Analyzing the Trends in Quarterly Wireless Data Usage, Per Subscriber Consumption, and Tariff Rates in India (2017-2024)

Introduction

The telecommunications industry in India has gone through a remarkable transformation over the last ten years, propelled by rapid technological advancements. These advancements, coupled with increased affordability and extensive network coverage, have significantly influenced data usage patterns, per-subscriber consumption, and tariff rates. This evolution has made India one of the fastest-growing markets for mobile and internet services, a testament to the industry’s progress.

Data usage

India has witnessed an exponential rise in data consumption, driven by the proliferation of smartphones and the affordability of data plans. The burgeoning popularity of digital content has also played a significant role. The advent of 4G services and the impending rollout of 5G technology have further accelerated this trend, enabling faster data speeds and more reliable connectivity. This affordability and accessibility have positioned India as a leading data consumer on the global stage, a promising sign for the industry’s future. 

Per subscriber consumption

India’s average data consumption per subscriber has also dramatically increased, reflecting the country’s digital transformation. This metric indicates the growing dependence on mobile Internet for various daily activities. The proliferation of video streaming services, online gaming, social media engagement, and remote working solutions have contributed to higher data consumption per user. This trend underscores the need for continuous investment in network infrastructure to meet the escalating demand and maintain service quality.

Tariff rates

Tariff rates in India have undergone significant changes, influenced by regulatory policies, competitive dynamics, and technological advancements. The intense competition among telecom operators has substantially reduced data tariffs, making internet access more affordable for a broader population segment. The introduction of innovative tariff plans, such as unlimited data packages and bundled offers, has played a crucial role in driving data adoption. However, the sustainability of low tariff rates poses challenges for the telecom sector, necessitating a balance between affordability and profitability.

This article aims to comprehensively examine the changes in data pricing, consumption patterns, and overall data usage in India’s dynamic and highly competitive market over the past seven years, spanning from 2017-2018 to 2023-2024.

Trend & Correlation Analysis 

Fig: 1

Over the past seven years, India’s total quarterly data usage has increased 12.5 times, from 4,206.4 PB to 52,636 PB. Moreover, the linear trend of total quarterly data usage also illustrates a consistent upward trajectory, albeit with occasional periods of slower growth or minor declines. Initially, the percentage change in quarterly data usage was consistently high due to rapid expansion. However, this growth has stabilized in more recent years, due to the maturation of the market. 

The amount of data consumption per subscriber per month was relatively low in 2017-18 but witnessed a significant increase, particularly in the second quarter of 2018-19. Over the last seven-year period, this metric has surged by 16.2 times, from 1.3 GB to 20.3 GB per month. Although there have been several fluctuations in growth rates across different quarters, including occasional negative changes possibly due to market adjustments or technological shifts, the overall trend points to higher data consumption per subscriber. 

The tariff per GB in India has shown a declining trend over the subsequent quarters due to competitive pressures and technological advancements. Over the past seven years, the tariff per GB has nearly halved, decreasing from 17.4 Rs. to 8.7 Rs. per GB. Early quarters were characterized by negative percentage changes, reflecting aggressive pricing strategies. While the rate of decline has slowed in recent years, the continued decrease in tariffs has contributed to greater affordability and accessibility of data services (fig: 1).

Fig: 2

To provide insights into the relationship between data consumption per subscriber per month and the tariff per GB in India over the specified period, we can calculate the Pearson correlation coefficient. This coefficient will help us understand the strength and direction of the linear relationship between these two variables. The Pearson correlation coefficient between data consumption per subscriber per month (GB) and the tariff per GB (Rs.) is approximately -0.71. This negative correlation indicates a strong inverse relationship between data consumption per subscriber and the tariff per GB over the specified period. As the cost of data per GB decreases, data consumption per subscriber tends to increase. This trend suggests that as data becomes more affordable, subscribers are more likely to use greater amounts of data, highlighting the significant impact of pricing on consumer behaviour in the Indian market. (fig: 2).

Conclusion

In conclusion, the telecom sector’s journey from 2017-18 to 2023-24 is marked by significant transformations in data pricing, consumption patterns, and overall usage. These trends reflect broader shifts in consumer behaviour, technological advancements, and strategic adjustments by operators to navigate a highly competitive and evolving market landscape.

The initial years of rapid growth and declining tariffs suggest a phase of aggressive market penetration and competitive pricing. The recent moderation in growth rates and tariffs indicates a maturing market where providers focus on sustainable growth and profitability.

The significant increase in data consumption per subscriber highlights the growing importance of Internet services in daily life. This trend necessitates continuous investment in network infrastructure to ensure quality service delivery.

Fluctuations in tariffs reflect the balancing act telecom operators perform between affordability for consumers and maintaining financial viability. The steep price drops followed by occasional increases suggest reactive strategies to market conditions and competitive pressures.

As the market stabilizes, future growth will likely hinge on innovations and the expansion of digital services. Operators will need to focus on value-added services, efficient cost management, and exploring new revenue streams.

References

About Author:

Pankaj Chowdhury is a former Research Assistant at the International Economic Association. He holds a Master’s degree in Demography & Biostatistics from the International Institute for Population Sciences and a Bachelor’s degree in Statistics from Visva-Bharati University. His primary research interests focus on exploring new dimensions of in computational social science and digital demography.

Akash Dey is a former Sales Executive at Alpine Health. He holds a Bachelor of Business Administration (BBA) from B.P. Poddar Institute of Management and Technology. His key areas of expertise include Decision-Making, Communication, Market Research, Product Marketing, Business Development, and Marketing Strategy.

Disclaimer: The views expressed in this article are those of the author and do not necessarily reflect the views of 360 Analytika.

Acknowledgement: The author extends his gratitude to the Ministry of Telecommunications for providing data support.

This article is posted by Sahil Shekh, Editor-in-Chief at 360 Analytika.