Mobile data traffic in India has grown 54% in the last 6 months, with 3G data growing 78% and 2G growing 47%. Mobile data in India is doubling every 12-14 months and is becoming a major growth driver as subscriber additions slow down. 3G data traffic is outpacing 2G and its contribution to total mobile data has risen from 20% to 25% over the last 7 months. 3G growth has more than doubled due to recent tariff cuts. Category B and C circles are driving India's mobile broadband growth, indicating a need for information access through broadband in these areas. Operators need to focus on improving 3G coverage, driving affordable smartphone adoption, bridging the price gap between 2G

1. India Data Traffic – The
broadband story
Excerpts from Nokia Siemens
Networks MBIT Index

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. Metrics on Data: 2G versus 3G

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. 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 data
than each 2G user indicating 3G as an acceptable
alternative for broadband in terms of speeds and
experience Web browsing is the killer
application on mobile data
However, 2G data will continue to meet the needs of a Contribution from audio & video has
larger proportion of end users. Hence operators will need increased from 13% in February
to 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. 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. Category level Mobile broadband
trends
Circle 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
effect
Category A 35% 36% 46% 70% 3G device
penetration @
5%
Category B 40% 36% 55% 87% Strongest
demand for
mobile data
Category C 14% 7% 107% 70% The base effect
inflates the
numbers

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

9. MEASURES TO BOOST MOBILE
DATA ADOPTION IN INDIA

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. Driving penetration of affordable
smart-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. 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. 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. 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. THANKS