Nsn mobile broadband-malaysianwireless

2010 © Nokia Siemens Networks

2010 © Nokia Siemens Networks

Best Experience, Best Value

in Mobile Broadband– A GLOBAL PHENOMENA –

Torsten LeibnerSenior Consultant – Strategic DifferentiationKuala Lumpur, May 2010

For internal use2010 © Nokia Siemens Networks

Best Experience, Best Value in

Mobile Broadband MWC 2010, 49 000 visitorsA wide variety of key themes

Predominant themes• from Mobile Broadband to LTE

• Smartphones

• Adjacent industries, M2M

• Customer experience

• Application stores

• Cloud computing • Service provider transformation


MWC 2010 messages - exemplary

STRATEGY ANALYTICS INSIGHTtwo key network-related themes at Mobile World Congress: 1) the transition of mobile voice; and2) the evolution of networks to cope with capacity and signaling loads from soaring use of mobile data.

Vodafone CEO keynote speech1) Smartphones, 40% YoY shipments

increase – high speed with Mobile BB2) develop business models for:

- Operational excellence- Service innovation (Cloud Services)- Service Enablement

3) Changes in communication ecosystem- App stores, Open API, SDP, IDM

4) save resources

GSMA keynote speechCSP’s need to transform, value in:- Always on real-time access- Digital lifestyle enabler- Integrated communications provider- Mobile voice provider

AnnouncementsLargest operators join forces for ‘Wholesale Applications Community’, using common open standards as single point-of-entry for developers to create apps across platforms.


Smart Networks for

Smart Devices

How to meet all customer needs

Mobile Communication

Trendsin Malaysia


Mobile broadband is a huge opportunityTwo use cases with different impact on networks

0.2

2010 2011 2013 2014

MBB Subs (billion subs)Bln.

2012

0.4

0.6

0.8

1.0

1.2

1.4

1.6

2010 2011 2013 2014

MBB traffic (Exabyte/ year)Xbyte

20120

5

10

15

20

25

4x...8x

Mobile Laptop

Mobile Handheld

Mobile Internet access

2 GB/ month

Dongle:

(T-Mobile)115 MB/ month

Smartphone:

(Orange)

165 MB/ month(Orange UK)

Source: Nokia Siemens Networks 2009


Future of mobile communicationsUnrivaled adoption of mobile internet and devices

Traffic is moving from operator portals to mainstream Internet.

60% of respondents in 2009 in comparison to 42% in 2008 (+18%).

NSN Pulse survey 2009

25% of new phones within VF are smartphones.

Vodafone CEO at MWC 2010

On average, iPhone customers use 165MB of data per month, compared to 115MB for other smartphone

customersOrange UK – Digital Media Index, 04/2010

First 20 quarters after launch …internet adoption at an increasing pace

First 20 quarters after launch …internet adoption at an increasing pace

Average consumer dongle usage is 2GB/month

T-Mobile Germany 2009


Yes bandwidth increase is a problem…… but signaling it is even a bigger issue

SmartPhone are not only data guzzlers, but most of all they are signalling guzzlers

SmartPhones make 8x as many connection attempts as data cardsAnd globally there are 8x as many SmartPhones as data cards

MB1200

1000

800600

400

200100

50

87

6

54

3

21

SmartPhone Datacard SmartPhone Datacard

Source: NSN analysis

Data Volumes by Device Type

And for most operators, connection attempts have increased even at a higher pace than bandwitdh volumes

90%

110%

130%

150%

170%

190%

04/09 05/09 06/09 07/09 08/09 09/09 10/09

Normalized values

Data connection attempts

Data bytes

Example of Growth of Mobile Data Traffic Versus Data Connection Attempts for a leading European mobile operator

Source: NSN analysis

Relative amount of connection attempts per single unit of data

Much of the signaling is produced even when phones are on idle mode →→→→ SmartPhones are consuming network resources with no payload


The impact of smart phones on HSPA networksSmart devices actually generate high signaling traffic

RA

B a

ttem

pts

PS

Data connection request signalling in one customer network

15-Mar 30-Mar 14-Mar 29-Mar 14-Mar 29-Mar 13-Jun 28-Jun 13-Jul 28-Jul

Signalling traffic is created by “always on”applications and applications that have an ongoing “heartbeat”to check for updates:

• Social networking • Email• IM• etc.

New firmware on a popular smart device published 18 June 2009


The way we consume will changeContent Shift

P2P65%

Video65%

2008 2012

+40% Signaling

+25% Per user volume

*Based on 12% smartphones 2008 and 25% 2012 (Bank of America Merrill Lynch report), and smartphone signaling being 6x normal phones (NSN calculation)

Network design must consider future usage

Latency Insensitive Latency Sensitive

*65% video based on Cisco Visual Networking Index and NSN forecasts

*Per user volume growth from E/// paper


Smartphone and internet usage in AsiaA growing percentage of requests originates from Smartphones

20

28

33

44

56

66

68

72

78

Vietnam

India

Indonesia

Philippines

Malaysia

Thailand

Hong Kong

Australia

Singapore

Source: AdMob Mobile Metrics Report – Southeast Asia; Q4/2009

The market is growing and it’s being driven not only by phones but by other mobile devices including netbooks.


0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2Q08

3Q08

4Q08

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

1Q11

2Q11

3Q11

Nokia, iPhone, Blackberry, Droid and smartphones in general dominate the buzz in the mobile marketSmartphones is estimated to grow 33% year 2010 (YoY) while the overall smartphone sales are forecast to reach 43% of mobile devices by 2013

DRIVERS:• falling prices• increasing capabilities of devices• explosion of applications for devices

“We are just at the beginning of a new wireless era where smartphones will become the standard device consumers will use to connect to friends, the internet and the world at large.”

25% of new phones within VF are smartphones.

Vodafone CEO at MWC 2010

smartphones soldin Malaysia 21%

smartphones soldin Malaysia 30%, est.

In some countries we will see soon more smartphones than feature phones (penetration)

45% of respondents to a Nielsen survey indicated th at their next device will be a smartphone.

smartphonesfeature phones

Source: The Nielson Company, 03/2010; Gartner, IDC; Vodafone; NSN


End-user behavior and demand is changingFrom internet to “evernet” – from indifference to high quality expectationInternet is a hot topic in Malaysia – behavior is similar to that of other countries

Source: Gartner; Morgan Stanley; Ovum; all 2009; Alexa 2010; Facebook 04/2010

Internet Top 100*

1. Facebook2. Google (MY)3. Yahoo4. Google5. YouTube6. Blogger7. Live8. Wikipedia9. MSN10. Maybank11. Mudah12. Wordpress13. MySpace14. TheStar15. Malaysianiki16. Twitter17. Lowyat18. Tagged19. Mediafire20. Cari

Example: Facebook in Malaysia• ~3.425m users

(=1.08% of global presence)• high interest from both genders• age group 14-34 is ~75% of total user

base• #8 in fastest growing country over past

week

By 2020, the average mainstream consumer will be spending 23% more time online than is the case today = +46% time spent using

mobile data apps

Young consumers are at theleading edge of FMS of data applications; by 2020 this will be mainstream

Network - agnostic’expectation is becoming the norm. Many applications will move to the Web!

1

2

3


Mobile Communication Trends

in Malaysia

Smart Networks for

Smart DevicesHow to meet all customer

needs


The future of mobile communications is all about applications

Mobility, broadband, and new device technology change the way people connect and communicate

Communities, sharing

News, information anywhere

Navigation

Augmented reality

Business on the move, email

Location

New subscriptions and revenue is a huge opportunity

Music and entertainment


Different segments seek different experiences

Entertainm

entPro

duct

ivity

Quality

Price

Outlook - EfficiencyI want to be effortlessly productive

Facebook - NoveltyI want to be the first to try innovative products!

BitTorrent -ConnectivityI want simple and inexpensive communication

YouTube - RecognitionI want to increase my social status by using gadgets

.


Application optimized networks are in demandfor mobile broadband now

200k downloads in the first three weeks

Smart device modelsincreasing

Fast application cycles, a lot of developers

Customers hungry for the online experience+ +

Optimizing the network means applying a holistic vi ew!


Maximize the always-on user experience with Nokia Siemens Networks TODAY

Self Organizing Networks, end to end network management

TDM to packet migration in mobile backhaul

Leading smartphone connectivity and end to end quality of service (QoS)

Flat networks with I-HSPA and Direct Tunnel

Single RAN with Flexi BTS for Multiradio evolution

Network solutions

Network, service and application optimization

Global Network Solutions Centers

Industry leader in Managed services

Network design, implementation, integration, customization, care

Excel in consulting with user insight and experience

Service capabilities

GNOCIP connectivity and security solutions with leading partners


User Experience requires a multitude of measures: a holistic approach – technical and non-technicalCatering the demands of a consumer, and helping the CSP at the same timeMake it work by combining a strong user experience with congestion-free network performance over the exciti ng multitude of smart phones, application stores and communities

Transparent tariff / pricing structure

Ease of configuration

Customized / personalized handset based on my

past activity

Single sign-on for popular websites

Speedy web page downloads

Establishing a data connection on the first try

Operator billing for online content purchases

Secure browsing and transactions


Understanding what’s behind smartphone traffic is c rucial: NSN talked up the need for smartphone friendly networks

On the network side, ... impressed , with NSN’s standards-based approach to reducing smartphone signaling tra ffic a very elegant solution.

We were most impressed by NSN’s solution to use the 3GPP Paging Channel (PCH) to put devices into power -saving mode while maintaining the data connection, which it suggests reduces signaling load 3-5 times (and significantly improves battery life).

Source: “MWC 2010: Voice and Traffic Management Key Network Topics”, Strategy Analytics Insight, 24.02.2010


Mobile Communication Trends

in Malaysia

Smart Networks for

Smart Devices

Meeting all customer needs


What it takes: An efficient Smart Phone Application and Service Experience Architecture Makes the Difference

Multiple applications, multiple devices

A tremendous variety of application stores, communities and content

Balancing the user experience with congestion-free network performance over the exciting multitude of smart phones, application stores and communities

ManagedApplicationExperience

Device Management

Subscriber Intelligence

Policy Control

Mobile BrowsingOptimization

SecurityIntelligent Network Planning

Charging &Billing

Identity Management


Benefits for Malaysia and consumers

• A better experience is – driving the internet society in Malaysia forward.

– pushing the overall Malaysia ITC ecosystem forward, which in return will positively influence the economy and GDP.

• Consumers will– have a general higher subscriber satisfaction

– notice a better overall smartphone experience, resulting in higher usage

– have a better browsing experience

– encounter a better network performance and a better connection stability

Thank You

Nsn mobile broadband-malaysianwireless

Documents

mobile devices

mobile data traffic

soaring use of mobile

mobile bb1

mobile world

mobile laptop

mobile handheld1

mobile internet access1