Mobile Devices: Driving the Social Transformation Ali Amer Saudi Telecom Company-STC [email protected] LTE World Summit, 2012 - Barcelona
Jan 13, 2015
Mobile Devices: Driving the
Social Transformation
Ali Amer Saudi Telecom Company-STC
LTE World Summit, 2012 - Barcelona
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
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
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
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
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
Mobile Devices Evolution
7 7
voice Message Internet & Media Apps
App Stores
LTE World Summit, 2012 - Barcelona
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
The Anywhere, Any Time, Any Device Epoch has Started
27 LTE World Summit, 2012 - Barcelona
Thank
you Devices Change but Communication Lasts
28 LTE World Summit, 2012 - Barcelona