Indian smartphone users spend more on 3G services than those in China

New Delhi | Updated on March 12, 2018 Published on October 12, 2012

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Third generation (3G) mobile services may not have lived up to the hype but Indian mobile operators are now beginning to get good returns.

According to a study done by Ernst & Young, the average monthly spend of 3G smartphone users stand at $43 (Rs 2,267) for post-paid users and at $27 (Rs 1,423) for pre-paid card subscribers.

While this is still lower than what 3G users in the UK and Australia spend, Indian subscribers are spending more than the Chinese and the Russians.

This is good news for Indian telecom companies that have been struggling to improve their revenues with the average revenue per user from voice services at only about $2 (Rs 105) a month.

Overwhelming users

Ernst & Young survey across 12 countries highlights that navigating through mobile data price plans and new mobile Internet services is proving increasingly complex and overwhelming to end-users.

The report highlights that in India, 31 per cent of the survey respondents clearly understand the mobile data tariffs offered by the mobile operators, which is highest when compared with countries such as the US where only 16 per cent, the UK – 24 per cent and China – 13 per cent.

According to the report, in India almost 54 per cent of the respondents prefer unlimited mobile data for a fixed price per month, while for mobile apps 33 per cent prefer free trial of limited content and option of payment of full version.

Data tariffs

Though smartphone users are twice as likely to use data services as feature-phone owners, confusion over data tariffs, lack of guidance from operators on the value of new services and concerns over privacy and security risk limiting the adoption of mobile data in the future.

Prashant Singhal, Partner in member firm of Ernst & Young Global, said, “Our report suggests that 40 per cent of the global users would try mobile payment services sooner if they had a greater understanding of service benefits. Also, there is fear of overspending which emerges as the number one reason for discontinuing using a smartphone service or not taking the option to use it after trying it out.”


Published on October 12, 2012
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