Mobile data traffic to surge 49% this year

23 Jul 2015
00:00

Global mobile data traffic will climb 49% this year to 52 million terabytes, and is on track to continue this rapid growth until at least 2018, according to Gartner.

The research firm predicts that mobile data traffic will more than triple by 2018 to reach 173 million terabytes.

Based on this growth trajectory, Gartner has urged mobile operators to rethink their mobile data caps to meet consumer demand and help win market share.

A comparative survey conducted in the markets of the US and Germany shows that consumers who feel more constricted by their data plans are less likely to watch videos or consume large amounts of data over mobile networks.

This means less revenue per user for operators in the more restrictive market of Germany compared to the US with its larger data caps.

"With video usage as a percentage of total data usage set to rise from 50% now to 60% by 2018, we should expect [mobile operators] to offer the best-of-breed video experience to consumers,” Gartner research director Jessical Ekholm said.

“This involves using video optimization technologies and caching content closer to the consumer. Contract plans that single out video traffic to allow users to reach a certain cap (without touching their contract data cap) will increase usage and revenue and meet consumer demand for more mobile video."

She said this demonstrates that the key for mobile operators to obtain long-term revenue growth lies in how effectively they can sell the value of more expensive high-cap or unlimited data plans.

"The evidence is that once customers commit to a larger plan, their usage habits change significantly, resulting in longer-term revenue benefits. This shows evidence of pent-up demand and an opportunity for those [operators] able to create the right package."

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