Why cities will drive traffic growth

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1 Why cities will drive traffic growth

2 Cities will drive Traffic growth Population versus mobile traffic distribution (%) Rural Suburban Rural Suburban Urban 60% 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. Why is this the case? 20 0 Urban Metro Estimated world population distribution, 2017** 30% Ericsson AB 2012 June 2012 Page 2 (12) Metro Estimated mobile traffic, 2017 **Metro: >4,000 people/sq km, Urban: 1,000-4,000 people/sq km, Suburban: 300-1,000 people/sq km, Rural: <300 people/sq km (Source: Ericsson)

3 Ericsson ConsumerLab City Study 2011 Los Angeles New York London Stockholm Moscow Seoul Tokyo Beijing 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 100% 90% 80% 70% Only about 10 to 15 percent of the worldwide installed base of subscriptions uses smartphones (*) 60% (*) Source: Ericsson Traffic and Market Report (June 2012) 50% 40% 30% 20% 10% 0% Total average Cairo Johannesburg Mumbai Stockholm Beijing Moscow São Paulo Tokyo Seoul London Los Angeles New York Hong Kong City Study 2011 results: About 40 percent of city dwellers own an iphone or an Android phone Major differences exist between cities 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 Make/receive calls Send/receive SMS/text messages Browsing of the internet Send/receive s 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 Check timetables and/or traffic information Use mapping, navigation or positioning services Buy tickets, do small transactions or payments Share (%) who use each service at least five times a day (heavy users) A total of 7 percent watch videos on their mobile phones more than five times a day 0% 10% 20% 30% 40% 50% 60% Ericsson AB 2012 June 2012 Page 5 (12) Source: Ericsson ConsumerLab City Study 2011 Base: All (online population)

6 High mobile-broadband connection rate 100% 90% 80% 70% 60% At the end of 2011, about 17 percent of the world s mobile subscriptions were mobilebroadband subscriptions (*) (*) Source: Ericsson Traffic and Market Report (June 2011) City Study 2011 results: 50% 40% 30% 20% In all, 40 percent of city dwellers have a mobilebroadband subscription More than 30 percent of mobilebroadband users use it daily 10% 0% Total average Cairo Johannesburg Mumbai Stockholm Beijing Moscow São Paulo Tokyo Seoul London Los Angeles New York Hong Kong In all, 9 out of 10 mobilebroadband users use it for personal reasons; 5 out of 10 for work reasons Use daily Use weekly Use monthly Use less often Don t use Ericsson AB 2012 June 2012 Page 6 (12) Source: Ericsson ConsumerLab City Study 2011 Base: All/mobile-broadband users (online population)

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% 90% 80% 70% 60% 50% 40% 30% 20% 10% In all, 40 percent of laptop/tablet owners connect weekly to a Wi-Fi network outside the home Daily and weekly usage of Wi-Fi networks is nearly twice as high among citizens in city centers as it is among residents of suburbia 0% Total average Cairo Johannesburg Mumbai Stockholm Beijing Moscow São Paulo Tokyo Seoul London Los Angeles New York Hong Kong Every day Every week Every month Less often Never Don t know Ericsson AB 2012 June 2012 Page 7 (12) Source: Ericsson ConsumerLab City Study 2011 Base: All/mobile-broadband users (online population)

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 Browsing the internet (Personal use) Personal Social networks: Read/check Work Read newspaper/magazines Chat/messaging Browsing the internet (work usage) Social networks: Update/write/upload Product info/price comparisons Watch video clips Listen to music On-line gaming Watch longer videos Internet banking Check time schedules/traffic information IP-telephony Distance learning Buy products Share (%) who use each service at least daily 28% 35% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Ericsson AB 2012 June 2012 Page 8 (12) Source: Ericsson ConsumerLab City Study 2011 Base: All (online population)

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 Ericsson AB 2012 June 2012 Page 9 (12) Source: Ericsson ConsumerLab City Study 2011 Base: All (online population)

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

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 High-speed or broadband internet Desktop computer Mobile phone Fixed phone Laptop computer/netbook Mobile broadband and/or Wi-Fi Tablet computer More than 50 percent of city dwellers consider it critical to have internet access at work Having a mobile phone is critical for 36 percent Having mobile broadband and/or Wi-Fi access is critical for close to 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)

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