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

1. Why cities
will drive traffic
growth

2. Cities will drive Traffic growth
Population versus mobile traffic distribution (%)
100
› By 2017, urban and metro areas
Rural
will generate 60 percent of all
80 Rural mobile traffic, although they will
Suburban be home to only 30 percent of the
population.
60
60%
Suburban › Why is this the case?
Urban
40
30%
20 Urban
Metro
**Metro: >4,000 people/sq km, Urban: 1,000-4,000
Metro people/sq km, Suburban: 300-1,000 people/sq km, Rural:
0 <300 people/sq km
Estimated world Estimated mobile
population traffic, 2017
distribution, 2017**
(Source: Ericsson)
© Ericsson AB 2012 | June 2012 | Page 2 (12)

3. Ericsson ConsumerLab
City Study 2011
Moscow
Stockholm Seoul
London Tokyo
Beijing
New York
Los Angeles
Hong Kong
Cairo Mumbai
São Paulo
Johannesburg
› Conducted in 13 major cities
− 1,500 interviews/city
− Sample representative of the advanced online population: 100 million citizens
of cities, nearly half of the total population of the 13 cities
› The collected data represents the half of the total population that uses the
internet most frequently (at least weekly)
© Ericsson AB 2012 | June 2012 | Page 3 (12)

4. High rate of Smartphone
ownership
› Only about 10 to 15
100% percent of the worldwide
90% installed base of
80% subscriptions uses
70% smartphones (*)
60% (*) Source: Ericsson Traffic and Market Report (June 2012)
50%
40% City Study 2011 results:
30%
› About 40 percent of city
20%
dwellers own an iPhone or
10%
0%
an Android phone
› Major differences exist
M rg
e
on ork
ng
o
Lo l
m
S ã co w
An n
o
ew s
oc a i
g
ro
ou
ag
ky
o
le
ul
ijin
bu
b
ol
Ko
ai
nd
between cities
Se
Y
ge
Pa
um
To
er
kh
C
os
Be
s
ne
av
g
M
o
an
N
St
l
s
ta
H
Lo
h
To
Jo
An iPhone An Android phone Another type of mobile phone
(Source: Ericsson ConsumerLab City Study 2011 Base: All (online population)
© Ericsson AB 2012 | June 2012 | Page 4 (12)

5. Heavy usage of mobile services, incl. high-
capacity services
A total of 14 mobile services are used more than five times a day by
at least 10 percent of city dwellers
Share (%) who use each service at least five times a day (heavy users)
Make/receive calls
Send/receive SMS/text messages
Browsing of the internet
Send/receive e-mails
Use of apps to access internet
Check/read social networks
Listen to music and/or radio
Use calendar/diary function
Update/write on social networks
Use the camera and/or video function
Use instant messaging service
Play games
Connect to Wi-Fi/Hotspots
Send/receive MMS/photo messages
Watch video clips/movies/TV A total of 7 percent watch videos on their
Check timetables and/or traffic information mobile phones more than five times a day
Use mapping, navigation or positioning services
Buy tickets, do small transactions or payments
0% 10% 20% 30% 40% 50% 60%
Source: Ericsson ConsumerLab City Study 2011 Base: All (online population)
© Ericsson AB 2012 | June 2012 | Page 5 (12)

6. High mobile-broadband
connection rate
› At the end of 2011, about 17
100% percent of the world’s mobile
90% subscriptions were mobile-
broadband subscriptions (*)
80%
(*) Source: Ericsson Traffic and Market Report (June
70% 2011)
60% City Study 2011 results:
50% › In all, 40 percent of city
40%
dwellers have a mobile-
broadband subscription
30%
› More than 30 percent of mobile-
20%
broadband users use it daily
10%
› In all, 9 out of 10 mobile-
0%
broadband users use it for
personal reasons; 5 out of 10
i
ng
lm
o
rg
on
g
rk
ro
l
Ne es
Sã ow
e
o
ba
ou
ky
ijin
ul
ag
Yo
u
i
ho
Ko
l
nd
Ca
um
ge
c
Se
Pa
sb
To
Be
er
os
ck
Lo
for work reasons
w
An
e
ng
M
av
o
M
nn
o
Ho
St
s
l
ha
ta
Lo
To
Jo
Use daily Use weekly Use monthly Use less often Don’t use
Source: Ericsson ConsumerLab City Study 2011 Base: All/mobile-broadband users (online population)
© Ericsson AB 2012 | June 2012 | Page 6 (12)

7. frequent Connection to wi-fi networks
outside the home
“Outside your home, how often do you connect your laptop/portable computer or tablet
computer to a Wi-Fi network (not via mobile phone)?”
100%
› In all, 40 percent of
90%
laptop/tablet owners connect
80%
weekly to a Wi-Fi network
70%
outside the home
60%
50% › Daily and weekly usage of
40% Wi-Fi networks is nearly twice
30% as high among citizens in city
20% centers as it is among
10% residents of suburbia
0%
e
rg
on ork
ng
lo
lm
ck i
w
g
ew s
on
nn iro
o
Lo l
ba
ag
u
e
jin
ky
au
bu
co
eo
ho
Ko
el
nd
a
Y
um
er
ei
To
C
P
os
es
ng
S
av
B
g
M
ão
M
A
to
N
l
S
ta
s
ha
S
H
Lo
To
Jo
Every day Every week Every month Less often Never Don’t know
Source: Ericsson ConsumerLab City Study 2011 Base: All/mobile-broadband users (online population)
© Ericsson AB 2012 | June 2012 | Page 7 (12)

8. High usage of internet services, including
high-capacity services
More than 10 internet services, including high-capacity services such as
watching videos, are used daily by at least 30 percent of city dwellers
Share (%) who use each service at least daily
Browsing the internet (Personal use)
Personal e-mail
Social networks: Read/check
Work e-mail
Read newspaper/magazines
Chat/messaging
Browsing the internet (work usage)
Social networks: Update/write/upload
Product info/price comparisons
Watch video clips 35%
Listen to music
On-line gaming
Watch longer videos 28%
Internet banking
Check time schedules/traffic information
IP-telephony
Distance learning
Buy products
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Source: Ericsson ConsumerLab City Study 2011 Base: All (online population)
© Ericsson AB 2012 | June 2012 | Page 8 (12)

9. The mobile phone: access 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)
© Ericsson AB 2012 | June 2012 | Page 9 (12)

10. Heavy use of online social
networks
Usage of online social networks (times/day)
Total average › City dwellers access online
Moscow social networks three to five
Johannesburg times a day on average
Sao Paulo
Cairo › The prime driver for usage is
Seoul
staying up-to-date with what
Los Angeles family and friends are doing
Beijing
(about 45 percent)
Hong Kong
New York
› The third-most common
London
Tokyo
activity is connecting and
Stockholm
exchanging ideas with others
Mumbai
0 1 2 3 4 5 6
Source: Ericsson ConsumerLab City Study 2011 Base: Use of online social networks (online population)
© Ericsson AB 2012 | June 2012 | Page 10 (12)

11. ict is important in the
workplace
Share of working population that views the following products/services
as critical for their ability to do their job
Internet in general › More than 50 percent of city
dwellers consider it critical to
High-speed or broadband internet
have internet access at work
Desktop computer
Mobile phone
› Having a mobile phone
is critical for 36 percent
Fixed phone
Laptop computer/Netbook › Having mobile broadband
and/or Wi-Fi access
Mobile broadband and/or Wi-Fi
is critical for close to
Tablet computer 20 percent
0% 10% 20% 30% 40% 50% 60%
Source: Ericsson ConsumerLab City Study 2011
Base: Working population (online population)
© Ericsson AB 2012 | June 2012 | Page 11 (12)