LTE World Summit Barcelona May 2012 T11 Ali Amer

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LTE World Summit Barcelona May 2012 Day 2

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LTE World Summit Barcelona May 2012 T11 Ali Amer

  1. 1. Mobile Devices: Driving the Social Transformation Ali Amer Saudi Telecom Company-STC Email=aliamer@stc.com.saLTE World Summit, 2012 - Barcelona
  2. 2. Overview Market Trend Mobile Devices: A Revolution or an Evolution The Smart phones and the Huge Data Traffic The Need for the change Recommendations & ConclusionLTE World Summit, 2012 - Barcelona 2
  3. 3. Where we Stand Today? And where we are Going Today Future 2012 2015 Mobile broadband Near to 4.0 Bi users 1Bi Average traffic per month per 100 MB 5 GB user Speed to 1 Mbps 100 Mbps access • Internet is becoming part of our life, • Broadband access is essential infrastructure for today & the future, • Broadband & Mobility have a clear value proposition, • Use and demand for Smart mobile devices is growing, • Mobile data is growing,LTE World Summit, 2012 - Barcelona 3 3
  4. 4. The Change in Technology The first billion telephony users were accumulated over a 100-year period, however it only took 25 years to reach 5billion of mobile subscribers • For many emerging markets, the first Internet end-user experience will be via a mobile handset  Every 1,000 new broadband connections yields 80 new jobs, while each 10% increase in BB penetration translates to a 1% increase in GDP, according to several industry sources. Combination Pace of of Technology innovation improvements in silicon valley & elegant DesignThe unprecedented Focus/Leadership of USA-Based Work Play Connect Companies (Apple, Write Read Alert Google, Facebook Create Consume CheckLTE World Summit, 2012 - Barcelona 4
  5. 5. Worldwide The Digital era is Gaining place Mobile only Internet Users Mobile Devices Mobile Payments x56 788M x5 2500 M x6 $647 Bi 450 M $99 Bi 14 M 2010 2015 2010 2015 2010 2015 Mobile Apps Revenues New Connected Homes YouTube X17 $37.5Bi Total 20 Traffic 48 Hours of Video Homes in in 2015 1995 uploaded/Min $2.2 Bi 2010 2015 3 billion views /DaySource= Booz &Co LTE World Summit, 2012 - Barcelona 5
  6. 6. How is The Telecom Market Today? Increased Increase Technology Mobility Device Savvy Usability Consumer Services Virtualization BW Demand Application &Supply EcosystemLTE World Summit, 2012 - Barcelona 6 6
  7. 7. Mobile Devices Evolution voice Message Internet App Stores & Media AppsLTE World Summit, 2012 - Barcelona 7 7
  8. 8. The Smartphone Phenomena… The “killer” device and its “killer” applications… Rich user-interaction portfolio: diverse set of media 1 100 Million capture and playing tools 2 active users currently Accelerometer/Recognition of movement and motion accessing Facebook 3 through their mobile GPS/Positioning capabilities to detect the exact position devices. Of the device Mobile Application market/Open for Software developed 4 By software vendors 9 out of 10 smartphone searches results in an action ARPU of Smartphone (purchasing, visiting a There will be more 2013 Smartphone (1.82 User=2-3 X the ARPU of business, etc.) Billion) than PCs (1.78 Normal User Billion) (Source: Gartner)LTE World Summit, 2012 - Barcelona 8
  9. 9. Smartphone is it a Need or a Want? Clearly, the ‘necessity’ of smartphones at any age is a matter of perspective!19% of kids worldwide (ages 2-5) can But whether they fill our ‘wants’ or ‘needs’, theyoperate a smartphone application. Only 9% can tie their shoelaces. are becoming the standard in mobility. LTE World Summit, 2012 - Barcelona 9
  10. 10. The Expected Traffic Growth from Smart Devices Are we going to the Yota Byte Era Smart 24 X Feature Phone phone Handheld 60X Feature Gaming phone Tera Bytes per Month 6.3 EB Tablet 122X Feature 3.8 EB phone Mobile Phone 300X 2.2 EB Feature Projector phone 1.2 EB 0.6 EB 0.24 EB Laptop 515 X Feature 2010 2011 2012 2013 2014 2015 phone Source= Cisco VNI Mobile, 2011 LTE World Summit, 2012 - Barcelona 10
  11. 11. Global Smartphone Users ProjectionSmartphone becoming mainstream method for people to access network applications 1 Billion 835Million 2011 2013LTE World Summit, 2012 - Barcelona 11
  12. 12. Global Smart Phone Shares 1800 60% Non-smartphones Smartphones 1600 Smartphone share of total sales (%) 50% Smartphone share (%) 1400 1200 40% Sales Volumes(Mi) 1000 30% 800 600 20% 400 10% 200 0 0% 2010 2011 2012 2013 2014 2015 2016Source: Informa, LTE World Summit, 2012 - Barcelona 12
  13. 13. Worldwide Smartphone Sales Projections 1200Mi 1000Mi 600Mi 400Mi 200Mi 2010 2011 2012 2013 Symbian iOS BB Windows Android OthersSource: Gartner LTE World Summit, 2012 - Barcelona 13
  14. 14. Smartphone Growth By OS 500 450 400 Symbian MicrosoftSales volume (m) 350 LIMO + other Linux 300 Android 250 Apple iOSx 200 Blackberry OS (QnX) 150 webOS 100 Meego 50 0 2010 2011 2012 2013 2014 2015 2016 Meego, Symbian, Blackberry webOS, Blackberr 3.6% 0.1% webOS, Meego, OS (QnX), 0.0% y OS 0.3% 0.2% 7.1% (QnX), 14.5% Microsoft, Symbian, Apple LIMO + 20.9% 18.4% Microsoft, iOSx, other 4.3% 15.3% Linux, Apple 0.4% iOSx, LIMO + 2011 21.1% 2016 Android, other Android, 39.5% Linux, 52.5% 1.8% LTE World Summit, 2012 - Barcelona 14
  15. 15. Tablet Market WW Tablet Market Share Q2/2011 WW Tablet Market Share Q2/2011  iPad is dominating the Tablet Market  Google racing the catch up with Android enhancement Android for Tablet 26.8%  RIM playbook Sales is disappointing Microsoft’s Tablet Offering is Still 12-18 months away RIM iPad 4.9% 68.3% WW Tablet OS Sales Projections 10,000 App Store Tablet Apps by Platform 2010 2011 2012 2013 0 apple iOS MS And QNX Google MS RIMLTE World Summit, 2012 - Barcelona 15
  16. 16. Smartphone vs. Tablet (main Features) Smart Tablet phone Functions=Full Functions=Less (only Data) Size =Small Size =Big Processing Processing Speed=1Ghz Speed= up to 1.4Ghz Battery Life=1-2 Days Battery Life=<10 Hrs Price= Less Price= High Storage=32GB Storage=320GBLTE World Summit, 2012 - Barcelona 16
  17. 17. Comparing the most famous Tablet Features BlackBer Samsung Apple ry Galaxy iPad PlayBook tabScreen Size 7 inches 9.7 inches 7inchesPlatform BB Tablet OS iOS3.2.2 Android 2.2Memory 1GB 256 MB 512 MBStorage 16GB/32GB 16GB/32GB/64GB 16GB/32GBConnect WiFi +3G, Bluetooth +EDR WiFi +,3G Bluetooth +EDR WiFi +3G, Bluetooth +EDRWeight 0.9 lbs 1.34 pounds (607 g) 0.84 lbsLTE World Summit, 2012 - Barcelona 17
  18. 18. Global App Stores Landscape App stores by Company type, 2011/Q2  More than 160 App Stores have been deployed worldwide Manufacturer OS Developer Manufacturer & OS Developer  57% are independent app Stores Operator Independent Other 26% are offered by Mobile Operators Of the 84 app stores that offer free registration to developers, 55 are independent 4% 3% 2% stores using it as an incentive to attract 8% developers Similarly, 50 of the 83 app stores that offer 26% 57% no annual fee are independent stores 185bi $58bi Huaweis Digital Shopping Mall, launched on Oct,2011, features 80,000 apps, and a vast collection of music, video clips and e-books. The 8.2bi $5.2bi company sees it as its newest solution for telecom operators wanting to provide a strong mobile app 2010 2014 2010 2014 store to their users, but without investing the needed resources and time to build it. Mobile apps Downloads Revenues from Mobile app StoresSource= Informa & Gartner LTE World Summit, 2012 - Barcelona 18
  19. 19. 160+ Apps Store in the World 0 100K 200K 300K 400K 500K 1997-2007 Total Number AppStore New Launch 2008 Android July-Dec 2009 BB+ Cellmania Jan-June 2010 Ovi Store $210 Mi July-Dec 2010 Windows Handango + Jun-Mar 2011 $44 Mi pocketgear GetJar+ Sprint 2011 2015 0 20 40 60 80 100 120 Annual Revenues from Smartphone Amazon Apps (KSA, UAE & JOR.) Listed App Store on WP List The Number of apps in StoresSource= GetJar, WP LTE World Summit, 2012 - Barcelona 19
  20. 20. Smart Devices and the appetite for Smart Apps (1/2) Nutrition: Helpful for health freaks…. Indoor Guide: Works in a Building, Airport, Station, Hospital, etc…LTE World Summit, 2012 - Barcelona 20
  21. 21. Smart Devices and the appetite for Smart Apps (2/2) It has a Scanner Build in Gives you the Meaning of any word from a newspaper, a Book, etc… Automatic Translation Keyword Search from A newspaper or a BookLTE World Summit, 2012 - Barcelona 21
  22. 22. It’s the Decade of the Data Global Mobile Subscriptions (2010-2015) Global Mobile Service revenues (2010-2015) $Bi9 7.7 1150 1,1378 7.4 7.1 1,1147 6.6 1100 1,087 6.16 5.4 1,053 10505 1,0144 10003 966 95021 9000 2010 2011 2012 2013 2014 2015 850 2010 2011 2012 2013 2014 2015 2010 2015 Voice Voice Data Data 26.5% 40.1% 59.9% 73.5% Global Mobile revenues Voice vs Data (2010 & 2015) $BiLTE World Summit, 2012 - Barcelona 22
  23. 23. Smart Phone is driving the Data Growth Global Yearly Mobile Data 1 Zeta byte 1 Exabyte Smart phones to be ~40% of total Global Smart Phone Growth 1.3 Bihandset shipments by 2014 Smart phones projected to grow at aCAGR of ~22% from 2009 to 2014. 2009 2017 300 Mi 7 trillion wireless Laptops and devices serving Smart phonesSmart Phone= 30 Phones 7 Billions of Drive TrafficLaptop= 450 Phones 2017 People 2009 Growth 2014 LTE World Summit, 2012 - Barcelona 23
  24. 24. An Explosive Mobile Data : The Growth Global Mobile Data 7 Yearly Mobile data Traffic=70% Yearly Mobile Data Revenues =17% MENA Mobile Data Traffic 6 MNOs will invest$14Bi (2010-2015) Growth(CAGR)=129% 5 ExaByte/Month 4 3 2 1 0 2010 2011 2012 2013 2014 2015* Source: Reformatted Cisco VNI mobile (2011) data LTE World Summit, 2012 - Barcelona 24
  25. 25. The Change is happening Now From Infrastructure-based Competition to Service-based Competition 1 Network Based 3G, 4G 2G,2.5G Voice 2 Data Dominated Dominated Focus on 3 Focus on Retention Acquisition Customer Experience 4 Pay per Use Subscription or Bundled 5 Operator Portal Store (App Store) 6 One size fits All Market SegmentationLTE World Summit, 2012 - Barcelona 25
  26. 26. Before Wrapping up 8000 6,898 7000 Tablet & Smartphone users vs. Other Markets (The Potential for Growth is Huge) 6000 5,613 Install base (Million) 5000 4000 99.7% of people still haven’t bought a Smartphone or Tablet yet 3000 2000 2000 1,270 1,000 1000 900 700 600 513 Mobile Subs Population Telephone Smartphone Broadband Total PCs TV Circulations Newspaper Users/Tab Internet World Users Lines SubsSource=RBC Capital Markets LTE World Summit, 2012 - Barcelona 26
  27. 27. The Anywhere, Any Time, Any Device Epoch has Started LTE World Summit, 2012 - Barcelona 27
  28. 28. Thank you Devices Change but Communication LastsLTE World Summit, 2012 - Barcelona 28

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