Digital Lifescapes

At Mobile World Congress this week, new attempts to create competing mobile device software ecosystems were announced. What are they up against? Google Android and Apple iOS, the number one and number two ranked smartphone operating systems (OS) worldwide, combined account for 91.1 percent of all smartphone shipments during the fourth quarter of 2012 (4Q12). According to the latest market study by International Data Corporation (IDC), Android smartphone vendors and Apple shipped a total of 207.6 million units worldwide during 4Q12 -- that's up by 70.2 percent from the 122.0 million units shipped during 4Q11. For calendar year 2012, Android and iOS combined for 87.6 percent of the 722.4 million smartphones shipped worldwide -- that's up from 68.1 percent of the 494.5 million units shipped during calendar year 2011. "The dominance of Android and Apple reached a new watermark in the fourth quarter," said Ramon Llamas, research manager with IDC . Android boasted a...

The development of personal broadband and mobile broadband applications are being enabled by the next generation wireless broadband technologies -- such as WiFi (802.11ac - 802.11ad), LTE and LTE-A (LTE Advanced). According to the latest market study by Juniper Research, 4G LTE revenues are set to grow rapidly, reaching more than $340 billion by 2017 globally, that's compared to just over $75 billion in 2013. This latest growth will represent approximately 31 percent of total service revenues from all mobile network services of all generations (2G/3G/4G) at that time, and reflects the continued success of LTE in serving higher value subscribers. The new market study finds that with LTE gaining momentum over the past 12 months, initially dominated by the enterprise segment, consumer subscribers will begin to adopt services in volume in 2013 and will overtake the enterprise subscriber base in 2015. Juniper found that with the increased penetration of LTE capable smartphones a...

The substantial financial upside opportunities associated with nascent M2M services has attracted the attention of mobile network operators globally risks being thwarted by the growing security concerns in M2M applications. Porous security is exposing vulnerabilities in a large number of use-case scenarios, including SCADA systems, telemedicine, and telemetry. Most M2M applications are lacking the basic security requirements that have been a defacto standard for information and communication technologies elsewhere. If not addressed sooner, this weak link could throttle the successful adoption of M2M in healthcare, industrial installations, and consumer homes, according to the findings from the latest market study by ABI Research. "The markets ability to respond to these security challenges at the application level is still underdeveloped," says Michela Menting, senior analyst in cyber security at ABI Research . When faced with security requirements, the focus has be...

This week, at Mobile World Congress 2013, we can expect numerous announcements that demonstrate the forward-looking trends in the global smartphone marketplace. Are you ready? Looking back, comScore has released data about the key trends in the U.S. smartphone industry during the three month average period ending December 2012. From web browsing and app usage to social networking, messaging and multimedia, your audience is going mobile. Your challenge is to translate mobile consumption and consumer behavior into your mobile business strategy. Apple ranked as the top smartphone manufacturer during the period with 36.3 percent share, while Google Android led as the number one smartphone platform with 53.4 percent share. 125.9 million people in the U.S. owned smartphones -- estimated at 54 percent mobile market penetration -- during the three months ending in December, up 5 percent since September. Apple ranked as the top OEM with 36.3 percent of U.S. smartphone subscribers -- t...

Ovum expects Mobile World Congress (MWC) 2013 to focus on solutions aimed at driving mobile network operator service revenues. Ovum says that they're looking for a sense of reality -- and the acknowledgment that mobile service providers are no longer the sole provider of communications services. I've selected the three most insightful anticipated revelations that Ovum analysts expect to see from the MWC13 event next week. The Mobile Ecosystem Prepares for the Internet of Things "Machine-to-machine communications (M2M) has been a theme of MWC for several years, with multiple showcases from vendors and operators. Increasingly, M2M is being repositioned as the Internet of Things (IoT) as the focus shifts to connecting smart objects to Internet applications," said Jeremy Green, Telco Strategy at Ovum. Whereas M2M emphasized the business-to-business opportunity, which was conceptualized as vertical silos and niche markets, the IoT suggests a much larger opportunit...

What can the rest of the developed world learn from mobile network service providers in the emerging markets? Do the savvy marketers in these emerging nations have a better understanding of effective market development strategy? ​India currently offers the lowest priced mobile services plan that includes internet access, according to the latest global market study by ABI Research. "India’s lowest priced mobile data plans decreased 29.4 percent year-on-year (YoY) compared to Q4-2011, when it ranked fourth," said Marina Lu, research associate at ABI Research . According to the findings from ABI's survey, in stark contrast to India, UAE currently has the most expensive mobile internet pricing plan at $67.8 for 5GB. There is considerable fluidity in mobile data tariffs -- just one year ago, Singapore had the least expensive mobile internet tariffs, but it has since reduced its data caps while keeping the tariff pricing the same. Comparing mobile internet pricing bet...

The global wired broadband market -- including DSL, cable, and fiber-optic services -- generated $188 billion service revenue in 2012, that's a 7 percent increase from 2011. According to the latest market study by ABI Research, fixed broadband service revenue will grow to $251 billion by 2018. Across the globe in 2012, fiber-optic broadband service revenue had its strongest year-over-year growth of 24 percent, while DSL and cable broadband grew 2 percent and 6 percent respectively. Fiber to the home (FTTH) is expected to grow stronger than other platforms throughout the forecast period. In 2018, FTTH revenue should reach $81.6 billion, generating almost one-third of global broadband service revenue. Globally, overall broadband average revenue per user (ARPU) has continued to decline across all broadband platforms over the past few years. In some nations, consumers are getting more and paying less. "The trend is expected to endure as the majority of network operators ...

If you've followed the news last year about the consistent decline in cable TV subscribers within the United States, then you may have assumed ​that the overall market was in decline. The worldwide pay-TV market actually grew at a steady pace in 2012 generating $238 billion by end-of-year, that's up from $223 billion in 2011, according to the latest market study by ABI Research. The global pay-TV market is expected to generate $304 billion in 2018 with a compound annual growth rate (CAGR) of 4 percent. In some markets, continued revenue growth will likely come from increases to subscriber fees -- not from the addition of new subscribers. That being said, the global service revenue contributions from cable TV are proving to be mixed, according to ABI's current assessment. The Asia-Pacific region saw service revenue growth due to underlying increase in subscriptions. However, cable TV operators in North America are experiencing an ongoing decline in service revenue ...

The overall Latin American mobile market will grow by 7.1 percent this year -- ending 2013 with 742 million mobile subscriptions, according to the latest market study by Informa Telecoms & Media. While many developed mobile markets are struggling to continue growing, because of the deterioration of economic conditions, Latin America’s mobile market will prosper in 2013. "There is a big appetite for mobile data services in the region, and such services will be the growth engine for the sector," said Marceli Passoni, senior analyst at Informa Telecoms & Media . Although voice will remain the main revenue stream for mobile network operators, accounting for 76 percent of service revenues, data revenues will increase by 18 percent year-on-year -- reaching $27.7 billion. The low PC and fixed-broadband penetrations in Latin America, combined with a reduction in smartphone prices and greater affordability of mobile data plans, contribute to the increasing mobile broad...

With traditional core revenues from circuit switched voice under pressure, telecom service providers across the globe are exploring new strategies to remain competitive in an IP-based networking environment. To date, video communication is an untapped opportunity. As the market evolves, both mobile network operators (MNOs) and third-party service providers are encountering new challenges as they seek to increase (or maintain) market share and revenues. The number of users of mobile video calling services is forecast to increase four-fold to almost 160 million by 2017, driven by improvements in both the user-interface and the underlying technology, according to the latest market study by Juniper Research. Advertising and freemium models are beginning to emerge in the mobile video calling market, but revenue generation remains the key challenge for mobile video calling service providers. Freemium models are being explored, but are behind other areas of the broader mobile market, ...

The overall personal computing market went into an apparent tailspin during 2012. Regardless, media tablet shipments outpaced predictions reaching a record total of 52.5 million units worldwide in the fourth quarter of 2012 (4Q12), that's according to the latest market study by International Data Corporation (IDC). The tablet market grew 75.3 percent year over year in 4Q12 (up from 29.9 million units in 4Q11) and increased 74.3 percent from the previous quarter's total of 30.1 million units. Lower average selling prices (ASPs), a wide range of new product offerings, and increased holiday spending all acted as catalysts to push the already climbing media tablet market to record levels. "We expected a very strong fourth quarter, and the market didn't disappoint," said Tom Mainelli, research director at IDC . "New product launches from the category's top vendors, as well as new entrant Microsoft, led to a surge in consumer interest and very robust ship...

The worldwide mobile phone market grew 1.9 percent year over year in the fourth quarter of 2012 (4Q12), as strong holiday smartphone sales raised shipments of these devices to levels nearly equal to those of feature phones. According to the latest market study by International Data Corporation (IDC), vendors shipped a total of 482.5 million mobile phones in 4Q12 compared to 473.4 million units in the fourth quarter of 2011. For the full year, the global market for mobile phones grew 1.2 percent on shipments of more than 1.7 billion units. In the worldwide smartphone market, vendors shipped 219.4 million units in 4Q12, which represents 45.5 percent of all mobile phone shipments, the highest percentage ever. The 36.4 percent year-over-year growth was slightly below IDC's forecast of 39.5 percent for the quarter. On an annual basis, 712.6 million smartphones were shipped globally in 2012, which was 44.1 percent more than in 2011. "The high-growth smartphone market, though...

The number of discount coupons redeemed through mobile phones and media tablet devices is expected to reach 10 billion this year -- that's up by more than 50 percent on last year, according to the latest market study by Juniper Research. Juniper believes that innovative retailers are increasingly seeking to offer mobile as a delivery channel -- both as a means of driving in-store retail and to enhance consumer engagement and retention. It pointed out that while mobile still accounted for a comparatively low volume of coupons issued, retailers had been encouraged by the markedly higher average redemption rate of mobile coupons (approx 10 percent) when compared to traditional print media and PC coupons (typically 1 percent or less). Furthermore, the study findings showed that mobile couponing offered retailers the opportunity to marry their digital and physical assets. "While we’ve heard that online retail is killing the High Street -- witness United Retail filing for...

At the close of 2012, nearly 200 million tablets will have shipped worldwide since 2009 and an additional 1 billion tablets are forecast to ship over the next 5 years, according to the latest market study by ABI Research. New research that explores the impact a media tablet has on the daily life of a U.S. consumer shows that 22 percent of users spend $50 or more per month and 9 percent spend $100 or more -- that's much higher than spending levels observed by typical smartphone users. While tablets are most recognized as digital media consumption devices, there are a growing number of other common use-cases that extend beyond reading magazines or watching streaming video content. "Tablets are quickly becoming the go-to transaction screen within the home," says Jeff Orr, mobile devices senior practice director at ABI Research . Spending on-device of physical and virtual goods has not yet impacted retail storefronts -- which are already concerned about their venues t...

Smartphone shipments exceeded 200 million units in Q4 2012, with the annual total reaching 671 million -- representing a growth of almost 42 percent year-over-year, according to the latest market study by Juniper Research . Samsung continued its phenomenal growth over the year shipping a record 63 million smartphones and accounting for over 30 percent of all smartphone shipments in the quarter. Once again, sales of the Galaxy S3 drove growth, with sales surpassing 40 million in November 2012. However, despite the holiday season boost and iPhone 5 sales, Apple posted lower than expected iPhone sales -- at around 47.8 million, but still a record quarter for the company. With Samsung leading the market, Juniper believes that Apple will need to continue focusing on innovation, while retaining its brand leadership. Meanwhile, Nokia shipped 6.6 million smart devices in the fourth quarter, with the new Lumia device line still to make a significant impact with shipments of 4.4 million....

As I look back at the enabling role mobile networks played in advancing the Global Networked Economy during 2012, I'm wondering what to expect this year. Last years' performance was amazing, as the smartphone became a mainstream device that people everywhere used to gain access to the internet. Nearly 196 million smartphones and 451 million handsets were shipped during the fourth-quarter (Q4) 2012, according to the latest market study by ABI Research. This brings 2012 annual totals to 653 million smartphone and 1.6 billion handset shipments -- representing a 36 percent and 2 percent Year-over-Year growth rate respectively. Smartphones accounted for 43 percent of all handset shipments in Q4, which pushed smartphones to 41 percent of all shipments in 2012. Samsung retained its lead position overall by shipping 106 million handsets of which 60 million were smartphones in Q4 and capturing 31 percent of total smartphone shipments. In 2012 Samsung grew its handset shipments...

Mobile phone subscriber identification module (SIM) card annual shipments are expected to rise in 2013 by 5 percent to 5.5 billion units, according to the latest market study by ABI Research. Growth is slowing as markets near saturation and the SIM card becomes increasingly ubiquitous across different mobile network technologies. However, areas of growth remain with new applications, form factors, and an increasing breadth of connected products. As such, the related market value will grow at a higher rate to $2.3 billion this year and ASPs are forecast to increase slightly over the next five years. The emphasis is now on extracting maximum value from the 6.3 -- rising to 7.5 -- billion SIM cards in circulation. ABI believes that 4G mobile network rollouts, Near Field Communications (NFC) and solutions offering more advanced security for payments -- such as DRM, authentication, and encryption -- will all see higher end SIM cards shipping over the next few years. "Follow...

Traditional PC manufacturers that missed or underestimated the growing demand for media tablets have had to consider drastic measures -- as a result of their apparent lack of strategic foresight. Whether these devices are being used for entertainment, convenience, or enhancing productivity, media tablets continue to gain mainstream adoption in the worldwide marketplace. According to the latest market study by ABI Research, an estimated 145 million tablet devices will ship globally in 2013. A combination of new market entrants, more affordable choices for consumers, and increased adoption by business users will support the next wave of growth. "The rate of innovation is slowing as tablet vendors augment their product portfolios to meet the needs of market audiences," said Jeff Orr, senior practice director at ABI Research . The late 2012 launches of Apple’s iPad mini and a variety of slates based on Intel architecture and the Windows 8 operating systems will likely ...

For the retailer, the mobile device increasingly represents a multifaceted opportunity. It offers the ability to extend remote purchases to a mobile environment, unlimited by the fixed constraints of the desktop PC. In fact, most savvy retailers have already started to utilize mobile devices -- such as smartphones and media tablets -- as a touch-point on each stage of the retail life-cycle. According to the latest market study by Juniper Research, annual spend by retailers on mobile marketing will reach $55 billion by 2015 -- almost double the $28 billion that's expected this year. Their market study of the retailer landscape found that the development of a growing media tablet market had created new opportunities for brands seeking to enhance engagement with consumers. With eCommerce migrating to mobile and nomadic devices, advertising spend on both tablets and smartphones is continuing to grow strongly as retailers (notably in North America and Western Europe) migrate the...

Worldwide subscribers to the 4G wireless standard known as Long Term Evolution (LTE) are projected to surpass the 100-million mark this year, according to the latest market study by IHS iSuppli. LTE subscribers worldwide will reach 198.1 million in 2013 -- that's up by 115 percent from 92.3 million last year. Since being adopted in 2010 with just 612,000 users, the 4G next-generation wireless technology has grown by leaps and bounds, surging by an astounding factor of 22 to 13.2 million subscribers in 2011, and then jumping another 599 percent in 2012 to nearly 100 million subscribers. By 2016, LTE will claim more than 1.0 billion users, as shown in the figure below, equivalent to a five-year compound annual growth rate of 139 percent. "With LTE emerging as a true global technology standard, its ecosystem now faces both challenges and opportunities," said Wayne Lam, senior analyst for wireless communications at IHS iSuppli . Rapid adoption will drive design innova...

According to the latest global market study by Ovum, telecom service providers must continue to focus on cost controls to offset relatively flat revenue growth over the next five years. That being said, a significant ongoing cost is the employment of their internal workforce. Ovum believes telecom service providers may still have the potential to gain greater economies through their global telecom vendors -- in terms of network rollout, network operations, network optimization, customer experience and service quality management. Ovum forecasts a 2 percent annual growth rate in telecom service provider revenues between 2012 and 2018, as these carriers struggle to combat increased over-the-top (OTT) service competition. Moreover, their customers seem more interested in buying devices or mobile apps than telco services, and they continue to resist usage-sensitive billing for internet access. With little prospect of new revenue growth, Ovum anticipates that telecom service providers ...