Mobile Data Use Keeps on Growing

North American usage trends serve as a leading indicator for ANZ mobile data evolution and 3G spectrum reallocation.

Heath Gibson · Executive Manager – Industry Intelligence and Insights at NBN Australia15 March 2024Period: Q1 20244 min read

147%↑

Growth in total mobile traffic over the last five years

47%→

Share of consumer mobile traffic attributed to video (H2 2023)

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Abstract

This report analyses mobile data usage trends using Verizon’s 2023 Consumer Connections Report as a leading indicator for the Australia and New Zealand markets. It highlights a 147% growth in total mobile traffic over five years and identifies video as the primary driver, representing 47% of total volume. The brief discusses the strategic implications for mobile network operators, including pricing justifications, the 'fair share' debate regarding OTT players, and the critical necessity of 3G network shutdowns to support future capacity demands.

Key Takeaways

Total mobile traffic has surged 147% over the last five years, serving as a benchmark for ANZ market evolution.
Video content is the primary traffic driver, representing 47% of consumer mobile data volumes in late 2023.
TikTok dominates user attention with 102 minutes of daily use, surpassing YouTube (60 min) and Facebook (39 min).

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Frequently Asked Questions

Video content is the dominant factor, now accounting for 47% of total consumer mobile data volumes. This shift has underpinned a 147% increase in total mobile traffic over the last five years, signaling a fundamental change in how subscribers utilize network capacity.

Home wireless usage has reached 524GB per month, officially surpassing the Australian nbn average of 481GB. This data indicates that mobile networks are increasingly being utilized as primary residential connections, placing unprecedented demand on 4G and 5G infrastructure.

TikTok has emerged as the clear leader in engagement, with users spending 102 minutes per day on the app. This significantly exceeds the time spent on YouTube (60 minutes) and Facebook (39 minutes), directly contributing to the high volume of video-driven traffic.

A group of just eight global technology brands is responsible for generating 78% of all mobile traffic. This high concentration of volume forces operators to bear the investment costs for infrastructure that primarily benefits a small number of over-the-top (OTT) players.

Operators must reallocate spectrum to higher-capacity 4G and 5G services to manage peak demand, which can reach 951MB per user during high-density events. Shutting down 3G in 2024 is a technical necessity to support the 147% growth in traffic observed over the previous five-year period.

Abstract

Key Takeaways

Frequently Asked Questions

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