Why cities
will drive traffic
growth
© Ericsson AB 2012 | June 2012 | Page 2 (12)
0
20
40
60
80
100
Estimated world
population
distribution, 2017**
Estimated m...
© Ericsson AB 2012 | June 2012 | Page 3 (12)
Ericsson ConsumerLab
City Study 2011
› Conducted in 13 major cities
− 1,500 i...
© Ericsson AB 2012 | June 2012 | Page 4 (12)
High rate of Smartphone
ownership
› Only about 10 to 15
percent of the worldw...
© Ericsson AB 2012 | June 2012 | Page 5 (12)
Heavy usage of mobile services, incl. high-
capacity services
Share (%) who u...
© Ericsson AB 2012 | June 2012 | Page 6 (12)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Totalaverage
Cairo
Johannesburg
M...
© Ericsson AB 2012 | June 2012 | Page 7 (12)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Totalaverage
C
airo
JohannesburgM...
© Ericsson AB 2012 | June 2012 | Page 8 (12)
High usage of internet services, including
high-capacity services
0% 10% 20% ...
© Ericsson AB 2012 | June 2012 | Page 9 (12)
The mobile phone: access point
to the internet
› A total of 50 percent
of cit...
© Ericsson AB 2012 | June 2012 | Page 10 (12)
0 1 2 3 4 5 6
Total average
Moscow
Johannesburg
Sao Paulo
Cairo
Seoul
Los An...
© Ericsson AB 2012 | June 2012 | Page 11 (12)
ict is important in the
workplace
› More than 50 percent of city
dwellers co...
Ericsson Consumer Labs: Why cities will drive traffic growth
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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.

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

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  • 08/07/13 June 2012 © Ericsson AB 2012 © Ericsson AB 2012 June 2012 © Ericsson AB 2012 08/07/13 2011-11-06 ************************************************ Slide owner: Urban Life, BNET strategic marketing Latest update: April 2012 ************************************************
  • 08/07/13 June 2012 © Ericsson AB 2012 © Ericsson AB 2012 June 2012 © Ericsson AB 2012 08/07/13 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)
  • 08/07/13 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) 08/07/13 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) .
  • 08/07/13 June 2012 © Ericsson AB 2012 © Ericsson AB 2012 June 2012 © Ericsson AB 2012 08/07/13 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.
  • 08/07/13 June 2012 © Ericsson AB 2012 © Ericsson AB 2012 June 2012 © Ericsson AB 2012
  • 08/07/13 June 2012 © Ericsson AB 2012 © Ericsson AB 2012 June 2012 © Ericsson AB 2012 08/07/13 2011-11-06 ************************************************ Slide owner: Urban Life, BNET strategic marketing Latest update: April 2012 ************************************************
  • 08/07/13 June 2012 © Ericsson AB 2012 © Ericsson AB 2012 June 2012 © Ericsson AB 2012 08/07/13 2011-11-06 ************************************************ Slide owner: Urban Life, BNET strategic marketing Latest update: April 2012 ************************************************
  • 08/07/13 June 2012 © Ericsson AB 2012 © Ericsson AB 2012 June 2012 © Ericsson AB 2012
  • 08/07/13 June 2012 © Ericsson AB 2012 © Ericsson AB 2012 June 2012 © Ericsson AB 2012 08/07/13 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)
  • 08/07/13 June 2012 © Ericsson AB 2012 © Ericsson AB 2012 June 2012 © Ericsson AB 2012 08/07/13 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.
  • 08/07/13 June 2012 © Ericsson AB 2012 © Ericsson AB 2012 June 2012 © Ericsson AB 2012
  • 08/07/13 June 2012 © Ericsson AB 2012 © Ericsson AB 2012 June 2012 © Ericsson AB 2012
  • Ericsson Consumer Labs: Why cities will drive traffic growth

    1. 1. Why cities will drive traffic growth
    2. 2. © Ericsson AB 2012 | June 2012 | Page 2 (12) 0 20 40 60 80 100 Estimated world population distribution, 2017** Estimated mobile traffic, 2017 **Metro: >4,000 people/sq km, Urban: 1,000-4,000 people/sq km, Suburban: 300-1,000 people/sq km, Rural: <300 people/sq km Cities will drive Traffic growth › 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. › Why is this the case? Population versus mobile traffic distribution (%) Suburban Rural Urban Metro Suburban Rural Urban Metro 30% 60% (Source: Ericsson)
    3. 3. © Ericsson AB 2012 | June 2012 | Page 3 (12) Ericsson ConsumerLab City Study 2011 › 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) Moscow Stockholm Tokyo Seoul MumbaiCairo Johannesburg London São Paulo Los Angeles New York Beijing Hong Kong
    4. 4. © Ericsson AB 2012 | June 2012 | Page 4 (12) High rate of Smartphone ownership › Only about 10 to 15 percent of the worldwide installed base of subscriptions uses smartphones (*) City Study 2011 results: › About 40 percent of city dwellers own an iPhone or an Android phone › Major differences exist between cities 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Totalaverage C airo JohannesburgM um bai Stockholm BeijingM oscowSão Paulo Tokyo SeoulLondon Los AngelesN ew York H ong Kong An iPhone An Android phone Another type of mobile phone (Source: Ericsson ConsumerLab City Study 2011 Base: All (online population) (*) Source: Ericsson Traffic and Market Report (June 2012)
    5. 5. © Ericsson AB 2012 | June 2012 | Page 5 (12) Heavy usage of mobile services, incl. high- capacity services Share (%) who use each service at least five times a day (heavy users) A total of 7 percent watch videos on their mobile phones more than five times a day Source: Ericsson ConsumerLab City Study 2011 Base: All (online population) A total of 14 mobile services are used more than five times a day by at least 10 percent of city dwellers 0% 10% 20% 30% 40% 50% 60% Buy tickets, do small transactions or payments Use mapping, navigation or positioning services Check timetables and/or traffic information Watch video clips/movies/TV Send/receive MMS/photo messages Connect to Wi-Fi/Hotspots Play games Use instant messaging service Use the camera and/or video function Update/write on social networks Use calendar/diary function Listen to music and/or radio Check/read social networks Use of apps to access internet Send/receive e-mails Browsing of the internet Send/receive SMS/text messages Make/receive calls
    6. 6. © Ericsson AB 2012 | June 2012 | Page 6 (12) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Totalaverage Cairo Johannesburg M um baiStockholm Beijing M oscowSão Paulo Tokyo Seoul London Los AngelesNew YorkHong Kong Use daily Use weekly Use monthly Use less often Don’t use High mobile-broadband connection rate (*) Source: Ericsson Traffic and Market Report (June 2011) › At the end of 2011, about 17 percent of the world’s mobile subscriptions were mobile- broadband subscriptions (*) City Study 2011 results: › In all, 40 percent of city dwellers have a mobile- broadband subscription › More than 30 percent of mobile- broadband users use it daily › In all, 9 out of 10 mobile- broadband users use it for personal reasons; 5 out of 10 for work reasons Source: Ericsson ConsumerLab City Study 2011 Base: All/mobile-broadband users (online population)
    7. 7. © Ericsson AB 2012 | June 2012 | Page 7 (12) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Totalaverage C airo JohannesburgM um bai S tockholm B eijingM oscowS ão P aulo Tokyo S eoulLondon Los A ngelesN ew Y ork H ong Kong Every day Every week Every month Less often Never Don’t know 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)?” › In all, 40 percent of laptop/tablet owners connect weekly to a Wi-Fi network outside the home › Daily and weekly usage of Wi-Fi networks is nearly twice as high among citizens in city centers as it is among residents of suburbia Source: Ericsson ConsumerLab City Study 2011 Base: All/mobile-broadband users (online population)
    8. 8. © Ericsson AB 2012 | June 2012 | Page 8 (12) High usage of internet services, including high-capacity services 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Buy products Distance learning IP-telephony Check time schedules/traffic information Internet banking Watch longer videos On-line gaming Listen to music Watch video clips Product info/price comparisons Social networks: Update/write/upload Browsing the internet (work usage) Chat/messaging Read newspaper/magazines Work e-mail Social networks: Read/check Personal e-mail Browsing the internet (Personal use) Share (%) who use each service at least daily Source: Ericsson ConsumerLab City Study 2011 Base: All (online population) More than 10 internet services, including high-capacity services such as watching videos, are used daily by at least 30 percent of city dwellers 35% 28%
    9. 9. © Ericsson AB 2012 | June 2012 | Page 9 (12) The mobile phone: access point to 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)
    10. 10. © Ericsson AB 2012 | June 2012 | Page 10 (12) 0 1 2 3 4 5 6 Total average Moscow Johannesburg Sao Paulo Cairo Seoul Los Angeles Beijing Hong Kong New York London Tokyo Stockholm Mumbai Heavy use of online social networks Source: Ericsson ConsumerLab City Study 2011 Base: Use of online social networks (online population) › City dwellers access online social networks three to five times a day on average › The prime driver for usage is staying up-to-date with what family and friends are doing (about 45 percent) › The third-most common activity is connecting and exchanging ideas with others Usage of online social networks (times/day)
    11. 11. © Ericsson AB 2012 | June 2012 | Page 11 (12) ict is important in the workplace › More than 50 percent of city dwellers consider it critical to have internet access at work › Having a mobile phone is critical for 36 percent › Having mobile broadband and/or Wi-Fi access is critical for close to 20 percent Source: Ericsson ConsumerLab City Study 2011 Base: Working population (online population) 0% 10% 20% 30% 40% 50% 60% Tablet computer Mobile broadband and/or Wi-Fi Laptop computer/Netbook Fixed phone Mobile phone Desktop computer High-speed or broadband internet Internet in general Share of working population that views the following products/services as critical for their ability to do their job

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