Ericsson
STKM : ERIC
NASDAQ : ERIC

November 07, 2011 03:09 ET

Ericsson predicts Mobile Data Traffic to grow 10-fold by 2016

STOCKHOLM, SWEDEN--(Marketwire - Nov 7, 2011) -



* New report from Ericsson says mobile data traffic will grow 10-fold between 2011 and 2016, mainly driven by video

* Mobile broadband subscriptions grew by 60 percent in one year and are expected to grow from 900 million in 2011 to almost 5 billion in 2016

* By 2016, users living on less than 1 percent of the Earth's total land area are set to generate around 60 percent of mobile traffic

In its new Traffic and Market Data report, which provides insights into current trends, Ericsson (NASDAQ: ERIC) forecasts a 10-fold increase in mobile data traffic by 2016. The report is based on measurements the company recorded over several years in live networks covering all regions of the world.

Johan Wibergh, Head of Ericsson Business Unit Networks, says: "Ericsson performs a broad range of measurements in order to monitor the pulse of the Networked Society -- measurements that we use to efficiently design our products and plan networks. This report offers snapshots that, together, show how a growing number of people and businesses benefit from mobility, broadband and the cloud."

According to the report, mobile broadband subscriptions will reach almost 5 billion in 2016, up from the expected 900 million by the end of 2011.That would represent 60 percent year-on-year growth, at the same time as the data consumed by smartphone users is surging. Total smartphone traffic is expected to triple during 2011.

Across all devices, internet access will continue to drive mobile traffic development and mobile data traffic is expected to grow by nearly 60 percent per year between 2011 and 2016, mainly driven by video.

Other highlights from the report:

By 2016 more than 30 percent of the world's population will live in metropolitan and urban areas with a density of more than 1,000 people per square kilometer. These areas represent less than 1 percent of the Earth's total land area, yet they are set to generate around 60 percent of total mobile traffic.

Mobile broadband, new smartphone launches and applications uptake will continue to drive data consumption. At the same time, there is strong momentum for smartphone uptake in all regions. Ericsson expects traffic generated by advanced smartphones to increase 12-fold to roughly equal mobile PC-generated traffic by 2016.

Ericsson's presence in more than 180 countries, where it supports more than 1,000 networks, enables it to measure mobile voice and data volumes. The result is a representative base for calculating world total mobile traffic in 2G, 3G, and 4G networks.

Notes to editors: Photos and bio of Johan Wibergh: http://goo.gl/N1YGa

Our multimedia content is available at the broadcast room: www.ericsson.com/broadcast_room

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 180 countries, more than 90,000 employees generated revenue of SEK 203.3 billion (USD 28.2 billion) in 2010. Founded in 1876 with the headquarters in Stockholm, Sweden, Ericsson is listed on NASDAQ OMX, Stockholm and NASDAQ New York.

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Graph 13: Application internet traffic volumes by device type: http://hugin.info/1061/R/1561267/483160.jpg

Press release as PDF: http://hugin.info/1061/R/1561267/483146.pdf

Graph: Subscribtions by region Q3 2011: http://hugin.info/1061/R/1561267/483149.jpg

Graph 15: Smartphone usage during daily commute: http://hugin.info/1061/R/1561267/483163.jpg

Graph 14: Smartphone non-voice usage: http://hugin.info/1061/R/1561267/483162.jpg

Graph 2: Mobile subsriptions penetration percentage: http://hugin.info/1061/R/1561267/483151.jpg

Graph 9: Population and land coverage. 2010 and 2016 projection: http://hugin.info/1061/R/1561267/483155.jpg

Graph 15: Smartphone usage during daily commute: http://hugin.info/1061/R/1561267/483164.jpg

Graph 10: Mobile traffic: Voice and data 2008-2016: http://hugin.info/1061/R/1561267/483157.jpg

This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that: (i) the releases contained herein are protected by copyright and other applicable laws; and (ii) they are solely responsible for the content, accuracy and originality of the information contained therein.

Source: Ericsson via Thomson Reuters ONE

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