Market & Industry trends: Ericsson Mobility Report June 2015 and the Road to 5G

1. Maria Boura
Head of Strategy, Marketing & Communications, South East Europe
Ericsson Media Briefing Athens, June 18, 2015

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Today’s agenda
The Road to 5G
8th Ericsson Mobility Report

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1/2Video will generate
half of mobile data traffic
LTE subscriptions growth will
exceed 80%, exceeding 800 million
More people will watch
streamed on-demand video than
broadcast TV on a weekly basis
>80%
This year…
World mobile broadband
coverage will be above 70%
>70%

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90% of the world´s population will have a
mobile phone by 2020
• 9.2 Billion mobile subscriptions by the end
of 2020
• 85% of mobile subscriptions will be for
mobile broadband by the end of 2020

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Subscription outlook – growth in hspa
and LTE
In 2020:
› 9.2 billion mobile subscriptions
› 3.7 billion LTE subscriptions
› 3.8 billion WCDMA/GSM
subscriptions
› 5G will be commercially
deployed

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Smartphones subscriptions set to more
than double by 2020

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Mobile Traffic Update
q1 2015
Global total monthly traffic in mobile networks, 2010-Q1 2015
› Note: Based on actual measurements.
› Traffic does not include DVB-H, Wi-Fi, or Mobile WiMax. Voice does
not include VoIP.
› YoY: 55% growth in mobile data
traffic
› QoQ: 12% growth in mobile data
traffic

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9 times Mobile data Traffic by
end of 2020
4.2 GB
1.9 GB
1.0 GB
Monthly consumption per device type
17.3 GB
8.4 GB
4.9 GB
2014 2020

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Smartphone data traffic
Regional
› More smartphone
subscriptions
› More traffic per
smartphone
› Monthly smartphone
consumption/subscription
by 2020
– NA: 14 GB
– WE: 9.5 GB
– APAC: 4 GB

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13X more video traffic in 2020
22X

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Top 25 app usage in three countries
App time that users in each country spend using the top 25 apps
(i.e. not all apps)
› In the US, around 13 percent of app time is spent streaming
video, while in Russia and Sweden it is half that.
› Social networking is significant in all three countries.
› ‘Russia stands out, with users spending more than 40 percent
of app time on social networks. Russia is also notable for high
levels of navigation app use, and the variety of such services
available.
› Swedes spend a greater percentage of app time
communicating.

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Connected devices
› Growth in the number of connected devices is accelerating, driven by growing range of
applications and business models, supported by falling modem costs
› 13.5 billion connected devices in 2014
› 26 billion connected devices by 2020, confirming we are well on the way to reaching our vision
of 50 billion connected devices

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population Coverage
› Around 90% of world´s population covered by WCDMA/HSPA in 2020
› More than 70% of world’s population covered by LTE in 2020

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LTE network status

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The digital signatures of sport
Football world championships 2014
› Activities like real-time viewing, sharing results
and social networking have become integral
parts of sports events, enabling them to become
digital experiences
› The network challenge
› Mobile traffic patterns
› Consumer behavior patterns
› Connection types
› Network loads

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Beyond average data
consumption
› Compares subscriber and traffic shares, as well as the application mix for
different subscriber clusters in advanced mobile broadband markets.
Mobile services consumption patterns of subscribers differ a lot for
different monthly usage clusters.
› In many mobile networks a significant proportion of traffic is
generated by a limited number of users. The top 10 percent users
generate around 55 percent of the traffic and 20 percent of users
generate around 70 percent

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Beyond average data
consumption
› Social networking, web browsing and audio traffic share is
highest in medium groups, while the shift to video as the
dominant traffic is apparent in the heavy user group. Video is
dominant among heavy and power users, representing almost 70
percent of traffic
› Heavy data users, those who consume more than 10 GB per
month, share of video consumption is as high as 70% of their
total data consumption. They watch around 1 hour video per day
on average, which is 20 times more than an average user

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Screen size matters
› Screen size, resolution and display clarity are important factors influencing
the mobile user experience and affecting the extent to which various
services are used
› Small screens could be a barrier for web browsing and social networking
due to, for example, the inconvenience of reading and writing on smaller
screens. However, too large a screen also decreases usage. .
› Video consumption on tablets is 50 to 70 percent higher on
average compared to usage on phablets.
› Average tablet user spends 50 percent more time watching
videos online than average mobile broadband users .

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Today’s agenda
The Road to 5G
8th Ericsson Mobility Report

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wireless access generations

21. 5G

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IOT setting divergent NW
requirements
5G use case families and related examples, 5G White Paper by NGMN Alliance

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One network –
multiple industries
@
A common network platform with
Dynamic and Secure Network Slices
© Telefonaktiebolaget LM Ericsson 2015 | Ericsson Internal | MWC March 2015 | Page 32

24. Public | © Ericsson AB 2015 | 2015-06-16 | Page 33 Source: METIS
performance requirements
10-100X
End-user Data Rates
5X
Lower Latency
10-100X
Connected Devices
10X
Battery Life
1000X
Mobile Data
Volumes
Critical Communications
Intelligent Transport Systems
Massive Communications
Connected Sensors
<5ms e2e delay
99.999% transmission reliability
500Kmph relative velocity
>10yrs battery lifetime
>80% cost reduction
20dB better coverage
Extreme
availability
Scalability and
flexibility
© Telefonaktiebolaget LM Ericsson 2015 | Ericsson Internal | MWC March 2015 | Page 33

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Building 5g
Platform for 50 Billion
Open Innovation
Global developments
Global standard
Milestones every year
Research & Development
5G System View
One Network –
Multiple Industries Industry Journey Technology Evolution
© Telefonaktiebolaget LM Ericsson 2015 | Ericsson Internal | MWC March 2015 | Page 35

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Ericsson Driving 5g in the
industry
Global engagement
for Global Standard
Technology
Leadership in all
5G domains
Engaging in Automation
& Transport Verticals
Experience from
Four Generations
We will make it work. As always.

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5G radio
test bed
July 2014, >5 Gbps

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› Want to experience 5 gigabit/
second over the air?
› A live demonstration with the 5G
test mobile in place was available
in Barcelona.
5G Radio TEST
BED

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2020 highlights
9.2 Billion
7.7 Billion>2X
9X
Mobile Subscriptions
MBB Subscriptions
Smartphone Subscriptions
(2.7B)
Mobile Data Traffic
driven by Video 90%, >70%
WCDMA/HSPA LTE
© Telefonaktiebolaget LM Ericsson 2015 | Ericsson Internal | MWC March 2015 | Page 41
Population Coverage
70%
of the world’s population
will have a smartphone
“Already today, users expect fast and reliable mobile access, wherever they go.
They want sufficient app coverage”