India has a young population – median age of 26 – but the largest increase in mobile broadband users has been among people between the ages of 31 and 40, according to a study by Ericsson ConsumerLab. Recently, though, it is those over the age of 50 who have taken to adopting mobile broadband. Mobile broadband users are defined as those who only use 3G or 4G networks. Apart from just the shift in usage across ages, there is now a gender shift as well. In urban India, 34% of women now access mobile internet on their smartphones compared to 20% two years ago.
Demographics
The study was conducted between September 2014 and January 2015 and covered 15,000 urban households across 33 cities, according to Ajay Gupta, Ericsson India Head of Strategy and Marketing. It surveyed people between the ages of 15 to 75 years. "This sample is estimated to represent 127 million smartphone users in urban India,” according to the report, which adds that the only hurdle in adoption is connectivity.
It is not only those in the upper income brackets with large disposable incomes who are leading in the purchase of newer and updated technologies. Those in the lower income bracket are buying and using more smartphones as their prices decline. Smartphones remain the the most affordable way of connecting to the internet as opposed to laptops or tablets, particularly for those migrating from smaller villages and towns to large cities for jobs. Mobile internet is driven by social-consciousness of the consumer and the want to connect to the wider web and a wider audience.
Only 34% or one in three people are using smartphones in urban India, according to the report, only three in five of whom are using mobile broadband. The maximum penetration of smartphone usage stands at 41% in the top eight metros.
Adoption
Smartphone prices may be getting more affordable but the biggest barrier to adoption of mobile broadband is its pricing. "Mobiles priced between Rs5,000 and Rs15,000 accounted for 59% of devices launched in 2014. The average selling price of smartphones fell by 19% over the course of the year", (http://www.huffingtonpost.in/2015/04/10/mobile-industry-landscape_n_7039232.html" target="_blank") Huff Post India reports. More smartphones in people's hands doesn't necessarily add to the number of mobile broadband users.
53% feel there is no value added. 48% don’t see any difference between 2G and 3G connections in India. While a webpage should load in three seconds on a 3G connection, in India it takes on average ten seconds or more to load. This would definitely put an average user and especially the poor user off from using a 3G connection.
Usage of services
70 percent of urban Indian smartphone users stream videos – entertainment services are therefore highly valued. Of those not using e-commerce services, a hefty 58% stated that they would in the next six months. This is also due to the bombardment of ads on television and the number of services – like Flipkart and Amazon – launched over the last few years, which are now pushing their apps more than ever and touting the ease of shopping within these sites.
52% of users said they would start paying their bills in the next six months using their smartphones, which is a significant change from the current 25%.
Location and data plans
Consumers face issues all the time with respect to the network they are connected to. Every day you would see someone or the other complaining against Airtel or Vodafone about quality issues or speed issues or connection dropping every time they try to make a call. A substantial 63% face quality and reliability issues while indoors. This includes voice drops, connection breaks and even inconsistent speeds, and only 2G being available.
55 percent of the users surveyed have a problem understanding the vast array of data plans that are on offer by the telecom companies. Especially with their “fair usage policy” no one really knows how much of data they have available. Only 10% said that it was easy to understand and that plans were straightforward. If a consumer understands what the pros and cons of each and every plan is, it’s easier to make a decision on which one to go with. Those finding it easy to choose a plan, consume twice as much data as those who find it difficult.
We welcome your comments at
letters@scroll.in.
Demographics
The study was conducted between September 2014 and January 2015 and covered 15,000 urban households across 33 cities, according to Ajay Gupta, Ericsson India Head of Strategy and Marketing. It surveyed people between the ages of 15 to 75 years. "This sample is estimated to represent 127 million smartphone users in urban India,” according to the report, which adds that the only hurdle in adoption is connectivity.
It is not only those in the upper income brackets with large disposable incomes who are leading in the purchase of newer and updated technologies. Those in the lower income bracket are buying and using more smartphones as their prices decline. Smartphones remain the the most affordable way of connecting to the internet as opposed to laptops or tablets, particularly for those migrating from smaller villages and towns to large cities for jobs. Mobile internet is driven by social-consciousness of the consumer and the want to connect to the wider web and a wider audience.
Only 34% or one in three people are using smartphones in urban India, according to the report, only three in five of whom are using mobile broadband. The maximum penetration of smartphone usage stands at 41% in the top eight metros.
Adoption
Smartphone prices may be getting more affordable but the biggest barrier to adoption of mobile broadband is its pricing. "Mobiles priced between Rs5,000 and Rs15,000 accounted for 59% of devices launched in 2014. The average selling price of smartphones fell by 19% over the course of the year", (http://www.huffingtonpost.in/2015/04/10/mobile-industry-landscape_n_7039232.html" target="_blank") Huff Post India reports. More smartphones in people's hands doesn't necessarily add to the number of mobile broadband users.
53% feel there is no value added. 48% don’t see any difference between 2G and 3G connections in India. While a webpage should load in three seconds on a 3G connection, in India it takes on average ten seconds or more to load. This would definitely put an average user and especially the poor user off from using a 3G connection.
Usage of services
70 percent of urban Indian smartphone users stream videos – entertainment services are therefore highly valued. Of those not using e-commerce services, a hefty 58% stated that they would in the next six months. This is also due to the bombardment of ads on television and the number of services – like Flipkart and Amazon – launched over the last few years, which are now pushing their apps more than ever and touting the ease of shopping within these sites.
52% of users said they would start paying their bills in the next six months using their smartphones, which is a significant change from the current 25%.
Location and data plans
Consumers face issues all the time with respect to the network they are connected to. Every day you would see someone or the other complaining against Airtel or Vodafone about quality issues or speed issues or connection dropping every time they try to make a call. A substantial 63% face quality and reliability issues while indoors. This includes voice drops, connection breaks and even inconsistent speeds, and only 2G being available.
55 percent of the users surveyed have a problem understanding the vast array of data plans that are on offer by the telecom companies. Especially with their “fair usage policy” no one really knows how much of data they have available. Only 10% said that it was easy to understand and that plans were straightforward. If a consumer understands what the pros and cons of each and every plan is, it’s easier to make a decision on which one to go with. Those finding it easy to choose a plan, consume twice as much data as those who find it difficult.
