Consumption to double: Data usage to turn upwardly mobile in 2019

Mumbai: Data consumption on mobile phones is expected to more than double in 2019 from last year as political parties engage with voters and battle each other on social media platforms such as Facebook, WhatsApp and YouTube, starting in the next few weeks and going all the way through to national elections likely in April-May.

Also boosting consumption will be cricket, including the Indian Premier League and the World Cup in the first half of the year, driving revenue for carriers, said telcos and analysts.


"As smartphones become the primary screen for customers, data usage per customer on Airtel's mobile network has shot up to 9.2 GB, up 125% over last year and up 900% over two years," a Bharti Airtel spokesperson told ET. "With bundled digital content... and more upgrades to 4G smartphones, we see a healthy growth in data consumption going forward."

Monthly data consumption may rise to 9 GB per user in the first half of 2019, a 125% increase over the current usage of 4 GB, said Neil Shah of Counterpoint Technology Market Research. "It may also touch 11 GB per user per month in the second half."

That compares with monthly data consumption per person of 1.8 GB in 2017. Growth has been fuelled by low internet rates following Jio Infocomm’s entry, analysts said.

“The tier II and III cities may actually witness a surge in consumption since mobile penetration in those parts is higher than television, propped up as well by a steep increase in the ownership of ‘smart-type’ phones,” said Sandip Das, director, Sterlite Technologies.

Jio and Vodafone Idea didn’t respond to ET’s queries.

Analysts and social media trackers say that although the general elections will be held in April and May, political parties will begin their campaigns in the next few weeks.

Much of it will be conducted through videos rather than just messages or photographs.

“About 90% of the feeds on social media platforms are videos,” said Shamsuddin Jasani, MD, South Asia, for digital agency Isobar. “Elections in 2019 will see 10 times more data consumption compared to 2014. As marketing campaigns of political parties get uploaded on social media and messaging platforms, data consumption will go through the roof.” This will need to be backed by telcos expanding 4G coverage.

The industry stands to benefit from higher revenue due to higher demand, but profits will continue to be under pressure due to additional investments required, said Rajan Mathews, director-general of telecom industry body Cellular Operators Association of India.

“Revenue growth will not keep up with data growth due to the low rates,” he said. “Also, the increased demand for data will place increased pressure on operators to invest in networks — cell towers and fibre.”