Mobile data traffic grows by 87% on strong 3G uptake

Tariff reduction and sachet packs for Internet services being offered by telecom operators seems to be paying off.

Nokia Solutions and Networks’ MBit Index study, an annual report on mobile broadband performance in India, reveals a 87 per cent rise in data traffic generated by 2G and 3G services during 2013, driven by strong 3G growth. According to the study, 3G data traffic grew by 146 per cent, surpassing the world average that is roughly doubling every year. 2G data traffic continues to stabilise, growing by 59 per cent over the same period.

>Click here to read the complete text of Nokia Solutions and Networks’ MBit Index study

NSN’s MBit Index also shows that 3G users continue to consume more data on average than 2G users. In December 2013, a 3G user consumed 532 megabytes of data compared to 146 megabyte for 2G. In some of the major urban centres the average data consumption per user is as high as one gigabyte per month, indicating the rising popularity and uptake of 3G across India. In addition, premium tariff reductions in 3G services in early 2013 led to the increased migration of high-end 2G customers to 3G.

Analysis by circles shows that category A circles were the highest contributors to 3G in India, driving half of all mobile data in the country. 3G mobile data consumption grew by a record 185 per cent in 2013, a remarkable increase considering that these circles had registered the highest 3G payload the year before. In category B, the 3G data payload surpassed that of the metros, with 3G now accounting for 31 per cent of the total traffic. Both categories indicate a big demand for high-speed services, giving operators a huge opportunity to offer superior connectivity to their customers.

However, further research in the ‘Top 50’ cities in all category circles reveals that 3G coverage in India is still limited and requires focused investments to achieve the data performance users demand. In category A, for instance, analysis of the leading 50 cities where 3G has been launched shows that 10-15 per cent additional 3G sites are needed to match the existing 2G coverage. In category B there is a gap of 15-20 per cent sites. Moreover, there are still some cities among the top 50 where 3G has not yet been launched. On average, 20-25 per cent additional sites are needed to cover the cities that are not yet covered in category A and B.

“India is recording mobile broadband data growth figures higher than most other markets,” said Sandeep Girotra, head of the India region at NSN. “With the recent spectrum auctions paving the way for acceleration of mobile broadband penetration in the country, there is a great opportunity for India to create world-class infrastructure and improve the lives of millions of Indians. This can be achieved through a wider 3G rollout as well as through selected introduction of LTE technologies and the modernisation of existing GSM networks.”

Nokia Solutions and Networks’ MBit Index is a report on mobile broadband performance in India. The main objective of the study is to provide reliable time series-based statistics and insights about mobile broadband traffic growth in India, and co-relate those trends with changes in various ecosystem drivers such as subscriber usage patterns, tariffs and coverage.

This is the third edition of the NSN MBit Index study. It evaluates 2G, 3G and overall data traffic growth trends pan-India and at a circle category level, data consumption per user on 2G and 3G, and deep 3G coverage across circle categories in India — between January and December 2013.