Some economic principles seem constant: lower prices for any product in demand will cause more buying of that product. Conversely, higher prices will reduce demand. And so it seems for mobile data prices and consumption.
“The key explanation to high mobile data usage is low effective revenue per gigabyte: Bigger data buckets lead to lower revenue per GB – which, on the other hand, increases usage,” say researchers at Tefficient.
One might note that most countries cluster in a range of usage around four gigabytes per user SIM per month, and prices around $5 per gigabyte per month. The countries with higher consumption per user also tend to have lower-than-average prices.
Conversely, the countries with much-lower than average usage also have much-higher prices per gigabyte.
Of course, mobile data is not the only revenue source for any mobile operator. And differing retail policies might explain why average revenue per user varies somewhat unpredictaby, compared to revenue per gigabyte.
Reliance Jio’s price attack, coupled with its 4G-only network, has propelled its much-higher-than-average data usage.
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