Cellphone Data Usage

I’ve never seen any detailed information about the amount of data that customers use on cellphones. We have the global statistics from Akamai and others that look at the big picture, but I’ve always wondered how much data the average cell phone user really uses. This is something that is important to understand for ISPs because cellphone usage on home WiFi can be a big chunk of bandwidth these days.

FierceWireless has now partnered with Strategic Analytics to look in more detail at how people use their cellphone data and how they pay for it. The data used in the analysis comes from 4,000 android phone users who agreed to allow their usage to be studied.

Following is a comparison on an average month for the amount of Cellular and WiFi bandwidth used by customers with different kinds of data plans:

‘                                                               Cellular             WiFi               Total

No Data Plan (pay-as-you-go)              0.9 GB              8.8 GB            9.7 GB

Monthly Data Cap                                 2.8 GB            14.0 GB          16.8 GB

Unlimited Data Plan                             5.3 GB            12.3 GB          17.8 GB

Interestingly, there is not that much difference in the total bandwidth used by customers with unlimited data plans versus those with caps. But the unlimited customers obviously feel freer to use data on the cellular network, using twice as much cellular data per month as those with monthly caps.

What is surprising to me is the small amount of data used by unlimited plan customers. There are truly unlimited plans like T-Mobile, but even the quasi-unlimited plans from AT&T and Verizon allow for over 20 Gigabytes of download per month on cellular. But these statistics show that customers, on average, are not using much of that data capability. It looks like many people are buying the unlimited plans for the peace-of-mind of not exceeding their data caps. This reminds me a lot of the days when telcos talked people into buying unlimited long distance plans, knowing that most of them would never use the minutes.

These statistics also show that unlimited data customers are not putting a lot of pressure on cellular networks, as the carriers would have you believe. They have always used the excuse of network congestion as the excuse for charging a lot for cellular data and for having stingy data caps. These statistics show just the opposite and show that, in aggregate that customers are not using cellular data at even a tiny fraction of the bandwidth they use on their home broadband connections.

These statistics also indicate that there are not a lot of people using cellphones to watch video. T-Mobile may give access to Netflix, but it looks like people are either watching the video on WiFi or on a device other than their cellphone. It doesn’t take much video to get to 5 GB per month in download.

To put the total usage numbers in perspective, the average landline broadband connection uses around 120 GB per month according to several ISPs. I’ve seen numerous articles over the last year talking about how cellular data use is exploding, but these numbers don’t back that up. This shows that consumers still go to landline data connections when they want to do something that is data intensive.

These numbers also counterbalance the predictions I keep reading that cellular data will eclipse landline data in a few years. That might true around the world since there are a number of places where almost all ISP connections are through cellphones. But in the US the landline data usage still dwarfs cellphone data usage and is itself still growing rapidly.

The usage by cellular carrier was also reported, as follows:

‘                                                          Cellular             WiFi                Total

AT&T                                                 2.4 GB            11.4 GB          13.6 GB

Sprint                                                4.4 GB            13.8 GB          18.2 GB

T-Mobile                                           5.3 GB            13.1 GB          18.4 GB

Verizon                                             3.6 GB            14.4 GB          18.0 GB

My one take-away from these numbers is that Sprint and T-Mobile customers feel freer to use their smartphone for video and data downloading – but even they mostly do this on WiFi. These numbers also show that the stingy monthly data caps from AT&T and Verizon have trained their customers to not use their cellphones – even after those companies have increased the monthly caps.

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