GSA Mobile Broadband Growth Report Feb 2011

Mobile Broadband Growth Report
including success stories from HSPA/HSPA+ Operators worldwide

Published by the Global mobile Suppliers Association (GSA)
www.gsacom.com
February 24, 2011
Errors and omissions excepted GSA makes considerable effort to ensure that content in this document is accurate; however, such content is provided without warranty in currentness, completeness or correctness. Reproduction of this material for non-commercial use is allowed if the source is stated. For other use please contact the GSA Secretariat via email to info@gsacom.com
www.gsacom.com Mobile Broadband Growth: February 24, 2011 Global mobile Suppliers Association 2010 Slide no. 1/65
Operators reports/financial results
Regulators policy announcements Device trends including smartphones
Industry trends and forecasts
www.gsacom.com Mobile Broadband Growth: February 24, 2011
Global mobile Suppliers Association 2010 Slide no. 2/65
Mobile Broadband Growth Success (1)

Operator reports
Telenor Q4 2010
Some highlights: DiGi: total revenues increased by 15% following increased data usage, higher sales of handset bundles, and increased traffic from an enlarged subscription base. Norway: The number of large screen mobile broadband subscriptions increased by 21,000 to 308,000 In November 2010, Telenor Sweden launched LTE (4G) mobile broadband services commercially Denmark: mobile revenues increased by 10% following higher subscription base both within voice and mobile broadband and increased wholesale revenues

Operator reports
Lithuania's Omnitel says that it saw a ten-fold rise in sales of smartphones in July compared to January 2010. Smartphones comprized half of all handsets that Omnitel sold in July 2010 SFR reported that data represented 26.3% of the mobile service revenues at the end of June 2010, compared to 22.1% for the same period in 2009, due to "smartphones Thailand's Advanced Info Service (AIS) has posted a 16% rise in its second quarter profits, thanks to stronger growth in data services and smartphone sales For the Half Year ended September 30, 2010 Singtels mobile broadband base in Singapore continued its growth trajectory with 103,000 customers added in the quarter, the highest increase in three quarters. Total customer base of 670,000 was more than doubled from 306,000 a year ago. SingTels strong suite of smartphones, many on exclusive terms, and customised applications contributed to the growth. In Results to September 30, 2010 Telefnica announced the Group has more mobile broadband customers (19 million or +73.4%y YoY) than fixed broadband customers (16.7 million or +26.5% growth YoY) TELEFNICA ESPAA: the total number of mobile customers reached 24.1 million, driven especially by mobile broadband customers exceeding 4.3 million customers i.e. twice the September 2009 total

Operator reports
Rogers Wireless: Wireless network revenue growth was fuelled by data revenue growth of 28% and net subscriber additions of 211,000. Wireless data revenue now comprizes 28% of Wireless network revenue and was helped by the activation and upgrade of a record 529,000 additional smartphones during the quarter, predominantly BlackBerry, iPhone and Android devices, of which approximately 33% were for subscribers new to Wireless, compared to 370,000 in the prior year quarter. This growth in wireless data revenue reflects the continued penetration and growing usage of smartphone and wireless laptop devices which are driving increased usage of e-mail, wireless Internet access, text messaging and other wireless data services. Vodacom Group trading statement for the quarter ended December 31, 2010: Vodacom South Africa: Data revenue increased 33.8% to R1,746 million as demand for data services remained high. Data users increased by 780,000 in the quarter to reach 8.7 million at 31 December 2010, of which 2.1 million were active data bundle users. Active smartphones on the network were up 71.8% to 3.1 million and mobile connect cards were up 52.2% to 1 million on the previous year. Increased value offers to stimulate usage and higher adoption of data bundles resulted in a 13.9% drop in the effective price per Mbyte

Operator reports
According to Olaf Swantee, France Telecom Executive Vice President, income from mobile Internet totaled 10-15% of the total profit in European representations of Orange, and this figure amounts to 40% in Armenia Telstra Group: Mobile data revenue now accounts for 32.4% of mobile services revenue and grew by 25.7%. Mobile data accounted for 45.7% of mobile services revenue for the year. Total mobile data revenue up 21.7% or $440 million to $2.47 billion Axiata Group Berhad has announced unaudited results for Q3 2010: Celcom, Malaysia: cements leadership in broadband; over 800,000 subscribers with highest ever contribution to revenue at 10%. M1, Singapore: mobile broadband and smartphone customer base increased with PAT (Profit After Taxation) up 5.7% to SGD119.6 million on YTD basis. Mobistar S.A. Full year results 2010: at the end of 2010 Mobistar had 111,793 customers for mobile Internet via PC, i.e. 31.1 % more than at end 2009. The use of mobile data also increased significantly, from 28.7 % of the service revenues at the end of 2009 to 32.3 % one year later.

Operator reports

Operator reports
Tele2s Q4 2010 revenue in Sweden jumped12% helped by mobile services, as customer demand for (inexpensive) smartphones and data services increased. The total number of mobile internet customers reached 361,000 at year-end, up from 274,000 a year earlier. Improved price plans and increased usage produced growth in mobile internet ARPU to SEK 128, from SEK 117 a year earlier. Etihad Etisalat (Mobily) reported a 41% rise in Q3 2010 profits. Revenues in Q3 amounted to SAR 3.99 billion as compared to SAR 3.5 billion for the same period last year, but barely changed from Q2. A growing contribution from higher margin broadband revenues was one of the main contributors to profit growth. Mobily said it expects data's contribution to revenues to continue growing and surpass 20% in 2011 According to Lars Nyberg, President and CEO, TeliaSonera: in the Nordic region, the uptake of smart phones is boosting mobile data revenues and equipment sales In Taiwan, Chunghwa Telecom reported for its mobile business an annual increase in total revenue of 2.1%, mainly due to growth in mobile data revenue and increased handset and datacard sales XL Indonesia in Q1 10 reported data contributing 7% of service revenue an increase of 58% QoQ

Operator reports
Impressive growth in data revenues Market thirst for data

Operator reports
Telefnica Europe announced in its Q3 2010 results statement: An unprecedented demand for mobile data usage, together with the explosive adoption of smartphones, has seen our mobile broadband customer base increase 46% year-on-year
Telefnica O2 UK: Revenue growth accelerated to 8.5% year-on-year in local currency in the third quarter to stand at 5.32 billion for the nine months to September. This was driven largely by increasing demand for high-end smartphones, with 20% per cent of the total base and more than 40% of the post-paid customers now using mobile broadband devices
Nokia Siemens Networks Mobile Broadband Study 2010 has reported that France, Germany, Spain and the U.K. experienced a 40 per cent increase over 2009 in average monthly spending on mobile broadband
Vodafone, for the quarter ending 31 December 2010, reported continuing strong growth in data revenues, increasing 23% for its European operations. Smartphone penetration among its European customers stands at 17% Chilean operator Entel said mobile broadband subscribers in Chile could reach 2 m by the end of 2011

Operator reports
Connections

Operator reports
Rapid adoption of MBB, boosted by growing penetration of smartphones and high-end devices Strong commercial push across markets Attractive commercial offers to monetize the growth opportunity through segmentation/tiered pricing based on offers with data control Enlarging portfolio of devices through collaboration with suppliers & new operating systems to further boost MBB revenues

Operator reports

Operator reports

Operator reports

Operator reports

Operator reports

Operator reports

Operator reports

Operator reports
Mobile revenue
Post Paid Mobile Revenue
Mobile (2Q2010 vs 2Q2009) Added 207k customers Prepaid customer base expanded 13% Postpaid ARPU increased $1 to $70

Operator reports

Operator reports

Operator reports

Operator reports
Orange, UK
SmarTone-Vodafone
Bell, Canada
Strong underlying mobile revenue growth of +6.5% excl. reg. thanks to successful value acquisition strategy with +3.4% non-voice revenue growth
Accelerating growth reported Up 38% YoY to 30 June 2010 Data = 36.1% of service revenue Growth from:
Smartphones Mobile broadband
Smartphone subs up 66% YoY in Q2 10 Data ARPU up, and voice decline slows

Operator reports
UPDATE In Q4 2010 Telus reported 4% revenue growth to C$2.55 billion Growth was boosted by 9% growth in wireless revenue. Smartphones represented 46% of postpaid gross adds in the quarter, compared to 25% in Q4 2009.

Operator reports

Operator reports South Africa

Operator reports

Operator reports
Group
Europe
USA
6.5 million 3G smartphones (19% of total customers), up 1.3 million in Q2 10


Operator reports
Data revenues up 46% YoY to 947 million in FY 09 1.5 million iPhones dispatched since market launch, 1 million during 2009 Growth of non voice revenue share of service revenues by 4% YoY to 26%
T-Mobile USA
Deutsche Telekom CEO Ren Obermann is expected to double revenues by 2015 with 10 billion coming from mobile data traffic. Obermann said it would double the number of 3G smartphones in the network to around 8 million by the end of 2010

Operator reports
KPN Group: 2010 Results

Operator reports

Operator reports
Total mobile revenues declined 10.4% % in the year to September 30, 2010, compared to the year to September 30, 2009 VAS revenues rose 2.6% in the same period. The growth is primarily attributed to interactive VAS which increased 12.5% thanks especially to the contribution made by browsing revenues (+18.9%)
VAS revenues have reached 27.2% share of total revenues

Operator reports
Domestic market - Italy
Updates/announcements from regulators (1)

UK
Ofcoms annual Communications Market Report revealed that mobile data revenues have grown faster than fixed revenues largely due to the increased take up of mobile broadband (either by smartphone or mobile dongle). Data usage on mobile broadband has grown by an estimated 2200% in the two years up to the end of 2009 whilst data revenues only increased by 26% (although this figure excludes revenue from bundled data in contracts)
Mobile broadband is driving broadband growth. Broadband take-up grew by three percentage points to 71% in Q1 2010, but this was driven by mobile broadband, as fixed remained flat at 65%
The growing popularity of smartphones and the changing way we use our mobiles is increasing our overall use of communications, and helping us do much more simultaneously. But while we are doing more, it is costing us less Ofcom - The Communications Market 2010 (August) http://stakeholders.ofcom.org.uk/binaries/research/cmr/753567/CMR_2010_FINAL.pdf

Sweden, Saudi Arabia, Hungary, Ireland
Sweden: According to the Post and Telecom Agency (PTS) the number of mobile subscriptions, including voice and data, increased 7% to 11.6 million at end 2009. Subscriptions for mobile broadband represented the largest share of the increase, up 50% YoY to 1.31 million. Traffic for mobile data services increased in 2009 by 103% compared to 2008 Saudi Arabia: According to the Communications and Information Regulatory Commission, mobile broadband grew 488% to 1.41 million subscriptions at end 2009, representing 51% of all broadband connections in the country, compared to a 47% share for ADSL Hungary: The number of mobile internet subscribers continued to grow in June, with data traffic showing moderate figures. Upon reaching the 1 million mark in May, the number of mobile internet subscriptions stood at 1.37 million at the end of June, while the number of active customers - those having used this type of service within the past three months - grew from 786,000 in May to 798,000. Last year, this figure was at 507,000, the National Communications Authority (NHH) reported Ireland: Mobile broadband usage continued to grow at a steady pace during the first quarter of 2010, according to ComRegs latest quarterly report. In all, there were 512,382 mobile broadband users in Ireland at the end of March, up 47.2% on the year-ago period, and up 9.7% on the previous quarter

France, Switzerland
France: ARCEP has granted temporary authorisations to mobile networks who want to carry out LTE trials in the 800 MHz (Digital Dividend) and 2.6 GHz bands in preparation for the upcoming spectrum auctions. This spectrum is expected to be awarded to the winning bidders in the first half of 2011 following an auction process.
As a result, several trials in the 2.6 GHz band have already been authorized. In addition, ARCEP issued the first temporary authorisation for a trial in the 800 MHz band on 16 November 2010, and is processing further requests regarding trials in this spectrum
The deadline for requests to undertake trials using frequencies in the TDD part of the 2.6 GHz band, which will be allocated after the 2.6 GHz-band FDD and 800 MHz auction, has been extended by a number of months
Switzerland: ComCom has confirmed plans to auction spectrum in the 800 MHz, 900 MHz, 1800 MHz, 2100 MHz and 2600 MHz bands in the first half of 2011. In total there 61 frequencies blocks will be auctioned. The new licences will be valid until 2028 and will be technology-neutral.
Device trends (1)

Device trends - smartphones
In-Stat: US operators are expected to spend $1.4 billion in smartphone subsidies for businesses to year 2014
Google: 300,000 Android phones are activated worldwide daily

ABI Research: 50% of smartphone owners will shop using their mobile phone, and 53% use their smartphone for mobile banking US consumers are more likely to buy a smartphone in 2011 than PCs, mobile phones, e-readers, media tablets and gaming products, according to Gartner. U.S. smartphone sales are expected to grow from 67 m units in 2010 to 95 m in 2011. Mobile PC shipments in the USA are forecast to be 50.9 m in 2011, up from 45.6 m in 2010. According to the International Telecommunication Union (ITU) The global number of smartphones is expected to quadruple from today's estimate of 500 million handsets to almost 2 billion by 2015 TNS: In Hong Kong, almost half (48%) of respondents own a smartphone, more than double the global rate of 23% Acision: Smartphone users in Brazil are most likely to use handsets for Internet access (14%), against 4% for other devices.
Device trends (2)

Worldwide smartphone shipments were up 75% to 302 million in 2010, a trend driven by impressive Android growth in the fourth quarter, according to market research firm IDC Canalys revealed the worldwide smartphone market exceeded 101.2 million units in Q4 2010
For the first time, according to IDC, smartphones have surpassed PCs in terms of number of units shipped in a quarter (Q4, 2010)
Device trends (3)

Canalys (January 31, 2011): 2010 has been a fantastic year for the smart phone market At a regional level, EMEA remained the largest market, with shipments totalling 38.8 million and a year-on-year growth rate of 90%. The United States continued its reign as the largest country market in terms of shipments, at more than double the size of the Chinese smart phone market.
www.canalys.com/pr/2011/r2011013.html
Device trends (4)

Smartphone traffic to grow 700% in five years Smartphone use accounts for 65 per cent of all mobile cellular traffic worldwide, despite smartphone penetration running at just 13 per cent, according to research from Informa Telecoms & Media released November 2, 2010. Usage is set to increase exponentially over the next five years, Informa found, with average traffic per smartphone user increasing by 700 per cent by 2015. Smartphone users across the globe currently average 85 MBytes of traffic per month Growth in Western Europe will be impressive, hitting 736 MBytes/month in 2015, up from less than 44 MBytes/month in 2009. The highest use will remain in Japan and South Korea, which currently average 199 MBytes/month and 271 Mbytes /month respectively.
Device trends (5)

Device trends - general
Worldwide sales of media tablets such as the iPad will reach 19.5 million by the end of 2010 and exceed 54 million in 2011, according to the forecasts from Gartner. IDC forecasts that by end 2011, 5.5 m LTE mobile phones will have shipped worldwide, reaching129.1 million in 2014 Deployments of femtocells by mobile networks have more than doubled in the past 12 months, according to a report by Informa Telecoms & Media. There are 19 femtocell deployments globally compared with 9 a year ago. IT&M expects the market to achieve significant growth, reaching almost 49 million femtocell access points in the market by 2014 with 114 million mobile users accessing mobile networks through femtocells in that year. IT&M also predict s femtocell unit sales will reach 25 million in 2014 alone
An average of 28% of European mobile consumers expecting to access websites once a week or more using their mobile phone over the next year, according to research commissioned by the Mobile Marketing Association (MMA)
ABI Research says shipments of mobile broadband-enabled consumer products, including e-book readers, mobile digital cameras, camcorders, personal media players, personal navigation devices and mobile gaming devices will increase 55-fold between 2008 and 2014 with total shipments reaching 58 million units per year in 2014 Music consumed on mobile handsets will generate $5.5 billion annually in 2015, up $3.1 billion from 2010, according to Juniper Research
Industry trends and forecasts (1)

According to ABI Research, over 11 million media tablets and 43 million netbooks would ship worldwide in 2010 Analysys Mason predicts that the number of mobile social network users in India is expected to reach around 72 million by 2014, driven by the reduced cost of smartphones and the launch of 3G services, which will enhance the consumer experience Global mobile broadband users will grow to 3.5 billion by 2015, according to Ericsson
comScore reported that the number of smartphone users accessing mobile content through browsers and applications now surpasses that of non-smartphone users. In the 3 month average ending August 2010, smartphone subscribers made up 60% of those who used a downloaded application and 55% of those using a browser
Alcatel Lucent forecast a 16-fold increase in mobile data traffic to 2015, but warned that it could grow as high as 40 times todays levels Analysys Mason forecasts M2M device connections globally will grow from 62 million n 2010 to 2.1 billion in 2020

2010 saw smartphone adoption increase considerably across the US and Europe Spain leads all markets with smartphone adoption of 37.6% (up 10.3% from 2009) The UK also has strong smartphone adoption at 34.3%, up from 21% last year US smartphone adoption stood at 27% at the end of 2010, up from 16.8% the previous year
www.comscoredatamine.com/2011/02/smartphone-adoption-increased-across-the-u-s-and-europe/

Mobile broadband revenue in the developed Asia-Pacific (DVAP) region stood at US$2.4 billion (EUR1.7 billion) in 2009, but this will increase almost threefold, to US$7.1 billion (EUR5.1 billion), in 2015, according to a report by Analysys Mason. According to the report, the total number of mobile broadband connections in DVAP will increase from 6.2 million in 2009 to 27.2 million in 2015, growing at a CAGR of 28%. Penetration will rise from 2.6% of the population in 2009 to 11.3% in 2015. Japan will generate the most revenue out of the countries in the region throughout the forecast period, thanks to its high mobile broadband ARPU. "We expect Japan and South Korea's mobile broadband markets to grow significantly during 2010-2015," says Yanli Suo-Saunders, author of the report. "Japan will have the largest market at the end of 2015, when it will account for 43% of the region's mobile broadband connections." Australia has the highest mobile broadband penetration rate in the region. It stood at 13% in 2009. "We expect Australia to continue to lead the market in terms of penetration rate, which will increase to 28% by the end of 2015. We forecast that consumers will account for 64% of mobile broadband connections in 2015, up from 56% in 2009. "Mobile operators should pay equal attention to the business and consumer segments," says Suo-Saunders. "Though the consumer segment will account for the majority of growth in subscriber numbers, business subscribers will generate higher ARPU and are likely to be more profitable."

Ovum: Data Revenues Could Surpass Voice in UK by 2017 Revenues generated in the UK through voice services will fall from 13 billion at the end of 2009 to just under 9.5 billion by 2015. At the same time, there will be healthy growth in revenues generated from data services, with an increase from 6.6 billion in 2009 to 8.4 billion by 2015, led by demand for mobile broadband. Ovum added: Data is now a key driver of the mobile market and revenues will continue to grow steadily. By 2015 there will be a much narrower gap between the revenues from voice and data and if data continues to grow at the same rate, it will overtake voice in 2017.

The first edition of the PwCs South African entertainment and media outlook (The Outlook) presents annual historical data for 2005-2009 and provides annual forecasts for 2010-2014 in 12 entertainment and media segments. There were more than 1.3 million mobile broadband users in 2009 in South Africa, compared to 800,000 fixed broadband users. When including the 3.2 million dial-up users, the total number of internet users was only 5.3 million. According to the Outlook, mobile broadband will be the fastest-growing technology over the next five years, with an expected increase of 50.7% or 10.1 million users by 2014. By 2014, 72% of broadband users will access the Internet through mobile devices and 63% of all Internet users will access it through mobile devices.
Mobile data bandwidth usage increased significantly by 73% during the second half (H2) of 2010 according to a report compiled by Allot Communications. Research and Markets: Worldwide Telecoms Market Forecast 2010-2014 - Worldwide Forecasts for Telecoms Service Revenue, CAPEX & Subscriber Numbers. Demand for content and applications continues to be strong. Mobile data services will be the main engine of growth in both mature and growth markets

eMarketer: Mobile content revenues in the U.S. will increase from under $1.15 billion in 2009 to over $3.53 billion in 2014, a compound annual growth rate of nearly 20 percent. Citing ongoing penetration of smart devices (including tablets) and increasing ubiquity of mobile broadband networks as catalysts behind the expected revenue growth, eMarketer says an improved user experience and access to cloud-based content also will attract new mobile content consumers in the future. Mobile music, which generated $82.0 million revenues in 2009 is expected to experience the fastest growth over the next 5 years, reaching $676.5 million in 2014 as mobile broadbandenabled consumers confirm willingness to pay to access full-length songs from the cloud. Frost & Sullivan forecasts that by 2015, mobile broadband penetration in Latin America will reach up to nearly 40% of the total population. Growth in the Asia-Pacific smartphone market is expected to skyrocket in the coming years and by 2015 with 54% of all devices sold in the region forecast to be smartphones, up from 5% in 2009
In-Stat: mobile computing devices, including tablets, mini-notes (netbooks and smartbooks) and notebook PCs will grow at a 19.1% CAGR through 2014 and account for over 400 million units.

Pyramid Research: Through 2015, the U.S. will add more mobile subscriptions (about 80 million) than any other developed nation with mobile revenue surpassing all fixed-line services by end of 2015 Pyramid Research and Heavy Reading predict that the global mobile broadband market will reach 1 billion connections in 2012 as mobile operators invest billions in spectrum and network infrastructure to deploy 4G networks. Bitkom: at least 10 million Germans regularly access the mobile internet via their mobile phones. This represents around 17% of the total mobile subscriber base
Frost & Sullivan: increasing use of mobile broadband applications is expected to drive growth of telecommunications companies in Southeast Asia. Data usage in this market, over 7 Southeast Asian nations, will grow to account for 40.4% or over $12.4 billion of total mobile revenue by end-2015, up from 27.8% last year. According to a study by Cisco Visual Networking Index (VNI) Forecast and Methodology, 2009-2014 , mobile data traffic is estimated to surge by as much as 39 times during the five year period from 2009 to 2014. By 2014, the annual global mobile data traffic is expected to reach 3.5 exabytes per month i.e. a run rate of over 42 exabytes on a yearly basis. Mobile data traffic will be the strongest in the Middle East and Africa followed by the Asia-Pacific and North America as revenue from voice gets saturated and operators focus on alternate sources of revenue

In just five years, approximately one-sixth of the world's population will subscribe to mobile-broadband services, according to a new ABI Research report. ABI expects that iPad and laptop owners (as well as smartphones) will boost mobile-broadband subscriptions to 1.5 billion in 2015. In 2015, 3.8 billion mobile handsets , over 60% of the installed base of mobile handsets worldwide will contain mobile web browsers, according to a new study from ABI Research.
A report from ABI Research said the use of mobile data is growing exponentially. The market research firm predicted that data usage in North America and Western Europe is expected to increase at a compound annual growth rate (CAGR) of 55% and 42% respectively. ABI Research: Mobile data usage continues to grow exponentially as 3G technology spreads globally. From 2009 to 2015 data usage in Western Europe and North America is expected to increase at a compound annual growth rate (CAGR) of 42% and 55% respectively. In 2010, the average North American user is expected to consume 159 megabytes of data, up from 100 megabytes in 2009.
Increased spectrum availability for wireless broadband is a top requirement to accommodate data traffic growth. According to Cisco's VNI index, data traffic will grow 16 times and video traffic 20 times by 2014 wireless broadband

In a report "Chile: Mobile Data and Product Bundles Continue to Power Strong Growth by Research and Markets, Chile's telecom market will rebound with a 4.4% CAGR from 2010 through 2015, reaching $6.1bn, propelled by significant increases in fixed and mobile data services. Mobile data service revenue in Chile will account for 23% of total service revenue by 2015, notes Sergio Cruz Zarate, Analyst at Large at Pyramid Research. "Revenue derived from data services will increase from 24% in 2010 to 35% in 2015 A report published by Chetan Sharma Consulting, Managing Growth and Profits in the Yottabyte Era, predicts that in 2010, mobile data traffic in the U.S. will exceed 1 exabytes (or 1 million terabytes) - a mobile data traffic milestone that the global industry as a whole reached in 2009. In a report by Analysys Mason on the CALA (Central and Latin America) telecoms market, mobile data revenue from handsets will grow more than twice as fast as subscriptions, from USD4.5 billion (EUR3.2 billion) in 2009 to USD10.6 billion (EUR7.6 billion) in 2014. Revenue from mobile broadband will rise even faster, from USD1.4 billion (EUR1 billion) in 2009 to USD6.4 billion (EUR4.6 billion) in 2009 Smartphone take-up is promoting the use of mobile advertizing, according to Gordon Borrell, CEO of Borrell Associates, a research and consulting firm that tracks local advertizing

Ericsson: by 2015 there will be 3.5 billion mobile broadband users globally, compared to 500+ million today ITU: There will be 1 billion mobile broadband subscriptions worldwide in the first quarter of 2011 Ericsson: Mobile broadband currently accounts for only 10% of total mobile subscriptions but a rapidly increasing majority of the traffic. Ericsson's measurement of actual traffic in networks around the world show that global mobile data has nearly tripled in the last year, growing more than 10 times faster than voice. Mobile data traffic continues to grow exponentially even after the historic cross over point in December 2009 when data first exceeded voice. According to Ericsson, global measured mobile data traffic stood at nearly 225,000 terabytes per month as of Q2 2010 Ericsson: envisions 50 billion connected devices by 2020 Analysys Mason: total data traffic volume in 2015 will be more than 30 times that of 2010. Operators will need to make capital investments to increase capacity in order to meet this demand
Analysys Mason: The worldwide telecoms market will grow from US$ 1.8 trillion in 2009 to US$ 2.4 trillion in 2014, at a 6% CAGR. Mobile data services will continue be the main engine of growth, offsetting the continued rapid decline of wireline voice revenues. Mobile voice revenue is forecast to grow at a 6% CAGR, while revenue from nonmessaging and messaging mobile data will grow at 21% and 12%, respectively.

Leading the Mobile Broadband Revolution Ralph de la Vega, Chairman of the Board, CTIA
Mobile broadband growth outpaces every other platform** Pew estimates that by 2020, mobile devices will be the primary Internet devices for most people in the world*** The average smartphone user generates 10 times the amount of traffic generated by the average non-smartphone user*
*Source: Cisco, VNI Mobile, 2010
** Source: CTIA, Written Ex Parte to FCC, Sept. 29, 2009 *** Source: Pew Internet & American Life Project, Dec. 2008
Worldwide Machine-to-Machine devices rise to 412 million by 2014*

* Source: Juniper Research, Embedded Mobile and M2M Strategies 2009-2014, Jan. 2010

Total mobile traffic worldwide forecast
Total Mobile Traffic Worldwide Forecast

20
18
16 14 Exabytes 12 10
Petabyte Terabyte Gigabyte Megabyte Kilobyte 1,000,000,000,000,000 1,000,000,000,000 1,000,000,000 1,000,000 1,000
(c) GSA Global mobile Suppliers Association
8
6 4 2 0 2008 2010E 2014E
Source of data: Informa Telecoms and Media March 2010 www.gsacom.com Mobile Broadband Growth: February 24, 2011 Global mobile Suppliers Association 2010 Slide no. 54/65
Mobile Broadband
CS Voice
Exabyte
1,000,000,000,000,000,000

UK consultancy firm, Coda Research Consultancy, has predicted that mobile data consumption in the US is set to reach 327,000 terabytes a month by 2015, indicating a 40-fold rise in mobile data consumption over 5 years Mobile data traffic from PC modems and routers is forecast to increase 4-fold between 2010 and 2014, according to a report by ABI Research. 2,000 petabytes of data will be sent and received in 2010, a figure that will rise to about 8,000 petabytes in 2014 Semiannual US wireless industry survey was released at CTIA in March 2010 revealing that wireless service revenues totaled $77 billion for the last half of the year. The real growth is coming from wireless data services - mobile Web, text messages, and other non-voice services. In the latter half of last year, revenue for wireless data service totaled > $22 billion, nearly a third of overall wireless services revenue and up 26% YoY. Steve Largent, President and CEO of CTIA, said in a statement. "Mobile broadband will increasingly play a vital role in peoples lives." A study by Juniper Research has forecast that more than 1 in 10 mobile subs will either have a ticket delivered to their mobile phone or buy a ticket with their phone by 2014, representing a five-fold growth over the next five years.

According to the latest forecast from the Strategy Analytics Wireless Media Strategies service, Global Handset Data Traffic Forecast: 2001-2015, handset-generated data traffic will account for 30 percent (over 8000 Petabytes (PB)) of the global network load by 2015, up tenfold from 2010 According to Mobile Magazine, there has been a growth in mobile phone sales partly fuelled by a 96% increase smartphone sales, which accounted for 19.3% of overall mobile phone sales The global smartphone market continued to increase in the third quarter of the year, according to new research. Figures recently published by the International Data Corporation (IDC) have shown that leading vendors in the sector posted double, and in some cases triple-digit growth, when compared to the same period in 2009
According to a research report Indian 3G Mobile Forecast to 2012 (www.rncos.com/Report/IM011.htm) the number of 3G mobile subscribers is expected to grow at a CAGR of around 80% during 2011 2013
According to ABI Research: In 2014 there will be 58 million mobile broadband equipped devices sold

A Report Predicts Explosive African Growth for Mobile Broadband - According to Vanguard, African Mobile Market hits 500m subscriber mark - By 2015, there will be 265 million mobile broadband subscription in Africa, a huge increase from the current figure of about 12 million and accounting for 31.5 per cent of the total of 842 million mobile subscriptions that the continent will have in five years: There will be almost 360 million users of mobile-money services on the continent by 2014. Cisco Systems predicts in its Visual Networking Index that mobile-ready devices and mobile video will fuel enormous global growth in mobile data traffic over the next four years - The Pentagon and broadcast networks can expect continuing pressure to turn over some of their spectrum to make more airwaves available to the private sector. According to Cisco Systems, global mobile data traffic increased 160% in 2009 to 90 petabytes per month. Cisco predicted that "annual global mobile data traffic will reach 3.6 exabytes per month globally or an annual run rate of 40 exabytes by 2014," (39 fold increase from 2009 to 2014, or a CAGR of 108%) and noted that such traffic "is growing today 2.4 times faster than global fixed broadband data traffic. Cisco says that, by that date, there will be more than five billion personal devices connecting to mobile networks, as well as billions of machine-to-machine devices. Video will represent 66% of all mobile data traffic by 2014, up 66-fold from 2009.

HSPA+ is now mainstream says GSA
HSPA+ is commercially launched on more than 1 in 4 HSPA networks 103 HSPA+ systems have now entered commercial service in 57 countries; another 45 HSPA+ networks are in deployment or planned www.gsacom.com/news/gsa_316.php4
The eco-system includes 92 HSPA+ devices announced by 20 suppliers including 22 devices which support 42 Mbps (DC-HSPA+) peak downlink capability. www.gsacom.com/news/gsa_319.php4
Free reports downloads (register and sign in first) at www.gsacom.com

Source: GSA report: Evolution to LTE January 12, 2011 Free download (register and sign in first) at www.gsacom.com
www.gsacom.com Mobile Broadband Growth: December 2010
www.gsacom.com Mobile Broadband Growth: February 24, 2011 Mobile Broadband Growth: December 2010
Global mobile Suppliers Association 2010 Slide no. 61/26 Slide no. 61/65
Mobile Broadband resources from GSA

- recent surveys, reports and information papers
Evolution to LTE report January 12, 2011 WCDMA operators (383 in 156 countries) January 24, 2011 HSPA+ network commitments January 24, 2011 HSPA operators survey January 24, 2011 HSPA devices survey February 27, 2011 UMTS900 global status report Digital Dividend update report
Join the discussion in the GSA LinkedIN Group
www.linkedin.com/groups?gid=2313721
All these resources and more are available via the links on the GSA home page www.gsacom.com
Comprehensive analysis of every launched HSPA, HSPA+ and LTE device, as confirmed by GSAs latest surveys and personalized to individual needs, can be undertaken by registered users of GSA member organizations and network operators using GAMBOD www.gsacom.com/gambod
GAMBOD is a search and analysis tool developed by GSA for mobile broadband devices allowing searches by supplier, form factor, features, peak downlink/uplink speeds, and operating frequency. Support for HD Voice (W-AMR) is also included. Results are presented as a list or spreadsheet, or in charts which may be inserted into documents or presentations, subject to accreditation of GSA as the source. An RSS feed can be activated to alert when new devices are added by GSA to its database. Qualification to use GAMBoD: You need to be employed by a member organization of GSA to use GAMBOD and have registered on www.gsacom.com with the corporate email address. GAMBoD is also accessible to network operators who have also have registered on www.gsacom.com with the corporate email address.
Download this chart and others and maps etc. at

www.gsacom.com/news/statistics.php4
Register for updates/press releases/downloads

www.gsacom.com/php/register_form.php4 and any of these services RSS, Facebook, LinkedIN, Twitter, YouTube
Global mobile Suppliers Association (GSA) www.facebook.com/pages/Global-mobile-Suppliers-Association-GSA/123462771012551
www.linkedin.com/groups?gid=2313721
www.gsacom.com/rss/gsanews.php4
www.twitter.com/gsacom
www.youtube.com/GSAMOBILESUPPLIERS
About GSA
The Global mobile Suppliers Association (GSA) represents leading GSM/EDGE/WCDMA-HSPA and LTE suppliers, providing trusted, widely referenced reports, facts, analysis and information explaining market developments and trends. GSA advises governments, regulators and policy-makers on the optimum conditions for market development. Briefings are given to media and analysts. GSA-organized seminars facilitate enhanced dialog between operators, members and developer communities. GSA is a 3GPP Market Representation Partner and co-operates with other key organizations worldwide. The GSA website www.gsacom.com is targeted to the industry and is the main channel for distribution of information and news. We welcome visitors to our website from over 200 countries annually. The GSA website has over 37,000 registered users and this figure grows every day. Between 15,000 and 18,000 reports, information papers and other resources are downloaded from the GSA website every month.
Website: www.gsacom.com RSS newfeed: www.gsacom.com/rss/gsanews.php4 GSA LinkedIN Group: www.linkedin.com/groups?gid=2313721 Twitter: www.twitter.com/gsacom YouTube: www.youtube.com/GSAMOBILESUPPLIERS
For more information on joining GSA, please contact marketing@gsacom.com or telephone +44 1279 439667

GSA Mobile Broadband Growth Report Feb 2011

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GSA Mobile Broadband Growth Report Feb 2011

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Mobile Broadband Growth Report

including success stories from HSPA/HSPA+ Operators worldwide

February 24, 2011

Operators reports/financial results

Regulators policy announcements Device trends including smartphones

Industry trends and forecasts

www.gsacom.com Mobile Broadband Growth: February 24, 2011

Global mobile Suppliers Association 2010 Slide no. 2/65

Mobile Broadband Growth Success (1)

www.gsacom.com Mobile Broadband Growth: February 24, 2011

Global mobile Suppliers Association 2010 Slide no. 3/65

Mobile Broadband Growth Success (2)

www.gsacom.com Mobile Broadband Growth: February 24, 2011

Global mobile Suppliers Association 2010 Slide no. 4/65

Mobile Broadband Growth Success (3)

www.gsacom.com Mobile Broadband Growth: February 24, 2011

Global mobile Suppliers Association 2010 Slide no. 5/65

Mobile Broadband Growth Success (4)

www.gsacom.com Mobile Broadband Growth: February 24, 2011

Global mobile Suppliers Association 2010 Slide no. 6/65

Mobile Broadband Growth Success (5)

www.gsacom.com Mobile Broadband Growth: February 24, 2011

Global mobile Suppliers Association 2010 Slide no. 7/65

Mobile Broadband Growth Success (6)

www.gsacom.com Mobile Broadband Growth: February 24, 2011

Global mobile Suppliers Association 2010 Slide no. 8/65

Mobile Broadband Growth Success (7)

Impressive growth in data revenues Market thirst for data

www.gsacom.com Mobile Broadband Growth: February 24, 2011

Global mobile Suppliers Association 2010 Slide no. 9/65

Mobile Broadband Growth Success (8)

www.gsacom.com Mobile Broadband Growth: February 24, 2011

Global mobile Suppliers Association 2010 Slide no. 10/65

Mobile Broadband Growth Success (9)

www.gsacom.com Mobile Broadband Growth: February 24, 2011

Global mobile Suppliers Association 2010 Slide no. 11/65

Mobile Broadband Growth Success (10)

www.gsacom.com Mobile Broadband Growth: February 24, 2011

Global mobile Suppliers Association 2010 Slide no. 12/65

Mobile Broadband Growth Success (11)

www.gsacom.com Mobile Broadband Growth: February 24, 2011

Global mobile Suppliers Association 2010 Slide no. 13/65

Mobile Broadband Growth Success (12)

www.gsacom.com Mobile Broadband Growth: February 24, 2011

Global mobile Suppliers Association 2010 Slide no. 14/65

Mobile Broadband Growth Success (13)

www.gsacom.com Mobile Broadband Growth: February 24, 2011

Global mobile Suppliers Association 2010 Slide no. 15/65

Mobile Broadband Growth Success (14)

www.gsacom.com Mobile Broadband Growth: February 24, 2011

Global mobile Suppliers Association 2010 Slide no. 16/65

Mobile Broadband Growth Success (15)

www.gsacom.com Mobile Broadband Growth: February 24, 2011

Global mobile Suppliers Association 2010 Slide no. 17/65

Mobile Broadband Growth Success (16)

www.gsacom.com Mobile Broadband Growth: February 24, 2011

Global mobile Suppliers Association 2010 Slide no. 18/65

Mobile Broadband Growth Success (17)

www.gsacom.com Mobile Broadband Growth: February 24, 2011

Global mobile Suppliers Association 2010 Slide no. 19/65

Mobile Broadband Growth Success (18)

Post Paid Mobile Revenue

Mobile Broadband Growth Success (19)

www.gsacom.com Mobile Broadband Growth: February 24, 2011