Ericsson Mobility Report
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1 Ericsson Mobility Report Transforming to a Networked Society JULY 2016 Sean Gowran President and Country Manager Philippines and Pacific Islands
2 Key highlights June 2016 (GLOBAL) THERE ARE NOW 5 BILLION MOBILE USERS IN THE WORLD LTE GREW BY 150 MILLION SUBSCRIPTIONS IN THE LAST QUARTER ALONE SMARTPHONE SUBSCRIPTIONS TO SURPASS BASIC PHONES 2016 THERE WILL BE MORE CONNECTED IOT DEVICES THAN MOBILE PHONES 2018 THERE ARE NOW MORE THAN 100 MILLION VoLTE SUBSCRIPTIONS, EXPECTED TO REACH 2.3 BILLION IN 2021 Ericsson Internal Page 2
3 Key highlights June 2016 (RASO) 4 OUT OF THE TOP 10 COUNTRIES BY NET MOBILE SUBSCRIPTION ADDITIONS IN Q ARE FROM SEA & OCEANIA BY THE END OF 2015, OVER 5 PERCENT OF ALL MOBILE SUBSCRIPTIONS IN SEA & OCEANIA WERE LTE THERE IS POTENTIAL FOR MOBILE BROADBAND AND FIXED WIRELESS BROADBAND IN SEA & OCEANIA DEMANDS FOR GREATER CAPACITY AND HIGHER DATA RATES INFLUENCE NETWORK PERFORMANCE OF WIRELESS ACCESS TECHNOLOGIES Ericsson Internal Page 3
4 Key highlights: Philippines Smartphone and MBB subscription growing tremendously in Philippines Smartphone subscription will surpass basic phone subscription by 2018 (will more than double from close to 40 million in 2015 to around 90 million in 2021) LTE subscription over total mobile subscription was around 5 percent in 2015 and expected to reach close to 70 percent in 2021 Key smartphone apps for Philippines: Facebook, Facebook Messenger, YouTube and browsing apps (Google Chrome and Google) In Philippines, 2 out of 10 smartphone users are using social networking, instant messaging and online videos on a daily basis When comparing March 2016 and March 2015, average data traffic per user for mobile broadband in Philippines grew close to 30% compared to around 60% for Wi-Fi Ericsson Internal Page 4
5 WHAT s IN THE REPORT? Mobile subscriptions Q Mobile subscriptions outlook Regional subscriptions outlook The Internet of Things Voice over LTE outlook Mobile traffic Q Mobile traffic outlook Mobile traffic by application category State of the networks Microweather: unlocking potential Growing up streaming Managing user experience The need for spectrum harmonization GLOBAL RASO Release date: 1 st June 2016 Top five smartphone apps per country Daily users of key application categories Mobile broadband data traffic vs. Wi-Fi data traffic Top countries globally by net mobile subscription additions Mobile, mobile broadband and fixed broadband subscriptions Smartphone subscriptions growth Data traffic growth Optimizing end user experience Harmonizing spectrum Ericsson Internal Page 5
6 Ericsson Internal Page 6 Mobile subscriptions
7 63 million new mobile subscriptions globally in Q Ericsson Internal Page 7
8 Mobile subscription population penetration, REGIONAL Mobile subscriptions in the region will grow annually at about 4 percent between 2015 and 2021, and having crossed 1 billion subscriptions in Q1 2016, are foreseen to amount to around 1.2 billion by the end of Philippines: 2015: ~115 percent 2021: ~ 125 percent Ericsson Internal Page 8
9 Mobile Technology subscriptions; regional By the end of 2015, over 5 percent of all mobile subscriptions in South East Asia and Oceania were LTE LTE is expected to increase to more than 40 percent in There were more than 400 million WCDMA/HSPA subscriptions in Q In Philippines, LTE is around 5 percent of all mobile subscriptions at the end of 2015 and expected to grow close to 70 percent in 2021 Ericsson Internal Page 9
10 Growing voice over lte subscriptions VoLTE subscriptions by region (billion) Ericsson Internal Page 10
11 Smartphone subscription penetration Philippines 2015: ~ 40 percent 2021: > 80 percent By 2021, Singapore, Vietnam, Australia, Thailand and Malaysia will pass the 100 percent mark. Ericsson Internal Page 11
12 Smartphone subscriptions over total mobile subscriptions 70% 60% 50% 40% 30% 20% 10% 0% Philippines Philippines Smartphone Subscriptions over total Mobile Subscriptions 2015: > 30 percent 2021: ~ 70 percent Philippines smartphone subscriptions is expected to surpassed those for basic phones in Ericsson Internal Page 12
13 mobile and fixed broadband subscription penetration There is a strong growth potential for both MBB and FBB in Thailand Philippines MBB Subscription penetration: 2015 : ~50% 2021 : >120% Philippines FBB Subscription penetration: 2015 : > 10% 2021: ~ 20% Ericsson Internal Page 13
14 Top five smartphone apps Social networking, video streaming, messaging and browsing continue to be among the most popular smartphone apps based on number of monthly active users. Ericsson Internal Page 14
15 Daily users of key apps 2 out of 10 of Filipinos smartphone users are using social networking, instant messaging and online videos on a daily basis Ericsson Internal Page 15
16 Daily users of key application categories (youth vs. adults) 30% Daily users of Key Apps 20% 10% 0% Youth Adults In Philippines, youth are more likely to be daily users of social networking, instant messaging and online videos Youth are an interesting segment to target in Philippines. Ericsson Internal Page 16
17 Daily users of key application categories (youth vs. adults) 50% 40% 30% 20% 10% 0% 43% 42% 35% 36% 32% 29% 32% 26% 26% Youth Adults Philippines Online video Social networking Instant messaging Note: Online videos include free online videos and videos on social media In Philippines, more than 30 percent of smartphone users are using social networking, almost 40 percent using instant messaging and around 30 percent using free online videos or videos in social media on a daily basis. Ericsson Internal Page 17
18 Growth of data Traffic: mobile broadband VS Wi-Fi Average mobile broadband data and Wi-Fi data traffic growth per smartphone user from 2015 to 2016 All markets experienced increases in average data traffic per user for mobile broadband and Wi-Fi. When comparing March 2016 and March 2015, average data traffic per user for mobile broadband in Philippines grew close to 30% compared to around 60% for Wi-Fi Ericsson Internal Page 19
19 Internet of things to surpass mobile phones in 2018 To be largest category of connected devices Ericsson Internal Page 20
20 Ericsson Internal Page 21 Mobile traffic
21 Mobile traffic, regional Voice traffic remains flat in the region But, mobile data traffic will exceed 6 ExaBytes (EB) per month by 2021 Up from over 0.4 ExaBytes (EB) in EB can be equivalent to about 1.5 billion movie downloads (with a typical 2-hour HD movie taking about 4 GB). Ericsson Internal Page 22
22 Mobile video traffic is increasingly dominant since 2012 Mobile video traffic to grow around 55% annually Growing use of embedded video in social media and webpages is counted as mobile video traffic Ericsson Internal Page 23
23 video is a dominant traffic in all devices Ericsson Internal Page 25
24 Access to Licensed spectrum Ericsson Internal Page 27
25 Access to Licensed spectrum Licensed Spectrum amount per band PHILIPPINES Licensed Spectrum Split < 1GHz > 1GHz 24% 76% Ericsson Internal Page 28
26
27 Ericsson Internal Page 37
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