mobile broadband growth results june 2010

Global mobile Suppliers Association © 2010www.gsacom.com

Slide no. 1/41Mobile Broadband Growth – June, 2010

Mobile Broadband Growth

Reports from HSPA Operators WorldwideJune 11, 2010

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www.linkedin.com/groups?gid=2313721Global mobile Suppliers Association (GSA)

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How mobile broadband is contributing to growth and profitability

Source: Company reports, websites, announcements

Mobile Broadband Growth – June, 2010 Slide no. 2/41

http://www.kinpo.com.tw/download/NetBookN03_eng.pdf


Mobile Broadband Growth – June, 2010

Mobile Broadband Growth Success (1)

Celcom, Malaysia – after moderated growth in Q4 09, mobile broadband surged again with the

highest ever net additions of 124,000, a strong 24% increase QoQ. Strong growth was seen

overall in non voice services, with data now contributing 30% to revenue, from 25% a year ago

XL Indonesia in Q1 10 reported data service revenue growth which now contributes 7% of

service revenue – an increase of 58% QoQ

Singapore’s M1 non-voice services continued to grow, contributing 29.8% of service revenue,

up from 25.1% a year ago. This was primarily driven by an increased focus on data usage

In Sweden, according to the Swedish 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,

According to the Communications and Information Regulatory Commission, mobile

broadband in Saudi Arabia grew 488% to 1.41 million subscriptions, representing 51% of all

broadband connections in the country, compared to a 47% share for ADSL

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Tele2 Group has reported a 50% year on year increase for Q1 2010 in the number of

mobile broadband subscriptions

SFR’s data revenues represented 26.5% of mobile revenues at the end of March 2010,

compared to 21.9% for the same period in 2009, due to the popularity of "smartphones“

TeliaSonera stated that for the first time in several quarters, Finland and Denmark

reported positive revenue growth in local currencies as a result of strong growth in data

usage and higher 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

In Bangladesh, Grameenphone has highlighted how data revenues are contributing to

consistent revenue growth. In Q1 2010 data revenues increased 65% and 13% from Q1 09

and Q4 09 respectively

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Mobile Broadband Growth Success (3)Smartphones

Growth of the worldwide smartphones more than doubled that of the overall mobile phone market in Q1 2010,

confirming the segment is exhibiting high-growth. According to the International Data Corporation (IDC)

Worldwide Quarterly Mobile Phone Tracker, vendors shipped 54.7 million units in Q1 10, up 56.7% year on year.

By contrast, the overall mobile phone market grew 21.7%. Smartphones accounted for 18.8% of all mobile

phones shipped in Q1 10, up slightly from 14.4% in Q1 09

The Android operating system (OS) is increasing its smartphones market position, at least in the U.S. in Q1

2010. According to NPD Group, based on smartphone unit sales to consumers last quarter, the Android

operating system moved into second position at 28% behind RIM's OS (36%) and ahead of Apple's OS (21%)

Since January 2010, the Smartphone share in Ireland has doubled from 8% to 16%, driven by key handsets.

In Honk Kong, almost half (48%) of respondents own a

smartphone, more than double the global rate of 23%.

MAVAM's has revealed that Smartphone users are the most likely to

use handsets for Internet access (14%),against 4% for other devices.

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Mobile broadband customer base grows by

130.6%, data accounts for approximately 18% of

revenues


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Remarkable push in data/service revenues:

+5.3% YoY Q1 2010

Venezuela

Service revenues (+21.1% YoY)boosted by

data services Q1 2010

Slide no. 7/41




Mobile data revenue market share of 58%

Data revenue1 growth of 32.8%

– Active data users up 29.1%

– Data connect cards up 34.1% to 728k

Data usage up strongly

– Data traffic up 58.4%

Increasing penetration of smartphones

– Up 44.6% to 2.0 million

Increasing penetration of data cards

- Up 34.1% YoY

South Africa

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Vodafone Group Plc announces revenue from mobile data

services reached £4 billion (US$5.8 billion) in 2010

Group data revenue increased by 19.3 percent to £4 billion ($5.8 billion) from

a total of 50 million active data users across the group

Smartphone use is currently the key driver of data growth, and Vodafone said

it plans to increase the proportion of smartphones from 30% of its total sales mix

to 70% by the end of 2013

CEO Vittorio Colao, said traffic on the group's networks in Europe increased

100% during the last 12 months, of which 85% was from data cards and 15%

from smartphones. But the mix is shifting to smartphones: in the fourth quarter

last year, total data revenues in Europe increased by 19%, with mobile Internet

traffic increasing by 37% and PC (dongles) traffic by 17%

Slide no. 9/41



Mobile non-voice services


Mobile revenue

Post‐paid mobile

revenue increased 10%

Pre‐paid customer

base expanded 10% &

crossed 1,000,000

StarHub has announced that total post-paid mobile data traffic on its network

grew to 7.4 petabytes in 2009 from 1.7 petabytes in 2008.

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Telenor Group

Added 5 million new mobile

subscribers Q1 10

Solid mobile revenue growth,

driven by mobile data and

handsets

Telenor Norway

10k net mobile subscriber

growth driven by mobile

broadband

9% mobile revenue growth

Telenor Sweden

8k net mobile subscriber growth

10% mobile revenue growth in

local currency

Revenues (NOKm) and EBITDA%

Revenues (NOKm) and EBITDA%

Slide no. 11/41




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%

Deutsche Telekom CEO René 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

T-Mobile USA

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Non-SMS mobile data represent 6.4% of total mobile

service revenues (4.9% in 2008)

Mobistar SA

The use of mobile Internet and SMS

continues to expand in 2010. At the end of

March, the share of mobile data service

revenues amounted to 31 % compared with 27.4

% a year earlier

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Continued Strong Wireless Growth – driven by mobile broadband,

substantial wireless margin expansion

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Nation’s fastest 3G network getting faster

HSPA 7 2 Mbps performing well with

32%-47% increase in data download speeds

where fiber backhaul is in place

Text messaging grew 50% YoY and picture messaging grew 130% Q4 2009

Wireless Service Revenue 2009 = $41.3 billion, +2.8 billion YoY, 29% of ARPU

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Belgacom (Proximus)

FY 09 revenue up 9.1% to € 303 million

Driven by increased SMS revenue (+8.1%

YoY) and advanced data revenue (+12.2% YoY)

Net data ARPU YoY +6.3% to € 6.7 million

KPN - Netherlands

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Q1 2010 operating highlights:

Mobile customers: 1.8m (Net increase:

38,000 QoQ)

Mobile data as % of service revenue

increased to 15.3%

Increasing take-up of smartphones will

continue to drive data growth

M1 CEO Karen Kooi said: "mobile data

revenues increased as a result of a larger

mobile broadband customer base. Non-voice

revenues made up 26% of services revenues,

up from 23.4% a year ago”.


Slide no. 19/41




Wireless data revenue growth of 40% Q1 10

Higher smartphone penetration

Data device subscribers up 70% YoY

Data now represents ~21% of service revenues

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Telecom NZ reported data ARPU at December 2009 was up 19% YoY

A report by Chetan Sharma revealed that messaging still accounts for the bulk of data business, but media

services such as mobile music, TV and video streaming, voice navigation, games, and location-based services, are

gradually gaining ground. The explosion of apps and app storefronts last year contributed to the mobile data boom.

The total of app downloads hit 7 billion, generating $4.1 billion in revenue - 12% of which came from in-app advertising

According to a report from AdMob, smartphone

data traffic grew in February 2010 was up 193%

YoY which AdMob attributed primarily to iPhone™

and Android device usage

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0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

2007 2008 2009

Etihad Etisalat passed the one million mobile broadband subscribers landmark 2009

Mobily passed 1 million mobile broadband

subscribers in December 2009

HSPA is the enabling technology

Since December 2007, data traffic grew

tenfold reaching 50 terabytes in December 2009

Etihad Etisalat (Mobily) Saudi Arabia



HSPA+ entering the mainstream

GSA – June 9, 2010:

114 HSPA operators i.e. more than one third have

committed to deploy HSPA Evolution (HSPA+)

Almost 1 in 5 commercial HSPA operators have

commercially launched HSPA+

Source: GSA report: Global HSPA+ Network Commitments

and Deployments – June 9, 2010www.gsacom.com/downloads/pdf/Global_eHSPA_network_commitments.php4





NTT DoCoMo

*’’PHS services revenue’’ for the years ended March 31,2007 and 2008 has

been reclassified into ‘’Other revenues’’

Revenues from Wireless Services

Year ended March 31

No. of data plan subscriptions grew to

670.000

Smartphone sales recorded steadfast

growth



MTN, South Africa



Telstra

Orange, France

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Vivo SmarTone



Continuing growth

• ↑23% YoY

• Accounts for 33% of

service revenue

Growth from

• Wider adoption of

smartphones

• Mobile & wireless fixed

broadband

Vivo reported a sustained growth in data and VAS revenues,

up 51.8% and 7.3% respectively in Q1 2010 compared to Q1

2009, and representing 17.5% of net service revenues in the

quarter

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Turkcell

> 1 million smartphone users

Number of monthly average

mobile data users increased to

approx. 7 million through

handsets and PCs


Rogers Wireless

Continued strong smartphone activations helped drive Q1 10 wireless data

revenue up 40% to $416 M or 26% of network revenue

Activated nearly 1.5 million smartphone customers bringing smartphone

penetration to 31% of postpaid subscriber base





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SingTel Singapore

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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 (MEA) followed

by the Asia-Pacific and North America as revenue from voice gets saturated and operators

focus on alternate sources of revenue

A new 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.

Some industry forecasts (1)

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Ericsson has estimated that, by 2015, there will be 3.5 billion mobile broadband users around the world,

compared to the 500+ million that use it at present

According to a recent Analysys Mason report, the 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

According to In-Stat, “WCDMA-HSPA base stations will be the workhorses of wireless data networks”. 2009 saw

overall deployments of newly deployed macro base stations up 10% on 2008, driven by the rising demand for

smartphones and mobile broadband, meaning that most of the increase will have come from WCDMA-HSPA.

WCDMA-HSPA base stations will account for at least 50% of total revenue in this segment in 2009. By 2013

WCDMA-HSPA will contribute 70% of revenues in the sector

ABI Research announced that shipments of mobile broadband-enabled consumer products, which includes 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


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Some industry forecasts (3) Smartphones

According to a report by ABI Research on US mobile operator network traffic, smartphones

and connected computing devices will be the primary drivers of data traffic over the next five

years. By 2014, these device categories will generate more than 87% of total mobile

network data traffic for US operators. The report also states that growth of Android, iPhone

and similar smartphones will cause average smartphone traffic levels to grow by 48% over

the forecast period.

Led by the success of Android, Linux-enabled smartphones are expected to make up 33% of

the total worldwide smartphone market by 2015, according to a new report from ABI

Research. More than 60,000 smartphones are now shipping per day, with Android OS

leading the pack, notes the market researcher. Up to 127 million Linux-based smartphones

may be shipping by 2012.

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Some industry forecasts (4) Smartphones

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Some industry forecasts (5)Leading the Mobile Broadband Revolution

Ralph de la Vega, Chairman of the Board, CTIA

Worldwide Machine-to-Machine devices rise to 412 million

by 2014*

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

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

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Some industry forecasts (6)Total mobile traffic worldwide forecast

Exabyte 1,000,000,000,000,000,000

Petabyte 1,000,000,000,000,000

Terabyte 1,000,000,000,000

Gigabyte 1,000,000,000

Megabyte 1,000,000

Kilobyte 1,000

Source of data: Informa Telecoms and Media – March 2010

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Total Mobile Traffic Worldwide Forecast

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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 people’s 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.

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A Report Predicts Explosive European Growth for Mobile Broadband - According to a CCS Insight report,

Mobile Broadband in Europe, 4Q09 - the total Mobile Broadband subscribers in key European markets will rise

from 22m at the end of 2009 to over 43m in 2011. In addition, total revenue from Mobile Broadband access in the

major markets will rise from less than €6 billion in 2009 to more than €11 billion in 2011

www.ccsinsight.com/reports/491/

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.

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Global mobile Suppliers Association (GSA)

The results from an industry survey organized last year by GSA provided an expectation that

HSPA+ mobile broadband technology would enter the mainstream during 2010. GSA

confirms this is now becoming reality as HSPA+ is now commercially launched on almost 1 in

5 of HSPA networks. Several more HSPA+ networks are scheduled to launch in the coming

weeks and months. The eco-system includes 42 HSPA+ devices which have been

announced by 11 suppliers.

61 HSPA+ systems have now entered commercial service in 34 countries, of which 52

support a peak downlink data speed of 21 Mbps and 5 systems support 28 Mbps and the

remaining 4 support 42 Mbps. By the end of 2010 GSA expects that around 95 HSPA+

systems will be in commercial service

Source: GSA report: Global HSPA+ Network

Commitments and Deployments – June 9, 2010www.gsacom.com/downloads/pdf/Global_eHSPA_network_commitments.php4

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Mobile Broadband resources from GSA

- recent surveys, reports and papers

Evolution to LTE: Information Paper - June 7, 2010

WCDMA operators (347 in 144 countries) – April 16, 2010

114 HSPA+ network commitments – June 9, 2010

HSPA operators survey (341 networks launched) – April 16, 2010

2,349 HSPA Devices survey – April 22, 2010

All these resources

– and more – are

available via the

links on the GSA

home page

www.gsacom.com

www.linkedin.com/groups?gid=2313721

Join the discussion on the

GSA LinkedIN Group


Digital Dividend update – June 2, 2010

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mobile broadband growth results june 2010

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