Tata AIG General Insurance Company - Insurer Innovation Award 2024
App coverage in cities
1. APP COVERAGE
IN CITIES
Rethinking smartphone coverage
and capacity in cities
We live in a world of growing cities, with the urban
population increasing at a rate of 7
,500 people per
hour. Today, over half of the global population lives in
cities. Over the next 20 years, this growth is predicted
to continue, and by 2050, between 6 and 7 billion
people will live in urban areas.
A high quantity of today’s mobile data traffic is already
being generated in metro areas. 45 percent of people
living in cities own a smartphone. They rely on their
devices to ease the challenges of everyday life, and
having good mobile coverage is now ranked among
the top five satisfaction factors in cities.
2. In order to compare network performance in
cities globally, we analyzed measurements from
Speedtest.net. This allowed us to determine which
downlink throughput rates can be obtained with a
90 percent probability. The graph below estimates the
acceptable quality level for a number of app types in
order to put the performance into context. Of the cities
studied, only Copenhagen and Oslo have a 90 percent
probability of getting a 1 Mbps downlink throughput or
higher. In Shanghai, Jakarta, Beijing, Moscow, São Paulo,
Cairo and Delhi, the corresponding speed is less than
100 Kbps.
Having good mobile coverage is an important aspect
of life in the city for today’s consumers. However, in
many cities around the world, app coverage is
surprisingly limited.
The majority of mobile traffic originates in cities, and
it is in these urban environments that the challenge to
provide a good connection is greatest. At the same time,
urban users expect instant, reliable access to their apps,
wherever they go.
72
0
de K b
o ps
st
re
am
in
g
There is a high probability of voice coverage in all
cities, while video streaming only has appropriate app
coverage in Copenhagen, Oslo and Seoul. Adequate
coverage to stream music is lacking in a number of the
researched cities, and even fewer have sufficient network
performance for video telephony services.
Vi
12
.5
Kb
ps
Vo
16
ic
M 0K
e
us b
ic ps
st
r
32 e a m
Vi 0 K
de b ing
o ps
te
le
ph
on
y
App coverage is the probability that the network
will deliver sufficient performance to run a particular
application at an acceptable level of quality. Providing
a good user experience will always involve a balancing
act between networks, devices and apps.
Delhi
São Paulo
Moscow
Cairo
Out of the group, Oslo and
Copenhagen are the only cities
with 90% probability of receiving
1 Mbps downlink speeds
Beijing
Jakarta
Shanghai
Lagos
Istanbul
Downlink throughput rate with a 90 percent probability (Kbps)
Tokyo
New York
Miami
London
Johannesburg
Seoul
Oslo
Source: Based on Ericsson’s
analysis of Speedtest.net results
provided by Ookla (2013)
Copenhagen
500
Stockholm app usage
Ericsson has studied hundreds of smartphone users in
Stockholm1 over the course of a year to get a deeper
understanding of their usage.2 The study gives a flavor
of some people’s app usage. The results show that
there is a broad spectrum of how often smartphones
are used. The most frequent users interact with their
smartphone more than 150 times a day, or an average
of every 7 minutes during the daytime. Between
1,000
1,500
8 am and 8 pm, business apps (e.g. Office Suite, Lync),
communication (e.g. Gmail, WhatsApp) and music
apps (e.g. Spotify) are most frequently used, while
educational apps (e.g. vocabulary and educational
games) are in demand during the rush hours at 8 am
and 5 pm. During the night, the tendency is to use
entertainment (e.g. YouTube, IMDB) and personalization
apps (e.g. Evernote, Dropbox).
1
Stockholm ranks high in ICT maturity compared to other cities according to the Ericsson Networked Society City Index.
2
Ericsson Apps is a learning engine that suggests mobile apps based on the behavior of those users that agree to share their app behavior.
3. 35,000
There is a large difference
between peak and 90%
probability speeds
30,000
90 percent probability downlink speed (Kbps)
Median downlink speed (Kbps)
25,000
Peak downlink speed (Kbps)
20,000
15,000
10,000
5,000
0
Seoul
New York
São Paulo
Source: Based on Ericsson’s analysis of Speedtest.net results provided by Ookla (2013)
All cities are unique and provide different conditions
for operators to be able to offer sufficient network
performance. Usage patterns are not the only way cities
differ. Other ways include population density, economic
and population growth, geographical and structural
conditions, and infrastructure legacy.3
In all of the cities studied, there is a large difference
between the 10 percent (peak), 50 percent (median)
and 90 percent probability speeds. Data service quality
depends on, among other things, distance from the
base station, local landscape, size and composition of
buildings, fading and interference. If users are expecting
the peak speed, but are only receiving the 90 percent
probability speed, then they are likely to be dissatisfied
with the service they are receiving.
3
Ericsson consumer research in cities shows that citizens
notice the difference in voice and internet coverage,
irrespective of it being mobile, fixed or Wi-Fi. In all areas
of the city, except for in the home, internet satisfaction
is falling behind voice satisfaction. In some cities, such
as Istanbul, the difference between voice and internet
satisfaction is extensive – up to 20 percentage points in
some places.
City dwellers spend half of their time at home and
one quarter at work or school. Grocery stores are visited
at least weekly by 65 percent of people in large cities,
while approximately 40 percent visit a shopping mall
and a restaurant or cafe at least weekly.
Ericsson’s Networked Society City Index provides a deeper understanding of cities’ ICT maturity position and social, economic and environmental status.
