Ericsson Mobility Report: LTE and smartphone uptake drives video traffic growth

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STOCKHOLM, SWEDEN--(Marketwired - Jun 3, 2013) -

* Video traffic growing by 60 percent annually, driven by better network Speeds

* Total global smartphone subscriptions hit the 1.2 billion mark in 2012,and are due to reach 4.5 billion by the end of 2018

* 60 percent of the world's population due to be covered by LTE in 2018

* Smartphone users spend most time on social networks: an average of 85 minutes a day in some networks

* Data traffic volumes doubled between Q1 2012 and Q1 2013, and areexpected to grow 12-fold by 2018


The new edition of the Ericsson (NASDAQ: ERIC) Mobility Report reveals thatmobile-data traffic will continue to grow significantly in the comingyears, atrend driven mainly by video. Overall data traffic is expected to grow12-fold by the end of 2018. Increasing usage is driven by continual growthin the amountof content available as well as the improved network speeds that come withHSPAand LTE development.

Douglas Gilstrap, Senior Vice President and Head of Strategy at Ericsson,says:"LTE services will be available to about 60 percent of the world'spopulation in2018. We expect LTE subscriptions to exceed 1 billion in 2017, driven bymorecapable devices and demand for data-intensive services such as video. Owingtothe build out of WCDMA/HSPA, network speeds have improved, and so has theuserexperience."


Figure: Population coverage by technology, 2012-2018

Video makes up the largest segment of data traffic in networks, and it isexpected to grow around 60 percent annually up until the end of 2018. Videoconsumption is on average 2.6GB per subscription per month in somenetworks.

While video is popular, users don't necessarily tend to spend the most timeondata-heavy applications. Consumers spend more time on social networking: anaverage of up to 85 minutes per day in some networks.

Smartphones accounted for around half of all mobile-phone sales in Q1 2013,compared with roughly 40 percent for the whole of 2012. The number of totalmobile subscriptions grew by 8 percent globally year-on-year by Q1 2013. Ofthose, WCDMA/HSPA added around 60 million subscriptions, GSM/EDGE-onlysubscriptions grew by roughly 30 million, and LTE added around 20 millionnewsubscriptions. Mobile-broadband subscriptions grew even faster over thisperiod(at a rate of 45 percent year-on-year), reaching around 1.7 billion.

The Mobility Report also addresses the concept of "app coverage" -broadeningthe definition of coverage from voice to include how well users are able toaccess their mobile apps - and presents a new framework explaining theeffectsof varying network performance in a way that is relevant to the user.

In this edition of the report, the relationship between network performanceandconsumer loyalty is also studied. Network performance is the principaldriver ofsubscriber loyalty to mobile operators, followed by value for money. Othersections of the report explain the effects of smartphone signaling on datatraffic, and look at data roaming, identifying opportunities for operatorstogenerate new revenue streams.



NOTES TO EDITORS

Link to new and previous issues of the Ericsson Mobility Report:www.ericsson.com/ericsson-mobility-report

Bio and photos of Douglas Gilstrap

PDF version of the report

Press release November 21, 2012: Ericsson Mobility Report shows rapidsmartphoneuptake and doubling of mobile data traffic


Download high-resolution photos and broadcast-quality video atwww.ericsson.com/press

Ericsson is a world-leading provider of communications technology andservices.We are enabling the Networked Society with efficient real-time solutionsthatallow us all to study, work and live our lives more freely, in sustainablesocieties around the world.

Our offering comprises services, software and infrastructure withinInformationand Communications Technology for telecom operators and other industries.Today40 percent of the world's mobile traffic goes through Ericsson networks andwesupport customers' networks servicing more than 2.5 billion subscriptions.

We are more than 110,000 people working with customers in more than 180countries. Founded in 1876, Ericsson is headquartered in Stockholm, Sweden.In2012 the company's net sales were SEK 227.8 billion (USD 33.8 billion).Ericssonis listed on NASDAQ OMX, Stockholm and NASDAQ, New York stock exchanges.

www.ericsson.com

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Figure 19: Population coverage by technology:http://hugin.info/1061/R/1706363/564797.jpg

Figure 16: Mobile Data traffic by application type, 2010-2018:http://hugin.info/1061/R/1706363/564796.jpg

Figure 1: Mobile Subscriptions by region Q1 2013:http://hugin.info/1061/R/1706363/564793.jpg

Figure 9: Global total data traffic in mobile networks, 2007-2013:http://hugin.info/1061/R/1706363/564805.jpg

Figure 7: Mobile subscriptions by technology and region 2012:http://hugin.info/1061/R/1706363/564802.jpg

Figure 5: Mobile subscriptions by technology, 2009-2018:http://hugin.info/1061/R/1706363/564795.jpg

Figure 2: Penetration percentage Q1:http://hugin.info/1061/R/1706363/564794.jpg

Press release PDF:http://hugin.info/1061/R/1706363/564790.pdf

Figure 29: Application mobile data traffic volumes by device type:http://hugin.info/1061/R/1706363/564800.jpg

Figure 8: Mobile subscriptions by technology and region 2018:http://hugin.info/1061/R/1706363/564804.jpg

Ericsson Mobility Report PDF:http://hugin.info/1061/R/1706363/564791.pdf



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Source: Ericsson via Thomson Reuters ONE

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