Data consumption in India expected at 72.6% CAGR by 2022: Report

Data consumption in India is expected to grow at a compound annual growth rate (CAGR) of about 72.6 percent to 10,96,58,793 million MB by 2022, according to an ASSOCHAM-PwC joint study.

"With lower than ever data tariffs and an increasing number of smartphone penetration in the country, which is around 40 percent as of 2017, it is safe to assume that the Video on Demand (VoD) mark will be a significant beneficiary of these developments. Internet consumption is clearly on the rise in India, the study said.

Data consumption in India will grow from the level of 71,67,103 million MB in 2017 to 10,96,58,793 million MB (megabytes) in 2022, growing at a compound annual growth rate (CAGR) of about 72.6 percent, it added.

While the average Indian used to spend more on voice services than on mobile data services until 2013, the majority of an average mobile bill is now spent on data.

The average monthly spend on voice services in 2013 was Rs. 214 compared to Rs. 173 spent on data. In 2016, the spend on voice fell to Rs.124, while data spend rose to Rs.225.

Video streaming constitutes roughly 65-75 percent of the traffic according to the Nokia Mobile Broadband Index 2018.

While Internet penetration is increasing in the country, with mobile Internet penetration set to reach 56.7 percent in 2022 from a mere 30.2 percent in 2017, connectivity and consistency in speed issues need to be addressed, noted ASSOCHAM-PwC joint study on 'Video on Demand: Entertainment reimagined'.

It said internet connectivity and speed issues are significant in rural areas as against urban areas. It is important for OTT players to cater to the rural market if they wish to stay relevant. Thus, apps like YouTube, which support low Internet connectivity, will be able to penetrate faster into rural areas, as per the joint study.

The report also noted that there has been a value shift to platforms.

Another major aspect of the journey of OTT players will be the ability to personalize experiences. Emerging technologies would help companies create unique experiences that add value to the services provided to users.