Ericsson: increased mobile broadband and smartphone usage presents huge opportunities for Malaysia
Findings from the latest edition of the Ericsson (NASDAQ:ERIC) South East Asia and Oceania regional Ericsson Mobility Report show that mobile subscriptions in the South East Asia and Oceania region will exceed 1 billion by the end of 2015 or about 14 percent of the total global market.
Smartphone subscription penetration in Malaysia is expected to grow to more than 100% by 2018 with the amount of data used monthly by each active smartphone increasing substantially. In the region, the amount of data used monthly by each active smartphone will increase from an average of 1.2 GB in 2015 to approximately 9GB by 2021. With the continued rise of smartphones, accelerated growth in data usage and growing mobile broadband traffic, more consumers are migrating to higher data volume packages.
In 2015, 40 percent of consumers in this region are subscribing to mobile broadband plans of 2.1 – 5GB compared to 30 percent in 2014. In Malaysia, the 2.1-5 GB plan is the leading mobile broadband plan. In 2015, around 70 percent of consumers in Malaysia subscribed to mobile broadband plans of 1.1 GB and above compared to about 60 percent in 2014. Based on the analysis, we also observed that among consumers who subscribe to volume-based packages in Malaysia, around 30 percent utilize less than 50 percent of their mobile broadband data plan quota and close to 20 percent utilize more than 100 percent.
Analysis also showed that mobile data traffic in the region will exceed 6 ExaBytes (EB) per month by 2021, up from over 0.4 ExaBytes (EB) in 2015. To give an idea of scale, 6 EB can be equivalent to about 1.5 billion movie downloads (with a typical 2-hour HD movie taking about 4 GB). This rapid uptake of mobile data will yield opportunities to service providers to innovate to capture new opportunities and monetize on the constantly evolving demand for mobile services.
Todd Ashton, Head of Ericsson Malaysia and Sri Lanka, says;” Unabated growth in application usage and mobile data traffic overall will continue to present strong revenue opportunities to mobile operators provided they have the capabilities to deliver fantastic application experiences. This app centric world requires new thinking in how networks are built in order to deliver the best customer experiences while maximizing return on investment.”
Ericsson has for the first time released a business appendix to its Ericsson Mobility Report, with an analysis of how operators around the world are monetizing mobile services, including creating new revenue streams and business models.
The regional report shows that more than 75 percent of people in the region will have access to LTE networks by 2021.
The transition from 3G will help operators cope with the predicted immense data traffic growth and deliver the best user experiences with faster upload and download speeds. LTE/5G subscription is forecasted to gain momentum and surpass 500 million by 2021, driven by 3G migration and new services like VoLTE.
Countries in the region with the best network performance are Australia and Singapore, due to their leadership in deploying LTE and LTE Advanced. Ericsson analysis shows that data-intensive applications, such as HD video streaming, could easily be delivered by mobile networks in Singapore and Australia across the whole coverage area. LTE carrier aggregation in Australia has enabled possible peak download speeds of up to 600 Mbps.
Ashton added: “We see the same opportunities for Malaysian operators over the coming years. We believe the Malaysian government recognizes this opportunity as well, in light of the recent announcement in Budget 2016 where RM1.2 billion is allocated by the Malaysia Communications and Multimedia Commission (MCMC) to continue to develop the telecommunications infrastructure. Initiatives such as these will continue to improve mobile broadband connectivity nationwide, particularly in rural areas, and create tremendous economic and social opportunity for people and business across Malaysia. This initiative also provides huge opportunities for operators and local app developers to capture the growth of applications and smartphones”.
This South East Asia and Oceania report as a supplement to the global Ericsson Mobility Report, share the differences across the South East Asia and Oceania region, including smartphone uptake, mobile broadband plans, and network performance.
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, Traffic Exploration Tool, Mobile Business Trends appendix and regional reports for Europe, South East Asia & Oceania, North East Asia (to launch in December), North America, Middle East & North East Africa, Latin America & the Caribbean, and Sub-Saharan Africa can be downloaded at: Ericsson Mobility Report
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