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Press Release -- June 18th, 2014
Source: Ericsson
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Youth and apps to drive smartphone and data usage in South East Asia and Oceania

  • Region’s youth population among the largest in the world and is driving the uptake of apps, smartphones and mobile data services
  • Smartphone subscriptions to grow about 5 times by 2019 and will make up more than half of total mobile subscriptions in the region
  • Mobile data traffic in the region will grow by more than 10 times between 2013 and 2019
  • 4G/LTE subscriptions currently concentrated in developed markets, but developing markets to gain momentum in the next five years

Ericsson (NASDAQ:ERIC, news, filings) releases its first appendix to the Ericsson Mobility Report that specifically covers the South East Asia and Oceania region. The appendix illustrates the differences across the region, including smartphone uptake, access to LTE, and network performance.

Three key trends driving ICT growth in the region are youth culture, urbanization and the rise of smartphones. The region’s youth population of more than 170 million is among the largest globally.

Arun Bansal, Head of Ericsson’s Region South East Asia and Oceania, says: “Youth are active users of apps, especially messaging apps, and in the Philippines, Indonesia and Malaysia nearly one-third of the population is aged 10-24. In these countries we also observe that the smartphone is the primary device for internet access and as smartphones become cheaper, more consumers will be able to enjoy the benefits of connectivity.

“Today, smartphone penetration ranges from around 20 percent for developing markets to more than 60 percent for advanced markets. As smartphone subscriptions are expected to grow about 5 times, there will be more than 700 million smartphone subscriptions in the region by 2019 and will constitute more than half of its expected 1.3 billion total mobile subscriptions.”

As usage of apps and services increases, mobile data traffic will grow by more than 10 times between 2013 and 2019. Bansal says: “This means there is a need to create high performing networks to keep up with more complex user demands and support increasing mobile data consumption.”

Australia and Singapore, both mature ICT markets, represent almost all of the 20 million LTE subscriptions that the region will have by the end of 2014. Australia, closely followed by Singapore has the best in class networks in the region based on median throughput network speeds.

4G/LTE subscriptions are currently concentrated in developed markets, but developing markets will gain momentum in the next five years. By the end of 2019, as networks are deployed in more countries, LTE subscription growth is expected to reach around 230 million subscriptions, bringing LTE penetration for the region to around 20 percent.

In Ericsson’s global Mobility Report released earlier this month, three countries in the region – Indonesia, Thailand and Bangladesh – recorded among the top 5 highest net additions globally for mobile subscriptions in the first quarter 2014.

The appendix for the South East Asia and Oceania region is published by Ericsson in conjunction with its recently-released Ericsson Mobility Report, which includes key global trends on Machine-to-Machine subscriptions, smartphone subscriptions, and LTE uptake.

Notes to editors

Ericsson has performed in-depth data traffic measurements in mobile networks from the world’s largest installed base of live networks. These measurements have been collected from all regions since the early days of mobile broadband.

The full Ericsson Mobility Report findings, regional appendices for Europe, North East Asia, South East Asia and Oceania, and Sub-Saharan Africa, as well as Ericsson’s Traffic Exploration Tool are available at: www.ericsson.com/ericsson-mobility-report

Download high-resolution photos and broadcast-quality video at www.ericsson.com/press.

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Our services, software and infrastructure – especially in mobility, broadband and the cloud – are enabling the telecom industry and other sectors to do better business, increase efficiency, improve the user experience and capture new opportunities.

With more than 110,000 professionals and customers in 180 countries, we combine global scale with technology and services leadership. We support networks that connect more than 2.5 billion subscribers. Forty percent of the world’s mobile traffic is carried over Ericsson networks. And our investments in research and development ensure that our solutions – and our customers – stay in front.

Founded in 1876, Ericsson has its headquarters in Stockholm, Sweden. Net sales in 2013 were SEK 227.4 billion (USD 34.9 billion). Ericsson is listed on NASDAQ OMX stock exchange in Stockholm and the NASDAQ in New York.

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