Posts tagged ‘statistics’

Mobile Penetration, Mobile Data Speed and Consumption in India

In this blog post, we mentioned that India is the #2 market in terms of Internet users behind China. But did you know that India was the #2 telecommunications market in terms of subscribers since 2008?

The telecom revolution stated in India on July 31st 1995 with a mobile call between the then WB chief minister, Jyoti Basu, and Union communications minister, Sukh Ram.  Since then, mobile phones have permeated everywhere in India. There are 1,036 million telecom subscribers, 97% of these being mobile subscribers. The urban mobile teledensity is a mind boggling 147, 3x higher than rural at 49 (overall mobile teledensity of 79.2).

With such high penetration numbers, every telecom operator is now turning towards data to increase revenues. The growing smartphone penetration in India, driven by cheap handsets is expected to fuel this. In 2016, smart phone shipments are expected to overtake that of feature phones with analysts pointing out factors that can drive the average price of a smartphone further down from Rs.10,700/- in 2015.

While users in India are still more concerned about voice quality than data services (and the leading telecom operator has tried to take the high ground on this aspect with the open network campaign), among smart phone users elsewhere, data speed is considered to be the most important factor in determining both network performance and satisfaction with an operator.

 

mobile

 

[Here’s a quick look at the data in the infographic above (2015 data) :

  • 1,010.9 million wireless telecom subscribers
  • 311.7 million wireless internet subscribers
    • 60% of these connections are on GPRS/Edge networks
    • 36% on 3G technologies such as HSPA/WCDMA
    • & only 0.8% of connections are on 4g networks technologies such as EVDO/CDMA/LTE
  • The average mobile connection speed was 1,016 kbps with…
    • … the average 2G speed at 77 kbps
    • … the average 3G speed at 1,932 kbps and
    • … the average 4G speed at 9,415 kbps
  • The average mobile-connected end-user device generated 149 megabytes of mobile data traffic per month
    • Average non-smartphone generated 49 megabytes of mobile data traffic
    • Average smartphone generated 430 megabytes of mobile data traffic per month
      • 9x more mobile data traffic per month than a basic handset
      • Within this, the average 4G smartphone generated 1,256 MB of traffic per month in 2015, compared to 430 MB for non-4G smartphones.
    • Average tablet generated 1,671 megabytes of mobile data traffic per month
      • 34x more mobile data traffic per month than a basic handset
  • There are an estimated 239 million mobile connected smartphones, 23.9% of device connections, and they generated 69.1% of total mobile traffic
    • Incidentally, India has overtaken Japan to become the world’s third largest smartphone market
  • There are 3.8 million tablets, 0.4% of device connections generating 4.2% of total mobile traffic
  • In India, mobile video traffic is estimated to grow 20.8-fold from 2015 to 2020, a compound annual growth rate of 83%.
  • Currently, web and other data applications generate about 48% of mobile data traffic, Video generates 40% , streaming audio generates 10% and file-sharing the balace 2% of India’s mobile data traffic
  • Currently web browsing, emailing and social networking are the top three internet activities on smartphones ]

 

What these numbers tell you is that Indians are embracing the internet on the mobile, not PC. And this mobile Internet is currently work and social networking related. Going forward it will be increasingly video.

However, the quantum of consumption is still low. For example, the 430 MB consumed at an average speed of 2.643 kbps by an average smartphone on an average mobile connection is good enough to stream about half a movie in SD quality from Netflix. And, if you are going to use a social network like Facebook exclusively, it will last you about 4-5 hours (1 -2 MB per minute). These are of course averages. There is always the pareto principle, 33.9 Million mobile users (~11% of total mobile internet users) consume over 2 gigabytes of data per month. And it is from survey of these users, that you hear the hype about mobiles and apps.

The next few years are going to be exciting in this space, launch of multiple high spec smartphones at Rs.10,000 price points, roll out of 4G LTE (and imminent data price wars) and better last mile connectivity  will further fuel mobile data consumption.

{The Cisco, Ericsson, CMI and TRAI reports are sources for this article and infographic, and can be accessed at the links given.}

  • Ravindra Ramavath

September 8, 2016 at 3:05 pm 1 comment

Limitations of the SEC classification

This article in the Indian Express today mentions a proposal for better  identification  of  the Below Poverty Line (BPL) rural poor. The proposal suggests including classes like destitute, manual scavengers and primitive tribal groups  while excluding those who own telephone landlines, refrigerators, two, three or four-wheelers, tractors, farmers with Rs.50,000 kisan credit limit, those with income of Rs.10,000/month and more.

While discussions around accurate classification of BPL poor (whether urban or rural) are led by economists, sociologists and policy experts, marketers have also been discussing the need for an accurate scale that captures spending power (of various socioeconomic groups) and consumption trends. For instance, a leading marketer such as Rama Bijapurkar has mentioned here the need to calibrate the current SEC classification with respect to asset ownership.

But, let me give some background first…

Socio Economic Classification (SEC) is a common parameter used by businesses to understand consumption potential in the Indian population. The urban SEC classification is a combination of education level and occupation of the chief wage earner of the household. According to this system, the urban Indian households are split across SEC A1, A2, B1, B2, C, D, E1 and E2.

SEC Classification Grid

Although this parameter is very commonly used, it has its drawbacks. One of the fundamental drawbacks is – since the classification is based on education and occupation level only, it misses out on the fact that income levels within an SEC can be quite disparate. The grid simply assumes that higher education and better occupation leads to higher income and thus higher consuming potential, but this may not always be the case.

Take the case of a shop owner with only primary education (classified as SEC D) who may be earning more than a graduate junior executive (classified as SEC A2); therefore the shop owner may have the potential for higher consumption, despite being categorized into a much lower SEC.

The chart below clearly illustrates how the standard SEC grid misses out on the fact that income levels within an SEC can be quite disparate. This is especially true of SEC A, and to a lesser extent, of SEC B. While there is a fairly large chunk of SEC A (34%) that earns less than Rs.3 lakh annually, the rest is composed of fairly thin slices of varying income levels. The richest slice, 16% of SEC A that earns over Rs.15 lakh per annum comprises of people of widely divergent income levels and very different purchasing power and consumption trends.

Source: Indicus Analytics

Therefore, SEC is too simplistic a classification and cannot be used as a consumer segmentation variable on its own – it needs to be layered with additional defining criteria such as income, asset ownership, etc.

Perhaps this classification did work when India was a uni-dimensional, mass market. But, with growing product offerings, new brands entering the market, more players in the market space, increased consumer involvement in decision making and higher aspirations and needs – the consumer has evolved,  and so should the way of  classifying him/ her.

By,

EV Team

May 19, 2011 at 7:03 am 16 comments

Who is using the Internet & Social Media?

Internet user & usage

  • Age – 19-40 years age group constitutes nearly 85% of Internet users

        In India, ~50% users of Facebook are between ages 18-25 years; another 25% are between ages 26-35 years

  • Gender/ Working status – 85% of Internet users are male, 11% are working women, 6% non-working women and 2% are housewives

        Out of a total 25 million Facebook users in India, 16 million are male

  • City tiers – Top ten cities (Mumbai, Delhi, Bangalore, Kolkata, Chennai, Pune, Hyderabad, Surat and Nagpur) have only 37% of the total numbers of Internet users in India. 36% of all internet users can be found in small towns (like Udaipur, Belgaum, Mangalore, Nellore, Kozhikode, etc.) with a population of less than half a million.

        Out of the total 25 million Facebook users in India, 16 million users on Facebook are located in the top 10 cities using internet

  • Place of access – 40 million people in India access the Internet from work (confess now – you’re reading this blog while at office, aren’t you ? ), and 30 million from cafes, apart from 11 million households that have a broadband connection installed

        The percentage of people accessing the internet from office might explain why time spent on a site / blog / page is typically low, and the necessity for communication on the net to be in bite-sized chunks of information (we know this and yet we natter on and on in our posts! Put it down to self-indulgence.)

  • Usage – 97% are regular users (i.e. 2-3 times/ week), of these 79% of internet users use it daily 
  • Purpose of usage – 94% of internet users use the internet for email purposes, 73% use to download music followed by 56% for chatting. Other major purposes for using Internet are job searching (56%), social networking sites (54%) and finding information on search engines (52%)

 (Sources:  IGF, IMRB-IAMAI internet study, iCube report, Facebook) 

By,

Roshni Jhaveri

April 12, 2011 at 4:42 am 1 comment


Recent Posts

Categories

Enter your email address to subscribe to this blog and receive notifications of new posts by email.

Join 5 other followers