brazilian broadband study by acision
DESCRIPTION
In August of 2010, Acision commissioned independent market research agency, Quanti, to undertake a detailed survey to understand consumer perceptions of mobile broadband in Brazil. The research covered key aspects associated to mobile broadband today, including insight in Mobile broadband usage and Quality of Experience. The research in Brazil forms part of a global research initiative that Acision has undertaken in the United Kingdom, the US, Australia and Singapore. For every region, the Acision research focuses on all aspects of mobile broadband including the usage of the mobile internet on Smartphones, mobile handsets, dongles, modem sticks, data cards, netbooks, and integrated mobile broadband within laptops. The motivation for Acision to undertake this global research has been the phenomenal uptake of mobile broadband worldwide and the rumoured Quality of Experience issues accompanying it's steady rise. One of the key objectives of the research has been to quantify these QoE issues, understand it's principle drivers and determine whether global parallels exist in its development lifecycle. Also, the potential for addressing the key issues in terms of consumer awareness of mobile broadband and willingness to accept fairness, optimisation and differentiation measures, has been another key objective. In both areas we can conclude the global research initiative has been very successful and provides insight in this new and exciting market segment which is beneficial to all stakeholders, being consumers, operators, content providers and regulators. In this report we have dedicated a section on how Brazil can prepare for growth in Mobile broadband subscriber uptake and usage. Comparing the research results from Brazil with those from mature Mobile broadband markets, like the US and the UK, provides useful insight for Brazilian operators on fairness principles, how to deal with video, and ways to differentiate the Mobile broadband offer. The research in The US, UK, Australia and Singapore, which is also referenced in this report, had been conducted by YouGov and Toluna. Separate reports for each of these countries are available as well.TRANSCRIPT
© 2010 Acision BV. All rights reserved Version No: 1.0 / Status: FINAL © 2011 Acision BV. All rights reserved
Mobile Broadband, Quality of Life & Marketplace Virtualization
Rafael Steinhauser President Acision Latin America
DLD – Rio de Janiero, April 26th, 2011
Version No: 1.0 / Status: FINAL
Broadband as economic growth engine
Brazil GDP per capita, 2011 = U$5,300Broadband penetration: 20% (38,5M of users (14M fixed + 24M Mobile)Broadband connections growth 2011= 51,5% – Mobile broadband growth 77,7%
Version No: 1.0 / Status: FINAL
For every 10% increase in broadband penetration, it is estimated that GDP might grow by ~1.4 pp
Source: World Bank
Version No: 1.0 / Status: FINAL
Broadband significance in today’s life...
Source: World Bank
Version No: 1.0 / Status: FINAL
First step: address Universalization…
Public- Private partnerships
Low interest loans for investment in network rollout
Incentives for network sharing practices (aiming at lowering costs of broadband network deployment)
Special broadband usage awareness & education programs
Subsidized services for poor citizens
Tax incentives in computer sales
Bundling and spectrum usage regulation ease
Government and public info online + creation of e-government and other e-applications (such as for health, education, and agriculture)
Examples of Public Policies to Stimulate Broadband Universal Access
Source: World Bank
Version No: 1.0 / Status: FINAL
Nowadays
Mobile Communications significance…
30 years ago 15 years ago
Voice +
Data Connectivity
Connectivity +
Virtual Marketplace
MobileTechnology
Services
CelcoBusiness
Analog Digital IP
Voice Voice + Data Voice + Data + BB
Voice Connectivity
Version No: 1.0 / Status: FINAL
…through so-called ‘Global Virtual Marketplaces’
Source: Telefonica
© 2010 Acision BV. All rights reserved Version No: 1.0 / Status: FINAL
Seizing the opportunity in Mobile Broadband
© 2011 Acision BV. All rights reserved
Version No: 1.0 / Status: FINAL
The Mobile Internet Story So Far
HSDPAEDGEGPRSCSD HSDPA+ LTE LTE-A ?
2000 2004 2008 2010 2012 201620142002CUSTOMER PENETRATION
TR
AF
FIC
VO
LU
ME
Acquisition strategies• All you can eat• FUP• Fixed price• iPhone
Acquisition strategies• Capacity upgrades • Data caps• Tiering• Transaction pricing• Content mediation
Pricing is the trigger
Usability is the prerequisite
© 2010 Acision BV. All rights reserved Slide Number: 9
Version No: 1.0 / Status: FINAL
CSD GPRS EDGE HSDPA HSDPA+ LTE LTE+ ?
2000 2004 2008 2010 2012 201620142002CUSTOMER PENETRATION
TR
AF
FIC
VO
LU
ME
CU
ST
OM
ER
T S
AT
ISFA
CT
ION
Looking ahead on the curve
Version No: 1.0 / Status: FINAL
48%
80% 83%
52%
20% 17%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Brazil US* UK
Mobile Only
Fixed & Mobile
Mobile-only internet very high in Brazil
Slide Number: 11
Mobile only access to internet is much higher in Brazil as an alternative for fixed access
Mobile broadband is therefore the only internet experience for many people and there is less fixed line comparison
Mobile only use and combined use
Source: Quantinet/YouGov/Acision, 2010
Version No: 1.0 / Status: FINAL
Enormous untapped potential in Brazil
Slide Number: 12
Perception of non-mobile internet consumers66% of consumers (44 million) with access do not use mobile internet
6.1 million (14%) consumers are considering the service now
7.3 million (16%) are simply unaware of the advantages or services Source: Sept 2010 Quantinet research commissioned by Acision N=1506
55%
31%
14% 13%11%
6% 5%
0%
10%
20%
30%
40%
50%
60%
Tooexpensive
No need Considering it Not reliable see noadvantages
not availabefor me
Don’t know services
Version No: 1.0 / Status: FINAL
Key takeaways from our research
Slide Number: 13
1. Major opportunities exist today with over 6 million consumers ready to start using mobile broadband now
2. Pricing is a probable inhibitor for growth and seen as a key dissatisfier for 55% of Brazilians
3. Relatively comparable satisfaction levels compared to the US and UK, but moving forward Brazilian operators should deploy key capabilities to manage QoE levels in an exponential growth situation