Three U.K. has launched zero rating of streamed video. The stated rationale is that consumers want to do it (they do).
Three research found that more than 21 percent of consumers say when they watch a TV series, they binge-watch the series. .
Nearly 40 percent also reported they worry about streaming on the go, for fear of using too much data.
The move is going to increase data consumption on the mobile network. Other mobile operators who have instituted zero rating have seen significant jumps in consumption. In South Africa, The Cell C zero rated WhatsApp.
Afterwards, WhatsApp usage on the mobile network by a factor of three, from about 7 MB per month to about 22 MB per month, a 300-percent increase. Usage also increased on Wi-Fi networks, by more than a factor of seven, to about 17 MB per month, according to Freedom to Tinker.
A promotion offered by MTN, zero rating Twitter usage, lead to a four-fold increase in mobile network data usage. That should not come as a surprise. Economists always argue that demand for a desired good will increase when the price for it drops.
So zero rating of streamed video is going to lead to big increases in consumption--using both Wi-Fi and Three’s network.
The unstated rationale is that, even if the new feature leads to increased data consumption, Three can handle the load.
Three likely also has studied that impact, and concluded that the increases will be limited, since most consumers watch most of their video when connected to Wi-Fi. Mobile network load will grow, but more of the increase will accrue on Wi-Fi networks.
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