end-user experience for 3G
  13. 13. Investing in Channel Education• 70% retailers & distributors not educated about the benefits of 3G• Operators must invest in educating the channel about benefits of 3G and how to use 3G services to boost mobile data adoption in India
  14. 14. Boosting local content and applications• China’s internet usage surge was accompanied by a boom in Chinese language based internet sites• Internet content in India needs to be enhanced with more local, regionalized applications, that support multiple languages and cater to specific target groups
  15. 15. THANKS