Mobile video, faster networks and cheaper 3G and 4G handsets will boost the world’s mobile data traffic by 59 per cent this year, according to Gartner.
The research firm noted that like in previous years, mobile data traffic will continue to grow at a double-digit rate. In 2014, mobile data traffic grew 71 per cent.
Among the factors driving mobile data growth, mobile video was singled out as the biggest contributor to the surge in mobile data.
Jessica Ekholm, research director at Gartner, said: “Although network speed and reliability are priorities for many mobile customers, it is really apps and content that are driving traffic volumes as people increasingly chat to friends and family, watch videos on the move, and listen to streamed music”.
Citing data collected from mobile service providers, Ekholm said mobile video is already generating 50 per cent of all mobile data, and this is slated to increase to over 60 per cent by 2018 as consumers watch and upload more videos.
Additionally, 4G users will generate 46 per cent of all mobile data traffic by 2018, when each 4G smartphone will use nearly 5.5GB of data per month, three times more than that of a 3G smartphone.
Mobile operators have been benefitting from the mobile data boom. For example, M1’s revenue from mobile data accounted for 47.3 per cent of its service revenue last year, an increase of 5.7 percentage points from 2013.
Riding on the growth of mobile data, Singtel also grew its revenue for the third quarter by four per cent to reach S$4.4 billion.
As consumers spend more time on the Internet via their mobile phones, tablets or PCs, Ekholm said telcos will need to creating new pricing strategies with a focus on data access, such as shared plans.
She added: “They will also need to refine the services they already provide, with a focus on creating richer, more immersive and more personalised experiences, to increase their customer numbers”.
With most people having telco contract at 2GB, using mobile data is going to be expensive in the future. A trend not that welcomed when competitiveness is at stake.