Ericsson Mobility Report June 2015 and the Road to 5G

Maria Boura Head of Strategy, Marketing & Communications, South East Europe Ericsson Media Briefing Athens, June 18, 2015

Public | © Ericsson AB 2015 | 2015-06-16 | Page 2

Today’s agenda

The Road to 5G

8th Ericsson Mobility Report


1/2 Video will generate

half of mobile data traffic

LTE subscriptions growth will exceed 80%, exceeding 800 million

More people will watch streamed on-demand video than broadcast TV on a weekly basis

>80%

This year…

World mobile broadband coverage will be above 70%

>70%


90% of the world´s population will have a mobile phone by 2020

• 9.2 Billion mobile subscriptions by the end of 2020

• 85% of mobile subscriptions will be for mobile broadband by the end of 2020


Subscription outlook – growth in hspa and LTE

In 2020: › 9.2 billion mobile subscriptions › 3.7 billion LTE subscriptions › 3.8 billion WCDMA/GSM

subscriptions › 5G will be commercially

deployed


Smartphones subscriptions set to more than double by 2020


Mobile Traffic Update q1 2015

Global total monthly traffic in mobile networks, 2010-Q1 2015

› Note: Based on actual measurements.

› Traffic does not include DVB-H, Wi-Fi, or Mobile WiMax. Voice does not include VoIP.

› YoY: 55% growth in mobile data traffic

› QoQ: 12% growth in mobile data traffic


9 times Mobile data Traffic by end of 2020

4.2 GB

1.9 GB

1.0 GB

Monthly consumption per device type

17.3 GB

8.4 GB

4.9 GB

2014 2020


Smartphone data traffic Regional

› More smartphone subscriptions

› More traffic per smartphone

› Monthly smartphone consumption/subscription by 2020

– NA: 14 GB – WE: 9.5 GB – APAC: 4 GB


13X more video traffic in 2020

22X


Top 25 app usage in three countries

App time that users in each country spend using the top 25 apps (i.e. not all apps) › In the US, around 13 percent of app time is spent streaming

video, while in Russia and Sweden it is half that. › Social networking is significant in all three countries. › ‘Russia stands out, with users spending more than 40 percent

of app time on social networks. Russia is also notable for high levels of navigation app use, and the variety of such services available.

› Swedes spend a greater percentage of app time communicating.


Connected devices › Growth in the number of connected devices is accelerating, driven by growing range of

applications and business models, supported by falling modem costs › 13.5 billion connected devices in 2014 › 26 billion connected devices by 2020, confirming we are well on the way to reaching our vision

of 50 billion connected devices


population Coverage

› Around 90% of world´s population covered by WCDMA/HSPA in 2020 › More than 70% of world’s population covered by LTE in 2020


LTE network status


The digital signatures of sport Football world championships 2014 › Activities like real-time viewing, sharing results

and social networking have become integral parts of sports events, enabling them to become digital experiences

› The network challenge › Mobile traffic patterns › Consumer behavior patterns › Connection types › Network loads


Beyond average data consumption

› Compares subscriber and traffic shares, as well as the application mix for

different subscriber clusters in advanced mobile broadband markets. Mobile services consumption patterns of subscribers differ a lot for different monthly usage clusters.

› In many mobile networks a significant proportion of traffic is generated by a limited number of users. The top 10 percent users generate around 55 percent of the traffic and 20 percent of users generate around 70 percent


Beyond average data consumption

› Social networking, web browsing and audio traffic share is

highest in medium groups, while the shift to video as the dominant traffic is apparent in the heavy user group. Video is dominant among heavy and power users, representing almost 70 percent of traffic

› Heavy data users, those who consume more than 10 GB per month, share of video consumption is as high as 70% of their total data consumption. They watch around 1 hour video per day on average, which is 20 times more than an average user


Screen size matters

› Screen size, resolution and display clarity are important factors influencing the mobile user experience and affecting the extent to which various services are used

› Small screens could be a barrier for web browsing and social networking due to, for example, the inconvenience of reading and writing on smaller screens. However, too large a screen also decreases usage. .

› Video consumption on tablets is 50 to 70 percent higher on average compared to usage on phablets.

› Average tablet user spends 50 percent more time watching videos online than average mobile broadband users .


Today’s agenda

The Road to 5G

8th Ericsson Mobility Report


wireless access generations

5G


IOT setting divergent NW requirements

5G use case families and related examples, 5G White Paper by NGMN Alliance


One network – multiple industries

@

A common network platform with Dynamic and Secure Network Slices

© Telefonaktiebolaget LM Ericsson 2015 | Ericsson Internal | MWC March 2015 | Page 32

Public | © Ericsson AB 2015 | 2015-06-16 | Page 33 Source: METIS

performance requirements

10-100X End-user Data Rates

5X Lower Latency

10-100X Connected Devices

10X Battery Life

1000X Mobile Data

Volumes

Critical Communications

Intelligent Transport Systems

Massive Communications

Connected Sensors

<5ms e2e delay 99.999% transmission reliability

500Kmph relative velocity

>10yrs battery lifetime >80% cost reduction 20dB better coverage

Extreme availability

Scalability and flexibility



Building 5g

Platform for 50 Billion Open Innovation

Global developments Global standard

Milestones every year Research & Development

5G System View

One Network – Multiple Industries Industry Journey Technology Evolution



Ericsson Driving 5g in the industry

Global engagement for Global Standard

Technology Leadership in all

5G domains Engaging in Automation & Transport Verticals

Experience from Four Generations

We will make it work. As always.


5G radio test bed

July 2014, >5 Gbps


› Want to experience 5 gigabit/ second over the air?

› A live demonstration with the 5G test mobile in place was available in Barcelona.

5G Radio TEST BED


2020 highlights

9.2 Billion

7.7 Billion >2X 9X

Mobile Subscriptions

MBB Subscriptions Smartphone Subscriptions

(2.7B)

Mobile Data Traffic driven by Video 90%, >70%

WCDMA/HSPA LTE


Population Coverage

70% of the world’s population will have a smartphone

“Already today, users expect fast and reliable mobile access, wherever they go. They want sufficient app coverage”