Mobile broadband subscriptions to hit 1billion mark in 2011

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. Smartphone 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.

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 organisations.

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.

In New Zealand and Australia

According to Warren Chaisatien, Strategic Marketing Manager, Ericsson Australia/New Zealand, Ericsson expects the number of mobile broadband subscriptions in Australia to reach the 4 million mark around now. In Australia, mobile broadband accounted for 36% of internet connections in 2010, up 12% from the previous year.

"The popularity of tablet computing devices for enterprise and consumer applications will further drive mobile broadband growth in 2011 across Australia and New Zealand," said Mr Chaisatien.

According to IDC: In New Zealand, mobile internet connections via handsets will grow from 1.4 million in 2010 to 1.6 million in 2011 (18% growth) 1

Mobile broadband connections (i.e. via USB/dongle) will grow from 252,000 in 2010 to 333,000 in 2011 (32% growth) 2

Data connections as a percentage of total mobile connections will increase from 32% in 2010 to 37% in 2011 3

Mobile internet/broadband spending will increase from $236m in 2010 to $302m in 2011 (28% growth) 4

1,2,3 and 4 courtesy IDC New Zealand, www.idc.com/nz

ENDS

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