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Internet Usage 2011
 

Internet Usage 2011

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Analysis of the past, present and future growth of fixed and mobile access. ...

Analysis of the past, present and future growth of fixed and mobile access.

Pocket book provides analysis of the past, present and future growth of fixed and mobile Internet access. This graphic-heavy, text-light presentation offers a snapshot of the exciting Internet space and delivers insight at a worldwide and regional level (Europe, Asia Pacific, North America, Latin America, Africa and Middle East).

It includes data on the evolution of the Internet and key milestones; worldwide Internet user base growth and rising penetration; fixed and mobile broadband subscriptions; five-year user and traffic forecasts; sales of smartphones and tablets; market share of web browsers and broadband technologies; IP traffic analysis by type and segment; and much more.

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    Internet Usage 2011 Internet Usage 2011 Document Transcript

    • Internet Usage 2011 © 2011, Portio Research. All Rights Reserved 1
    • Internet Usage 2011 Portio Research Limited. Published November 2011 by Portio Research Limited © Copyright 2011. www.portioresearch.com info@portioresearch.com Disclaimer and Legal Notices Disclaimer Every care has been taken in the preparation of this study to ensure that the information contained herein is accurate, factual and correct to the best of our knowledge, at the time of publishing. All opinions, suppositions, estimates and recommendations included in this document are solely the opinions of the authors, unless otherwise stated. Portio Research Limited accepts no liability for any loss or damage or unforeseen consequential loss or damage arising from the use of the information contained within this document. The opinions, suppositions, estimates and recommendations within this document cannot be guaranteed, and readers use this information at their own risk. The information published in this document is subject to change without notice at any time, and Portio Research Limited accepts no liability or obligation to inform the reader of such changes. Portio Research Limited does not promote or endorse any specific companies or products. The views and opinions we express in this document are wholly our own assessments, and independent from any external interest or influence. Many terms, phrases and trade names used in this document are proprietary and Portio Research Limited recognises and acknowledges that all trademarks are copyright, belonging to their respective owners. Where possible, this document accords such terms, phrases and trade names to their respective owners. All Rights Reserved. No part of this document can be copied, shared, redistributed, transmitted, displayed in the public domain, stored or displayed on any internal or external company, private network or electronic retrieval system, nor reprinted, republished or reconstituted in any way without the express written permission of the publisher. Forwarding of this electronic document without the correct legal license is theft. It’s unethical, immoral and against the law. If you have any questions about the legal license conditions under which this document has been distributed, please contact Portio Research on info@portioresearch.com If you did not buy this document and a colleague or associate has sent it to you, do not assume you are legally entitled to read it. It is your responsibility to ensure you have the correct legal license to read this document. © 2011, Portio Research. All Rights Reserved 2
    • Internet Usage 2011 Contents Introduction ..............................................................................................................................7 Evolution of Internet and Key Milestones ............................................................................................. 7 Growth and Increasing Penetration of Internet Users .......................................................................... 8 Broadband Subscriptions ................................................................................................................... 10 Internet Market and Growth ..................................................................................................13 Worldwide Internet Users................................................................................................................... 13 Regional Distribution of Internet Users .............................................................................................. 15 Europe ......................................................................................................................................15 Asia Pacific ...............................................................................................................................16 North America ...........................................................................................................................16 Latin America ............................................................................................................................17 Africa and Middle East ..............................................................................................................18 Accessing the Internet ...........................................................................................................20 Fixed and Mobile Internet Access ...................................................................................................... 20 Fixed Broadband Subscriptions ......................................................................................................... 20 Growth and Penetration of Fixed Broadband Subscriptions......................................................21 Regional Distribution of Fixed Broadband Subscriptions ..........................................................22 Forecast of Fixed Broadband Subscriptions .............................................................................22 Mobile Broadband Subscriptions ....................................................................................................... 23 Regional Distribution of Mobile Broadband Subscriptions.........................................................23 Forecast of Mobile Broadband Subscriptions ............................................................................23 Device Market for Internet Access ..................................................................................................... 24 Growth of Mobile Subscriptions and Penetration ......................................................................24 Smartphone and Tablet Market Summary ......................................................................................... 24 Sales Comparison of Smartphones and Tablets .......................................................................24 Smartphone Sales By Operating System Used.........................................................................25 Smartphone Sales by Vendor ...................................................................................................25 Market Share of Web Browsers ................................................................................................26 Traffic Analysis ......................................................................................................................29 Worldwide IP Traffic By Type ............................................................................................................. 29 Regional IP Traffic ............................................................................................................................. 30 IP Traffic by Consumer and Business Segments ............................................................................... 31 Consumer IP Traffic ..................................................................................................................32 Business IP Traffic ....................................................................................................................32 Summary and Conclusions ...................................................................................................34 Appendices .............................................................................................................................37 Glossary ....................................................................................................................................37 Portio Research Classifications.................................................................................................42 Also Available from Portio Research Limited ..................................................................................... 43 © 2011, Portio Research. All Rights Reserved 3
    • Internet Usage 2011 List of Figures Figure 1: Figure 2: Figure 3: Figure 4: Figure 5: Figure 6: Figure 7: Figure 8: Figure 9: Figure 10: Figure 11: Figure 12: Figure 13: Figure 14: Figure 15: Figure 16: Figure 17: Figure 18: Figure 19: Figure 20: Figure 21: Figure 22: 4 Internet User Base and Penetration – Worldwide (in Million, 2000 – 2010) ........................ 9 Internet User Base and Penetration – Worldwide (in Million, 2011 – 2016F) ...................... 9 Worldwide Internet User Base – Regional Contribution (In Percent, March 2011).............13 Internet User Base – Regional (In Million, 2000 – 2010)....................................................14 Top Ten Countries by Internet User Base (In Million, June 2011)......................................15 Fixed vs. Mobile Broadband Subscriptions – Worldwide (In Million, 2007 – 2010) ............20 Fixed Broadband Subscriptions and Penetration – Worldwide (2000 – 2010) ...................21 Fixed Broadband Penetration – Regional (2010) ...............................................................22 Mobile Broadband Penetration – By Geography (2010) ....................................................23 Mobile Subscriber Base and Penetration – Worldwide (2005 – 2010) ...............................24 Smartphone and Tablet Sales – Worldwide (In Million Units, 2006 – 2011) ......................24 Market Share of OS by Smartphone Shipments – Worldwide (In Percent, 2010) ..............25 Market Share of Smartphone Vendors – Worldwide (In Percent, 2010) ............................25 Internet Browsing by Device (In Percent, 2010 and 2011) .................................................26 Market Share of Web Browsers – Worldwide (In Percent, 2010) ......................................26 Worldwide IP Traffic – By Type (In PB per Month, 2011 – 2016F).....................................29 Regional IP Traffic (In PB per Month, 2011 – 2016F) ........................................................30 Worldwide IP Traffic – By Segment (In PB per Month, 2011 – 2016F) ..............................31 Worldwide Consumer IP Traffic – Regional Contribution (In Percent, 2011)......................32 Worldwide Business IP Traffic – Regional Contribution (In Percent, 2011) .......................32 Broadband Subscriptions – By Type (In Million, 2011 – 2016F) ........................................34 Market Share of Broadband Technologies – Worldwide (In Percent, 2010) ......................35 © 2011, Portio Research. All Rights Reserved
    • Internet Usage 2011 List of Tables Table 1: Table 2: Table 3: Table 4: Table 5: Table 6: Table 7: Table 8: Table 9: Table 10: Table 11: Table 12: Table 13: Table 14: Table 15: Table 16: Table 17: , Internet Users – Regional (In Million, 2011 – 2016F) .......................................................10 Broadband Subscriptions (Fixed and Mobile) – Worldwide (In Million, 2011 – 2016F) ......10 Internet Users – Regional (In Million, 2000 – 2010) ...........................................................14 Internet Users – Europe (In Million, 2000 – 2010)..............................................................15 Internet Users – Europe (In Million, 2011 – 2016F) ...........................................................16 Internet Users – Asia Pacific (In Million, 2000 – 2010).......................................................16 Internet Users – Asia Pacific (In Million, 2011 – 2016F) ....................................................16 Internet Users – North America (In Million, 2000 – 2010) ..................................................17 Internet Users – North America (In Million, 2011 – 2016F) ................................................17 Internet Users – Latin America (In Million, 2000 – 2010) ...................................................17 Internet Users – Latin America (In Million, 2011 – 2016F) .................................................17 Internet Users – Africa and Middle East (In Million, 2000 – 2010) .....................................18 Internet Users – Africa and Middle East (In Million, 2011 – 2016F) ...................................18 Fixed Broadband Subscriptions – Worldwide (In Million, 2011 – 2016F) ...........................22 Mobile Broadband Subscriptions – Worldwide (In Million, 2011 – 2016F) .........................23 Worldwide IP Traffic – By Type (In PB per Month, 2011 – 2016F).....................................29 Regional IP Traffic (In PB per Month, 2011 – 2016F) ........................................................31 © 2011, Portio Research. All Rights Reserved 5
    • Internet Usage 2011 Chapter 1 Introduction 6 © 2011, Portio Research. All Rights Reserved
    • Internet Usage 2011 Introduction The impact that Internet technology has had on daily life is almost unfathomable. The Internet has opened up the possibility of connecting, meeting and accessing people from the remotest corners of the world. From information to banking facilities to travel bookings, there is almost nothing one cannot do on the Internet today. Evolution of Internet and Key Milestones Internet History Year Milestone 1969 Development of Arpanet Inception of UNIX 1970 Establishment of first Arpanet network Development of E-mail 1971 Development of Project Gutenburg and eBooks 1972 Development of Cyclades 1973 Establishment of first transatlantic connection and increasing popularity of e-mail 1974 Beginning of TCP/IP 1975 Development of modern e-mail program 1977 Development of first PC modem Development of first Bulletin Board System 1978 Introduction of Spam Introduction of MUD 1979 Development of Usenet 1980 Launch of ENQUIRE software 1982 Invention of emoticon 1983 Arpanet computers switched to TCP/IP 1984 Introduction of Domain Name System (DNS) 1985 Development of virtual communities 1986 Beginning of Protocol wars 1987 Steep increase in number of hosts on Internet © 2011, Portio Research. All Rights Reserved 7
    • Internet Usage 2011 1988 First deployment of Internet chat Launch of AOL 1989 Proposal for the World Wide Web Introduction of first commercial dial-up ISP 1990 Completion of World Wide Web protocols Creation of first web page Launch of first content based search protocol Acceptance of MP3 file format as standard 1991 Development of first webcam 1993 Development of Mosiac, the first graphical web browser 1994 Development of Netscape Navigator Commercialisation of Internet 1995 Introduction of Java and Javascript 1996 Launch of first web mail service 1997 Launch of weblog Introduction of Google 1998 Introduction to Internet based file sharing by Napster 2000 Internet ‘bubble’ burst 2001 Launch of Wikipedia VoIP went mainstream 2003 Launch of MySpace: social networking Introduction of Web 2.0 Launch of social news sites such as Digg, Yahoo! Buzz, Reddit, Mixx 2004 Launch of Facebook 2005 Launch of YouTube 2007 Launch of Apple iPhone 2008 Internet technology plays key role in U.S Presidential election campaigns 2009 Changes in ICANN policy 2010 Facebook announced its achievement of having 500 million active users Cyber Security Enhancement Act (H.R. 4061) was passed by U.S House of Representatives Growth and Increasing Penetration of Internet Users With the increasing availability of the Internet, worldwide user numbers and penetration levels are rising: the total number of Internet users now exceeds 2 billion. In the first quarter of 2011, the number of people who used the Internet reached around 2,095 million, up from 2,044 million at end-2010. With the introduction of new technologies, this user base is expected to rise to new heights in the coming years. 8 © 2011, Portio Research. All Rights Reserved
    • Internet Usage 2011 Figure 1: Internet User Base and Penetration – Worldwide (in Million, 2000 – 2010) 29.7 26.5 Internet Users (In Million) 2,000 1,500 1,000 500 11.0 12.0 14.0 8.0 6.5 361 495 2000 0 23.4 20.6 2001 677 785 914 2002 2003 2004 15.7 2005 30.0 25.0 17.5 1,023 1,151 35.0 20.0 1,374 1,575 1,805 2,044 15.0 10.0 Internet Penetration (In Percent) 2,500 5.0 0.0 Internet Users (in Millions) 2006 2007 2008 2009 2010 Internet Penetration (in Percent) Source: ITU Statistics ; Portio Research Ltd. This user base rise is triggered by the increasingly diverse role the Internet plays in both households and businesses. Furthermore, with the introduction of high speed broadband services – both fixed and mobile broadband subscriptions – the Internet is rapidly penetrating across geographies. The advent and rising availability of exciting mobile Internet-enabled devices, such as smartphones and tablet computers, is also expected to further boost user numbers. 3,500 Internet Users (In Million) 3,000 2,500 30.5 33.1 35.3 37.6 39.9 42.8 45.0 40.0 35.0 30.0 2,000 25.0 1,500 1,000 1 2,134 2,340 2,509 2,700 2,899 3,131 20.0 15.0 10.0 500 Internet Penetration (In Percent) Figure 2: Internet User Base and Penetration – Worldwide (in Million, 2011 – 2016F) 5.0 0 0.0 2011 2012F 2013F Internet Users (in Millions) 2014F 2015F 2016F Internet Penetration (in Percent) Source: Portio Research Ltd. The number of Internet users worldwide is expected to reach 3,131 million by end-2016 from around 2,134 million at end-2011, registering a Compound Annual Growth Rate (CAGR) of 8 percent. Worldwide Internet penetration was 30.5 percent at end-2011 and will grow to 42.8 percent by end-2016. 1 Note: This report was written in the fourth quarter of 2011. As such, quoted full year 2011 figures use a combination of available data for 2011 and estimations. © 2011, Portio Research. All Rights Reserved 9
    • Internet Usage 2011 Table 1: Internet Users – Regional (In Million, 2011 – 2016F) 2,3 CAGR (In Percent, Internet Users (In Million) Region 2011 2012F 2013F 2014F 2015F 2016F 2011-2016F) Europe 481.6 504.7 508.0 509.0 511.2 518.9 1.5 Asia Pacific 955.5 1,063.0 1,162.1 1,275.2 1,395.2 1,533.3 9.9 North America 273.1 282.9 286.4 289.4 291.9 296.9 1.7 Latin America 217.6 230.9 236.6 247.8 252.5 262.1 3.8 Africa and Middle East 205.9 258.0 315.7 378.5 448.6 545.0 21.5 Total 2,133.7 2,339.5 2,508.8 2,699.9 2,899.4 3,131.4 8.0 Source: Portio Research Ltd. Broadband Subscriptions Broadband subscriptions the world over are growing at a very fast pace due to the increased reach of mobile broadband-enabled devices. Subscriptions to mobile broadband services accounted for a 62.3 percent share of the world’s total broadband subscriptions in 2010; at end-2011 this will reach 65.5 percent and by end-2016 it will exceed 76.2 percent. The number of mobile broadband subscriptions is expected to reach 2,817.2 million by end2016 from around 1,103.1 million at end-2011, registering a Compound Annual Growth Rate (CAGR) of 20.6 percent. Fixed broadband subscriptions are projected to grow from 580 million in 2011 to around 878 million by end-2016, at a comparably lower, but nevertheless impressive, CAGR of 8.6 percent. Table 2: Broadband Subscriptions (Fixed and Mobile) – Worldwide (In Million, 2011 – 2016F) Broadband Subscriptions (In Million) Year Fixed Broadband Subscriptions Mobile Broadband Subscriptions Total Broadband Subscriptions 2011 2012F 2013F 2014F 2015F 2016F CAGR (In Percent, 2011-2016F) 580.0 635.0 692.0 751.0 813.0 878.0 8.6 1,103.1 1,415.2 1,760.4 2,106.7 2,410.8 2,817.2 20.6 1,683.1 2,050.2 2,452.4 2,857.7 3,223.8 3,695.2 17.0 Source: Portio Research Ltd. 2 Note: This report was written in the fourth quarter of 2011. As such, quoted full year 2011 figures use a combination of available data for 2011 and estimations. 3 Note: Values in Figure 2 and Table 1 may not match because of rounding off errors. 10 © 2011, Portio Research. All Rights Reserved
    • Internet Usage 2011 Due to the need for accessibility on-the-move, there has been a shift in the preference of Internet users from fixed to mobile broadband, leading to unprecedented growth in the mobile broadband market. In addition, popular trends like online shopping, e-governance, mcommerce and video communication services are driving the number of broadband subscriptions worldwide. Another factor is technology leapfrogging in developing markets, wherein perhaps the obstacle of costly and complex infrastructure deployment across tricky terrains has meant that traditional fixed Internet never penetrated to regions now accessing the Internet for the first time via mobile broadband services. © 2011, Portio Research. All Rights Reserved 11
    • Internet Usage 2011 Chapter 2 Internet Market and Growth 12 © 2011, Portio Research. All Rights Reserved
    • Internet Usage 2011 Internet Market and Growth Worldwide Internet Users Figure 3: Worldwide Internet User Base – Regional Contribution (In Percent, March 2011) 4 45.0% 13.0% 10.3% 8.9% 22.7% Europe Asia Pacific North America Latin America Africa and Middle East Source: Internet World Stats; Portio Research Ltd. In terms of the highest number of Internet users, Asia Pacific has led the way over the past decade. By March 2011, this region accounted for some 45 percent of worldwide Internet users, while Europe and North America trailed with respective shares of 22.7 percent and 13 percent. 4 Note: The percentages do not add up to 100 percent because of rounding off errors © 2011, Portio Research. All Rights Reserved 13
    • Internet Usage 2011 Figure 4: Internet User Base – Regional (In Million, 2000 – 2010) Internet User Base (In Million) 2,500 2,000 1,500 1,000 500 0 2000 Europe 2001 2002 Asia Pacific 2003 2004 North America 2005 2006 2007 2008 Latin America 2009 2010 Africa and Middle East Source: Internet World Stats The values depicted in Figure 4 are detailed in the table below. Table 3: Internet Users – Regional (In Million, 2000 – 2010) Region Internet Users (In Million) 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Europe 105.1 136.2 192.0 224.7 256.1 293.2 327.1 373.1 427.4 435.3 493.8 Asia Pacific 121.9 157.1 221.7 261.1 312.2 370.8 437.9 528.4 614.3 784.2 879.7 North 108.1 America 159.7 196.9 208.0 220.5 243.5 242.8 259.2 275.7 272.3 276.7 Latin America 18.1 29.8 46.0 63.4 82.0 74.2 88.4 127.7 153.6 190.2 212.8 Africa and Middle East 7.8 12.2 20.4 27.8 43.2 41.3 54.8 85.6 103.9 123.1 181.1 Total 361.0 495.0 677.0 785.0 914.0 1023.0 1151.0 1374.0 1575.0 1805.0 2044.0 Source: Internet World Stats; World Bank Data Base; Portio Research Ltd. In 2000, North America was the second largest region in terms of Internet users, however, by end-2003, Europe had outpaced North America and demoted it to third position. 14 © 2011, Portio Research. All Rights Reserved
    • Internet Usage 2011 Figure 5: Top Ten Countries by Internet User Base (In Million, June 2011) Number of Internet Users (In Million) 600.0 500.0 485.0 400.0 300.0 245.0 200.0 100.0 100.0 99.2 76.0 65.1 59.7 51.4 45.3 44.0 0.0 Source: Internet World Stats As of June 2011, China emerged as the leader with around 23 percent of the world’s users, followed by the US at 11.6 percent, and India and Japan with 4.7 percent each. The growth in the number of users in countries like China, India and Brazil is in part due to high investment in their telecoms infrastructure and their current low Internet penetration rates, which have enabled them to achieve strong growth despite the global economic crisis. Regional Distribution of Internet Users Europe The European Internet user base registered a CAGR of 15.8 percent between 2000-2010, as users rose from 105.1 million in 2000 to 455.6 million in 2010. Various government policies in European countries are enabling companies to decrease the cost of computers, aiding further Internet penetration. The number of European users is also increasing due to such factors as advanced computer systems, ownership of mobile devices, having an IT literate workforce, and the relatively low cost of Internet services. As of March 2011, Germany, Russia, the UK and France respectively accounted for 13.7 percent, 12.5 percent, 10.8 percent and 9.5 percent of the total Internet users in Europe. Table 4: Internet Users – Europe (In Million, 2000 – 2010) Internet Users (In Million) Region 2000 Europe 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 105.1 136.2 192.0 224.7 256.1 293.2 327.1 373.1 427.4 435.3 455.6 Source: Internet World Stats; World Bank Data Base; Portio Research Ltd. Internet users in Europe are expected to reach 518.9 million by end-2016, growing from 481.6 million in 2011 at a CAGR of 1.5 percent. There will be a slowdown in the volume growth of Internet users in Europe due to Western European countries like Netherlands, Norway with already-high penetration rates. © 2011, Portio Research. All Rights Reserved 15
    • Internet Usage 2011 Table 5: Internet Users – Europe (In Million, 2011 – 2016F) CAGR (In Percent, Internet Users (In Million) Region 2011 2013F 2014F 2015F 2016F 2011-2016F) 481.6 Europe 2012F 504.7 508.0 509.0 511.2 518.9 1.5 Source: Portio Research Ltd. Asia Pacific In Asia Pacific, the number of registered Internet users grew from 121.9 million in 2000 to 879.7 million in 2010, signifying a CAGR of 21.9 percent for the period. Countries like China, Japan, India and South Korea are major contributors to the number of Internet users in Asia Pacific, respectively accounting for 49.6 percent, 11.7 percent, 9.6 percent and 4.7 percent of total regional Internet users in 2010. Table 6: Internet Users – Asia Pacific (In Million, 2000 – 2010) Region Asia Pacific Internet Users (In Million) 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 121.9 157.1 221.7 261.1 312.2 370.8 437.9 528.4 614.3 784.2 879.7 Source: Internet World Stats; World Bank Data Base; Portio Research Ltd. The number of Internet users in Asia Pacific is expected to grow at a CAGR of 9.9 percent for the period between 2011-2016, rising from 955.5 million in 2011 to 1,533.3 million in 2016 – and crossing the billion user milestone before end-2012. Strong economic growth, coupled with increasing affluence and the need for information, has triggered this regional growth. Moreover, the expanding online gaming market, increasing preference and accessibility of mcommerce and e-governance, and popularity of social networking is also attracting new Internet users. This growth is expected to continue in the coming few years too, fuelled by increased mobile and broadband Internet subscriptions. Table 7: Internet Users – Asia Pacific (In Million, 2011 – 2016F) CAGR (In Percent, Internet Users (In Million) Region 2011 Asia Pacific 2012F 2013F 2014F 2015F 2016F 2011-2016F) 955.5 1,063.0 1,162.1 1,275.2 1,395.2 1,533.3 9.9 Source: Portio Research Ltd. North America North America is one of the few regions in the world where volume growth of Internet users has slowed in comparison to the previous years. The number of Internet users in the region went up from 108.1 million in 2000 to 276.7 million in 2010, at a CAGR of 9.9 percent. Unsurprisingly, the key markets within North America are the US and Canada and these contribute majorly to the rise in Internet users. In 2010, the two countries made up 99.5 percent of the total Internet user base in North America, out of which 90 percent was contributed by the US and 9.5 percent came from Canada. 16 © 2011, Portio Research. All Rights Reserved
    • Internet Usage 2011 Table 8: Internet Users – North America (In Million, 2000 – 2010) Region Internet Users (In Million) 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 North 108.1 America 159.7 196.9 208.0 220.5 243.5 242.8 259.2 275.7 272.3 276.7 Source: Internet World Stats; World Bank Data Base; Portio Research Ltd. North American Internet users are expected to touch 296.9 million by end-2016, achieving a growth of 1.7 percent (CAGR) on 2011 levels, which stood at 273.1 million. A high demand for smartphones and tablets, along with the increased penetration of broadband services, is expected to drive Internet uptake. However, this growth is predicted to slow down gradually due to the already high penetration of Internet services in North America. Table 9: Internet Users – North America (In Million, 2011 – 2016F) CAGR (In Percent, Internet Users (In Million) Region 2011 North America 2012F 2013F 2014F 2015F 2016F 2011-2016F) 273.1 282.9 286.4 289.4 291.9 296.9 1.7 Source: Portio Research Ltd. Latin America Latin America has seen impressive growth in its Internet user base, reaching 212.8 million in 2010 from 18.1 million in 2000 – a CAGR of 27.9 percent. Key markets contributing to the regional growth of users are Brazil, Mexico, Argentina and Colombia, which respectively recorded 34.9 percent, 16.1 percent, 12.6 percent, and 10.3 percent shares of the regional user base as of March 2011. Table 10: Internet Users – Latin America (In Million, 2000 – 2010) Region Latin America Internet Users (In Million) 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 18.1 29.8 46.0 63.4 82.0 74.2 88.4 127.7 153.6 190.2 212.8 Source: Internet World Stats; World Bank Data Base; Portio Research Ltd. Latin American Internet users are expected to total 262.1 million by 2016, increasing from 217.6 million in 2011 with a CAGR of 3.8 percent. The growth of the regional telecoms sector has resulted in the availability of low cost Internet services, further enhancing Internet penetration. Among Latin American countries, Brazil is expected to grow at a higher rate due to its large online market. Table 11: Internet Users – Latin America (In Million, 2011 – 2016F) CAGR (In Percent, Internet Users (In Million) Region 2011 Latin America 2012F 2013F 2014F 2015F 2016F 2011-2016F) 217.6 230.9 236.6 247.8 252.5 262.1 3.8 Source: Portio Research Ltd. © 2011, Portio Research. All Rights Reserved 17
    • Internet Usage 2011 Africa and Middle East The total number of Internet users in Africa and Middle East (AME) climbed to 181.1 million in 2010 from a mere 7.8 million in 2000, registering a growth rate of 37.0 percent (CAGR) over the period. Countries such as Nigeria, Iran, Egypt and Morocco were major contributors to the number of Internet users in the region in 2010, with respective shares of 23.4 percent, 18.3 percent, 10.7 percent and 7.1 percent. Table 12: Internet Users – Africa and Middle East (In Million, 2000 – 2010) Region Africa and Middle East Internet Users (In Million) 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 7.8 12.2 20.4 27.8 43.2 41.3 54.8 85.6 103.9 123.1 181.1 Source: Internet World Stats; World Bank Data Base; Portio Research Ltd. The AME region is expected to continue on its growth path, and cross 545 million users by end-2016 – registering an eye-popping CAGR of 21.5 percent on its 2011 numbers. This rapid Internet user base rise is heavily underpinned by the deployment of a new submarine cable, which has made broadband cheaper and more accessible in markets like Guinea, Gambia, Mauritania, Liberia and Sierra Leone. In addition, swift growth in the smartphone market is also driving regional Internet penetration. Table 13: Internet Users – Africa and Middle East (In Million, 2011 – 2016F) CAGR (In Percent, Internet Users (In Million) Region 2011 Africa and Middle East 18 2012F 2013F 2014F 2015F 2016F 2011-2016F) 205.9 258.0 315.7 378.5 448.6 545.0 21.5 Source: Portio Research Ltd. © 2011, Portio Research. All Rights Reserved
    • Internet Usage 2011 Chapter 3 Accessing the Internet © 2011, Portio Research. All Rights Reserved 19
    • Internet Usage 2011 Accessing the Internet Fixed and Mobile Internet Access Figure 6: Fixed vs. Mobile Broadband Subscriptions – Worldwide (In Million, 2007 – 2010) Broadband Subscriptions (in Million) 1,000 872 900 800 700 600 500 400 300 414 352 422 472 531 527 268 200 100 0 2007 2008 Fixed Broadband Subscriptions (In Million) 2009 2010 Mobile Broadband Subscriptions (In Million) Source: ITU Statistics The break-out of worldwide broadband subscriptions is experiencing a major shift. In 2007, subscriptions for fixed broadband access still comfortably outnumbered their mobile counterparts. However, at end-2010, 62.3 percent of total worldwide broadband subscriptions were accounted for by mobile broadband subscriptions; fixed contributed 37.7 percent. Fixed Broadband Subscriptions The term fixed broadband refers to high speed data transmission to businesses and homes through advanced technologies such as cable, T1, DSL and FTTx. Fixed broadband includes all Internet connections having a speed of 256 kbps (kilobytes per second) or more. 20 © 2011, Portio Research. All Rights Reserved
    • Internet Usage 2011 Growth and Penetration of Fixed Broadband Subscriptions 7.6 600 6.9 5.0 4.3 3.4 300 2.4 200 0 6.0 5.3 400 100 7.0 6.1 500 0.3 16 2000 0.6 37 2001 1 1.6 66 104 2002 2003 158 220 284 8.0 352 414 472 527 4.0 3.0 2.0 1.0 Fixed Broadband Penetration (In Percent) Fixed Broadband Subscriptions (In Million) Figure 7: Fixed Broadband Subscriptions and Penetration – Worldwide (2000 – 2010) 0.0 2004 2005 Fixed Broadband Subcriptions (In Million) 2006 2007 2008 2009 2010 Fixed Broadband Penetration (In Percent) Source: ITU Statistics With the worldwide Internet user base exceeding 2 billion in 2011, broadband Internet services are witnessing a rapid uptake. The high speed offered by fixed broadband enables the use of services such as VoIP, gaming and video communications, and as a result fixed broadband has been in high demand worldwide in the past few years. However, the growth of fixed broadband users has stagnated after the introduction of mobile devices with Internet accessibility, which clearly offers the appeal of higher mobility. Mobile broadband is giving stiff competition to fixed broadband, and is expected to have higher adoption rates in regions where there is minimal fixed broadband penetration. © 2011, Portio Research. All Rights Reserved 21
    • Internet Usage 2011 Regional Distribution of Fixed Broadband Subscriptions Figure 8: Fixed Broadband Penetration – Regional (2010) 28.0 Fixed Broadband Penetration (In Percent) 30 25 23.8 20 15 10 6.6 5.5 5 0.7 0 Europe Asia-Pacific North America Latin America Region Africa and Middle East Source: ITU Statistics, Portio Research Ltd. *The worldwide fixed broadband penetration rate is estimated to be 7.6 percent The regional comparison of 2010 depicts that fixed broadband penetration was highest in North America, followed closely by Europe. Unlike most other regions, where DSL Internet dominates, cable broadband forms a major share of fixed broadband services in North America. However, in the immediate future, growth rates of DSL and cable Internet are expected to decline due to the near-saturation in regional households. Furthermore, the wide deployment of mobile broadband networks in the US and European countries is also going to affect fixed broadband subscriptions, leading to slower growth. In terms of total broadband subscribers in 2010, China led with 128.8 million subscribers, while the US ranked second with 87.2 million. China and the US together comprise approximately 41 percent of the total worldwide broadband subscriber base. Technologically, total worldwide broadband subscriptions in 2010 were distributed into DSL (63.4 percent), Cable modem (20.3 percent), FTTx – optical fibre (13.8 percent) and others (2.5 percent). Forecast of Fixed Broadband Subscriptions Fixed broadband subscriptions worldwide will achieve a CAGR of 8.6 percent in the forecast period, going from 580 million in 2011 to 877.7 million by 2016. The growth rate of worldwide fixed broadband subscriptions should gradually slow, with the most influential factor for this cooling off being the shift in subscriber preference from fixed to mobile broadband. Table 14: Fixed Broadband Subscriptions – Worldwide (In Million, 2011 – 2016F) Fixed Broadband Subscriptions (In Million) Year 2011 2012F 2013F 2014F 2015F 2016F CAGR (In Percent, 2011-2016F) No. of Subscriptions 580.0 635.1 692.3 751.1 812.7 877.7 8.6 22 Source: Portio Research Ltd. © 2011, Portio Research. All Rights Reserved
    • Internet Usage 2011 Mobile Broadband Subscriptions Regional Distribution of Mobile Broadband Subscriptions Figure 9: Mobile Broadband Penetration – By Geography (2010) Mobile Broadband Subscription (In Percent) 50 45 44.0 41.3 40 35 30 25 20 15 12.2 10.2 10 4.1 5 0 Europe Asia-Pacific North America Latin America Region Africa and Middle East Source: ITU Statistics, Portio Research Ltd. *The worldwide mobile broadband penetration rate is estimated to be 12.6 percent Mobile broadband subscriptions are on the rise due to the availability of high-end devices and technological advancements like 3G and above, which allow users to access the Internet anywhere and at any time. North America leads when it comes to mobile broadband penetration, while Europe ranks second, and Africa and Middle East currently places last. The Asia Pacific region is recording significant growth, with China and India being the most noteworthy markets therein. Mobile web content is dominated by social networking, but real time entertainment is unquestionably the dominant driver of fixed and mobile Internet traffic worldwide. According to research, approximately 43 percent of total Internet traffic is through real time entertainment, such as online movies, videos. Forecast of Mobile Broadband Subscriptions In line with the changing preference of Internet users, the total number of mobile broadband subscriptions is expected to rise from 1,103.1 million in 2011 to 2,817.2 million by 2016. This growth is fuelled by the rapidly increasing subscriptions in North America, Europe and Asia Pacific. The growth of mobile broadband worldwide is being driven by the rising need of users for entertainment and continuous accessibility to the Internet. A rapid rise in social networking is expected to further propel mobile broadband subscriptions. Table 15: Mobile Broadband Subscriptions – Worldwide (In Million, 2011 – 2016F) Mobile Broadband Subscriptions (In Million) Year No. of Subscriptions 2011 2012F 2013F 2014F 2015F 2016F CAGR (In Percent, 2011–2016F) 1,103.1 1,415.2 1,760.4 2,106.7 2,410.8 2,817.2 20.6 © 2011, Portio Research. All Rights Reserved Source: Portio Research Ltd. 23
    • Internet Usage 2011 Device Market for Internet Access Growth of Mobile Subscriptions and Penetration Mobile Subscription (In Million) 6,000 90 80 70 60 50 40 30 20 10 0 78.0 68.3 5,000 4,000 59.9 50.6 3,000 41.8 33.9 2,000 2,169.7 1,000 2,725.2 4,655.8 4,044.8 3,334.3 5,341.4 0 2005 2006 2007 Mobile Subscriptions (In Million) 2008 2009 Mobile Subscription Penetration (In Percent) Figure 10: Mobile Subscriber Base and Penetration – Worldwide (2005 – 2010) 2010 Mobile Subscriptions Penetration (In Percent) Source: ITU Statistics; Portio Research Ltd. Worldwide mobile subscriptions grew at a CAGR of 19.7 percent between 2005 and 2010, while worldwide mobile penetration increased from 33.9 percent in 2005 to 78.0 percent in 2010. China, India and the US accounted for the highest share in mobile subscriptions worldwide in 2010, with user totals of 859 million, 752 million and 279 million respectively. Collectively, these countries accounted for a 35.6 percent share of total worldwide mobile subscribers in 2010. Smartphone and Tablet Market Summary Sales Comparison of Smartphones and Tablets Figure 11: Smartphone and Tablet Sales – Worldwide (In Million Units, 2006 – 2011) 5 600 Units (In Million) 500 420.3 400 298.7 300 200 100 80 120 147.3 175.2 19.5 54.7 0 2006 2007 2008 Smartphone 2009 2010 2011 Tablet Source: Gartner; Business Week; Portio Research Ltd. 5 24 Note: Sales of Tablets before the launch of iPad were insignificant and hence have been excluded. © 2011, Portio Research. All Rights Reserved
    • Internet Usage 2011 Smartphones and tablets are becoming the most popular devices today due to the cuttingedge technology and 24/7 connectivity they provide. These devices are especially popular among senior management and working professionals – but their use has deeply permeated other demographics. The exponential rise being witnessed in the use of smartphones and tablets is also leading to growth in Internet usage via mobile. In accordance with its popularity, sales of smartphones grew at a CAGR of around 39.3 percent from 2006 to 2011. Similarly, tablets achieved impressive growth from 2010 to 2011, reaching sales of 54.7 million units. Smartphone Sales By Operating System Used Figure 12: Market Share of OS by Smartphone Shipments – Worldwide (In Percent, 2010) 16.3% 15.9% 14.1% 6.8% 40.1% 6.8% Symbian Apple iOS BlackBerry Android Windows Mobile Others Source: Portio Research Ltd. *By volume Among the various operating systems (OS), Symbian had the highest market share in 2010 with 40.1 percent, followed by Apple iOS at 16.3 percent and BlackBerry at 15.9 percent. As depicted in the next figure, Nokia had the largest market share among smartphone vendors in 2010, followed by Apple and RIM – who both made similar contributions. Smartphone Sales by Vendor Figure 13: Market Share of Smartphone Vendors – Worldwide (In Percent, 2010) 6 15.9% 16.3% 8.2% 7.6% 4.4% 33.9% Nokia Apple 13.6% RIM HTC Samsung Motorola Others Source: Portio Research Ltd. *By Volume 6 Note: The percentages do not add up to 100 percent because of rounding off errors. © 2011, Portio Research. All Rights Reserved 25
    • Internet Usage 2011 In the technology segment, consumers are increasingly shifting towards tablets, as they more conveniently provide data on the move. In addition to these ‘early adopters’, consumers are discarding desktops and replacing them with tablets – further adding to this user base. Figure 14: Internet Browsing by Device (In Percent, 2010 and 2011) 100 97.0 7 93.7 90 In Percent 80 70 60 50 40 30 20 10 6.0 2.8 0 2010 2011 Desktop (In Percent) Tablet + Mobile (In Percent) Source: Internet World Stats As depicted in the preceding figure, desktops still currently dominate as the medium for browsing, but this popularity is diminishing with the rise in the use of smartphones and tablets, and this trend of shifting preference will continue in the coming few years too. Market Share of Web Browsers Figure 15: Market Share of Web Browsers – Worldwide (In Percent, 2010) 30.8% 14.9% 46.9% 0.5% 2.1% Internet Explorer Firefox Chrome 4.8% Safari Opera Others Source: Statscounter Global Stats 7 Note: The columns do not add up to 100 percent because of rounding off errors. 26 © 2011, Portio Research. All Rights Reserved
    • Internet Usage 2011 In 2010, Internet Explorer (IE) was the world’s most popular web browser, with 46.9 percent share of the market; Firefox followed with 30.8 percent. Browsers like Safari and Opera are used on mobile devices, whereas IE, Firefox and Chrome are preferred on fixed access Internet connections. Users prefer IE for its security, but in terms of browsing speed, Firefox and Chrome are more popular. Safari, Opera Mini and Android browsers find more acceptance in relation to smartphones and other mobile devices. © 2011, Portio Research. All Rights Reserved 27
    • Internet Usage 2011 Chapter 4 Traffic Analysis 28 © 2011, Portio Research. All Rights Reserved
    • Internet Usage 2011 Traffic Analysis Worldwide IP Traffic By Type Worldwide IP traffic comprises fixed Internet, managed IP and mobile data. The fixed Internet traffic includes all IP traffic crossing an Internet backbone. Managed IP traffic includes corporate IP WAN traffic and IP transport of VoD and TV. Mobile traffic includes mobile data and Internet traffic generated by mobile broadband gateways, handsets and notebook cards. Figure 16: Worldwide IP Traffic – By Type (In PB per Month, 2011 – 2016F) IP Traffic (In PB Per Month) 120,000 100,000 80,000 60,000 40,000 20,000 0 2011 2012F Mobile Data 2013F 2014F Managed IP 2015F 2016F Fixed Internet Source: Cisco VNI Mobile, 2011; Portio Research Ltd. F – Forecast The table below is the representation of Figure 16 above. Table 16: Worldwide IP Traffic – By Type (In PB per Month, 2011 – 2016F) IP traffic (In PB per month) 2011 2012F 2013F 2014F 2015F 2016F CAGR (In Percent, 2011– 2016F Fixed Internet 20,650 27,434 35,879 46,290 59,354 77,279 30.2 Managed IP 6,839 9,014 11,352 13,189 14,848 18,025 21.4 Mobile Data 546 1,163 2,198 3,806 6,254 11,507 84.0 Total 28,035 37,611 49,429 63,285 80,456 106,811 30.7 Type *PB refers to PetaByte Source: Cisco VNI Mobile, 2011; Portio Research Ltd. As illustrated in the preceding table, the fixed Internet segment is, and is projected to remain, the highest contributor to global IP traffic, followed by the managed IP segment. The managed IP segment’s contribution towards global IP traffic is expected to drop from 24.4 © 2011, Portio Research. All Rights Reserved 29
    • Internet Usage 2011 percent in 2011 to 16.9 percent by 2016. The mobile data segment accounted for a mere 1.9 percent of the total IP traffic in 2011, as it was introduced quite recently. However, this share is expected to rise to 10.8 percent by end-2016. Regional IP Traffic Figure 17: Regional IP Traffic (In PB per Month, 2011 – 2016F) 120,000 IP Traffic (In PB Per Month) 100,000 80,000 60,000 40,000 20,000 0 2011 Europe Asia Pacific 2012F 2013F North America 2014F Latin America 2015F 2016F Africa and Middle East Source: Cisco VNI Mobile, June 2011; Portio Research Ltd. F – Forecast Worldwide IP traffic is expected to reach 106,811 PB per month by 2016 registering a CAGR of 30.7 percent from 2011 to 2016. The North American region had the highest traffic share of 35.5 percent in 2011, followed by Asia Pacific and Europe at 32.9 percent and 26.8 percent respectively. Africa and Middle East accounted for a miniscule 1.3 percent; however, the region is expected to register a CAGR of 55.6 percent from 2011 to 2016. North America, Europe and Asia Pacific together contributed around 95 percent to the global IP traffic in 2011, and are expected to contribute more than 90 percent in IP traffic worldwide throughout the forecasted period. The next table is the representation of Figure 17 above. 30 © 2011, Portio Research. All Rights Reserved
    • Internet Usage 2011 Table 17: Regional IP Traffic (In PB per Month, 2011 – 2016F) IP Traffic (In PB per Month) Region 2011 2012F 2013F 2015F 2014F 2016F CAGR (In Percent, (2011– 2016F) Europe 7,500 10,284 13,729 17,886 22,571 29,996 31.9% Asia Pacific 9,236 12,381 16,624 22,078 28,911 38,953 33.4% North America 9,943 12,954 16,116 18,848 22,274 27,541 22.6% Latin America 991 1,448 2,158 3,238 4,681 6,995 47.8% Africa and Middle East 365 544 802 1,235 2,019 3,326 55.6% Total 28,035 37,611 49,429 63,285 80,456 106,811 30.7% Source: Cisco VNI Mobile; Portio Research Ltd. IP Traffic by Consumer and Business Segments Figure 18: Worldwide IP Traffic – By Segment (In PB per Month, 2011 – 2016F) 93,689 100,000 90,000 IP Traffic (In PB per Month) 80,000 70,046 70,000 54,286 60,000 50,000 42,069 40,000 30,000 20,000 10,000 23,139 4,896 31,597 6,014 7,360 8,999 10,410 13,122 0 2011 2012F Consumer 2013F 2014F 2015F 2016F Business Source: Cisco VNI Mobile, 2011 ; Portio Research Ltd. F – Forecast The consumer IP traffic segment is a major source of IP traffic worldwide and includes fixed IP traffic produced by university students, households and Internet cafes. With a size of 23,139 PB per month, consumer IP traffic contributed 82.5 percent to total IP traffic in 2011. Furthermore, consumer IP traffic is expected to achieve a CAGR of 32.3 percent (2011-2016), attaining a traffic size of 93,689 PB per month by end-2016. The business IP traffic segment is expected to achieve a growth rate of 21.8 percent CAGR in the same period. In 2011, business IP traffic contributed 17.5 percent to IP traffic worldwide, reaching 4,896 PB per month. © 2011, Portio Research. All Rights Reserved 31
    • Internet Usage 2011 Consumer IP Traffic Figure 19: Worldwide Consumer IP Traffic – Regional Contribution (In Percent, 2011) 33.6% 36.3% 3.3% 0.8% 26.0% Europe Asia Pacific North America Latin America Africa and Middle East Source: Cisco VNI Mobile, June 2011; Portio Research Ltd. *By PB per month North America accounted for 36.3 percent of the total worldwide consumer IP traffic in 2011, followed by Asia Pacific and Europe with figures of 33.6 percent and 26 percent respectively. File sharing, Internet video, e-mail and data were the main sources of consumer IP traffic worldwide in 2011. These sub-segments comprise nearly 96.6 percent of the worldwide consumer Internet traffic, followed by other sub-segments such as video calling, online gaming and Voice over Internet Protocol (VoIP), which contributes the remaining 3.4 percent. Business IP Traffic Business IP traffic includes fixed IP WAN or Internet traffic produced by governments and businesses. In 2011, the business segment accounted for 17.5 percent of worldwide IP traffic. This segment is expected to register growth of 20.8 percent (CAGR) for the period of 2011 to 2016. In 2011, the North American and European regions together constituted 62.1 percent of worldwide business IP traffic, with individual contributions of 31.6 percent and 30.5 percent respectively Figure 20: Worldwide Business IP Traffic – Regional Contribution (In Percent, 2011) 8 29.6% 31.6% 30.5% Europe Asia Pacific 3.8% North America 4.6% Latin America Africa and Middle East Source: Cisco VNI Mobile, June 2011; Portio Research Ltd. 8 Note: The percentages do not add up to 100 percent because of rounding off errors 32 © 2011, Portio Research. All Rights Reserved
    • Internet Usage 2011 Chapter 5 Summary and Conclusions © 2011, Portio Research. All Rights Reserved 33
    • Internet Usage 2011 Summary and Conclusions The role of the Internet has dramatically evolved over the last decade, and continues to do so. From a peripheral tool for simple data gathering, the Internet has moved from the fringes to the fore of our daily lives – and now facilitates diverse functions including social networking, e-mail, movies and music downloads. Internet penetration is ever increasing, especially with the ongoing rollout of mobile broadband – worldwide Internet penetration grew from 6.5 percent in 2000 to 29.7 percent in 2010 – and the worldwide Internet user base will comfortably exceed 2.1 billion by end-2011. The number of Internet users is expected to reach 3,131.4 million by end-2016, growing at a CAGR of 8 percent between 2011 and 2016, with European countries being the major contributors. As one of the most influential factors driving the growth of the worldwide Internet user base, broadband Internet is experiencing high levels of uptake. Total broadband subscriptions are expected to achieve a CAGR of 17 percent between 2011 and 2016 to reach 3,695.2 million by end-2016. Mobile broadband subscriptions had a 65.5 percent share in 2011 and are expected to account for 76.2 percent by 2016, as a result of the increasing preference for mobile Internet devices. Figure 21: Broadband Subscriptions – By Type (In Million, 2011 – 2016F) 2817.2 Broadband Subscriptions (In Million) 3000 2500 2106.7 1760.4 2000 1500 1000 2410.8 1415.2 1103.1 580.0 813.0 635.0 500 692.0 878.0 2015F 2016F 751.0 0 2011 2012F 2013F 2014F Year Fixed Broadband Subscriptions Mobile Broadband Subscriptions Source: Portio Research Ltd. For almost a decade, Asia Pacific has led in terms of regional Internet user numbers; as of March 2011, its share of worldwide users was around 45 percent. On a country-level, China leads in user base terms with 485 million Internet users as of June 2011. Top ranking countries after China include the US, India and Japan with 245 million, 100 million and 99.2 million Internet users respectively. The break-out of worldwide broadband subscriptions has experienced a major reshuffle in terms of the fixed versus mobile split. Before 2008, fixed broadband Internet users formed the majority share of all broadband users, but since – and including – 2008 mobile broadband has increased its dominance. Mobile broadband subscriptions are expected to total 2,817.2 million by end-2016, recording a CAGR of 20.6 percent between 2011 and 2016. China is the leading country in terms of the number of total broadband subscriptions with 128.8 million in 2010. The US followed with 87.2 million subscribers. Among the various broadband technologies in 2010, DSL had the highest share with 63.4 percent, followed by Cable modem and FTTx with respective shares of 20.3 and 13.8 percent. 34 © 2011, Portio Research. All Rights Reserved
    • Internet Usage 2011 Figure 22: Market Share of Broadband Technologies – Worldwide (In Percent, 2010) 20.3% 63.4% 2.5% DSL Cable Modem FTTx 13.8% Others Source: Portio Research Ltd. A key driver for mobile Internet usage is of course the worldwide mobile subscriber base. In 2010, total mobile subscribers reached 5,341.4 million, with the markets of China, India and the US accounting for the highest shares of mobile subscriptions worldwide with respective mobile subscriber bases of 859 million, 752 million and 279 million. The exponential growth of smartphones and tablet computers is also driving the high growth of the Internet user base. The smartphone and tablet market accounted for sales of 298.7 million and 19.5 million units in 2010. Global IP traffic stood at for 28,035 Petabytes (PB) per month in 2011, with fixed Internet traffic accounting for 73.6 percent of this. The managed IP traffic and mobile data traffic segments contributed shares of 24.4 percent and 1.9 percent respectively. Between 2011 and 2016, the mobile data traffic is projected to increase at a CAGR of 84 percent; fixed Internet traffic will achieve a CAGR of 30.2 percent in the same period. In terms of regional IP traffic, North America had the highest share in 2011 with 35.4 percent; Europe, Asia Pacific and North America collectively contributed nearly 95 percent of the world’s IP traffic. The consumer segment’s IP traffic is expected to reach 92,389 PB per month by end-2016 from 23,130 PB per month in 2011, growing at a CAGR of 31.9 percent in that interim period. Meanwhile, business IP traffic, which contributed 17.4 percent of worldwide IP traffic in 2011, is expected to have a growth rate of 20.8 percent (CAGR) for the forecasted period reaching 12,575 PB per month by end-2016. © 2011, Portio Research. All Rights Reserved 35
    • Internet Usage 2011 Chapter 6 Appendices 36 © 2011, Portio Research. All Rights Reserved
    • Internet Usage 2011 Appendices Glossary 3G or third generation 3G is an International Telecommunication Union (ITU) specification for the third generation (analog cellular was the first generation and digital PCS 9 was the second generation) of mobile communication technology. Third generation Wireless Wide Area Networks (WWAN) communication systems are characterised by high-speed data rates (144 Kbps 10 to 2+ Mbps 11) suitable for multimedia content. 3G technologies typically are packet-switched and use Code Division Multiple Access (CDMA) technology to communicate. Examples of 3G include EDGE 12, 1xRTT, HDR and W-CDMA. 13 3G protocols in mobile telephony support higher data transmission rates, measured in Mbps, intended for applications other than voice. 3G support broadband and bandwidth applications, such as full-motion video, video conferencing and Internet access. 3G Penetration 3G penetration refers to 3G subscribers as a percentage of total population of the country. This is similar to the term ‘mobile penetration’, which means total number of active mobile subscribers in a country as a percentage of total population of the country. 4G or fourth generation 4G or fourth generation WWAN communication systems are characterised by high-speed data rates at 20+ Mbps, suitable for high-resolution movies and television. The initial deployment of 4G communication systems is expected in 2006-2010. The proposed features of these systems include 100 Mbps speed, location sensing and self-tailoring to user needs. Admission Control Admission control is the means for controlling mobile data traffic at times of overload. Admission control finalises the data calls that have to be accepted in the network to maximise revenues, while maintaining QoS for all the other services. Average Revenue per User (ARPU) Measures the average monthly revenue generated for each customer unit, such as a handset or pager that an operator has in operation. Backhaul It refers to the process of transmitting voice and data traffic from a remote site to a central site. BWA Broadband Wireless Access: It is a form of fixed wireless access system. Byte Byte is a collection of bits in which each bit can take a value of either 1 or 0. Kbps, Mbps and Gbps denote the number of bytes transferred per second; Kbps, Mbps and Gbps translate to 103, 106 and 109 bytes per second respectively. 9 Personal Communications Service (PCS) Kilobits per second (Kbps) 11 Megabits per second (Mbps) 12 Enhanced Data for Global Evolution (EDGE) 13 Wideband Code Division Multiple Access (W-CDMA) 10 © 2011, Portio Research. All Rights Reserved 37
    • Internet Usage 2011 Cloud Computing Cloud computing is a technology involved in delivering hosted services on the Internet. It is based on client-server architecture, which includes user device with applications (such as Web browsers) to access the back end (various components, such as data storage devices, servers, etc.). The back end components perform specific tasks and interact with each other through standard application programming interfaces. Desktop Penetration Desktop penetration refers to the number of desktops (PCs) as a percentage of the total population of the region. Dongle Dongle is a portable device which is connected to a laptop or desktop and resembles a USB flash drive. It is widely used as a wireless broadband adapter. DSL Digital Subscriber Loop: It is a technology that provides digital data transmission over the copper lines of a PSTN network. Dumb Pipes Dumb pipe refers to a mobile operator’s wireless network being used only to transfer data/bytes between the Internet and the user’s device. For an operator being a dumb pipe, there is a potential loss of revenue for the operator, since the operator is generating revenue only for the network data access and is not receiving any significant share in data/content service revenue. Feature Phone Feature phones are handsets with browsers (primarily based on embedded J2ME and BREW platforms) to enable access to web based e-mail, and sometimes have embedded applications for social networking, instant messaging (IM) and mobile banking. These phones often come with high resolution cameras, GPS and innovative multimedia features. The major differentiating factor between a smartphone and a feature phone is that feature phones do not have an open Operating System (OS). The OS present in smartphones, through its Application Programming Interface (API), enables subscribers to install and remove thirdparty applications. Smartphones are better integrated with the handset's User Interface than Java applications. Femtocell Femtocell is a small cellular base station that operates in licensed spectrum and is controlled by the operator. It uses DSL or cable connection for backhaul. It is deployed with the aim of improving indoor coverage for domestic or small business use. to upgrade the apps with additional features by paying additional charges. Gbps Please see “Byte”. HTML Hyper Text Mark-up Language: It is a syntax based language used for designing web pages. The content of HTML, written in standard syntax, when opened in a web browser takes the form of Web page. The nascent version of HTML was used with easy syntax rules in comparison to existing HTML and MHTML versions of it. In recent times, the official standards of World Wide Web recommend Web developers to use XHTML 1.1, XHTML 1.0 and HTML 4.01 versions. Interoperability This is defined as the ability of a network to operate with other networks, such as two systems based on different protocols or technologies. 38 © 2011, Portio Research. All Rights Reserved
    • Internet Usage 2011 Instant Messaging (IM) Instant Messaging is an Internet-based service that alerts users when their friends or colleagues are online and allows them to communicate with each other in real-time through private online chat areas. With instant messaging, users create a list of other users with whom they want to communicate. When a user from their list is online, the service alerts them and enables an immediate contact with the other user. While instant messaging has primarily been a proprietary service offered by Internet service providers such as AOL and MSN, businesses are starting to employ instant messaging to increase employee efficiency and make expertise more readily available to employees. Intranet The intranet is a private network inside a company or an organisation, and uses software similar to that used on the Internet. Companies use intranets to manage projects, provide employee information, distribute data and information, etc. Kbps Please see “Byte”. M2M Machine-to-Machine: M2M generally means the communication between machines. However, in the mobile world, it is sometimes defined as Mobile-to-Mobile, which basically refers to communication that involves only mobiles and not landlines. MAN Metropolitan Area Network is a computer network that normally encompasses a city or a big premise. It is formed by connecting several local area networks. Mbps Please see “Byte”. Megabyte 6 Megabyte translates to 10 bytes. Please see “Byte” for further details. MiFi MiFi is a collection of wireless routers that are used as mobile Wi-Fi hotspots. The technology is developed by Novatel Wireless. Mobile Broadband Users as a Percentage A mobile broadband user as a percentage refers to mobile broadband users as a percentage of total active mobile subscribers in a country. This represents the proportion of mobile broadband users in the total mobile subscriber base of a country. MNO Mobile Network Operator. Mobile Internet Penetration Mobile Internet Penetration is described as mobile Internet users (of the specified market or region) as a percentage of the specified market or region’s mobile subscriber base. Mobile Penetration It is the mobile subscriber base in a country expressed as a percentage of its total population. Modem A modem is a device which modulates and demodulates analogue and digital signals for the transmission of signals over different carriers. © 2011, Portio Research. All Rights Reserved 39
    • Internet Usage 2011 P2P Peer-to-Peer: In the mobile messaging world, P2P messages are defined as messages exchanged between subscribers. These messages originate from and terminate to mobile subscribers’ handsets. Petabyte 15 Petabytes translate to 10 bytes. Please see “Byte” for further details. QoS QoS stands for quality of service. SIM card It is a smart card that gives GSM handset its user identity. The card is inserted into a GSM/TDMA or GSM-only mobile handset containing subscriber-related data. The card contains 18 digits code for GSM markets and 20 digits code for TDMA markets. Smartphone A smartphone is a mobile handset which runs on operating system (OS) software and offers some of the capabilities of a PC. It provides a standardised interface and platform for application developers and is enabled with advanced features, such as e-mail, Internet and an e-book reader. Some of the other features expected from a smartphone include built-in full keyboard/external USB keyboard, powerful microprocessors, memory, built-in modem and large screens. The major differentiating factor between a smartphone and a feature phone is that an open Operating System (OS) is present in a smartphone. The OS, through its Application Programming Interface (API), enables subscribers to install and remove thirdparty applications. Smartphones are better integrated with the handset's User Interface than Java applications. Smartphone Penetration Smartphone penetration is described as smartphone users (of the specified market or region) as a percentage of the specified market or region's mobile subscriber base. USB Universal Serial Bus is a specification used to initiate data transfer between devices and a host controller. Voice over Internet Protocol Voice over Internet Protocol (VoIP) is an Internet service which enables voice communication over IP network. This uses a set of communication and transmission protocols. WAP Wireless Advance Protocol: WAP is a specification for a set of communication protocols to standardise the way mobile devices, such as handsets and radio transceivers, can be used for Internet access. The WAP standard is based on Internet standards (HTML, XML and TCP/IP). It consists of a Wireless Markup Language (WML) specification, a WMLScript specification, and a Wireless Telephony Application Interface (WTAI) specification. The WAP protocol is the leading standard for information services on wireless terminals such as digital handsets. Some examples of WAP for accessing information include the following: checking train timings, purchasing tickets, flight check-in, viewing traffic information, checking weather conditions, looking up stock values, looking up phone numbers, looking up addresses or looking up sport results, and there are countless more. 40 © 2011, Portio Research. All Rights Reserved
    • Internet Usage 2011 WiBro Wireless Broadband: The technology was formulated by South Korean telecom industry as an equivalent to mobile WiMAX international standard. Wi-Fi Wireless Fidelity: It is used to provide wireless local area network through enhanced interoperability of the network. Services such as Internet, VoIP phone access, and gaming, etc., can be provided using Wi-Fi. WiMAX Worldwide Interoperability for Microwave Access: It is a telecommunication technology used for wireless data transfer over long distances through point-to-point links as well as mobile cellular type access. It is based on standards that are useful in wireless broadband access. Wireless MAN Wireless Metropolitan Area Network: The technology is used to provide wireless network over a larger area as compared to local area network. WLL Wireless Local Loop: It refers to the wireless devices that are situated in fixed locations. The signal transmissions occur through the air and it provides connectivity to the users in remote and isolated areas without the need for laying new cables. © 2011, Portio Research. All Rights Reserved 41
    • Internet Usage 2011 Portio Research Classifications Geographical Regions: There is sometimes a difference in the way research firms classify the major geographical territories. At Portio Research, we follow 'obvious' geographical lines, but for the record, here are the regional definitions we follow, unless otherwise stated in the report: Europe: Standard classification includes Iceland and various islands Asia Pacific: Includes Australasia, the Indian Sub-Continent, Pakistan, Afghanistan, Sri Lanka, Maldives and the Former Soviet Union Central Asian republics North America: Standard classification, including Hawaii and islands to the North Latin America: Includes all South and Central American countries including Mexico, The Caribbean and The West Indies Africa and Middle East: Standard classification includes territories in Western Indian Ocean; Includes Israel and all Middle Eastern countries East of Egypt, South of Turkey and West of Afghanistan 42 © 2011, Portio Research. All Rights Reserved
    • Internet Usage 2011 Also Available from Portio Research Limited Portio Research Ltd is a UK-based research company focussing on the mobile space, providing reports, handbooks, directories and database products. New and Best Selling Reports include: Mobile Data Usage Trends 2011-2015 Technological advances within the mobile ecosystem have led to seismic shifts in terms of mobile data usage. But beyond the broad stroke analysis of industry headlines, there is a pressing need to understand the finer details of the surging uptake of data services among mobile users in both developed and emerging countries. Building on our strong portfolio of high-quality, data-centric market studies – and naturally underpinned by wider analysis, growth forecasts and market sizing of mobile data revenue and traffic – this exciting new s report uses survey-led research to assemble country case studies to deliver invaluable insight in to the specific trends of mobile data use, culminating in a Typical User Profile for each market analysed. Please click here for more details. Disruptive Mobile Applications and Services 2011-2015 With new forecasts and market sizing, the rapidly evolving worldwide mobile applications market is comprehensively reassessed in this exciting new s study – with particular focus on the current breed of hugely popular disruptive applications and services (Mobile Video Streaming, Social Networking, Mobile VoIP, Bulk Messaging Services, and Mobile Payments) and the threats and opportunities that they respectively present to mobile operators. With analysis also of app stores and app development, this 162-page report covers: YouTube, Facebook, Twitter, Skype, Angry Birds, MobiTV, Google+, Nimbuzz, SMS GupShup, Square, Bango, Boku, Apple App Store, Google Android Market, BlackBerry App World, Nokia Ovi Store, Windows Phone 7 Marketplace and much more. Please click here for more details. Mobile Network Operator Groups 2011 This essential new report comprehensively analyses the Top 30 MNO Groups Worldwide (as determined by proportionate subscriber bases at end-2010). Over 123 pages, with 109 supporting Figures and Tables, this great-value, text-light study delivers solid insight and data about these global leaders, and reappraises their success using differing KPIs – to see how rankings alter. The report also features detailed profiles of these 30 MNO Groups, with data points on: Total Revenue, Mobile Revenue, Net Profit, Employees, Key Interests, Brand Names, Ownership, Subscribers, Proportionate Subscribers, Market Share, Technology Deployments, Planned Upgrades, Recent Mergers, Acquisitions and Partnership Deals. Please click here for more details. If you have any questions or if we can be of any assistance to you, please contact us by e-mail: info@portioresearch.com Copyright 2011. Portio Research Limited 2011 www.portioresearch.com © 2011, Portio Research. All Rights Reserved 43