Ericsson Mobility Report Transforming to a Networked Society JULY 2016 Sean Gowran President and Country Manager Philippines and Pacific Islands
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 2015-09-28 Page 2
Key highlights June 2016 (RASO) 4 OUT OF THE TOP 10 COUNTRIES BY NET MOBILE SUBSCRIPTION ADDITIONS IN Q1 2016 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 2015-09-28 Page 3
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 2015-09-28 Page 4
WHAT s IN THE REPORT? Mobile subscriptions Q1 2016 Mobile subscriptions outlook Regional subscriptions outlook The Internet of Things Voice over LTE outlook Mobile traffic Q1 2016 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 2015-09-28 Page 5
Ericsson Internal 2015-09-28 Page 6 Mobile subscriptions
63 million new mobile subscriptions globally in Q1 2016 Ericsson Internal 2015-09-28 Page 7
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 2021. Philippines: 2015: ~115 percent 2021: ~ 125 percent Ericsson Internal 2015-09-28 Page 8
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 2021. There were more than 400 million WCDMA/HSPA subscriptions in Q1 2016. 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 2015-09-28 Page 9
Growing voice over lte subscriptions VoLTE subscriptions by region (billion) Ericsson Internal 2015-09-28 Page 10
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 2015-09-28 Page 11
Smartphone subscriptions over total mobile subscriptions 70% 60% 50% 40% 30% 20% 10% 0% Philippines 2014 2015 2016 2017 2018 2019 2020 2021 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 2018. Ericsson Internal 2015-09-28 Page 12
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 2015-09-28 Page 13
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 2015-09-28 Page 14
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 2015-09-28 Page 15
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 2015-09-28 Page 16
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 2015-09-28 Page 17
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 2015-09-28 Page 19
Internet of things to surpass mobile phones in 2018 To be largest category of connected devices Ericsson Internal 2015-09-28 Page 20
Ericsson Internal 2015-09-28 Page 21 Mobile traffic
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 2015. 6 EB can be equivalent to about 1.5 billion movie downloads (with a typical 2-hour HD movie taking about 4 GB). Ericsson Internal 2015-09-28 Page 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 2015-09-28 Page 23
video is a dominant traffic in all devices Ericsson Internal 2015-09-28 Page 25
Access to Licensed spectrum Ericsson Internal 2015-09-28 Page 27
Access to Licensed spectrum Licensed Spectrum amount per band PHILIPPINES Licensed Spectrum Split < 1GHz > 1GHz 24% 76% 0 100 200 300 400 500 600 700 700 850 900 1800 2100 2300 2600 Ericsson Internal 2015-09-28 Page 28
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