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- 1. A PRESENTATION by:- 1) HARSH PATEL - 1402003 2) PRASHANT LAKHANI-1402008 3) RAHIL SHAH -1402026 4) NILAYADHIYA - 1402037 5) SHAIVIL TRIVEDI - 1402043 Elasticity of 3G Data
- 2. A BREIF HISTORY OF 3G India 11 December 2008, India entered the 3G arena with the launch of 3G enabled Mobile and Data services by Government owned Mahanagar Telephone Nigam Ltd MTNL in Delhi and later in Mumbai. MTNL becomes the first 3G Mobile service provider in India. After MTNL, another state operator Bharat Sanchar Nigam Ltd. (BSNL) launched 3G services on 22 Feb 2009 in Chennai and Kolkata and later launched 3G as Nationwide. The auction of 3G wireless spectrum was announced in April 2010 and 3G Spectrum allocated to all private operators on 1 September 2010.
- 3. Comparison of 3G vs 2G data From 2011(dec)-12(jun) Nokia Siemens Networks, who provide and manage nearly one-thirds of 2G and 3G Networks for telecom providers in India have come out with some interesting growth numbers on mobile data traffic in India. According to their MBit Index report, which collected 2G & 3G data from over 300 million mobile subscribers in India shows 54% increase in mobile data traffic in India between December 2011 and June 2012. While the over all mobile traffic grew by 54%, the growth in 3G traffic (78%) was more than 2G, which grew by 47% over the same period during 2011. 3G data traffic has seen a surge in 2012, especially in last 3 months thanks to over 70% slashing on 3G rates, which were un-affordable to most mobile users previously. The Mbit Index report also revealed that 2G users in India are consuming three- quarters of the total mobile data traffic, on average, while 3G users consume four times more data than 2G users. At current pace, the report expects that India’s mobile data consumption to double by June next year.
- 4. By the end of June 2012, 3G has outpaced 2G in terms of data traffic growth. 2G traffic currently generates over 75% of the total data traffic generated. A first time 3G user consumes close to 400 MB (megabytes) of data every month compared to about 100 MB consumption over 2G. Recent tariff reductions in 3G services have resulted in doubling 3G data traffic month on month. Web browsing contributes 81% of 2G data traffic Only 17% of 2g traffic is used for downloading videos.
- 5. Mobile data traffic is growing in India and that too fast. Between Dec-2011 to Dec-2012, the mobile data traffic increased by 92% that is almost a double. Data from Nokia Siemens illustrate that the data traffic generated by 3G has increased by almost 196% compared to 2011, where as for 2G this figure is 66%. Of course, these figures are a bit convoluted in the fact that 2G data users are more in the country than the 3G users. 2011dec-2012 dec
- 6. The figure that is more interesting is the amount of data used by 3G and 2G users. 3G users on an average are using 434 MB data while 2G users are using only 115 MB. This is more that 300% and shows that with better speed data usages have surged as well.
- 7. 2012(dec)-2013(dec) 3G again drives mobile data growth, generates 43% of total network traffic 2G share stabilizes further, users consume three times less data than 3G consumers Nokia Solutions and Networks’ MBit Index study, an annual report on mobile broadband performance in India, reveals a 87% rise in data traffic generated by 2G and 3G services during 2013, driven by strong 3G growth. According to the study, 3G data traffic leapt by 146%, surpassing the world average that is roughly doubling every year. 2G data traffic continues to stabilize, growing by 59% over the same period.
- 8. The NSN’s MBit Index also showed that 3G users are increasingly consuming more data than 2G users. In December 2013, a 3G user consumed 532 Mb of data on average compared to 146 Mb consumption over 2G. The same average nearly doubles to 1GB usage in some of the major urban areas
- 9. 2013(dec)-2014(dec) The data usage grew by 74 per cent and 3G usage was up by 114 per cent at end of 2014, compared to 2013. The 2G mobile Internet usage grew by 41 per cent in 2014,” said Nokia Networks Vice President and Head of India Region Sandeep Girotra. The amount of mobile data consumed grew from 49 petabyte (PB) at the end of 2013 to 85 PB by end of 2014, out of which 52 percent came from 3G usage. The average data consumption by a 3G subscriber has increased three times that of the data consumed by a 2G consumer over the period covered by the report.
- 10. Average monthly data consumption by a 2G consumer was seen to be 216 MB during 2014, an increase of 48% during the last year. The average data consumed by a 3G consumer, on the other hand, 688 MB which is an increase of 29% during the year just ended. 0 100 200 300 400 500 600 700 800 3G 2G Chart Title
- 11. Graph of subscriber vs year 0 50 100 150 200 250 300 350 100 230 450 700 YEAR PRICE IN Rs 2012 259 2013 199 2014 249 2015 297 PRICE vs SUBSCRIBERS(in millions)
- 12. Reasons for growth of 3G usage The main factors affecting the growth in data usage, according to Girotra, are the kind of devices available in the market, together with increased data coverage. Girotra elaborated that 258 million mobile phones were shipped to India during 2014, out of which 70 percent were feature phones, 7 percent were 2G smartphones while 22 percent were 3G enabled smartphones. So that means the demand increases irrespective of price. So we can say that it is inelastic.