Mobile Data Usage Patterns in Developing Countries

While adoption and usage rates are often as high in the developing world as they are in the developed world, usage patterns are different, which means that the data captured by mobile operators about subscribers is different too. For example, people in developing countries use more voice and SMS text as compared to data, and this affects the nature of information that is captured by operators.

Many people in developing countries share phones and/or SIM cards, sometimes regularly and sometimes in cases of emergency. Because of this, data analysis efforts that rely on individual-level mobile data (as compared to household-level, for example) will need to take these usage patterns into account in the developing world. Multi-SIM ownership also affects the nature and granularity of mobile data available from developing world subscribers.

Another key difference is that 2nd generation (2G) networks are the dominant technology in many developing countries and will be over the near to medium term.

Built mainly for voice and text services, 2G networks enable calling, SMS and services such as informational inquiries, purchasing ringtones, listening to music, and access to mobile money. People living in poverty typically buy pre-paid plans and use basic or feature phones (that today have media players/ FM radios, cameras, basic Internet access and sometimes GPS that run on 2G networks and cost $10 to $25.

However many developing economies are transitioning and investing heavily in upgrading 2G networks to faster 4G+ networks, although the speed of transition will vary across markets over the next three to five years. By 2019, more than half of the Sub-Saharan population will be covered by 3G services while 2G networks will cover ~80% of the region’s inhabitants. 3G networks provide a wider range of voice and broadband data services, while 4G networks further expand the possibilities of mobile applications by delivering communications four to 10 times faster than 3G networks. The rapid migration to 3G+ networks in many countries makes the collection of richer datasets possible and allows for smarter devices to be used. Distinguished by their advanced computing capacity and connectivity that allows them to run full operating systems, smartphones allow users to take full advantage of these speedier networks. Smartphone adoption is significant, and will accelerate as handset prices continue to drop, with major manufacturers targeting a $25 price point. The expansion of next generation networks and smartphone adoption will create additional opportunities for data capture and analysis in the future, as well as a platform for mobile operators to expand their value-added service offerings. That said, it will take a number of years for smart phones to reach a majority of the low income population.