Ericsson Consumer Labs: Why cities will drive traffic growth

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By 2017, urban and metro areas will generate 60 percent of all mobile traffic, although they will be home to only 30 percent of the population. …

By 2017, urban and metro areas will generate 60 percent of all mobile traffic, although they will be home to only 30 percent of the population.

The Ericsson ConsumerLab City Study completed in 2011, interviewed 1500 city dwellers from 13 major cities.

The collected data represents the half of the population that uses the internet most frequently.

This presentation summarizes the results.

For more information on the Ericsson Consumer Lab, please visit:

http://www.ericsson.com/thinkingahead/consumerlab

More in: Technology , Business
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  • 06/07/12 June 2012 © Ericsson AB 2012 © Ericsson AB 2012 June 2012 © Ericsson AB 2012 06/07/12 2011-11-06 ************************************************ Slide owner: Urban Life, BNET strategic marketing Latest update: April 2012 ************************************************
  • 06/07/12 June 2012 © Ericsson AB 2012 © Ericsson AB 2012 June 2012 © Ericsson AB 2012 06/07/12 2011-11-06 ************************************************ Slide owner: Urban Life, BNET strategic marketing Latest update: April 2012 ************************************************ On the left side of the graph, we can see the forecasted distribution of the world’s population in 2017. The graph shows that 30 percent of the world’s population is forecasted to live in metro and urban areas (defined as areas with a population density of more than 1,000 people per square kilometer). These areas represent less than 1 percent of the earth’s total land area, yet they are set to generate about 60 percent of mobile traffic by 2017. That’s why we believe cities will drive traffic growth. (Source: Ericsson Traffic and Market Data Report Interim Update 2012: http://www.ericsson.com/res/docs/2012/tmd_report_feb_web.pdf)
  • 06/07/12 June 2012 © Ericsson AB 2012 © Ericsson AB 2012 June 2012 © Ericsson AB 2012 CITY LIFE 2011 (ConsumerLab report) CITY LIFE 2011 (ConsumerLab report) CITY LIFE 2011 (ConsumerLab report) 06/07/12 2011-11-06 © Ericsson AB 2012 Ericsson AB 2011 Ericsson AB 2011 Ericsson AB 2011 Sampling/weighting according to official (online) demographics, with three exceptions: Gender was collected 50/50, city center/suburban was also collected 50/50, and the 50+ age group was boosted in some cities to include at least 6 percent of the sample for each city (minimum of 100 respondents per city and age group) .
  • 06/07/12 June 2012 © Ericsson AB 2012 © Ericsson AB 2012 June 2012 © Ericsson AB 2012 06/07/12 2011-11-06 ************************************************ Slide owner: Urban Life, BNET strategic marketing Latest update: April 2012 ************************************************ Android phones and iPhones accounted for about 70 percent of smartphone shipments in 2011 (source: Strategy Analytics, February 2012). Note: Symbian OS included. The smartphone market itself grew to 491 million units worldwide in 2011, a 64 percent increase on the 2010 total of 299.5 million. This growth was fuelled almost entirely by shipments of Android phones and iPhones, which now account for a combined 68 percent of the smartphone market, compared to 39 percent in 2010 (Symbian 17 percent, Blackberry 10 percent, Windows 2 percent). This means that all cities included in the study had rates of smartphone ownership that were far above the worldwide average, with the exceptions of Cairo (15 percent ownership of iPhone and Android phones) and Tokyo (20 percent). In the case of Tokyo, the low figure is not indicative of the maturity of the market. Japan has strong domestic phone manufacturers that use domestic standards and offer very advanced mobile phones which have not really “needed” to be smartphones.
  • 06/07/12 June 2012 © Ericsson AB 2012 © Ericsson AB 2012 June 2012 © Ericsson AB 2012
  • 06/07/12 June 2012 © Ericsson AB 2012 © Ericsson AB 2012 June 2012 © Ericsson AB 2012 06/07/12 2011-11-06 ************************************************ Slide owner: Urban Life, BNET strategic marketing Latest update: April 2012 ************************************************
  • 06/07/12 June 2012 © Ericsson AB 2012 © Ericsson AB 2012 June 2012 © Ericsson AB 2012 06/07/12 2011-11-06 ************************************************ Slide owner: Urban Life, BNET strategic marketing Latest update: April 2012 ************************************************
  • 06/07/12 June 2012 © Ericsson AB 2012 © Ericsson AB 2012 June 2012 © Ericsson AB 2012
  • 06/07/12 June 2012 © Ericsson AB 2012 © Ericsson AB 2012 June 2012 © Ericsson AB 2012 06/07/12 2011-11-06 ************************************************ Slide owner: Urban Life, BNET strategic marketing Latest update: April 2012 ************************************************ Devices used to connect to the internet ”daily”: desktop computer (79 percent), laptop (71 percent), tablet (53 percent), mobile phone (50 percent), other (25 percent)
  • 06/07/12 June 2012 © Ericsson AB 2012 © Ericsson AB 2012 June 2012 © Ericsson AB 2012 06/07/12 2011-11-06 ************************************************ Slide owner: Urban Life, BNET strategic marketing Latest update: April 2012 ************************************************ The second-largest driver for usage of online social networks is to update information (about 25 percent). Online social networking is used by all respondents, and the frequency is partly dependent on age. The main reason for using these networks is much the same for all age groups and segments, as well as between citizens in city centers and those in suburban areas.
  • 06/07/12 June 2012 © Ericsson AB 2012 © Ericsson AB 2012 June 2012 © Ericsson AB 2012
  • 06/07/12 June 2012 © Ericsson AB 2012 © Ericsson AB 2012 June 2012 © Ericsson AB 2012

Transcript

  • 1. Why citieswill drive trafficgrowth
  • 2. Cities will drive Traffic growthPopulation versus mobile traffic distribution (%) 100 › By 2017, urban and metro areas Rural will generate 60 percent of all 80 Rural mobile traffic, although they will Suburban be home to only 30 percent of the population. 60 60% Suburban › Why is this the case? Urban 40 30% 20 Urban Metro **Metro: >4,000 people/sq km, Urban: 1,000-4,000 Metro people/sq km, Suburban: 300-1,000 people/sq km, Rural: 0 <300 people/sq km Estimated world Estimated mobile population traffic, 2017 distribution, 2017** (Source: Ericsson)© Ericsson AB 2012 | June 2012 | Page 2 (12)
  • 3. Ericsson ConsumerLabCity Study 2011 Moscow Stockholm Seoul London Tokyo Beijing New York Los Angeles Hong Kong Cairo Mumbai São Paulo Johannesburg› Conducted in 13 major cities − 1,500 interviews/city − Sample representative of the advanced online population: 100 million citizens of cities, nearly half of the total population of the 13 cities› The collected data represents the half of the total population that uses the internet most frequently (at least weekly)© Ericsson AB 2012 | June 2012 | Page 3 (12)
  • 4. High rate of Smartphone ownership › Only about 10 to 15 100% percent of the worldwide 90% installed base of 80% subscriptions uses 70% smartphones (*) 60% (*) Source: Ericsson Traffic and Market Report (June 2012) 50% 40% City Study 2011 results: 30% › About 40 percent of city 20% dwellers own an iPhone or 10% 0% an Android phone › Major differences exist M rg e on ork ng o Lo l m S ã co w An n o ew s oc a i g ro ou ag ky o le ul ijin bu b ol Ko ai nd between cities Se Y ge Pa um To er kh C os Be s ne av g M o an N St l s ta H Lo hTo Jo An iPhone An Android phone Another type of mobile phone (Source: Ericsson ConsumerLab City Study 2011 Base: All (online population) © Ericsson AB 2012 | June 2012 | Page 4 (12)
  • 5. Heavy usage of mobile services, incl. high-capacity servicesA total of 14 mobile services are used more than five times a day byat least 10 percent of city dwellers Share (%) who use each service at least five times a day (heavy users) Make/receive calls Send/receive SMS/text messages Browsing of the internet Send/receive e-mails Use of apps to access internet Check/read social networks Listen to music and/or radio Use calendar/diary function Update/write on social networks Use the camera and/or video function Use instant messaging service Play games Connect to Wi-Fi/Hotspots Send/receive MMS/photo messages Watch video clips/movies/TV A total of 7 percent watch videos on their Check timetables and/or traffic information mobile phones more than five times a day Use mapping, navigation or positioning services Buy tickets, do small transactions or payments 0% 10% 20% 30% 40% 50% 60% Source: Ericsson ConsumerLab City Study 2011 Base: All (online population)© Ericsson AB 2012 | June 2012 | Page 5 (12)
  • 6. High mobile-broadband connection rate › At the end of 2011, about 17 100% percent of the world’s mobile 90% subscriptions were mobile- broadband subscriptions (*) 80% (*) Source: Ericsson Traffic and Market Report (June 70% 2011) 60% City Study 2011 results: 50% › In all, 40 percent of city 40% dwellers have a mobile- broadband subscription 30% › More than 30 percent of mobile- 20% broadband users use it daily 10% › In all, 9 out of 10 mobile- 0% broadband users use it for personal reasons; 5 out of 10 i ng lm o rg on g rk ro l Ne es Sã ow e o ba ou ky ijin ul ag Yo u i ho Ko l nd Ca um ge c Se Pa sb To Be er os ck Lo for work reasons w An e ng M av o M nn o Ho St s l ha ta LoTo Jo Use daily Use weekly Use monthly Use less often Don’t use Source: Ericsson ConsumerLab City Study 2011 Base: All/mobile-broadband users (online population) © Ericsson AB 2012 | June 2012 | Page 6 (12)
  • 7. frequent Connection to wi-fi networks outside the home “Outside your home, how often do you connect your laptop/portable computer or tablet computer to a Wi-Fi network (not via mobile phone)?” 100% › In all, 40 percent of 90% laptop/tablet owners connect 80% weekly to a Wi-Fi network 70% outside the home 60% 50% › Daily and weekly usage of 40% Wi-Fi networks is nearly twice 30% as high among citizens in city 20% centers as it is among 10% residents of suburbia 0% e rg on ork ng lo lm ck i w g ew s on nn iro o Lo l ba ag u e jin ky au bu co eo ho Ko el nd a Y um er ei To C P os es ng S av B g M ão M A to N l S ta s ha S H LoTo Jo Every day Every week Every month Less often Never Don’t know Source: Ericsson ConsumerLab City Study 2011 Base: All/mobile-broadband users (online population) © Ericsson AB 2012 | June 2012 | Page 7 (12)
  • 8. High usage of internet services, includinghigh-capacity servicesMore than 10 internet services, including high-capacity services such aswatching videos, are used daily by at least 30 percent of city dwellers Share (%) who use each service at least daily Browsing the internet (Personal use) Personal e-mail Social networks: Read/check Work e-mail Read newspaper/magazines Chat/messaging Browsing the internet (work usage) Social networks: Update/write/upload Product info/price comparisons Watch video clips 35% Listen to music On-line gaming Watch longer videos 28% Internet banking Check time schedules/traffic information IP-telephony Distance learning Buy products 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Source: Ericsson ConsumerLab City Study 2011 Base: All (online population)© Ericsson AB 2012 | June 2012 | Page 8 (12)
  • 9. The mobile phone: access pointto the internet › A total of 50 percent of city dwellers connect daily to the internet using their mobile phones Source: Ericsson ConsumerLab City Study 2011 Base: All (online population)© Ericsson AB 2012 | June 2012 | Page 9 (12)
  • 10. Heavy use of online socialnetworksUsage of online social networks (times/day)Total average › City dwellers access online Moscow social networks three to fiveJohannesburg times a day on average Sao Paulo Cairo › The prime driver for usage is Seoul staying up-to-date with what Los Angeles family and friends are doing Beijing (about 45 percent) Hong Kong New York › The third-most common London Tokyo activity is connecting and Stockholm exchanging ideas with others Mumbai 0 1 2 3 4 5 6 Source: Ericsson ConsumerLab City Study 2011 Base: Use of online social networks (online population)© Ericsson AB 2012 | June 2012 | Page 10 (12)
  • 11. ict is important in theworkplaceShare of working population that views the following products/servicesas critical for their ability to do their job Internet in general › More than 50 percent of city dwellers consider it critical toHigh-speed or broadband internet have internet access at work Desktop computer Mobile phone › Having a mobile phone is critical for 36 percent Fixed phone Laptop computer/Netbook › Having mobile broadband and/or Wi-Fi access Mobile broadband and/or Wi-Fi is critical for close to Tablet computer 20 percent 0% 10% 20% 30% 40% 50% 60% Source: Ericsson ConsumerLab City Study 2011 Base: Working population (online population)© Ericsson AB 2012 | June 2012 | Page 11 (12)