Smartphone subscriptions will double from 3.2 billion now to reach 6.1 billion by 2020, according to a recent Ericsson report. According to the research firm 70pc of the world’s population will be using smartphones in the next 5 years and 80 pc of all smartphone subscriptions will be from emerging markets.
Ericsson Mobility Report claims that nearly 90 per cent of the globe will be covered by mobile broadband networks by 2020. The growth will be driven due to the availability of cheaper smartphones and will come primarily from emerging markets like Asia Pacific, the Middle East, and Africa. Currently smartphones constitute only 37 pc of the mobile phone market. The report adds that in mature markets the growth will come from an increasing number of devices per individual. There firm predicts a huge increase in data usage and states that the 80 percent of all mobile data traffic will come from smartphones. The average monthly data usage per smartphone in North America will increase from 2.4 GB now to 14 GB by 2020.
The report states that there will be 26 billion connected devices by 2020. Mobile video traffic will grow by an astounding 55 percent per year and will constitute 60 pc of all mobile data traffic in five years. The growth will be mainly due to increasing user preferences towards video streaming services, as well as more video in online content like social media, news and advertisements. Ericsson says introduction of faster 5G services will also be a factor in the increased usage of mobile data.
Rima Qureshi, Senior Vice President, Chief Strategy Officer, Ericsson, says: 'This immense growth in advanced mobile technology and data usage, driven by a surge in mobile connectivity and smartphone uptake, will makes today's big data revolution feel like the arrival of a floppy disk. We see the potential for mass-scale transformation, bringing a wealth of opportunities for telecom operators and others to capture new revenue streams. But it also requires greater focus on cost efficient delivery and openness to new business models to compete and remain effective.'