LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2021
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
Read in App
Business News » Companies News

Mobile data consumption to grow four-fold but Wi-Fi may ground operator revenues

Mobile data consumption is set to improve in five years but operators stare down the precipice of a Wi-Fi revolution.

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Mobile data consumption to grow four-fold but Wi-Fi may ground operator revenues
In the past five fiscal years India's mobile data consumption grew 24 times. Image Source: CRISIL report
Written By: ZeeBiz WebTeam
Updated: Tue, Jul 25, 2017
05:17 pm
Mumbai, ZeeBiz WebDesk
RELATED NEWS
Free data packs, JioPhones, now free Wi-Fi? Reliance Jio may connect nearly 38,000 colleges Free data packs, JioPhones, now free Wi-Fi? Reliance Jio may connect nearly 38,000 colleges
Trai to begin consultation on mobile apps seeking user data Trai to begin consultation on mobile apps seeking user data
Reliance Jio's Rs 153 plan for data users; Here's what you should know Reliance Jio's Rs 153 plan for data users; Here's what you should know
Vodafone offers 70GB data, unlimited voice calls for Rs 244 Vodafone offers 70GB data, unlimited voice calls for Rs 244
Reliance Jio effect: BSNL to install 25,000 Wi-Fi hotspots in four months Reliance Jio effect: BSNL to install 25,000 Wi-Fi hotspots in four months
Key Highlights
  • Overall mobile data traffic could multiply 4-fold through fiscal 2022
  • Data Consumption to reach 2.5 GB per user per month.
  • Dependence on Wi-Fi to increase in India. 

A taste of Reliance Jio’s freebies exposed India to high data consumption in the ending months of 2016. A report by CRISIL research on Tuesday showed that mobile data usage per user will reach 2.5GB per month in the next five years.

“Indeed, peak data usage for RJio reached 5-6 GB compared with 1.25 GB for the industry during the free services period. Many are betting the overall industry usage will gradually reach RJio’s peak levels,” the report said.

“CRISIL Research expects mobile data usage growth to moderate to ~12% annually and touch 2-2.5 GB per user in the five fiscals through 2022, and stabilise thereafter,” the analysts said.

Internet penetration in India is relatively low. "Urban internet usage is nearly 68-70% in comparison rural is only 13%," telecom analyst from Care Ratings, Gaurav Dixit said.

India ranked last among top LTE markets.

Source: CRISIL report

“By 2022, mobile data subscriber penetration in India will have soared to 80% from less than 40% now, which means telcos will have to increasingly sweat per-subscriber usage to bolster incremental revenues thereafter,” the report said.

With the rise of social networking and online streaming, India’s mobile data consumption increased 20-fold as CRISIL said, “Mobile data consumption in India has grown 24 times in the past 5 fiscals.”

“Data from operators show that videos contributes nearly 80% to total data traffic (direct and indirect) in India,” the report said adding that it was ‘in line with evolved markets.’

In comparison to the past five years, the ‘four-fold’ growth of mobile data consumption cited by CRISIL is much slower.

Data usage has grown since FY13, as shown by CRISIL report; however 4G average data usage will moderate to 3GB per month.

Source: CRISIL report

“One reason mobile traffic has been able to sustain despite the fact that service levels of Indian mobile networks are not at par with international standards is poor Wi-Fi infrastructure. India lacks in Wi-Fi hotspots, which is reflected in the time spent on surfing internet over Wi-Fi being a low 18% compared with 50% in the US,” the report said.

Reliance Jio is now ramping up to launch its JioFiber broadband services and is even seeking permission to connect colleges using Wi-Fi. Other telcos will not be far behind.

The report pointed out that Wi-Fi services are not as expensive as mobile data.

“The cost of offering internet services on Wi-Fi is significantly lower than that on mobile networks. The Wi-Fi cost per MB is ~2 paise on average, or a seventh of that for mobile internet,” the report said.

Source: CRISIL report

With Wi-Fi hotspots coming up at coffee shops, theatres and even railway stations, the dependence on them will curb the growth of mobile data consumption.

Source: CRISIL report

“We are at the beginning of a rapid transition of data traffic from mobile to alternative networks. Hence, the mobile data party has a higher probability of stabilising than continuing at the current pace,” the report added.

Also Read:

  • Can Mukesh Ambani's Reliance Jio force rural India to do what other telecom companies couldn't?
  • Can Jio revolutionise home broadband like it did with mobile internet?
  • Unable to use all your 3G, 4G internet? Airtel to allow rollover of unused data

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Mobile data usagedata consumptionwi-fi hotspotsinternet penetrationinternet usageTelecom
RELATED NEWS
Free data packs, JioPhones, now free Wi-Fi? Reliance Jio may connect nearly 38,000 colleges Free data packs, JioPhones, now free Wi-Fi? Reliance Jio may connect nearly 38,000 colleges
Trai to begin consultation on mobile apps seeking user data Trai to begin consultation on mobile apps seeking user data
Reliance Jio's Rs 153 plan for data users; Here's what you should know Reliance Jio's Rs 153 plan for data users; Here's what you should know
Vodafone offers 70GB data, unlimited voice calls for Rs 244 Vodafone offers 70GB data, unlimited voice calls for Rs 244
Reliance Jio effect: BSNL to install 25,000 Wi-Fi hotspots in four months Reliance Jio effect: BSNL to install 25,000 Wi-Fi hotspots in four months

LATEST NEWS

Toothless Man United held to goalless draw at Palace

7th Pay Commission latest news today: DA hike, DR benefit, arrears, ease in LTC — updates that central government employees just cannot miss

ICSE CBSE Board Exam 2021: Top 5 exam tips for ICSE CBSE board exam students

PUBG Update: PUBG New State game may launch in India? Details here

6 sixes in an over: WATCH! Kieron Pollard joins Yuvraj Singh in exclusive club

HDFC Asset Management Company and Nippon Life India Asset Management: PhillipCapital highlights details for Investors

Stocks in Focus on March 4: MTAR IPO, IRCON, Adani Ports, IB Housing to Deepak Nitrite; here are the 5 Newsmakers of the Day

MTAR Technologies IPO subscription open from today; experts recommend 'SUBSCRIBE' for big listing gains

Gold Price Today 4-03-2021 – MCX Gold opens in red, falls by Rs 735 since Wednesday; cheaper by Rs 5203 in 2021

UP Gram Panchayat Election 2021 Reservation List Latest News Today: Check pradhan seat aarakshan details here

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved