ericsson mobility report, june 2015

June 2015 Global and Latam figures

Mobile Subscriptions Update

Ericsson mobility report slides kit for sales | Ericsson Internal | EAB-15:027614 Uen, Rev B | 2015-05-29 |

Mobile subscriptions APAC, India, Africa drive net additions

› Similar YoY growth rate (5%) we have seen now for the last 2 years

– Top 5 countries by net additions are all from APAC(+ 47 million): India, China, Myanmar, Indonesia and Japan

– Latin America added 8 million in Q1 – Mobile subscriptions will surpass world

population during the year (~H2 2015)

› Smartphone subscription uptake is strong – More than 700 million smartphone subscriptions

added in 2014 – 70% of world’s population will have a

smartphone by 2020, 86% in Latin America – 75% of all mobile phones sold in Q1 2015 – Room for uptake as currently only ~ 40% of total

mobile subscriptions are for smartphones


Mobile subscriptions Q1 2015

8 million new subscriptions in Latam, reaching a total of 730 millions in Q1, from which ~300 million are MBB

30% growth Year-on-Year


Mobile penetration Q1 2015 regional

4.9 billion subscribers vs

7.2 billion subscriptions


90% of the world’s population will have a mobile phone by 2020

• 9.2 Billion mobile subscriptions by the end of 2020, 825 million in Latin America

• 85% of mobile subscriptions will be

for mobile broadband by the end of 2020 (7.7 billion)


Subscription outlook – growth in hspa and LTE

In 2020: › 9.2 billion mobile subscriptions › 3.7 billion LTE subscriptions › 3.8 billion WCDMA/GSM subscriptions › 5G will be commercially deployed

Global

Latin America Subscriptions by technology (billion)

262 millions

in Latam

466 m

262 m

825 million

92 m


Smartphones subscriptions set to more than double by 2020

It took over 5 years to reach the first billion smartphone subscriptions (2012), and less than 2 years to reach the second billion


Regional subscriptions outlook

14% growth

in Latam


Latin America subscriptions per device

By 2020: More than 600 million smartphones Around 40 million Mobile PC/Tablets/routers Feature phone will decrease to 183 million


TEChnology by region

10%

35% 40% WCDMA/GSM


Connected devices › Growth in the number of connected devices is accelerating, driven by growing range of applications

and business models, supported by falling modem costs › 13.5 billion connected devices in 2014 › 26 billion connected devices by 2020. confirming we are well on the way to reaching our vision of 50

billion connected devices › 230 million cellular M2M subscriptions at the end of 2014, from those, 20 million in Latam, expected

to grow 3 times by 2020

Mobile Traffic Update


Mobile Traffic Update q1 2015

Global total monthly traffic in mobile networks, 2010-Q1 2015

› Note: Based on actual measurements.

› Traffic does not include DVB-H, Wi-Fi, or Mobile WiMax. Voice does not include VoIP.

› YoY: 55% growth in mobile data traffic

› QoQ: 12% growth in mobile data traffic

Driven by rise of mobile data subscriptions and continued increase of average data volume per subscription


9 times Mobile data Traffic by end of 2020

4.2 GB

1.9 GB

1.0 GB

Monthly consumption per device type

17.3 GB

8.4 GB

4.9 GB

2014 2020 CAGR 45%


Screen size matters

› Screen size, resolution and display clarity are important factors influencing the mobile user experience and affecting the extent to which various services are used

› Small screens could be a barrier for web browsing and social networking due to, for example, the inconvenience of reading and writing on smaller screens. However, too large a screen also decreases usage. .

› Video consumption on tablets is 50 to 70 percent higher on average compared to usage on phablets.

› Average tablet user spends 50 percent more time watching videos online than average mobile broadband users .


Smartphone data traffic Regional

› More smartphone subscriptions

› More traffic per smartphone

› Monthly smartphone consumption/subscription by 2020

– NA: 14 GB – WE: 9.5 GB – APAC: 4 GB – LATAM: 3 GB


Regional mobile traffic

Mobile data traffic increase between 2014 and 2020: • Asia Pacific: X11 • Central Europe and Middle

East and Africa : X11 • Western Europe: X9 • North America: X8 • Latin America: X7


Latin America mobile data traffic per device

86% of the mobile data traffic in the

region will be generated by smartphones


13X more video traffic in 2020


13X more video traffic in 2020 Total mobile video traffic over the next 6 years

will be more than 22 times that of the last 6


Top 25 app usage in three countries

App time that users in each country spend using the top 25 apps (i.e. not all apps) › In the US, around 13 percent of app time is

spent streaming video, while in Russia and Sweden it is half that.

› Social networking is significant in all three countries.

› ‘Russia stands out, with users spending more than 40 percent of app time on social networks. Russia is also notable for high levels of navigation app use, and the variety of such services available.

› Swedes spend a greater percentage of app time communicating.


Beyond average data consumption

› Compares subscriber and traffic shares, as well as the

application mix for different subscriber clusters in advanced mobile broadband markets. Mobile services consumption patterns of subscribers differ a lot for different monthly usage clusters.

› In many mobile networks a significant proportion of traffic is generated by a limited number of users. The top 10 percent users generate around 55 percent of the traffic and 20 percent of users generate around 70 percent


Beyond average data consumption

› Social networking, web browsing and audio

traffic share is highest in medium groups, while the shift to video as the dominant traffic is apparent in the heavy user group. Video is dominant among heavy and power users, representing almost 70 percent of traffic

› Heavy data users, those who consume more than 10 GB per month, share of video consumption is as high as 70% of their total data consumption. and watches around 1 hour video per day on average, which is 20 times more than an average user


population Coverage

› Around 90% of world´s population covered by WCDMA/HSPA in 2020 › More than 70% of world’s population covered by LTE in 2020


HSPA network status

› Around 85% of HSPA networks upgraded to DL peak of 7.2 Mbps or higher › Around 70% of HSPA networks upgraded to DL peak of 21 Mbps or higher › Around 30% of HSPA networks now have speeds of up to 42 Mbps in whole or

parts of the network


LTE network status


Voice evolution

The digital signatures of sport



Football world championships 2014 › Activities like real-time viewing,

sharing results and social networking have become integral parts of sports events, enabling them to become digital experiences

› The network challenge › Mobile traffic patterns › Consumer behavior patterns › Connection types › Network loads



Comparing premiere league, UEFA Cup final, WC final › Traffic analysis from other major football matches shows similar

voice call patterns. Call activity peaks 1.5 hours before kick-off, and decreases 30 minutes before kick-off. Matches are followed by 45 minutes of peak call activity.


The digital signatures of sport Nordic World Ski Championship 2015 › Going digital at events – the role of

apps › Level of Internet and social media

sentiments around two top athletes › Data and voice traffic intensity (app,

voice, uploads) during the main relay event

› Mobile network loads at different distances from the main skiing arena

› Meeting the common network challenges

› Network planning, real-time traffic management, capacity and coverage adaptations, LTE BC,, services differentiation (QoS, prioritization), etc



Nordic World Ski Championship 2015 › App usage, data upload and voice activity during men’s 4x10 km relay › The most popular single event measured through live results app usage

was the men’s 4x10 km relay. The live TV and video app usage was also seen to peak in the last 30 minutes of the relay event


Global Key Highlights

9.2 billion mobile subscriptions

>2X smartphone subscriptions

7.7 billion MBB subscriptions

9X mobile data traffic – driven by video

In 2020…

Population coverage - 90% WCDMA/GSM > 70% LTE

“Already today, users expect fast and reliable mobile access, wherever they go. They want sufficient app coverage”

70 percent of the world´s population will have a smartphone


Key Highlights latin america

825 million mobile subscriptions

86% smartphone penetration

600 million MBB subscriptions

7x mobile data traffic – driven by video

Population coverage - 90% WCDMA/HSPA - 65% LTE 100 million M2M

connections

260 million LTE subscriptions

In 2020…

ericsson mobility report, june 2015

Technology

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