Performance of smartphoneEXPERIENCE

What happens when my whole life depends on my smartphone? And how can networks ensure that it works perfectly when every person has one in their hand? The smartphone connection becomes a critical tool for our lives. And network performance is critical, not only for a good user experience, but also for the entire ecosystem; device manufacturers, operators and application developers.

10x growth in smartphone traffic between 2013 and 2019.

50% of users abandon a web-page after 10 seconds if it has not loaded.

In 2013, the smart-phone shipment increased with 49%.

Executive summaryWhat happens when my whole organized life depends on my smartphone? And how can networks ensure that it works perfectly when every person has one in their hand? The advent and rapid adoption of smartphones – they are now outselling feature phones – revolutionized the way we connect. But the way we use smartphones is changing, from surfing the internet to using connected services powered by mobile apps. We use them to do things: play a game, get directions, make a payment, get fit, do our jobs. The smartphone connection becomes a critical tool for our lives. And network performance is critical for the entire mobile ecosystem: device manufacturers, operators and application developers.

CHANGED CONSUMER BEHAVIOUR54% of the consumers say smartphones make them more efficient, but the experience often doesn’t live up to expectations. Problems with coverage and waiting times harm consumer loyalty. Around 30 percent of users have problems every day, 60 percent every week. Slow browsing and slow downloads are the most common issues, while 15-20 percent regularly lose internet or service access.

And as more people get higher-end devices, the demands on networks in terms of coverage, capacity and speed will just keep on growing.

We are using our smartphones anywhere and anytime. Even on public transport, where service is often less than perfect, nearly half of our fellow travelers are connecting to their social networks and reading the news. New usage patterns are changing the requirements for networks: people sitting and waiting watch more video, for example, which demands more capacity.

NEW BUSINESS MODELS Successful operators who shifted to the smartphone para-digm – with the right network performance and service bundles – have seen profitable growth.

There are two approaches to smart packaging: to package data or to package services, collaborating with third-party service providers. Bucket data deals provide varying quantities of data at different price points. The alternative bundles data and connectivity with services, an operator’s own (storage, navigation) or third-party services (such as Spotify). Another business model is co-bundling, even closer integration together with a third-party provider. Now most operators are maintaining mobile broadband tiered pricing and shared data plans are adopted in many markets.

EXPECTATIONS PUSH NETWORK EVOLUTIONThe smartphone becomes more and more central in people’s lives and constantly brings new expectations from the consumers.

Already in 2011, time spent on apps surpassed the time we spend on web browsing.

In parallel, service providers expect to reach the consumers seamlessly via the smartphone.

These expectations push network evolution. 60% of the traffic is already web browsing, social media and streaming. Networks need to be prepared to not only handle the huge growth in data but also the growth of diversifying needs. So, in the end, it all boils down to how well your network supports these trends and business models. At Ericsson, this is at our core, to develop networks that responds the new challenges and gives operators the ability to prosper.

CORE PRINCIPLES FOR ACHIEVING BETTER SMARTPHONE EXPERIENCE At Ericsson, we believe there are 3 core principles that will support operators in developing and improving the network performance for better smartphone experience. Think App coverage. Think Everywhere. Think Ecosystem.

Think App coverageIn essence, the processes used by operators to manage network quality for voice can be employed for mobile data – with one major difference. Voice services involve well-known and static KPIs. Delivering data services with wide spectrum of apps, many apps requires decisions about service levels that must be continually revisited as the apps evolve and present new requirements. Operators

Successful operators who shifted to the smartphone paradigm – with the right network performance and service bundles – have seen profitable growth and outperform competition.

will need to adapt continually as mobile devices, apps and network capabilities all develop in parallel. The advantage of an App coverage focus is that this approach enables the integration of coverage, capacity and quality into a holistic view of network performance, allowing the operator to deliver network quality that meets the user experience.

Think everywhereWe use smartphones differently than feature phones. We use them all the time and everywhere, adoption of new behaviors and expectations. Operators need to ensure that they understand the different requirements that different contexts put on the network.

Think EcosystemThe smartphone experience is critically dependent on the three factors - network, device and app. Devices and apps must be included in the equation and synchronized when developing and improving the network.

To realize the core principles and deliver what our customer’s need, Ericsson uses an iterative method based on assess-ment, optimization, evolution and collaboration.

Assess First of all, the network should be reviewed from a smart-phone perspective providing information of current issues and a reference of wanted performance levels. For instance, how many 3G capable Smartphone users camp on 2G when they should camp on 3G that provides a better experience? If this is the case, it will impact severely the performance perceived by the user and limits the app usage.

Different smartphones behave differently. When knowing which device is related to which problem, it is possible to plan actions to replace those devices, or introduce specific setting in the network to reduce the impact.

Tune and optimizeTuning and optimization is one of the most important actions to maximize the usage of existing assets in the network. Example: Signaling is one of the major challenges that Smartphone brings. The constant communication of the Apps requires a lot of resources of the network, and even more during handovers. By reducing handovers through network tuning and optimization the network is being off-loaded.

Network evolution

To evolve the network, operators need different solutions to meet the varying requirements of capacity. Radio and transport need to evolve together and they should evolve in a way to always be ahead of the growth in traffic.

There are different needs in rural areas than in suburban areas. In rural areas there is mainly a need to improve coverage and capacity, while in urban areas it is about improving, densifying and add capacity and coverage. We call this approach heterogeneous networks and the performance of a heterogeneous network depends greatly on the degree of radio coordination between cells.

For the best network experience, advanced traffic management is needed to assign devices to the best radio access, cell type and frequency band(s) at all times. Only relying on standardized protocol support, would be highly inefficient and bring a poorer user experience. By using coordinated small cells, the macro spectrum can be fully reused in the small cells, which means the same services can be delivered using less spectrum; simply because the achievable user bit-rate is proportional to spectrum bandwidth. Expanding capacity on existing sites is probably the way to serve the “next billion data users”.

CollaborationTo support our customers with the best performing net-works, Ericsson collaborates with the leading players in the eco system to gain knowledge and understand the network requirements and the new business models. We gain experience by providing networks in the most demanding smartphone markets in the world and through Ericsson labs we gain deep understanding of how the device interacts with the network.

SUMMARYTo ensure a great smartphone experience, Ericsson recommends:

> Secure user experience by building superior app coverage > Create market differentiation by innovative business models

> Align network strategy for current and future device and app evolution

Contact your Ericsson representative for more details. www.ericsson.com

Telefonaktiebolaget LM Ericsson

SE-126 25 Stockholm, Sweden

Telephone +46 8 719 0000

Fax +46 8 18 40 85

www.ericsson.com

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© Ericsson AB 2013

Ericsson is a world-leading provider of telecommunications equipment and services to mobile and fixed network operators. Over 1,000 networks in more than 180 countries use our network equipment, and more than 40 percent of the world’s mobile traffic passes through Ericsson networks.

We are one of the few companies worldwide that can offer end-to-end solutions for all major mobile communication standards. Our networks, telecom services and multimedia solutions make it easier for people, across the world, to communicate.

And as communication changes the way we live and work, Ericsson is playing a key role in this evolution. Using innovation to empower people, business and society, we are working towards the Networked Society, in which everything that can benefit from a connection will have one.

Our vision is to be the prime driver in an all-communicating world

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