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Mobile Devices: Driving the Social Transformation Ali Amer Saudi Telecom Company-STC [email protected] LTE World Summit, 2012 - Barcelona
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LTE World Summit Barcelona May 2012 T11 Ali Amer

Jan 13, 2015

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Page 1: LTE World Summit Barcelona May 2012  T11 Ali Amer

Mobile Devices: Driving the

Social Transformation

Ali Amer Saudi Telecom Company-STC

[email protected]

LTE World Summit, 2012 - Barcelona

Page 2: LTE World Summit Barcelona May 2012  T11 Ali Amer

Overview

Market Trend

Mobile Devices: A Revolution or an Evolution

The Smart phones and the Huge Data Traffic

Recommendations & Conclusion

The Need for the change

2 LTE World Summit, 2012 - Barcelona

Page 3: LTE World Summit Barcelona May 2012  T11 Ali Amer

Where we Stand Today? And where we are Going

Mobile

broadband

users

Average traffic

per month per

user

Speed to

access

Near to

1Bi

100 MB

1 Mbps

4.0 Bi

5 GB

100 Mbps

• 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,

3 3

Future 2015

Today 2012

LTE World Summit, 2012 - Barcelona

Page 4: LTE World Summit Barcelona May 2012  T11 Ali Amer

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.

Work

Write

Create

Play

Read

Consume

Connect

Alert

Check

The unprecedented

Pace of innovation in silicon valley

Combination of Technology improvements & elegant Design

Focus/Leadership of USA-Based Companies (Apple, Google, Facebook

4 LTE World Summit, 2012 - Barcelona

Page 5: LTE World Summit Barcelona May 2012  T11 Ali Amer

Mobile Payments Mobile Devices

Source= Booz &Co

Worldwide The Digital era is Gaining place

Mobile only Internet Users

14 M

788M x56 x5 x6

2015 2010 2015 2010

2500 M

450 M

$647 Bi

$99 Bi

2010 2015

YouTube

48 Hours of Video

uploaded/Min

New Connected Homes Mobile Apps Revenues

$2.2 Bi

$37.5Bi X17 Total Traffic

in 1995

2010 2015

20 Homes in 2015

3 billion views /Day

5 LTE World Summit, 2012 - Barcelona

Page 6: LTE World Summit Barcelona May 2012  T11 Ali Amer

How is The Telecom Market Today?

6 6

Increase Device Usability

Technology Savvy Consumer

Increased Mobility

Services Virtualization

Application Ecosystem

BW Demand &Supply

LTE World Summit, 2012 - Barcelona

Page 7: LTE World Summit Barcelona May 2012  T11 Ali Amer

Mobile Devices Evolution

7 7

voice Message Internet & Media Apps

App Stores

LTE World Summit, 2012 - Barcelona

Page 8: LTE World Summit Barcelona May 2012  T11 Ali Amer

The Smartphone Phenomena…

9 out of 10 smartphone searches results in an action (purchasing, visiting a business, etc.)

100 Million active users currently accessing Facebook through their mobile devices.

ARPU of Smartphone User=2-3 X the ARPU of Normal User

There will be more Smartphone (1.82 Billion) than PCs (1.78 Billion) (Source: Gartner)

2013

The “killer” device and its “killer” applications…

Rich user-interaction portfolio: diverse set of media capture and playing tools

Accelerometer/Recognition of movement and motion

GPS/Positioning capabilities to detect the exact position Of the device

Mobile Application market/Open for Software developed By software vendors

1

2

3

4

8 LTE World Summit, 2012 - Barcelona

Page 9: LTE World Summit Barcelona May 2012  T11 Ali Amer

Smartphone is it a Need or a Want?

19% of kids worldwide (ages 2-5) can operate a smartphone application.

Only 9% can tie their shoelaces.

But whether they fill our ‘wants’ or ‘needs’, they

are becoming the standard in mobility.

Clearly, the ‘necessity’ of smartphones at any age is a matter of perspective!

9 LTE World Summit, 2012 - Barcelona

Page 10: LTE World Summit Barcelona May 2012  T11 Ali Amer

The Expected Traffic Growth from Smart Devices

Smart Phone

Handheld Gaming

Tablet

Mobile Phone

Projector

Laptop

24 X

60X

122X

300X

515 X

Source= Cisco VNI Mobile, 2011

2010 2011 2012 2013 2014 2015

6.3 EB

3.8 EB

2.2 EB

1.2 EB

0.6 EB 0.24 EB

Tera Bytes per Month

Feature phone

10

Feature phone

Feature phone

Feature phone

Feature phone

Are we going to the Yota Byte Era

LTE World Summit, 2012 - Barcelona

Page 11: LTE World Summit Barcelona May 2012  T11 Ali Amer

Global Smartphone Users Projection

11

835Million

2013

1 Billion

2011

Smartphone becoming mainstream method for people to access network applications

LTE World Summit, 2012 - Barcelona

Page 12: LTE World Summit Barcelona May 2012  T11 Ali Amer

0%

10%

20%

30%

40%

50%

60%

0

200

400

600

800

1000

1200

1400

1600

1800

2010 2011 2012 2013 2014 2015 2016

Smartp

ho

ne

share

of to

tal sales (%

)

Non-smartphones

Smartphones

Smartphone share (%)

Sale

s V

olu

mes

(Mi)

Global Smart Phone Shares

Source: Informa,

12 LTE World Summit, 2012 - Barcelona

Page 13: LTE World Summit Barcelona May 2012  T11 Ali Amer

Source: Gartner

Worldwide Smartphone Sales Projections

Symbian iOS BB Windows Android

2010 2011 2012 2013

Others

200Mi

400Mi

600Mi

1000Mi

1200Mi

13 LTE World Summit, 2012 - Barcelona

Page 14: LTE World Summit Barcelona May 2012  T11 Ali Amer

0

50

100

150

200

250

300

350

400

450

500

2010 2011 2012 2013 2014 2015 2016

Sale

s vo

lum

e (

m)

Symbian

Microsoft

LIMO + other Linux

Android

Apple iOSx

Blackberry OS (QnX)

webOS

Meego

Smartphone Growth By OS

14

Symbian, 18.4% Microsoft,

4.3%

LIMO + other Linux, 1.8%

Android, 39.5%

Apple iOSx,

21.1%

Blackberry OS

(QnX), 14.5%

webOS, 0.3%

Meego, 0.2%

Symbian, 0.1%

Microsoft, 20.9% LIMO +

other Linux, 0.4%

Android, 52.5%

Apple iOSx,

15.3%

Blackberry OS (QnX),

7.1%

webOS, 0.0%

Meego, 3.6%

2011 2016

LTE World Summit, 2012 - Barcelona

Page 15: LTE World Summit Barcelona May 2012  T11 Ali Amer

0

10,000

apple Google RIM MS

App Store Tablet Apps by Platform

WW Tablet Market Share Q2/2011

2010 2011 2012 2013

WW Tablet OS Sales Projections

iOS MS And QNX

Tablet Market

iPad is dominating the Tablet Market Google racing the catch up with Android enhancement for Tablet RIM playbook Sales is disappointing Microsoft’s Tablet Offering is Still 12-18 months away

15

iPad 68.3%

Android 26.8%

RIM 4.9%

WW Tablet Market Share Q2/2011

LTE World Summit, 2012 - Barcelona

Page 16: LTE World Summit Barcelona May 2012  T11 Ali Amer

Smartphone vs. Tablet (main Features)

16

Functions=Full

Size =Small

Processing Speed=1Ghz

Battery Life=1-2 Days

Smart phone

Price= Less

Storage=32GB

Tablet

Functions=Less (only Data)

Size =Big

Processing Speed= up to 1.4Ghz

Battery Life=<10 Hrs

Price= High

Storage=320GB

LTE World Summit, 2012 - Barcelona

Page 17: LTE World Summit Barcelona May 2012  T11 Ali Amer

Comparing the most famous Tablet Features

17

7 inches

BB Tablet OS

1GB

16GB/32GB

BlackBerry

PlayBook

WiFi +3G, Bluetooth +EDR

0.9 lbs

9.7 inches

iOS3.2.2

256 MB

16GB/32GB/64GB

Apple iPad

WiFi +,3G Bluetooth +EDR

1.34 pounds (607 g)

7inches

Android 2.2

512 MB

16GB/32GB

Samsung Galaxy

tab

WiFi +3G, Bluetooth +EDR

0.84 lbs

Screen Size

Platform

Memory

Storage

Connect

Weight

LTE World Summit, 2012 - Barcelona

Page 18: LTE World Summit Barcelona May 2012  T11 Ali Amer

Global App Stores Landscape

Source= Informa & Gartner

More than 160 App Stores have been deployed worldwide 57% are independent app Stores 26% are offered by Mobile Operators Of the 84 app stores that offer free registration to developers, 55 are independent stores using it as an incentive to attract developers Similarly, 50 of the 83 app stores that offer no annual fee are independent stores

App stores by Company type, 2011/Q2

18

Manufacturer & OS Developer

OS Developer Manufacturer

Other Operator Independent

2010 2014

8.2bi

185bi

$5.2bi

$58bi

2014 2010

Mobile apps Downloads Revenues from Mobile app Stores

Huawei's Digital Shopping Mall, launched on

Oct,2011, features 80,000 apps, and a vast

collection of music, video clips and e-books. The company sees it as its newest solution for telecom operators wanting to provide a strong mobile app store to their users, but without investing the needed resources and time to build it.

57% 26%

8% 3% 4% 2%

LTE World Summit, 2012 - Barcelona

Page 19: LTE World Summit Barcelona May 2012  T11 Ali Amer

160+ Apps Store in the World

Source= GetJar, WP

0 20 40 60 80 100 120

1997-2007

2008

July-Dec 2009

Jan-June 2010

July-Dec 2010

Jun-Mar 2011

Total Number

New Launch

Listed App Store on WP List

AppStore

Android

BB+ Cellmania

Ovi Store

Windows

Handango + pocketgear

GetJar+ Sprint

0 100K 200K 300K 400K 500K

Amazon

The Number of apps in Stores

2011 2015

$44 Mi

$210 Mi

Annual Revenues from Smartphone Apps (KSA, UAE & JOR.)

19 LTE World Summit, 2012 - Barcelona

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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…

20 LTE World Summit, 2012 - Barcelona

Page 21: LTE World Summit Barcelona May 2012  T11 Ali Amer

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 Book

21 LTE World Summit, 2012 - Barcelona

Page 22: LTE World Summit Barcelona May 2012  T11 Ali Amer

It’s the Decade of the Data

850

900

950

1000

1050

1100

1150

2010 2011 2012 2013 2014 2015

0

1

2

3

4

5

6

7

8

9

2010 2011 2012 2013 2014 2015

966

5.4 6.1

6.6 7.1

7.4 7.7

1,014

1,053

1,087 1,114

1,137

2015 Voice

Data

40.1% 59.9%

2010 Voice

Data26.5%

73.5%

Global Mobile Subscriptions (2010-2015) Global Mobile Service revenues (2010-2015) $Bi

Global Mobile revenues Voice vs Data (2010 & 2015) $Bi

22 LTE World Summit, 2012 - Barcelona

Page 23: LTE World Summit Barcelona May 2012  T11 Ali Amer

Smart Phone is driving the Data Growth

2009 2017

1 Exabyte

1 Zeta byte

Global Yearly Mobile Data

Laptops and Smart phones Drive Traffic Growth

7 trillion wireless devices serving

7 Billions of People 2017

23

Smart phones to be ~40% of total handset shipments by 2014 Smart phones projected to grow at a CAGR of ~22% from 2009 to 2014.

2009 2014

300 Mi

1.3 Bi Global Smart Phone Growth

Smart Phone= 30 Phones Laptop= 450 Phones

LTE World Summit, 2012 - Barcelona

Page 24: LTE World Summit Barcelona May 2012  T11 Ali Amer

An Explosive Mobile Data : The Growth

* Source: Reformatted Cisco VNI mobile (2011) data

0

1

2

3

4

5

6

7

2010 2011 2012 2013 2014 2015

Ex

aB

yte

/Mo

nth

Global Mobile Data

Yearly Mobile data Traffic=70% Yearly Mobile Data Revenues =17% MNOs will invest$14Bi (2010-2015)

MENA Mobile Data Traffic Growth(CAGR)=129%

24 LTE World Summit, 2012 - Barcelona

Page 25: LTE World Summit Barcelona May 2012  T11 Ali Amer

Network Based 2G,2.5G

1

Voice Dominated

2

Focus on Acquisition

3

Pay per Use 4

Operator Portal 5

One size fits All 6

3G, 4G

Data Dominated

Focus on Retention Customer Experience

Subscription or Bundled

Store (App Store)

Market Segmentation

From Infrastructure-based Competition to Service-based Competition

The Change is happening Now

25 LTE World Summit, 2012 - Barcelona

Page 26: LTE World Summit Barcelona May 2012  T11 Ali Amer

1000

2000

3000

4000

5000

6000

7000

8000

Wo

rld

Po

pu

lati

on

Mo

bile

Su

bs

Inte

rnet

U

sers

Tota

l PC

s

Tele

ph

on

e

Lin

es

TV

New

spap

er

Cir

cula

tio

ns

Bro

adb

and

Su

bs

6,898

5,613

2000

1,270

1,000

513 700 600

Source=RBC Capital Markets

Inst

all b

ase

(Mill

ion

)

Tablet & Smartphone users vs. Other Markets (The Potential for Growth is Huge)

99.7% of people still haven’t bought a

Smartphone or Tablet yet

900

Smar

tph

on

e

Use

rs/T

ab

Before Wrapping up

26 LTE World Summit, 2012 - Barcelona

Page 27: LTE World Summit Barcelona May 2012  T11 Ali Amer

The Anywhere, Any Time, Any Device Epoch has Started

27 LTE World Summit, 2012 - Barcelona

Page 28: LTE World Summit Barcelona May 2012  T11 Ali Amer

Thank

you Devices Change but Communication Lasts

28 LTE World Summit, 2012 - Barcelona