Smaller Cities Outpace Metros in Data Usage

In recent years, smaller cities in India have outpaced metropolitan areas in terms of data consumption, signalling a significant shift in digital behaviour across the country. This trend reflects the rapid expansion of affordable internet access, smartphone penetration, and digital literacy in non-metro regions. Before we deep dive into the topic,

Now let us see what this surge in data usage across India, particularly in tier 2 cities and towns, means. It is actually fuelling a significant investment in edge data centers.
 
Edge data centers are smaller, more localized data centers that bring computing and storage resources closer to the edge of the network. This proximity reduces latency and improves application performance, making it ideal for applications that require real-time data processing, such as IoT, AR/VR, and gaming.

The increasing adoption of smartphones, affordable internet plans, and the growing popularity of OTT platforms are driving the demand for edge data centers in India. By investing in these facilities, businesses can enhance customer experience, improve operational efficiency, and gain a competitive advantage in the digital economy.
 
A recent study by Bernstein revealed a significant trend in India's mobile data usage. It said that rural areas are driving the growth, with per capita data consumption in tier 2 cities and towns reaching a remarkable 35-40 GB per month. This surpasses the data usage in metro cities by a substantial 30%.

This surge in rural data consumption has propelled Indian telecom companies to global prominence. Reliance Jio and Bharti Airtel have climbed the ranks to become the sixth and seventh most valued telecom companies worldwide, respectively.

India's mobile users also demonstrated a significant appetite for digital content, ranking sixth globally in terms of time spent on phone apps in 2023, averaging 4.8 hours per day.

While tier 1 cities primarily utilize data for net commerce, digital payments, and online learning, tier 2 cities showcase a different pattern. OTT platforms, communication, social media, and online gaming dominate data consumption in these regions.

The study also highlighted the rapid expansion of 5G coverage in India. Kolkata and Howrah lead the way with over 40% 5G availability, followed by other tier 2 cities like Vadodara, Surat, Ahmedabad, Rajkot, and Jodhpur.

Finally, as India continues to expand its digital infrastructure, the investment in edge data centers is expected to further accelerate, creating new opportunities for businesses and driving economic growth. Overall, the combined impact of 5G expansion and the rise of edge data centers positions India as a global leader in digital infrastructure, poised for significant technological advancements and economic benefits in the years to come. With this thought, we sign off for today.