3G Data Triples in India，Mobile Data Nearly Doubles in 2012

In the first half of the research period, December 2011- June 2012, data traffic generated by 3G services increased by 78% while that of 2G services increased by 47%. In the second half, July 2012 - December 2012, data traffic generated by 3G services increased by 54% while that of 2G services increased by 18% on a larger base. Hence, the growth rate of 3G data in the second half of 2012 was almost triple that of the growth rate of 2G. In the second half, 2G data growth stabilized due to high-end 2G users migrating to 3G services.

There has been a 92% increase in mobile data traffic generated by both 2G and 3G services in India between December 2011 and December 2012, according to a study by Nokia Siemens Networks. The study further reveals that mobile data traffic generated by 3G services increased by 196% while mobile data traffic generated by 2G services increased by 66% during the period.

According to the study, each 3G user currently consumes close to 300% more data on an average than a 2G user. And currently, a 3G user consumes 434 MB per month on an average while a 2G user consumes 115 MB per month.

The 3G tariff reduction by operators in mid 2012 led to the significant growth in 3G data consumption across the country, with category A circles seeing the maximum impact. 3G services generated one-third of the total mobile data in the country in the second half of the year - up from one-fourth in the first half.

"The fact that data consumption by 3G users has tripled in one year clearly shows the rapid and steady increase in mobile data consumption in India. This translates into the need for high-quality mobile broadband services with improved speed and service quality to satisfy mobile broadband users," said Sandeep Girotra, head of India region at Nokia Siemens Networks. "In addition, the observations of trends in various circles underscore the need for a special focus on further enhancing 3G network coverage in A, B and C circles across the country. Constantly improving the quality of data services and fulfilling growing expectations of mobile broadband customers will be a win-win for both operators and data customers."

The study further reveals that in category A circles, there is a very strong tendency to access mobile data using smartphones. Forty five percent of the total data accessed by smartphone users is generated in these circles. But half the number of these users still access mobile data on 2G networks. This provides operators a huge opportunity to encourage 2G users to go for much faster 3G services. It also underscores the need for operators to make 2G/GSM networks more smartphone friendly in order to ensure a better customer experience. The report further reveals that data currently accessed by smartphones using 3G services in category B and C circles is much lower than the national average, with category B circles recording 75% of the mobile data consumption using 2G services only.

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New links with 4G deal made by O2 and BT

The deal will intensify speculation that O2 will in turn run a consumer mobile network for BT.

O2 will pay BT hundreds of millions of pounds to bolster its network to meet a sharp rise in demand for mobile internet access that is expected to result from the introduction of 4G.

Monday's announcement means BT will build and manage new fibre-optic "backhaul" links within the O2 network to carry data to and from its new 4G masts.
The mobile signal for 4G is due to be switched on this summer and the deal is understood to be worth around half a billion pounds over the next 10 years.
O2 said it expects the new technology to lead to a fivefold rise in demand for mobile data by 2016. It will offer internet access around 10 times faster than its existing 3G networks, allowing smartphone and tablet owners to access data-intensive services such as video streaming, without frustrating delays.
"With the UK’s 4G spectrum auction complete, UK mobile data traffic is set to grow by more than 400 per cent by 2016," said Adrian Di Meo, chief technology officer at O2.

UK mobile operators are racing to get their 4G networks up and running following Ofcom's auction of radio spectrum earlier this year. Only EE, the largest, already has a 4G network in cities and large towns. It got a head start because it had a surplus of older 2G airwaves from the merger of Orange and T-Mobile.

"We are moving quickly to get O2 up and running," said Chet Patel, managing director of BT Wholesale Markets.

The announcement will feed conjecture over BT's plans for the chunk of 4G spectrum it acquired in the auction.

It recently invited mobile operators to bid on a contract to run a BT-branded network for its staff and customers as part of its bundling strategy. Sky, BT's main rival in the consumer market, does not offer a mobile network.

BT could share its 4G spectrum with the winning bidder as part of its plans.
Such an offer would be particularly attractive to O2, which was was widely seen as a loser in the 4G auction. It bought a relatively small chunk of airwaves which came with an obligation to cover almost the entire country by 2016.

By contrast, the spectrum owned by BT is at a higher frequency that would make it easier for O2 to give reliable coverage in densely populated areas.

O2 has close links to BT. It was spun off from the national telecoms company 12 years ago and was already tipped as favourite to run a BT-branded mobile network before it announced BT would build its 4G fibre-optic infrastructure.

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