estudo do mercado de banda larga móvel - acision quantinet - futurecom 2010

© 2010 Acision BV. All rights reserved Version No: 1.0 / Status: FINAL

Seizing the opportunity in Mobile BroadbandSteven van Zanen

© 2010 Acision BV. All rights reserved

Version No: 1.0 / Status: FINAL

Key takeaways from our research

© 2010 Acision BV. All rights reserved Slide Number: 2

1. Major opportunities exist today with e.g over 6 million

consumers ready to start using mobile broadband now

2. Pricing is a probable inhibitor for growth and seen as a

key dissatisfier for 55% of Brazilians

3. Relatively comparable satisfaction levels compared to

the US and UK, but moving forward Brazilian operators

should deploy key capabilities to manage QoE levels

in an exponential growth situation


Agenda


1. Acision & QuantiNet

2. Counting the cost of data

3. The Brazil consumer perspective

4. Comparisons with UK and US markets

5. Preparing for growth

6. Seizing the opportunity


Example implementations

Slide Number: 4

DATA

• Operator: Convergent

operator in Asia Pacific

• Size: 20Mn+ mobile

subscribers

• Need: Lacked sufficient

insight in network, service

and subscriber behaviour

• Scope: Traffic analysis and

reporting consultancy

CONTENT

• Operator: Convergent

operator in AsiaPacific

• Size: 8 Mn+ mobile

subscribers

• Need: Optimise video and

web traffic to improve QoE

and reduce traffic

• Scope: Web and Media

Optimisation

CONTROL

• Operator: Global telecoms

group

• Size: 16 operators, incl.

80Mn+ subscribers

• Need: Differentiate QoS

based on rich context e.g.

subscriber identity, network

conditions etc.

• Scope: Policy Management



Agenda









Enormous untapped potential in Brazil


Perception of non-mobile internet consumers

66% of consumers

(44 million) with

access do not use

mobile internet

6.1 million (14%)

consumers are

considering the

service now

7.3 million (16%) are

simply unaware of

the advantages or

services Source: Sept 2010 Quantinet research commissioned by Acision N=1506

55%

31%

14% 13%11%

6% 5%

0%

10%

20%

30%

40%

50%

60%

Tooexpensive

No need Considering it Not reliable see noadvantages

not availabefor me

Don’t know services


The Mobile Internet Story So Far

HSDPAEDGEGPRSCSD HSDPA+ LTE LTE-A ?

2000 2004 2008 2010 2012 201620142002

CUSTOMER PENETRATION

TR

AF

FIC

VO

LU

ME

Acquisition strategies

• All you can eat

• FUP

• Fixed price

• iPhone

Acquisition strategies

• Capacity upgrades

• Data caps

• Tiering

• Transaction pricing

• Content mediation

Pricing is the trigger

Usability is the prerequisite



Traffic growth & Quality of Experience

EXPLOSIVE TRAFFIC GROWTH

• Investment in network and control

infrastructure is massive

• Video, with 66% of traffic, requires

new capability and scalability levels

Source: Cisoc Visual Networking Index - 2010

QUALITY OF EXPERIENCE

• Traffic volumes are causing

congestion and QoE issues

• Quality of Service already challenge

• Getting and staying connected biggest

challenge

• Speed >70%, high impact on video QoE

Source: Sept 2010 Quantinet research commissioned by Acision

Brasil QoE Issues


75% 73%68% 67%

51%

10%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Low speeds Noconnection

Stayconnected

No coverage Low imagequality

Never


Impact on Customer satisfaction

HSDPAEDGEGPRSCSD HSDPA+ LTE LTE-A ?

2000 2004 2008 2010 2012 201620142002


TR

AF

FIC

VO

LU

ME

CU

ST

OM

ER

T S

AT

ISFA

CT

ION

Trigger

(inflated) expectations

disillusionment

Enlightenment &

Productivity

Free Wi-Fi access for

smartphone

subscribers

cellphone-service

complaints surge; iPhone

traffic may be culprit

Per day

Broadband

pricing

introduced

Google and Verizon propose

web traffic rules


Agenda





– Research background

– Quality of Experience & Satisfaction





Acision/QuantiNet research


Data collection Via Internet using a questionnaire structured on the web (self application). People selected based on QuantiNet. People selected are contacted by e-mail.

Period Applied between August 17 and August 22/2010.

Sample Frame People registered on the QuantiNet database throughout Brazil. 34% return.

Target Both sexes between 16 and 74 years of age, A/B/C incomeclasses (Brazil Criteria)

Sample Total of 2500 interviews distributed in the five geographic regions and spread across the 4 major operators. 819 respondents (33%) were mobile internet users


Agenda





– Research background

– Quality of Experience & Satisfaction





90% of consumers have QoE issues


22 million consumers

use mobile internet

Only 10% of

consumers state

they have no QoE

issues

All aspects of the

service affect the

majority of

consumers

Very high compared

to US and UK

Experienced QoE Issue(responses often and sometimes)

75% 73%68% 67%

51%

10%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Low speeds Noconnection

Stayconnected

No coverage Low imagequality

Never

Source: Quantinet/Acision, October 2010 N=819


All issues occur frequently


The issues that affect

most consumers also

happen most

frequently

Speed again tops the

responses

Very high compared

to US and UK

Frequency of QoE Issue(Respondents asked to scale from 1 – 100%)

67%64%

60% 59%

44%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Slow velocity(too slow)

Could notconnect

Difficulty tostay connected

No signalcoverage

Low definitionimages

received



Price is major dissatisfier


Price is a major

dissatisfier,

regardless of very

high QoE issues

Satisfaction levels on

QoE are relatively

good given high Qoe

issues. Most likely

this is due to modest

QoE expectations

Satisfaction levels(on a 1 to 5 scale)

45%

27% 26% 22% 21%

33%

39% 39%38% 39%

23%

34% 35%40% 40%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Price ConnectionStability

Speeds ConnectionQuality

Coverage

Top

Middle

Bottom



Agenda









CSD GPRS EDGE HSDPA HSDPA+ LTE LTE+ ?

2000 2004 2008 2010 2012 201620142002


TR

AF

FIC

VO

LU

ME

CU

ST

OM

ER

T S

AT

ISF

AC

TIO

N

Comparing countries

http://www.flags.net/BRAZ.htm

http://www.flags.net/UNKG.htm

http://www.flags.net/UNST.htm


39%

2%4%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Brazil US UK

Pricing today does little to stimulate

uptake and use


39% are paying per

KB/MB

In addition 32% of

consumers have a

limit where they pay

extra if they overrun.

As a result 63% of

people have a

financial model

which penalizes use

Consumers paying per KB/MB

Source: Quantinet/YouGov/Acision, 2010





45%

34%

22%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

BR US UK

Price dissatisfies much more than US/UK


Dissatisfaction on

price is 50% higher

compared to US and

double compared to

UK

Dissatisfaction on price

(bottom 2 scores)






49%70% 82%

40%

67%68%

73%

64%

85%

0%

50%

100%

150%

200%

250%

Brazil US UK

Laptop

Phone

Fixed

Penetration in Brazil lower than US or UK


Brazil has lower

overall penetration in

the surveys

In terms of mobile

access (laptop or

phone):

• BR: 113%

• US: 131%

• UK: 151%

Access types in UK, US & Brazil surveys

Source: Quantinet/Acision, October 2010

162%

201%

235%





48%

80% 83%

52%

20% 17%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Brazil US* UK

Mobile Only

Fixed & Mobile

Mobile-only internet very high in Brazil


Mobile only access

to internet is much

higher in Brazil as an

alternative for fixed

access

Mobile broadband is

therefore the only

internet experience

for many people and

there is less fixed

line comparison

Mobile only use and combined use






44%

49%

36%

0%

10%

20%

30%

40%

50%

60%

Brazil US UK

Already 44% of people watch video


Brazil already has a

high share of

consumers watching

video

Being an alternative

to fixed line is an

important driver

Consumers that watch video






Enormous untapped potential in Brazil


Perception of non-mobile internet consumers

66% of consumers

(44 million) with

access do not use

mobile internet

6.1 million (14%)

consumers are

considering the

service now

7.3 million (16%) are

simply unaware of

the advantages or

services Source: Sept 2010 Quantinet research commissioned by Acision N=1506

55%

31%

14% 13%11%

6% 5%

0%

10%

20%

30%

40%

50%

60%

Tooexpensive

No need Considering it Not reliable see noadvantages

not availabefor me

Don’t know services


Agenda







– Deal with video

– Introduce fairness principles

– Differentiate the offer



Stalling is by far the most annoying


Essential to high

video QoE is

continuous playback

Most people are

prepared to wait 10

seconds for the

video to download

Full screen

capabilities are

deemed unimportant

in a mobile context

Most unacceptable video QoE issues

(which of the following would you find most unacceptable?)

Source: YouGov/Acision, October 2010

59%

15%

6% 5% 3%

-10%

0%

10%

20%

30%

40%

50%

60%

70%

Stalls > once > 30 secs to play

> 10 secs to play

Stalls once Quality full screen

Source: October 2010 YouGov research commissioned by Acision



US Support for video optimisation


‘Would you accept a policy

which reduces size of the video

to improve on waiting time and

video pauses’

59% of video users

find video pauses

the most annoying

QoE issue

Only 3% of video

users deem low

quality of full screen

video an issue

Yes69%

No11%

Don't know20%

‘Would you pay more for

such a policy?’

Don't Know26%

Yes26%

No48%



Agenda







– Deal with video






76% in US are not aware of fair use policies


‘Does your provider

apply a fair use

policy´

Both the concepts of

mal-use and fair-use

are very much

unknown to

consumers

If operators want to

apply fairness

principles, a higher

level of awareness

is required.

Don't Know76%

Yes11%

No13%

Awareness of

network abuse

Don't Know

9%

Yes31%

No59%




Support for fairness policies


‘accept a policy which distributes

bandwidth between as many people

as possible to ensure better QoE’

Once awareness is

raised support for

fairness policies is

high

The objective of

fairness principles

needs to be clear

Transparency and

openness will be

key to sustain

support

Yes64%

No14%

Don't know22%

Yes45%

No37%

Don't know18%

‘Would you pay more for

such a fairness policy’



Agenda







– Deal with video






Differentiation & revenue opportunities


1. Notification of

spend level

2. Shared Bundle

3. Personalisation

4. Fair bandwidth

management

48% 46% 46% 45%

15% 20% 17% 19%

0%

10%

20%

30%

40%

50%

60%

70%

Spend Notifications

Shared Bundle Service Customisation

Distribute Bandwidth

Maybe

Yes

`Would you be prepared to pay more for the following

services`




Differentiation & revenue opportunities


5. Set spend limits

6. Reduce video and

image size in

order to decrease

bundle spend.

7. Access priority

based on spend

level

8. Roaming

42% 41%35% 32%

18% 23%

18%18%

0%

10%

20%

30%

40%

50%

60%

70%

Spend Limits Content Optimisation

Service Priority Roaming

Maybe

Yes

`Would you be prepared to pay more for the following

services`



Agenda









Key takeaways from our research


1. Major opportunities exist today with over 6 million

consumers ready to start using mobile broadband now

2. Pricing is a probable inhibitor for growth and seen as a

key dissatisfier for 55% of Brazilians

3. Relatively comparable satisfaction levels compared to

the US and UK, but moving forward Brazilian operators

should deploy key capabilities to manage QoE levels

in an exponential growth situation


UK: An example to lead

Slide Number: 35© 2010 Acision BV. All rights reserved

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jun-08 oct-08 jan-09 apr-09 jul-09 oct-09 jan-10 apr-10 jul-10

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Broadband Waves

3 O2 Orange T-Mobile VodafoneSource: YouGov, August 2010


Operators can seize the opportunity

Slide Number: 36

• Grow ARPU by enabling a

differentiated service offering

• Decrease Cost by maximising network

utilisation

• Control QoE by managing

all relevant service aspects

• Leverage content by enabling viable

partnerships in the internet ecosystemAcision Fairness triangle

Regulators

ConsumersInformation, productivity,

communication, entertainment

Content ProvidersUbiquitous access and content

ownership

Network OperatorsRun a sustainable and profitable

business

1. Focus on key business prios

2. Enable associated capabilities

3. Evolve the consumer offering


Service DifferentiationNotification Management

Balance Management

Quota Management

Home Zone Management

Quality of Experience

ControlQuality of Experience Management

Transaction Management

CONTROL LAYER

Policy Management

Subscriber Control

DATA LAYER

Traffic InsightTraffic Analysis

Traffic Shaping and Routing

Flow Control

Enable key capabilities

CONTENT LAYER

Content Optimisation Video Shaping

Video Optimisation

Web Optimisation

Content Detection

Transaction Detection

Capacity Management

Hierarchical Capacity Prediction

Content Mediation

Location Management


Register your interest with Acision @

[email protected]


Or visit

How to get the Broadband report?

www.acision.com/products-and-Solutions/Mobile-Data-Control.aspx

Thank you!

mailto:[email protected]

estudo do mercado de banda larga móvel - acision quantinet - futurecom 2010

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