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 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. 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 Indias 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 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. 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 MOBILEDATA 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 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. 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 Chinas 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
