Bangalore, April 29 2015: According to the Ericsson Consumer Lab's new report, on the “The Changing Mobile Broadband Landscape” in India, which highlights the evolving mobile broadband adoption and usage in urban India, mobile internet users have grown substantially, with four times the amount of users over the age of 50, and three times the amount of middle aged users being added in the past two year.
The report focuses on consumers from different socio-economic backgrounds who are using mobile internet on smartphones. The study reveals diverse behavior and needs of different mobile broadband users and the need for service providers to offer personalization. Key findings:
- With the decrease in smartphone prices, the adoption of mobile internet within the lower socio-economic segment has increased over the last two years: from 38 percent in 2013 to 45 percent in 2015.
- Three in five smartphone users use mobile broadband in urban India.
- Mid-size and small cities are showing higher smartphone penetration levels at 33 percent, as opposed to the smartphone penetration levels of 27 percent in big non metros and large cities.
- At the same time, the proportion of smartphone users above the age of 50 has quadrupled, from 1 percent in 2013 to 4 percent in 2015. The primary motivation for this increase is the desire to be connected with loved ones in different parts of the country and the world, particularly through emails, chat applications and instant messaging.
- Video streaming accounts for the fastest growing service on mobile data, followed by social networking. 70 percent of mobile broadband smartphone users regularly stream videos on their smartphones, and 61 percent use social networking.
Indian smartphone users are also seeing greater potential in mobile broadband when it comes to facilitating the way they handle their money and personal finances. The convenience and improved experience makes m-commerce services attractive to Indian smartphone users. Of those users not using e-commerce services currently, 58 percent stated that they would begin to do so in the next six months, while 52 percent will use the internet to pay bill online. Services like location navigation while travelling and cloud storage are also seeing an upswing in usage.
For those consumers in India who do not use mobile broadband, affordability and digital literacy are the prime obstacles to adoption. 88 percent of Indian consumers on 2G feel that mobile broadband is too expensive. 53 percent feel that mobile broadband adds no value and as many as 48 percent believe there is no difference between 2G and 3G speeds.
Says Ajay Gupta, Vice President and Head of Strategy and Marketing, Ericsson India: “The internet is finally coming of age and is empowering cross sections of Indian society. Though the most used smartphone services in India are for social networking and instant messaging, the usage of banking, e-commerce, navigation and cloud storage apps and services is increasing. It is for this reason we are seeing uptake and digital transformation of many industries like retail, transportation, and banking.”
Ericsson ConsumerLab provides insights on market and consumer trends and gains its knowledge through a global consumer research program based on interviews with 100,000 individuals each year, in more than 40 countries and 15 megacities – statistically representing the views of 1.1 billion people. Report link