Nokia Solutions and Networks (NSN) has published the MBit Index study, an annual report on mobile broadband performance in India.
The findings of the report indicate that data traffic generated by 2G and 3G services during 2013 have increased by 87 per cent. 2G and 3G data traffic in India have witnessed 59 per cent and 146 per cent growth, respectively. Further, mobile data traffic generated by 3G services has more than doubled in India in 2013, growing at a much higher rate than in other parts of the world where mobile broadband data is expanding at 100 per cent on average.
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 megabyte of data compared to 146 megabyte consumption over 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 have led to increased migration of high end 2G customers to 3G.
Analysis by circles shows that category A is the highest contributor of 3G in India, driving half of all mobile data in the country. 3G mobile data consumption grew by 185 per cent in 2013, a significant increase considering that these circles had registered the highest 3G payload the year before. In category B, 3G data payload surpassed that of metros with 3G now accounting for 31 per cent of the total traffic. Both categories indicate growing demand for high-speed services, providing operators a huge opportunity to offer superior connectivity to their customers.
However, further research in 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, the analysis of the leading 50 cities where 3G service has been launched shows that additional 10 per cent to 15 per cent 3G sites are required to match the existing 2G coverage. In category B there is a gap of 15 per cent to 20 per cent sites. Moreover, there are still a few cities among the top 50 where 3G has not yet been launched. On average, 20 per cent to 25 per cent additional sites are needed to cover the cities that are not yet covered in category A and B.
Commenting on the results of the study, Sandeep Girotra, head, India region, NSN, says, ?India is recording mobile broadband data growth figures higher than most other markets. 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 a 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.?
Key highlights of NSN MBit Index Report –
Mobile data (2G+3G) in India has been growing to reach double digit figures. Total mobile data increased by 87 per cent from Jan 2013 to Dec 2013. 3G continues to be the prime contributor of data growth, growing its share from 33 per cent in 2012 to 43 per cent of total mobile data in 2013.
In the year 2013, 3G data usage grew by 146 per cent in 2013, exceeding the world?s average mobile broadband growth rate.
3G has become the preferred technology for data consumption and a prime data growth contributor. 3G?s represents 43 per cent of total mobile data ? an increase of 10 per cent, from the year before. Meanwhile, the 2G growth rate stabilised at 59 per cent in 2013.
2G, 3G and overall data traffic growth trends at a circle category level.
Of all telecom circles, metro circles have been found to account for half of the 3G payload of the total population.
Category A (36 per cent of the covered population): 3G data grew by a record 185 per cent year on year (y-o-y) in these circles. CAT-A now drives half of all 3G mobile data in the country.
Category B (39 per cent of the covered population): 3G accounts for 31 per cent of data traffic in CAT-B circles
Category C (14 per cent of the covered population): 3G payload increased by over 165 per cent in 2013, with 3G now accounting for 47 per cent of the total data.
Data consumption per user on 2G and 3G for 2013
An average 3G user consumes 3.6 times more data than an average 2G user. Currently, each 3G user consumes 532 MB per month while the intake of a 2G consumer is about 146 MB per month. Since 2012 subscribers are consuming additional 100 MB of 3G data per month.
In certain metros and category A circles, the average data consumption per user is as high as 1 GB per month, indicating huge demand and sustained interest in 3G services.
Category-wise requirement of 3G sites deployment for increased coverage:
Metros: Of all telecom circles, metro circles are best covered geographically. Still, there are patches where 3G is handed over to 2G. On an average, NSN sees an additional requirement of 15-20 per cent of current sites in each metro circle to match the number of existing 2G sites. Besides, small cell deployments have been known to enhance 3G user experience, especially in the face of a burgeoning demand for data among metro commuters.
Category A Circles (Top 50 cities): Each category A circle reflects a gap of 10-15 per cent new 3G sites to match the existing number of 2G sites in these cities. In order to provide ideal coverage, operators need to build 20-25 per cent more 3G sites.
Category B Circles (Top 50 cities): These circles reveal a gap of 15-20 per cent new 3G sites to match the existing number of 2G sites in these cities. NSN suggests that these circles would need an additional 20-25 per cent new 3G sites. Given the 115 per cent y-o-y increase in 3G data in 2013 and a lack of robust fixed network access, it is crucial to fill the existing 3G gap in these circles.
Category C Circles (Top 50 cities): In the worst position is the category C stretch of regions, which face a lack of fixed networks that result in poor coverage of 2G and 3G data. Operators need to build both 2G and 3G networks across these circles as mobile data growth trends in these regions (2G growth rate of 56 per cent y-o-y and 3G growth rate of 165 per cent y-o-y) in 2013 are encouraging and indicate a big demand for high-quality mobile networks. NSN suggests additional 25-30 per cent 3G sites are required to provide the same coverage in category C cities as 2G.
