Mobile broadband subscriptions to hit one billion mark in 2011
Number of mobile broadband subscriptions to double in a year
· Users’ consumption of media and internet is changing
· Mobile data traffic growth driven by smartphones, laptops and tablets
During the course of 2010, a significant milestone in terms of mobile broadband subscriptions was reached as their number surpassed the half-a-billion mark globally. Ericsson (NASDAQ:ERIC) estimates that this number will double before 2011 ends. The greatest number of subscriptions, around 400 million, is expected to be concentrated in the Asia Pacific region, followed by North America and Western Europe with more than 200 million subscriptions each.
Mobile broadband adoption has accelerated with strong growth of smartphones, connected laptops and tablets, supported by the introduction of high-performance networks. Smartphones’ users are increasingly using applications and internet services on the go. Global mobile data traffic continues to grow rapidly, with Ericsson announcing in August 2010 that it had tripled in just one year.
Last year was also a good one for Long-Term Evolution (LTE). To date, Ericsson has signed commercial LTE (core and/or access) contracts with 11 operators worldwide. Almost half of a total of 16 networks Ericsson delivered have been commercially launched, and operators and consumers are starting to benefit from high-speed access enabled by LTE.
Users’ consumption of the internet and other media is changing as a result of the introduction of fast networks and the availability of various types of devices, including smartphones. According to TeliaSonera’s survey of its LTE users, about 23 percent of them now watch more online TV, and in excess of 46 percent surf the web more frequently when away from home.
Due to increased speed and reduced latency, LTE networks enable video streaming which also attracts new professional users, for example TV broadcasters and public safety organizations.
By 2015, Ericsson believes mobile broadband subscriptions will top 3.8 billion, with 95 percent driven by HSPA, CDMA and LTE networks*.
Ericsson has been a supplier for the majority of HSPA Evolution networks operating at speeds of 21Mbps or higher.
* CDMA is based on CDMA2000 EV-DO technology. LTE includes both FDD-LTE and TDD-LTE technologies.
According to the Global mobile Suppliers Association (GSA), as of November 2010 more than 99 percent of the world’s WCDMA operators had deployed HSPA on their networks. Migration to HSPA Evolution was a major trend last year, with more than one in five HSPA operators commercially launching HSPA Evolution networks.
Ericsson is the world’s leading provider of technology and services to telecom operators. Ericsson is the leader in 2G, 3G and 4G mobile technologies, and provides support for networks with over 2 billion subscribers and has the leading position in managed services. The company’s portfolio comprises mobile and fixed network infrastructure, telecom services, software, broadband and multimedia solutions for operators, enterprises and the media industry. The Sony Ericsson and ST-Ericsson joint ventures provide consumers with feature-rich personal mobile devices.
Ericsson is advancing its vision of being the “prime driver in an all-communicating world” through innovation, technology, and sustainable business solutions. Working in 175 countries, more than 80,000 employees generated revenue of SEK 206.5 billion (USD 27.1 billion) in 2009. Founded in 1876 with the headquarters in Stockholm, Sweden, Ericsson is listed on NASDAQ OMX, Stockholm and NASDAQ New York.
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