This document is a scheduled update to some sections of the Ericsson Mobility Report, released in June 2014.

To view or download a copy of the original report, please visit: www.ericsson.com/ericsson-mobility-report

We will continue to share traffic and market data, along with our analysis, on a regular basis.

ERICSSONMOBILITYREPORTON THE PULSE OF THE NETWORKED SOCIETY

SUBSCRIPTIONS

Mobile broadband subscriptions passed 2.4 billon in Q2 2014

TRAFFIC

60% growth in data traffic between Q2 2013 and Q2 2014

August 2014

INTERIM UPDATE

6.8 billionmobile subscriptions globally in Q2 2014

530

Wes

tern

E

uro

pe

590

Cen

tral

an

d

Eas

tern

Eu

rop

e

370

Mid

dle

E

ast

850

Afr

ica

1,360

AP

AC

(exc

lud

ing

Ch

ina

and

Ind

ia)

800

Ind

ia

720

Lat

in A

mer

ica

1,260

Ch

ina

370

No

rth

A

mer

ica

Mobile subscriptions Q2 2014

2 ERICSSON MOBILITY REPORT INTERIM UPDATE AUGUST 2014

Total mobile subscriptions up to and including Q2 2014 were around 6.8 billion. Of these, 80 million new subscriptions were added during Q2 2014. However, the actual number of subscribers is around 4.6 billion, since many have several subscriptions.

Global mobile penetration was 94 percent in Q2 2014. Other interesting developments include:

> China grew most in the quarter in terms of net additions (+12 million), followed by Russia (+5 million), India (+5 million) and Indonesia (+4 million).

> Mobile subscriptions are growing around 6 percent year-on-year and 1.1 percent quarter-on quarter.

> In Q2 2014, mobile broadband subscriptions passed 2.4 billion, growing by around 140 million, reflecting a year-on-year increase of around 35 percent.

> WCDMA and HSPA subscriptions grew by around 70 million and LTE subscriptions increased by approximately 40 million to 280 million. The total number of subscriptions capable of using GSM grew by 90 million, while GSM-only subscriptions declined by 40 million, a rate of 1 percent.

> Around 300 million smartphones were sold in Q2 2014. This device represented more than 65 percent of all mobile phones sold in Q2 2014, compared to around 55 percent in Q2 2013. Of all mobile phone subscriptions, around 35 percent are associated with smartphones, leaving considerable room for further uptake.

Indian subscriptions include active VLR subscriptions.

Mobile subscriptions (million)

Africa

127%

INTERIM UPDATE AUGUST 2014 ERICSSON MOBILITY REPORT 3

Note that Turkey has been included as part of the Middle East instead of Central and Eastern Europe since Ericsson Mobility Report November 2013.

103%

No

rth

Am

eric

a

Wes

tern

Eu

rop

e

144%

Cen

tral

an

d E

aste

rn E

uro

pe

108%

Mid

dle

E

ast

75%

Afr

ica

105%

AP

AC

(exc

lud

ing

C

hin

a an

d In

dia

)

63%

Ind

ia

116%

Lat

in A

mer

ica

Ch

ina

Penetration

Glo

bal

pen

etra

tion

94%90%

4 million

5 million

8 million

6 million

20 million

20 million

12 million

2 million

3 million

North America

Western Europe

80 millionnew mobile subscriptions globally in Q2 2014

Central and Eastern Europe

Middle E

astC

hina

Latin America

India

APAC (e

xclu

ding

Chi

na a

nd In

dia

)

Mobile Traffic Q2 2014Global traffic in mobile networks

The graph below shows total global monthly data and voice traffic. It depicts a strong increase in data traffic with a moderating rate of growth and flat voice traffic development. The number of mobile data subscriptions is increasing rapidly, and driving growth in data traffic along with a continuous increase in the average data volume per subscription. Data traffic grew around 10 percent between Q1 2014 and Q2 2014.

It should be noted that there are large differences in traffic levels between markets, regions and operators.

These measurements have been collected by Ericsson over several years using a large base of commercial networks that together cover all regions of the world. They form a representative base for calculating total traffic in the world’s mobile networks.1

The contents of this document are based on a number of theoretical dependencies and assumptions and Ericsson shall not be bound by or liable for any statement, representation, undertaking or omission made in this document. Furthermore Ericsson may at any time change the contents of this document at its sole discretion and shall not be liable for the consequences of such changes.

Ericsson AB

SE-126 25 Stockholm, Sweden

Telephone +46 8 719 0000

www.ericsson.com

EAB-14:045541 Uen, Revision A

© Ericsson AB 2014

1 Traffic does not include DVB-H, Wi-Fi, or Mobile WiMax. Voice does not include VoIP.

1,500

1,000

2,000

2,500

500

Voice

Data

Tota

l (u

plin

k +

do

wn

link)

mo

nth

ly t

raffi

c (P

eta

Byt

es)

Q1 2014

Q2Q1 2010

Q2 Q3 Q4 Q1 2011

Q2 Q3 Q4 Q1 2012

Q2 Q3 Q4 Q1 2013

Q2 Q3 Q4

60%growth in data traffic between Q2 2013 and Q2 2014