nsn mobile broadband-malaysianwireless
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2010 © Nokia Siemens Networks
2010 © Nokia Siemens Networks
Best Experience, Best Value
in Mobile Broadband– A GLOBAL PHENOMENA –
Torsten LeibnerSenior Consultant – Strategic DifferentiationKuala Lumpur, May 2010
For internal use2010 © Nokia Siemens Networks
Best Experience, Best Value in
Mobile Broadband MWC 2010, 49 000 visitorsA wide variety of key themes
Predominant themes• from Mobile Broadband to LTE
• Smartphones
• Adjacent industries, M2M
• Customer experience
• Application stores
• Cloud computing • Service provider transformation
For internal use2010 © Nokia Siemens Networks
MWC 2010 messages - exemplary
STRATEGY ANALYTICS INSIGHTtwo key network-related themes at Mobile World Congress: 1) the transition of mobile voice; and2) the evolution of networks to cope with capacity and signaling loads from soaring use of mobile data.
Vodafone CEO keynote speech1) Smartphones, 40% YoY shipments
increase – high speed with Mobile BB2) develop business models for:
- Operational excellence- Service innovation (Cloud Services)- Service Enablement
3) Changes in communication ecosystem- App stores, Open API, SDP, IDM
4) save resources
GSMA keynote speechCSP’s need to transform, value in:- Always on real-time access- Digital lifestyle enabler- Integrated communications provider- Mobile voice provider
AnnouncementsLargest operators join forces for ‘Wholesale Applications Community’, using common open standards as single point-of-entry for developers to create apps across platforms.
For internal use2010 © Nokia Siemens Networks
Smart Networks for
Smart Devices
How to meet all customer needs
Mobile Communication
Trendsin Malaysia
For internal use2010 © Nokia Siemens Networks
Mobile broadband is a huge opportunityTwo use cases with different impact on networks
0.2
2010 2011 2013 2014
MBB Subs (billion subs)Bln.
2012
0.4
0.6
0.8
1.0
1.2
1.4
1.6
2010 2011 2013 2014
MBB traffic (Exabyte/ year)Xbyte
20120
5
10
15
20
25
4x...8x
Mobile Laptop
Mobile Handheld
Mobile Internet access
2 GB/ month
Dongle:
(T-Mobile)115 MB/ month
Smartphone:
(Orange)
165 MB/ month(Orange UK)
Source: Nokia Siemens Networks 2009
For internal use2010 © Nokia Siemens Networks
Future of mobile communicationsUnrivaled adoption of mobile internet and devices
Traffic is moving from operator portals to mainstream Internet.
60% of respondents in 2009 in comparison to 42% in 2008 (+18%).
NSN Pulse survey 2009
25% of new phones within VF are smartphones.
Vodafone CEO at MWC 2010
On average, iPhone customers use 165MB of data per month, compared to 115MB for other smartphone
customersOrange UK – Digital Media Index, 04/2010
First 20 quarters after launch …internet adoption at an increasing pace
First 20 quarters after launch …internet adoption at an increasing pace
Average consumer dongle usage is 2GB/month
T-Mobile Germany 2009
For internal use2010 © Nokia Siemens Networks
Yes bandwidth increase is a problem…… but signaling it is even a bigger issue
SmartPhone are not only data guzzlers, but most of all they are signalling guzzlers
SmartPhones make 8x as many connection attempts as data cardsAnd globally there are 8x as many SmartPhones as data cards
MB1200
1000
800600
400
200100
50
87
6
54
3
21
SmartPhone Datacard SmartPhone Datacard
Source: NSN analysis
Data Volumes by Device Type
And for most operators, connection attempts have increased even at a higher pace than bandwitdh volumes
90%
110%
130%
150%
170%
190%
04/09 05/09 06/09 07/09 08/09 09/09 10/09
Normalized values
Data connection attempts
Data bytes
Example of Growth of Mobile Data Traffic Versus Data Connection Attempts for a leading European mobile operator
Source: NSN analysis
Relative amount of connection attempts per single unit of data
Much of the signaling is produced even when phones are on idle mode →→→→ SmartPhones are consuming network resources with no payload
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The impact of smart phones on HSPA networksSmart devices actually generate high signaling traffic
RA
B a
ttem
pts
PS
Data connection request signalling in one customer network
15-Mar 30-Mar 14-Mar 29-Mar 14-Mar 29-Mar 13-Jun 28-Jun 13-Jul 28-Jul
Signalling traffic is created by “always on”applications and applications that have an ongoing “heartbeat”to check for updates:
• Social networking • Email• IM• etc.
New firmware on a popular smart device published 18 June 2009
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The way we consume will changeContent Shift
P2P65%
Video65%
2008 2012
+40% Signaling
+25% Per user volume
*Based on 12% smartphones 2008 and 25% 2012 (Bank of America Merrill Lynch report), and smartphone signaling being 6x normal phones (NSN calculation)
Network design must consider future usage
Latency Insensitive Latency Sensitive
*65% video based on Cisco Visual Networking Index and NSN forecasts
*Per user volume growth from E/// paper
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Smartphone and internet usage in AsiaA growing percentage of requests originates from Smartphones
20
28
33
44
56
66
68
72
78
Vietnam
India
Indonesia
Philippines
Malaysia
Thailand
Hong Kong
Australia
Singapore
Source: AdMob Mobile Metrics Report – Southeast Asia; Q4/2009
The market is growing and it’s being driven not only by phones but by other mobile devices including netbooks.
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0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2Q08
3Q08
4Q08
1Q09
2Q09
3Q09
4Q09
1Q10
2Q10
3Q10
4Q10
1Q11
2Q11
3Q11
Nokia, iPhone, Blackberry, Droid and smartphones in general dominate the buzz in the mobile marketSmartphones is estimated to grow 33% year 2010 (YoY) while the overall smartphone sales are forecast to reach 43% of mobile devices by 2013
DRIVERS:• falling prices• increasing capabilities of devices• explosion of applications for devices
“We are just at the beginning of a new wireless era where smartphones will become the standard device consumers will use to connect to friends, the internet and the world at large.”
25% of new phones within VF are smartphones.
Vodafone CEO at MWC 2010
smartphones soldin Malaysia 21%
smartphones soldin Malaysia 30%, est.
In some countries we will see soon more smartphones than feature phones (penetration)
45% of respondents to a Nielsen survey indicated th at their next device will be a smartphone.
smartphonesfeature phones
Source: The Nielson Company, 03/2010; Gartner, IDC; Vodafone; NSN
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End-user behavior and demand is changingFrom internet to “evernet” – from indifference to high quality expectationInternet is a hot topic in Malaysia – behavior is similar to that of other countries
Source: Gartner; Morgan Stanley; Ovum; all 2009; Alexa 2010; Facebook 04/2010
Internet Top 100*
1. Facebook2. Google (MY)3. Yahoo4. Google5. YouTube6. Blogger7. Live8. Wikipedia9. MSN10. Maybank11. Mudah12. Wordpress13. MySpace14. TheStar15. Malaysianiki16. Twitter17. Lowyat18. Tagged19. Mediafire20. Cari
Example: Facebook in Malaysia• ~3.425m users
(=1.08% of global presence)• high interest from both genders• age group 14-34 is ~75% of total user
base• #8 in fastest growing country over past
week
By 2020, the average mainstream consumer will be spending 23% more time online than is the case today = +46% time spent using
mobile data apps
Young consumers are at theleading edge of FMS of data applications; by 2020 this will be mainstream
Network - agnostic’expectation is becoming the norm. Many applications will move to the Web!
1
2
3
For internal use2010 © Nokia Siemens Networks
Mobile Communication Trends
in Malaysia
Smart Networks for
Smart DevicesHow to meet all customer
needs
For internal use2010 © Nokia Siemens Networks
The future of mobile communications is all about applications
Mobility, broadband, and new device technology change the way people connect and communicate
Communities, sharing
News, information anywhere
Navigation
Augmented reality
Business on the move, email
Location
New subscriptions and revenue is a huge opportunity
Music and entertainment
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Different segments seek different experiences
Entertainm
entPro
duct
ivity
Quality
Price
Outlook - EfficiencyI want to be effortlessly productive
Facebook - NoveltyI want to be the first to try innovative products!
BitTorrent -ConnectivityI want simple and inexpensive communication
YouTube - RecognitionI want to increase my social status by using gadgets
.
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Application optimized networks are in demandfor mobile broadband now
200k downloads in the first three weeks
Smart device modelsincreasing
Fast application cycles, a lot of developers
Customers hungry for the online experience+ +
Optimizing the network means applying a holistic vi ew!
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Maximize the always-on user experience with Nokia Siemens Networks TODAY
Self Organizing Networks, end to end network management
TDM to packet migration in mobile backhaul
Leading smartphone connectivity and end to end quality of service (QoS)
Flat networks with I-HSPA and Direct Tunnel
Single RAN with Flexi BTS for Multiradio evolution
Network solutions
Network, service and application optimization
Global Network Solutions Centers
Industry leader in Managed services
Network design, implementation, integration, customization, care
Excel in consulting with user insight and experience
Service capabilities
GNOCIP connectivity and security solutions with leading partners
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User Experience requires a multitude of measures: a holistic approach – technical and non-technicalCatering the demands of a consumer, and helping the CSP at the same timeMake it work by combining a strong user experience with congestion-free network performance over the exciti ng multitude of smart phones, application stores and communities
Transparent tariff / pricing structure
Ease of configuration
Customized / personalized handset based on my
past activity
Single sign-on for popular websites
Speedy web page downloads
Establishing a data connection on the first try
Operator billing for online content purchases
Secure browsing and transactions
For internal use2010 © Nokia Siemens Networks
Understanding what’s behind smartphone traffic is c rucial: NSN talked up the need for smartphone friendly networks
On the network side, ... impressed , with NSN’s standards-based approach to reducing smartphone signaling tra ffic a very elegant solution.
We were most impressed by NSN’s solution to use the 3GPP Paging Channel (PCH) to put devices into power -saving mode while maintaining the data connection, which it suggests reduces signaling load 3-5 times (and significantly improves battery life).
Source: “MWC 2010: Voice and Traffic Management Key Network Topics”, Strategy Analytics Insight, 24.02.2010
For internal use2010 © Nokia Siemens Networks
Mobile Communication Trends
in Malaysia
Smart Networks for
Smart Devices
Meeting all customer needs
For internal use2010 © Nokia Siemens Networks
What it takes: An efficient Smart Phone Application and Service Experience Architecture Makes the Difference
Multiple applications, multiple devices
A tremendous variety of application stores, communities and content
Balancing the user experience with congestion-free network performance over the exciting multitude of smart phones, application stores and communities
ManagedApplicationExperience
Device Management
Subscriber Intelligence
Policy Control
Mobile BrowsingOptimization
SecurityIntelligent Network Planning
Charging &Billing
Identity Management
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Benefits for Malaysia and consumers
• A better experience is – driving the internet society in Malaysia forward.
– pushing the overall Malaysia ITC ecosystem forward, which in return will positively influence the economy and GDP.
• Consumers will– have a general higher subscriber satisfaction
– notice a better overall smartphone experience, resulting in higher usage
– have a better browsing experience
– encounter a better network performance and a better connection stability
Thank You