Nokia Networks’ MBit Index study gives a number of lessons to the Indian telecoms industry which is crying for additional spectrum though cagey about investing in infrastructure.
The main news from Nokia Networks MBit study was that the India’s mobile broadband traffic rose 74 percent in 2014 – fuelled by 114 percent surge in 3G and 41 percent increase in 2G.
“A surge in 3G and 4G smartphone use underlines the greater need for mobile operators to expand the 3G network coverage and selectively rollout 4G services for higher speeds across all the circles while modernizing the existing 2G networks,” said Sandeep Girotra, vice president and head of India Region, Nokia Networks.
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Key points for Indian telecoms
Where to invest
# Since telecom spectrum is a costly commodity in India, local operators need to invest more in telecom infrastructure to meet mobile broadband demands. The study pointed out that there was an increase in coverage in metros. But telecoms can up spending to enhance coverage in small cities and towns in a significant way.
Telecoms can focus on category C circles to push 3G uptake. The report suggests that telecoms should not give up in Category A circles, where 3G data traffic rose a whopping 129 percent. In fact, Category A generates 43 percent of overall data consumption in India. In Metro circles, 3G data traffic increased 140 percent. But metro circles contributed only 20 percent of total traffic. Nokia Networks predict that 3G will contribute around 62 percent of total data usage by December 2015 against 52 percent in December 2014 and 42 percent in January 2014.
Engage with your 3G subscriber
# Consumers spend more time on mobile broadband during night hours
Several Indian consumers are utilizing mobile broadband during night hours for entertainment and other purposes. Probably, they use mobile Internet using Wi-Fi in the office and use their own smartphones and networks for mobile Internet at home in the night. Emails, video, social media, etc. are some of the main areas, where Indian mobile Internet users are trying to access using their mobile Internet.
3G devices is more than 3G user base
# It is time for Indian telecom operators to identity 3G smartphone owners and convert them to 3G subscribers. The study points out that total smart phone shipped were 77 million out of which 3G devices were 73 percent last year. Out of total devices shipment of 258 million in 2014, 22 percent were 3G devices. Total 3G data usage crossed over the 2G data usage in 2014 across all circle categories.
Invest in 3G now and 4G later
India has 130 million active 3G capable devices. On the other hand, there are 5.5 – 6 million active 4G capable devices at present. This indicates where Indian telecoms such as BSNL, MTNL, Airtel, Aircel, Idea Cellular, Tata Docomo, Reliance Communications, etc. should invest they funds. In any case, the investment by Indian telecoms is too small as compared with any US wireless operator.
Make more investment in 3G infrastructure
54 percent of 3G devices support peak data speed of 21 Mbps on 3G network in 2014 against 23 percent in 2013. This means devices and their owners are ready for utilizing better 3G speed and coverage. India has about 130 million active 3G capable devices but 69.9 million subscribers are active 3G users.
Baburajan K
editor@telecomlead.com
