According to Strategy Analytics' recent Wireless Operator Strategies (WOS) report, 77% of global mobile data traffic growth in Q1 2015 was build on the strenght of emerging markets. Strategy Analytics also noted that micro-bundles for data, device and data plan combinations as well as affordable smartphones played an important role across cost-conscious customer segments, irrespective of location. The market research firm suggests Mobile Operators in developed markets experiencing a slow-down in traffic growth to look at emerging markets for ideas on unlocking growth in more cost-conscious segments.
Strategy Analytics said that its WSO report tracks the financial and operational performance of 247 active wireless operators, which collectively account for 80% of the world's cellular subscriptions.
Strategy Analytics also reported some interesting data on global mobile data traffic breakdown and growth, summarized as follows:
The top operators in terms of traffic growth in Q1 2015 were AIS Thailand (192%), Geocell Georgia (176%), Play Poland (163%), Indosat Indonesia (159%) and China Mobile (158%).
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2G traffic growth is still strong in India, where low-cost smartphone models remain in use. 2G accounted for 44% of total data traffic at Idea Cellular in Q1 2015 and recorded 68% annual growth, compared to the 135% growth seen on Idea's 3G network.
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4G is dominant in markets such as the US, where Verizon Wireless saw 86% of its traffic on the LTE network, and South Korea, where operators carried 96% of their data traffic on 4G. Advanced 4G markets reported slower traffic growth, for example in Singapore (25%) and Hong Kong (34%).
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These results are in line with the 26% growth in US mobile data traffic recently reported by the CTIA for 2014.
Phil Kendall, Executive Director, Wireless Operator Strategies
Developing countries are behind the current boost to traffic growth rates. Some of this is down to emerging 4G opportunities, most notably in China, though it is mainly due to the growth in affordable 3G smartphones. Traffic stimulation strategies in these developing markets should not be overlooked by developed market operators trying to push 4G growth further into the mass market.
Susan Welsh de Grimaldo, Director, Wireless Operator Strategies
The positives in the traffic figures have not translated into faster revenue growth from non-SMS data services for operators, with data revenue growth falling below 20% globally for the first time. With monetization strategies built on upselling more data, operators will need to work harder to encourage users to consume more chargeable 3G and 4G data on more devices.
