Saudi Arabia Country Report Mobile Handset Installed Base 2012-2016

Worldwide Mobile Installed Base 2012-2016 – Saudi Arabia

2

© 2013, Portio Research. All Rights Reserved


Portio Research Limited.
Published November 2012 by Portio Research Limited © Copyright 2013.
www.portioresearch.com
info@portioresearch.com

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3


Contents
Mobile Installed Base – Worldwide ........................................................................................7
Non-Smartphone Installed Base Regional Snapshot ......................................................................... 13
Smartphone Installed Base Regional Snapshot................................................................................. 15
Europe ............................................................................................................................................... 19
Asia Pacific ........................................................................................................................................ 20
North America .................................................................................................................................... 21
Latin America ..................................................................................................................................... 22
Middle East & Africa........................................................................................................................... 23

Mobile Installed Base – Saudi Arabia ..................................................................................25
Summary and Conclusion .....................................................................................................29
Appendices .............................................................................................................................36
Glossary .......................................................................................................................................... 37
Portio Research Classifications ....................................................................................................... 47
About the Authors............................................................................................................................ 48
Also available from Portio Research Limited ..................................................................................... 49

4



List of Figures
Figure 1:
Figure 2:
Figure 3:
Figure 4:
Figure 5:
Figure 6:
Figure 7:
Figure 8:
Figure 9:
Figure 10:
Figure 11:
Figure 12:
Figure 13:
Figure 14:
Figure 15:
Figure 16:
Figure 17:
Figure 18:
Figure 19:
Figure 20:
Figure 21:
Figure 22:
Figure 23:
Figure 24:
Figure 25:
Figure 26:
Figure 27:
Figure 28:
Figure 29:
Figure 30:
Figure 31:
Figure 32:
Figure 33:
Figure 34:
Figure 35:
Figure 36:

Mobile Subscribers Classification ....................................................................................................... 7
Mobile Installed Base – Definitions ..................................................................................................... 8
Mobile Handset Shipments – Worldwide (In Million, 2011 – 2016F) .................................................. 9
Smartphone Shipments – Worldwide (In Million, 2011 – 2016F) ........................................................ 9
Smartphones’ Contribution to Overall Handset Shipments – Worldwide (In Percent, 2011, 2012E &
2016F) .............................................................................................................................................. 10
Mobile Installed Base – Worldwide (In Million, End 2011 – End 2016F)........................................... 11
Mobile Installed Base Penetration by Type – Worldwide (In Percent, 2011, 2012E & 2016F) ........ 12
Mobile Installed Base Penetration by Type – Worldwide (In Percent, End 2011 – End 2016F) ....... 13
Non-Smartphone Installed Base – Regional Snapshot..................................................................... 14
Non-Smartphone Installed Base – Regional Contribution (In Percent, End-2011, End-2012E & End2016F) .............................................................................................................................................. 15
Smartphone Installed Base – Regional Snapshot ............................................................................ 16
Smartphone Installed Base – Regional Contribution (In Percent, End-2011, End-2012E & End2016F) .............................................................................................................................................. 17
Mobile Installed Base – Europe (In Million, End 2011 – End 2016F) ................................................ 19
Mobile Installed Base Penetration by Type – Europe (In Percent, End 2011 – End 2016F) ............. 19
Mobile Installed Base – Asia Pacific (In Million, End 2011 – End 2016F) ......................................... 20
Mobile Installed Base Penetration by Type – Asia Pacific (In Percent, End 2011 – End 2016F) ...... 20
Mobile Installed Base – North America (In Million, End 2011 – End 2016F) .................................... 21
Mobile Installed Base Penetration by Type – North America (In Percent, End 2011 – End 2016F) . 21
Mobile Installed Base – Latin America (In Million, End 2011 – End 2016F) ..................................... 22
Mobile Installed Base Penetration by Type – Latin America (In Percent, End 2011 – End 2016F) .. 22
Mobile Installed Base – Middle East & Africa (In Million, End 2011 – End 2016F) ........................... 23
Mobile Installed Base Penetration by Type – Middle East & Africa (In Percent, End 2011 – End
2016F) .............................................................................................................................................. 23
Non-Smartphone Installed Base – Saudi Arabia (In Million, End 2011 – End 2016F) ...................... 25
Smartphone Installed Base – Saudi Arabia (In Million, End 2011 – End 2016F) .............................. 25
Contribution to Regional Non-Smartphone Base – Saudi Arabia (In Percent, End 2011 – End
2016F) .............................................................................................................................................. 26
Contribution to Regional Smartphone Base – Saudi Arabia (In Percent, End 2011 – End 2016F) ... 26
Mobile Installed Base Penetration by Type – Saudi Arabia (In Percent, End 2011 – End 2016F) .... 27
Mobile Installed Base – Worldwide (In Million, 2011 & 2016F) ......................................................... 29
Non-Smartphones Installed Base Snapshot – Worldwide (In Million, 2011 - 2016F)........................ 30
Smartphones Installed Base Snapshot – Worldwide (In Million, 2011 - 2016F) ............................... 30
Mobile Installed Base Trend – Worldwide (End 2011 – End 2016F) ................................................ 31
Mobile Installed Base Trend – Europe (End 2011 – End 2016F)...................................................... 32
Mobile Installed Base Trend – Asia Pacific (End 2011 – End 2016F)............................................... 32
Mobile Installed Base Trend – North America (End 2011 – End 2016F) .......................................... 33
Mobile Installed Base Trend – Latin America (End 2011 – End 2016F) ........................................... 33
Mobile Installed Base Trend – Middle East & Africa (2011-2016F) .................................................. 34

List of Tables
Table 1:
Table 2:

Non-Smartphone Installed Base – Regional and Worldwide (In Million, End 2011 – End 2016F) .... 14
Smartphone Installed Base – Regional and Worldwide (In Million, End 2011 – End 2016F)............ 16


5


Chapter 1
Mobile Installed Base – Worldwide

6



Mobile Installed Base – Worldwide
Mobile penetration worldwide crossed the 85 percent mark in the year 2011. With the industry
witnessing stagnation in developing markets, and experiencing low growth in emerging markets, the
focus of MNOs worldwide is to enlarge their product and service portfolio, offering high speed data
services to their subscribers. This change has been equally supported by mobile handset vendors, who
have launched an array of advanced handsets in the recent past. In this entire framework, mobile
subscribers can be broadly classified into two categories:

Figure 1: Mobile Subscribers Classification

Subscribers
using
Smartphones

Subscribers
not using
Smartphones

Worldwide
Mobile
Subscriber
Base

Source: Portio Research Ltd.

The figure below defines the key terminologies and assumptions used to arrive at the data points
presented in the report.


7


Figure 2: Mobile Installed Base – Definitions

Non Smartphones

• Non Smartphones include Basic Handsets and Featurephones.
• Basic Handsets: Mobile handsets with only voice and sms capabilities
• Featurephones: Mid-level mobile handsets with camera and Internet
browser and ability to run apps based on JAVA ME and BREW platform

Smartphones

• A smartphone is a handset that is based on an Operating System that
allows it to run applications. A smartphone is capable of downloading and
running applications that includes third -party applications and has its own
built in memory. Furthermore, just like a PC, a smartphone has a processor
and RAM and is able to run multiple applications simulatenously.

Mobile Subscribers

• Active SIMs as reported by the opertors worldwide. "Total subscribers" for a
network/country or globally, is the count of the total number of active
subscriptions those networks have.

Mobile Handset Shipments

• Total number of primary shipments made by the mobile handset vendors to
a market/geography.

Handset Replacement Rate

• Annual rate at which the existing mobile subscribers change/upgrade their
handsets.

Mobile Installed Base

• Total number of active devices- Smartphones /Non-Smartphones in a
country/region as a cumulative total


The mobile handset industry is expected to continue its growth phase in the foreseeable future. The
overall market will grow at a CAGR of 6.8 percent during the period 2011-2016 and the number of
annual handset shipments will cross 2 billion in the year 2015. Overall handset shipments are expected
to reach 2.1 billion in the year 2016. The figure below shows total handset shipments for the period
2011 to 2016.

8



Figure 3: Mobile Handset Shipments – Worldwide (In Million, 2011 – 2016F)

Mobile Handset Shipments
(In Million)

2,700
2,200
1,700

1,549

1,674

1,819

1,947

2,148

2,056

1,200
700
200
2011

2012E

2013F

2014F

2015F

2016F

Year

E – Estimated , F – Forecast

Furthermore, worldwide Smartphone shipments will cross the 1 billion mark in 2016, reaching 1,095
million, and account for 51 percent of total handset shipments in that year. The figure below shows
Smartphone shipments for the period 2011-2016.

Figure 4: Smartphone Shipments – Worldwide (In Million, 2011 – 2016F)

Smartphone Shipments
(In Million)

1,200

1,095
968

1,000
858
752

800
655
600

485

400
200
2011

2012E

2013F

2014F

2015F

2016F

Year


The increasing penetration of Smartphones bodes well for both operators and handset vendors. It helps
an operator to get subscribers onto bundled plans, which strengthens ARPU, and reduces churn.
Furthermore, migration of subscribers from feature phones and basic handsets to Smartphones helps
handset vendors strengthen their revenue.
Smartphones accounted for around 31 percent of total handset shipments during the full year 2011.
This figure is expected to reach 39.1 percent in 2012. Moreover, by 2016, more than half (51 percent)


9


of total handset shipments will be Smartphones. The figure below highlights the contribution of
Smartphones to overall handset shipments for the years 2011, 2012 and 2016.

Figure 5: Smartphones’ Contribution to Overall Handset Shipments – Worldwide (In Percent, 2011, 2012E &
2016F)

2011

2012E
31.3%

39.1%

60.9%

68.7%

2016F

51.0%

49.0%

Smartphone Shipments

Non Smartphone Shipments


While the shipments of Smartphones are stealing a march over those for the Non-Smartphone
category, the installed base of Non-Smartphones is still significant, and cannot be overlooked by
players in the wireless ecosystem.

10



The figure below shows the mobile installed base for the period 2011-2016.

Figure 6: Mobile Installed Base – Worldwide (In Million, End 2011 – End 2016F)

10,000
8,000

Installed Base
(In Million)

2,030

3,067

1,555

2,539

1,131

5,198

5,381

5,460

5,481

5,458

5,412

2011

6,000

2012E

2013F

2014F

2015F

2016F

770

4,000
2,000
0

Year
Non Smartphones

Smartphones


It is estimated that the number of Smartphone users will cross the 3-billion mark by 2016, up from 770
million as of end-2011. However, Non-Smartphone users will continue to overshadow Smartphone
users year-on-year, and would be a substantial category during the same period. It is estimated that the
Non-Smartphone user base that stood at 5.20 billion as of end-2011, will reach 5.41 billion by end2016, after peaking at 5.48 billion by end-2014.
The figure below shows the penetration of Smartphones and Non-Smartphones at the global level.
Smartphone users constituted only 12.9 percent of the total mobile user base at the end of 2011. This
figure is expected to increase 450 basis points and reach 17.4 percent by end-2012. Furthermore, by
end 2016, Smartphone users will constitute more than one-third of the subscriber base; close to 64
percent of the worldwide subscribers will still not be using Smartphones.


11


Figure 7: Mobile Installed Base Penetration by Type – Worldwide (In Percent, 2011, 2012E & 2016F)

2012E

2011
17.4%

12.9%

82.6%

87.1%

2016F

36.2%

63.8%

Non Smartphones

Smartphones


The figure below highlights the penetration of the two categories of handsets in use – Smartphones and
Non-Smartphones at the worldwide level for the period 2011-2016.

12



Figure 8: Mobile Installed Base Penetration by Type – Worldwide (In Percent, End 2011 – End 2016F)

120%

Penetration
(In Percent)

100%

12.9%

17.4%

22.2%

27.0%

31.8%

36.2%

77.8%

73.0%

68.2%

63.8%

2014F

2015F

2016F

80%
60%
40%

87.1%

82.6%

20%
0%
2011

2012E

2013F

Year
Non Smartphones

Smartphones


Non-Smartphone Installed Base Regional Snapshot
At the regional level, the Asia Pacific region was the largest contributor to the overall Non-Smartphone
base at the end of 2011, followed by Europe. We estimate that nearly 2.7 billion subscribers in Asia
Pacific were using a handset that was not a Smartphone at the end of 2011. That figure is expected to
increase to 3.2 billion by end-2016, emphasizing the importance of this category in the region.
During the period 2011-2016, geographies such as Europe, North America and Latin America are
expected to witness a decline in the installed base of Non-Smartphones. On the other hand, Asia
Pacific, and Middle East & Africa regions will see a rise in the number of Non-Smartphone handset
users. This trend is highlighted in the figure below.


13


Figure 9: Non-Smartphone Installed Base – Regional Snapshot


Table 1 below shows the regional Non-Smartphone installed base for the period 2011-2016.
Table 1:

Non-Smartphone Installed Base – Regional and Worldwide (In Million, End 2011 – End 2016F)
Non-Smartphone Installed Base (In Million, Year end)

Region
2011

2012E

2013F

2014F

2015F

2016F

Europe

878

826

761

693

624

559

Asia Pacific

2,744

2,950

3,087

3,179

3,229

3,244

North America

247

224

198

173

150

130

Latin America

544

546

542

528

509

489

Middle East &
Africa

785

835

872

909

946

991

Total

5,198

5,381

5,460

5,481

5,458

5,412


14



As of the end of 2011, Asia Pacific contributed 52.8 percent to the global Non-Smartphone installed
base, followed by Europe whose contribution stood at 16.9 percent. As of end 2012, it is estimated that
Asia Pacific will strengthen its hold in this category and its contribution will rise to 54.8 percent. Barring
Middle East and Africa, the contribution of all the other regions will decline. This trend is expected to
continue through to 2016, with Asia Pacific constituting nearly 60 percent of the global Non-Smartphone
Installed Base. The figure below shows the percentage contribution by region at the end of years 2011,
2012 and 2016.

Figure 10: Non-Smartphone Installed Base – Regional Contribution (In Percent, End-2011, End-2012E & End2016F)

2012E

2011

54.8%

52.8%
15.3%

16.9%
4.8%

Europe

15.5%

10.5%

15.1%

Asia Pacific

10.2%

Latin America

North America

4.2%

Middle East & Africa

2016F

59.9%
10.3%

18.3%
9.0%

2.4%



Smartphone Installed Base Regional Snapshot
In terms of Smartphone users, Asia Pacific leads its peers. At the end of 2011, 246 million subscribers
in the region used Smartphones. This figure is expected to cross the 1-billion mark before the end of
2015, and further accelerate to 1.36 billion by the end of 2016. The bulk of this growth will be
contributed by China and India. As of the end of 2011, the second largest region in terms of
Smartphone users was Europe. Latin America stood at the last spot; nearly 80 million subscribers in the
region used a Smartphone at the end of 2011.


15


The figure below highlights the Smartphone Installed base by region for end-2011 and end-2016.

Figure 11: Smartphone Installed Base – Regional Snapshot


Smartphone Installed base by region for the period 2011-2016 is shown in the figures below.
Table 2:

Smartphone Installed Base – Regional and Worldwide (In Million, End 2011 – End 2016F)
Smartphone Installed Base (In Million, Year end)

Region
2011

2012E

2013F

2014F

2015F

2016F

Europe

223

311

403

497

588

673

Asia Pacific

246

391

579

808

1,070

1,359

North America

110

151

192

233

271

305

Latin America

80

122

172

228

287

347

Middle East &
Africa

111

157

209

265

323

383

Total

770

1,131

1,555

2,030

2,539

3,067


16



As of end-2011, nearly 32 percent of the worldwide Smartphone users resided in Asia Pacific.
Furthermore, contribution of Europe to the overall Smartphone installed base stood at 29 percent during
the same year. It is estimated that by end-2012, the contribution of Asia Pacific will increase to 34.6
percent. Moreover, the contribution of North America will dip by 100 basis points and reach 13.3
percent by end-2012, from 14.3 percent as of end-2011. The share of the Middle East & Africa region
will also decline during the same period.
By 2016, nearly 44 percent of the market will be dominated by the Asia Pacific region, highlighting the
fact that MNO’s operations in the region will need a comprehensive dual strategy to cater to the large
base of both Smartphone and Non-Smartphone users in the region. Although the share of the North
American region is expected to be the lowest, that whole market will tilt towards high-end handsets with
nearly 70 percent of the subscribers in the region using a Smartphone by 2016.
The figure below highlights the share of regions to the global Smartphone installed base at the end of
years 2011, 2012 and 2016.

Figure 12: Smartphone Installed Base – Regional Contribution (In Percent, End-2011, End-2012E & End2016F)

2012E

2011

31.9%

34.6%

27.5%

29.0%

13.9%

14.4%

13.3%

14.3%

10.7%

10.3%

Europe

Asia Pacific

Latin America

North America


2016F

44.3%
22.0%

12.5%

9.9%
11.3%


E – Estimated, F – Forecast


17


Chapter 2
Mobile Installed Base – Regional

18



Europe
Figure 13: Mobile Installed Base – Europe (In Million, End 2011 – End 2016F)

1,500

Installed Base
(In Million)

1,200
900

223

311

403

497

588

673

826

761

693

624

559

2014F

2015F

2016F

600
300

878

0
2011

2012E

2013F

Year
Non Smartphones

Smartphones


• As of end-2011, Non-Smartphones contributed 80 percent to the total handset installed base in the
region. The figure is expected to decline and reach 45 percent by end-2016.
• During the period 2011 to 2016, the installed base of Non-Smartphones is expected to decline from
878 million to 559 million. Furthermore, the Smartphone installed base is expected to reach 673
million by end-2016, as compared to 223 million as of end-2011.
• Europe contributed 17 percent to the global Non-Smartphone installed base at the end of year
2011. The corresponding figure is expected to decline to 10 percent at the end of year 2016.

Figure 14: Mobile Installed Base Penetration by Type – Europe (In Percent, End 2011 – End 2016F)

100%
20%

27%

Penetration
(In Percent)

80%

35%

42%

49%

55%

51%

45%

2015F

2016F

60%
40%

80%

73%

65%

20%

58%

0%
2011

2012E

2013F

2014F

Year
Non Smartphones

Smartphones



19


Asia Pacific
Figure 15: Mobile Installed Base – Asia Pacific (In Million, End 2011 – End 2016F)

5,000

Installed Base
(In Million)

4,000
3,000

246

391

808

579

1,070

1,359

2,000
2,744

2,950

3,087

3,179

3,229

3,244

2011

1,000

2012E

2013F

2014F

2015F

2016F

0

Year
Non Smartphones

Smartphones


• Asia-Pacific Non-Smartphone installed base is estimated to peak only after end-2016.
• Even by end-2016, Asia-Pacific alone is estimated to have more installed Non-Smartphones than
installed Smartphones globally. It is expected that nearly 70 percent of the total handsets in the
region will still be Non-Smartphones as of end-2016.
• Primarily driven by growth geographies including China and India, the installed base of NonSmartphones is expected to reach 3.24 billion by end-2016. The corresponding figure for the year
2011 stood at 2.74 billion.

Figure 16: Mobile Installed Base Penetration by Type – Asia Pacific (In Percent, End 2011 – End 2016F)

100%

8.2%

11.7%

15.8%

20.3%

24.9%

29.5%

79.7%

75.1%

70.5%

2014F

2015F

2016F

Penetration
(In Percent)

80%
60%
40%

91.8%

88.3%

84.2%

20%
0%
2011

2012E

2013F

Year
Non Smartphones

Smartphones


20



North America
Figure 17: Mobile Installed Base – North America (In Million, End 2011 – End 2016F)

500

Installed Base
(In Million)

400
300

110

151

192

247

224

198

233

271

305

173

150

130

2014F

2015F

2016F

200
100
0
2011

2012E

2013F

Year
Non Smartphones

Smartphones


• As of end-2011, close to 69 percent of the total handsets in the region belonged to the NonSmartphone category. The figure is expected to decline gradually during the next five years, and
reach 30 percent as of end-2016.
• North America will have the highest penetration of Smartphones in 2016
• The share of North America in the global Smartphone installed base is estimated to go down from
14 percent in 2011 to 10 percent in 2016. The corresponding figure for Non-Smartphone category
was 5 percent in 2011 and is expected to decline and reach 2 percent as of end-2016.

Figure 18: Mobile Installed Base Penetration by Type – North America (In Percent, End 2011 – End 2016F)

100%

Penetration
(In Percent)

80%

31%

40%

49%

57%

64%

70%

36%

30%

2015F

2016F

60%
40%
69%
20%

60%

51%

43%

0%
2011

2012E

2013F

2014F

Year
Non Smartphones

Smartphones



21


Latin America
Figure 19: Mobile Installed Base – Latin America (In Million, End 2011 – End 2016F)

1,000
800

Installed Base
(In Million)

122

172

228

287

347

80

544

546

542

528

509

489

2011

600

2012E

2013F

2014F

2015F

2016F

400
200
0

Year
Non Smartphones

Smartphones


• As of end-2011, Non-Smartphones contributed 87 percent to the total handset installed base in the
region. The figure is expected to decline and reach 59 percent by end-2016.
• During the period 2011 to 2016, the installed base of Non-Smartphones is expected to decline from
544 million to 489 million. Furthermore, the Smartphone installed base is expected to reach 347
million by end-2016, as compared to 80 million as of end-2011.
• Latin America contributed 10 percent to the global Non-Smartphone installed base in the year 2011.
The figure is expected to decline marginally and reach 9 percent by end-2016.

Figure 20: Mobile Installed Base Penetration by Type – Latin America (In Percent, End 2011 – End 2016F)

100%
13%

18%

24%

30%

Penetration
(In Percent)

80%

36%

41%

64%

59%

2015F

2016F

60%
40%

87%

82%

76%

70%

20%
0%
2011

2012E

2013F

2014F

Year
Non Smartphones

Smartphones


22



Figure 21: Mobile Installed Base – Middle East & Africa (In Million, End 2011 – End 2016F)

1,500

Installed Base
(In Million)

1,200
900

111

157

209

383

323

265

600
835

872

909

946

991

785

2011

300

2012E

2013F

2014F

2015F

2016F

0

Year
Non Smartphones

Smartphones


• The Non-Smartphone installed base for Middle East & Africa (ME&A) is estimated to peak only after
end-2016.
• As of end-2011, nearly 88 percent of the total handsets in the region belonged to the NonSmartphone category. This figure is expected to reach 72 percent by end-2016.
• Although the penetration of Non-Smartphones is expected to decline, the overall installed base is
likely to increase to 991 million by end-2016, as compared to 785 million as of end-2011.
• The share of the fast growing ME&A region in the global Non-Smartphone installed base is
estimated to go up from 15% to 18%.

Figure 22: Mobile Installed Base Penetration by Type – Middle East & Africa (In Percent, End 2011 – End
2016F)

100%
12%

16%

19%

23%

25%

28%

84%

81%

77%

75%

72%

2012E

2013F

2014F

2015F

2016F

Penetration
(In Percent)

80%
60%
40%

88%

20%
0%
2011

Year
Non Smartphones

Smartphones



23


Chapter 3
Mobile Installed Base – Saudi Arabia

24



Mobile Installed Base – Saudi Arabia
Figure 23: Non-Smartphone Installed Base – Saudi Arabia (In Million, End 2011 – End 2016F)
Decline Phase

Non Smartphone Installed
Base (In Million)

30
25
20
15
28
24

10

20
16

5

13

11

0
2011

2012E

2013F

2014F

2015F

2016F

Year



The Non-Smartphone installed base in the country is expected to decline continuously during the period
2011-2016. As of end-2016, close to 11 million subscribers in the region are expected to use a NonSmartphone, compared to 28 million as of end-2011. On the other hand, the Smartphone installed base
in the country is expected to increase at a CAGR of 16 percent during the period 2011-2016, reaching
55 million by end-2016, up from 26 million as of end-2011.

Figure 24: Smartphone Installed Base – Saudi Arabia (In Million, End 2011 – End 2016F)

60

Smartphone Installed
Base (In Million)

CAGR = 16%
50
40
30
20
10

46

40
26

55

51

33

0
2011

2012E

2013F

2014F

2015F

2016F

Year




25


Figure 25: Contribution to Regional Non-Smartphone Base – Saudi Arabia (In Percent, End 2011 – End
2016F)
Decreasing Share

4.0%

Contribution
(In Percent)

3.0%

2.0%
3.5%
2.8%
1.0%

2.2%
1.8%

1.4%

1.1%

2015F

2016F

0.0%
2011

2012E

2013F

2014F

Year



The contribution of the market to both the regional Non-Smartphone installed base and regional
Smartphone installed base will decline over the period 2011-2016.

Figure 26: Contribution to Regional Smartphone Base – Saudi Arabia (In Percent, End 2011 – End 2016F)
Decreasing Share

25.0%

Contribution
(In Percent)

22.0%
19.0%
16.0%

23.4%
21.0%

19.0%
17.2%

13.0%

15.7%

14.4%

10.0%
2011

2012E

2013F

2014F

2015F

2016F

Year


The figure below highlights the penetration of Smartphones and Non Smartphones in the country for the

period 2011-2016.

26



Figure 27: Mobile Installed Base Penetration by Type – Saudi Arabia (In Percent, End 2011 – End 2016F)

100%

Penetration
(In Percent)

80%

48%

58%

67%

60%

74%

79%

84%

21%

16%

2015F

2016F

40%
20%

52%

42%

33%

26%

0%
2011

2012E

2013F

2014F

Year
Non Smartphones

Smartphones



27


Chapter 4
Summary and Conclusion

28



Summary and Conclusion
The figure below shows the mobile installed base for the year end-2011 and end-2016. NonSmartphone installed base will constitute around 64 percent of the worldwide mobile installed base at
the end of year 2016.

Figure 28: Mobile Installed Base – Worldwide (In Million, 2011 & 2016F)


F – Forecast

The worldwide Non-Smartphone installed base for the period 2011-2016 is shown in the figure below.
The base would witness a decline after 2014. It is expected that the number of Non-Smartphones in
Asia Pacific at the end of year 2016 will exceed the entire worldwide Smartphone installed base. This
highlights the importance of Non-Smartphones for all players in the mobile industry, and while the highgrowth Smartphone segment takes most of the headlines and most of the glory, this Non-Smartphone
category cannot be ignored.


29


Figure 29: Non-Smartphones Installed Base Snapshot – Worldwide (In Million, 2011 - 2016F)



The worldwide Smartphone installed base is shown in the figure below for the period 2011-2016.

Figure 30: Smartphones Installed Base Snapshot – Worldwide (In Million, 2011 - 2016F)



As of end-2016, Non-Smartphones are expected to continue to be an important category on account of
the sheer size of the market. This highlights the fact that the players – VAS Vendors, MNOs and
Handset Vendors – have to enlarge their product portfolio for both the Smartphone and NonSmartphone segments.

30



Figure 31: Mobile Installed Base Trend – Worldwide (End 2011 – End 2016F)
100%
90%

Non-Smartpone Penetration

80%
70%
60%
50%
40%
30%
20%
Bubble Area represents Smartphone
Installed Base Worldwide

10%
0%
0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Smartphone Penetration
2011

2012E

2013F

2014F

2015F

2016F


Figure 71: As Smartphone penetration increases, so Non-Smartphone penetration decreases, and the
size of the worldwide Smartphone installed base grows. Smartphones are expected to dominate
Europe post end-2015. This is shown in the figure below.


31


Figure 32: Mobile Installed Base Trend – Europe (End 2011 – End 2016F)
100%
90%


80%
70%
60%
50%
40%
30%
20%
Installed Base in the Region

10%
0%
0%

10%

20%

30%

40%

50%

60%

70%

2011

2012E

2013F

2014F

2015F

2016F


Non-Smartphones are expected to be the dominant devices in the vast Asia Pacific region until after the
end of 2016 and beyond.

Figure 33: Mobile Installed Base Trend – Asia Pacific (End 2011 – End 2016F)
100%
90%


80%
70%
60%
50%
40%
30%
20%

10%
0%
0%

5%

10%

15%

20%

25%

30%

35%

2011

2012E

2013F

2014F

2015F

2016F


In North America, Smartphones are expected to dominate after 2013, as shown in the figure below.

32



Figure 34: Mobile Installed Base Trend – North America (End 2011 – End 2016F)
100%
90%


80%
70%
60%
50%
40%
30%
20%
Installed Bas in the Region

10%
0%
0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

2011

2012E

2013F

2014F

2015F

2016F


Non-Smartphones are expected to be the dominant category in Latin America until after end-2016.

Figure 35: Mobile Installed Base Trend – Latin America (End 2011 – End 2016F)
100%
90%


80%
70%
60%
50%
40%
30%
20%

10%
0%
0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

2011

2012E

2013F

2014F

2015F

2016F


As shown below, Non-Smartphones will dominate in Middle East & Africa until after end-2016.


33


Figure 36: Mobile Installed Base Trend – Middle East & Africa (2011-2016F)
100%
90%


80%
70%
60%
50%
40%
30%
20%

10%
0%
0%

5%

10%

15%

20%

25%

30%

35%

2011

2012E

2013F

2014F

2015F

2016F


34



Chapter 5
Appendices


35


Appendices
This market study has been written in a way that avoids excessive use of market acronyms (except
where appropriate) and industry technical talk, as we have tried to keep the text open to all readers, not
just those with in-depth knowledge of the world’s mobile markets. Because this study covers all
geographical regions and many emerging markets, a great deal of the data contained within this study
will potentially be of interest to investors, financial analysts, consultants, venture capitalists and others
all around the world who do not work within the mobile industry itself every day of their lives. To many
of these people, some of the industry technical talk and acronyms may be confusing, so we have
attempted to write this study in a self explanatory way that assumes little prior knowledge, but in doing
this, some of the speech chosen may seem somewhat "obvious" to our more knowledgeable readers.
We hope this offers the best possible solution to everyone, and we hope this does not cause any
confusion or inconvenience.
Where we have used technical terms or acronyms, we offer an explanation of those expressions below.

36



Glossary
3G or third generation
3G is an International Telecommunication Union (ITU) specification for the third generation (analog
cellular was the first generation and digital PCS 1 was the second generation) of mobile communication
technology.
Third generation Wireless Wide Area Networks (WWAN) communication systems are characterised by
high-speed data rates (144 Kbps 2 to 2+ Mbps 3) suitable for multimedia content. 3G technologies
typically are packet-switched and use Code Division Multiple Access (CDMA) technology to
communicate. Examples of 3G include EDGE 4, 1xRTT, HDR and W-CDMA. 5
3G protocols in mobile telephony support higher data transmission rates, measured in Mbps, intended
for applications other than voice. 3G support broadband and bandwidth applications, such as fullmotion video, video conferencing and Internet access.
3G as a Percentage
3G as a percentage refers to 3G subscribers as a percentage of total active mobile subscribers in a
country. This represents the proportion of 3G subscribers in the total mobile subscriber base of a
country.
3G Penetration
3G penetration refers to 3G subscribers as a percentage of total population of the country. This is
similar to the term ‘mobile penetration’, which means total number of active mobile subscribers in a
country as a percentage of total population of the country.
4G or fourth generation
4G or fourth generation WWAN communication systems are characterised by high-speed data rates at
20+ Mbps, suitable for high-resolution movies and television. The initial deployment of 4G
communication systems is expected in 2006-2010. The proposed features of these systems include
100 Mbps speed, location sensing and self-tailoring to user needs.
A2P
Application-to-Peer: In the mobile messaging world A2P messages are defined as messages generated
by an application and sent to subscribers, for example, the advertisements sent through SMS/MMS on
subscribers’ handsets.
AAC
Advance Audio Coding: It is an advanced audio compression algorithm used for downloading music
files, streaming video, audio and satellite-radio applications.
Admission Control
Admission control is the means for controlling mobile data traffic at times of overload. Admission control
finalises the data calls that have to be accepted in the network to maximise revenues, while maintaining
QoS for all the other services.
Application Programming Interface (API)
It is an interface implemented by a software program to communicate with other software. Operating
systems and applications use API to determine the way to call or send requests to other software.

1

Personal Communications Service (PCS)
Kilobits per second (Kbps)
3
Megabits per second (Mbps)
4
Enhanced Data for Global Evolution (EDGE)
5
Wideband Code Division Multiple Access (W-CDMA)
2


37


Augmented Reality (AR)
Augmented reality is the superimposition of virtual content over the real time environment. Virtual
content includes digital graphics, audio and other sense enhancements, which are augmented to the
real world by an AR device.
Average Revenue per User (ARPU)
Measures the average monthly revenue generated for each customer unit, such as a handset or pager
that an operator has in operation.
Backhaul
It refers to the process of transmitting voice and data traffic from a remote site to a central site.
BWA
Broadband Wireless Access: It is a form of fixed wireless access system.
Byte
Byte is a collection of bits in which each bit can take a value of either 1 or 0. Kbps, Mbps and Gbps
denote the number of bytes transferred per second; Kbps, Mbps and Gbps translate to 103, 106 and 109
bytes per second respectively.
CDMA
Code Division Multiple Access: In a CDMA system, each voice circuit is labelled with a unique code and
transmitted on a single channel simultaneously along with many other coded voice circuits. The
receiver uses the same code to recover the signal from the noise.
CDMA2000 1x
CDMA2000 1x: This is regarded as the first phase of CDMA2000 technology used for providing voice
and data services over mobile networks. Data speeds of 307kbps are using a single channel while with
two channels speeds of 614kbps are possible.
Churn Rate
It is the rate at which the subscribers cancel their subscription with the existing operator and sign up
with another operator.
Cloud Computing
Cloud computing is a technology involved in delivering hosted services on the Internet. It is based on
client-server architecture, which includes user device with applications (such as Web browsers) to
access the back end (various components, such as data storage devices, servers, etc.). The back end
components perform specific tasks and interact with each other through standard application
programming interfaces.
Desktop Penetration
Desktop penetration refers to the number of desktops (PCs) as a percentage of the total population of
the region.
Dongle
Dongle is a portable device which is connected to a laptop or desktop and resembles a USB flash drive.
It is widely used as a wireless broadband adapter.
DSL
Digital Subscriber Loop: It is a technology that provides digital data transmission over the copper lines
of a PSTN network.
Dumb Pipes
Dumb pipe refers to a mobile operator’s wireless network being used only to transfer data/bytes
between the Internet and the user’s device. For an operator being a dumb pipe, there is a potential loss

38



of revenue for the operator, since the operator is generating revenue only for the network data access
and is not receiving any significant share in data/content service revenue.
E-UTRA
Evolved Universal Terrestrial Radio Access (E-UTRA) was used in the 3rd Generation Partnership
Project’s (3GPP) early drafts of LTE specification for Evolved UMTS Terrestrial Radio Access Network
(eUTRAN). It is the air interface of the LTE network which will replace the earlier technologies like
UMTS, HSDPA, HSUPA for radio access network. It uses orthogonal frequency-division multiplexing
(OFDM), multiple-input multiple-output (MIMO) antenna technology for downlink to support more users,
higher data transfer rates and lower power requirement for the handsets. For uplink, OFDM and Single
Carrier Frequency Division Multiple Access (SC-FDMA) is used depending on the channel to
compensate for high peak to average power ratio associated with normal OFDM. This facilitates the key
features of high data transfer rates, low latency and optimisation for packet data.
EDGE
Enhanced Data rates for Global Evolution: An enhanced modulation technique designed to increase
network capacity and data rates in GSM networks. EDGE should provide data rates up to 384 Kbps.
EDGE will let operators without a 3G license compete with 3G networks offering similar data services.
EV-DO
Evolution Data Only, Evolution Data Optimised: It is a wireless radio broadband data protocol being
adopted by many CDMA operators. It is being used as a part of CDMA2000 networks in Japan, Korea,
the United States and Canada. It provides better data speeds in comparison to GSM technologies such
as GPRS and EDGE.
Facebook Penetration
It is the Facebook user base expressed as a percentage of the total population of the country.
FDMA
Frequency Division Multiple Access is a channel access protocol that allows a user dedicated allocation
to single or multiple frequency bands.
Feature Phone
Feature phones are handsets with browsers (primarily based on embedded J2ME and BREW
platforms) to enable access to web based e-mail, and sometimes have embedded applications for
social networking, instant messaging (IM) and mobile banking. These phones often come with high
resolution cameras, GPS and innovative multimedia features. The major differentiating factor between a
smartphone and a feature phone is that feature phones do not have an open Operating System (OS).
The OS present in smartphones, through its Application Programming Interface (API), enables
subscribers to install and remove third-party applications. Smartphones are better integrated with the
handset's User Interface than Java applications.
Freemium
Freemium is a strategy adopted by application stores in which trial or lite versions of premium apps are
offered for free or for a small charge; and users have an option to upgrade the apps with additional
features by paying additional charges.
Gbps
Please see “Byte”.
GPRS
General Packet Radio Service (GPRS) is a packet-based standard for mobile communication, which
runs at speeds up to 115 kilobits per second, compared with GSM systems' 9.6 kilobits per second.
GPRS supports a wide range of bandwidths and makes efficient use of limited bandwidth. It is
particularly suited for sending and receiving small bursts of data, such as e-mail and web browsing, as
well as large volumes of data.


39


Applications for GPRS may include any of the following: chat, text and visual information, still images,
moving images, web browsing, document sharing/collaborative working, audio, job dispatch, corporate
e-mail, Internet e-mail, vehicle positioning, remote Local Area Network (LAN) access, file transfer or
home automation.
GSM
Global System for Mobile communications, the most widely used digital mobile phone system and the
mobile telephone standard in Europe. It was originally defined as a pan-European open standard for a
digital cellular telephone network to support voice, data, text messaging and cross-border roaming.
GSM is now one of the world's main 2G digital wireless standards. GSM is present in more than 160
countries and according to the GSM Association, accounts for approximately 70 percent of the total
digital cellular wireless market. GSM is a time division multiplex (TDM) system. Implemented on 800,
900, 1800 and 1900 MHz frequency bands.
GUI
Graphical User Interface (GUI) is the front-end interface and navigation design of an application. This
includes standard formats for representing text and graphics. GUIs have become the standard ways for
interaction between users and digital devices.
HARQ
Hybrid Automatic Repeat Request is a process of ensuring data transmission even in poor signal
conditions with an adverse effect of lowering the throughput in better signal conditions. It does so by
error-correction in addition to error detection in the transmitting bits.
HSPA
High Speed Packet Access comprises two mobile protocols: High Speed Downlink Packet Access
(HSDPA) and High Speed Uplink Packet Access (HSUPA). These protocols enhance the performance
of WCDMA protocols.
i-mode
i-mode is a proprietary packet-based information service for mobile handsets. It delivers information
(such as mobile banking, and train timetable) to handsets and enables exchange of e-mail from mobile
handsets on the PDC-P network. Launched in 1999 by NTT DOCOMO, i-mode is very popular in Japan
(especially for e-mail and transfer of icons).
IMPS
IMPS (Instant Messaging and Presence Service) is an instant messaging system designed for mobile
environments. Presence refers to the availability of a user for communication.
IMS
IMS IP Multimedia Subsystem is an extension of the GSM / 3GPP GPRS core Network. It uses SIP
(Session Initiation Protocol) to set up, maintain and terminate packet-switched voice and multimedia
sessions.
Interoperability
This is defined as the ability of a network to operate with other networks, such as two systems based on
different protocols or technologies.
In-app Payment
In-app payment is the payment made by mobile user to get privileged features, services or digital goods
while using mobile apps. The privileged feature may be moving from a free or lite version of an app to
the full version.
Instant Messaging (IM)
Instant Messaging is an Internet-based service that alerts users when their friends or colleagues are
online and allows them to communicate with each other in real-time through private online chat areas.
With instant messaging, users create a list of other users with whom they want to communicate. When

40



a user from their list is online, the service alerts them and enables an immediate contact with the other
user. While instant messaging has primarily been a proprietary service offered by Internet service
providers such as AOL and MSN, businesses are starting to employ instant messaging to increase
employee efficiency and make expertise more readily available to employees.
Kbps
LTE
Long-Term Evolution (LTE) is the standard being developed by 3GPP to achieve download rates of
100Mbps, and upload rates of 50Mbps for every 20MHz of spectrum and is termed as a 4G standard.
LTE has support for bandwidths ranging from 1.25MHz to 20MHz.
M2M
Machine-to-Machine: M2M generally means the communication between machines. However, in the
mobile world, it is sometimes defined as Mobile-to-Mobile, which basically refers to communication that
involves only mobiles and not landlines.
MAN
Metropolitan Area Network is a computer network that normally encompasses a city or a big premise. It
is formed by connecting several local area networks.
Mbps
Megabyte
6
Megabyte translates to 10 bytes. Please see “Byte” for further details.
MiFi
MiFi is a collection of wireless routers that are used as mobile Wi-Fi hotspots. The technology is
developed by Novatel Wireless.
MNO
Mobile Network Operator.
MNO market penetration
It is the mobile subscriber base of an MNO expressed as a percentage of total population of the country
of operation.
Mobile E-Mail Penetration
Mobile E-mail Penetration is described as mobile e-mail users (of the specified market or region) as a
percentage of the specified market or region’s mobile subscriber base.
Mobile IM Penetration
Mobile IM Penetration is described as mobile IM users (of the specified market or region) as a
percentage of the specified market or region’s mobile subscriber base.
Mobile Internet Penetration
Mobile Internet Penetration is described as mobile Internet users (of the specified market or region) as
a percentage of the specified market or region’s mobile subscriber base.
Mobile penetration
It is the mobile subscriber base in a country expressed as a percentage of its total population.


41


MVNO
Mobile Virtual Network Operator: Term used for a mobile operator who does not own its own spectrum
and usually does not have its own network infrastructure. Instead, MVNOs have business
arrangements with traditional mobile operators to buy minutes of use (MOU) for sale to their own
customers.
Native Apps
Native apps are mobile applications developed specifically to run on a particular operating system or
device.
Near Field Communication
Near Field Communication (NFC) is a wireless communication technology which uses short-range high
frequency to enable the exchange of data between devices in proximity with each other. The distance
between the communicating devices has to be less than 10 centimetres. NFC-capable devices can
communicate with smartcard readers as well as other NFC-capable devices.
OFDMA
Orthogonal Frequency Division Multiple Access is an advancement of Orthogonal Frequency Division
Multiplexing to support mobile networks with more flexibility. Subsets of the subcarriers are assigned to
individual users to facilitate multiple access.
OMA-IMPS
Open Mobile Alliance-Instant Messaging and Presence Service: It is an open mobile alliance enabler
for instant messaging and presence. The first cut of this specification was developed by the Wireless
Village consortium.
Over-the-Top Services
Over-the-Top services refer to those services which are available to users over mobile networks without
MNOs being involved in planning, provisioning and selling them. Within the mobile industry, OTT
services are interchangably referred to as next generation services.
Packet Data
Packet data is a method of transmitting information in small packets each containing a certain amount
of the information. Packet data networks allow transmission of high-speed data to and from devices
connected to the network. Packet Data is similar to dial-up Internet access available in homes or in
businesses with cable modems, ADSL 6 lines, etc.
P2P
Peer-to-Peer: In the mobile messaging world, P2P messages are defined as messages exchanged
between subscribers. These messages originate from and terminate to mobile subscribers’ handsets.
PDA
Personal Digital Assistant: A portable computing device capable of transmitting data. This device
makes possible services such as paging, data messaging, electronic mail, computing, facsimile, date
book and other information handling capabilities.
Petabyte
15
Petabytes translate to 10 bytes. Please see “Byte” for further details.
PIM
Personal Information Manager: Also known as a "contact manager," is a form of software that logs
personal and business information, such as contacts, appointments, lists, notes, occasions, etc.
QoS
QoS stands for quality of service.
6

Asymmetric Digital Subscriber Line (ADSL)

42



RAN
Radio Access Network: It is a component that exists between the mobile handset and the core network.
It performs the radio functionality of the network and provides connection to the core network.
RCS-e
Rich Communication Suite enhanced (RCS-e) is an upgrade to Rich Communication Suite (RCS). It
enables MNOs to deliver innovative and media rich services, such as instant messaging, live video
sharing and file transfer, to its mobile subscribers. It will provide added opportunity for mobile
subscribers to communicate with each other as it will be interoperable between MNOs’ networks and
various devices.
RFID
Radio frequency identification (RFID) denotes a system employed to convey a unique serial number
using radio waves. It does not require contact or line of sight for communication. An example of the
deployment of this technology is in electronic toll collection using RFID tags.
SC-FDMA
Single-carrier frequency-division multiple access (SC-FDMA) facilitates multiple access schemes and is
used for assigning multiple users to a shared communication resource. While in OFDMA, subsets of the
subcarriers are assigned to individual users to assist multiple access schemes, SC-FDMA enables a
single-carrier transmission scheme.
SDK
Software Development Kit is a set of tools used for the development of an application for a software
package.
Service Revenue
Service revenues are the revenues earned by MNOs through the provision of services only, i.e.
revenues after deducting revenues earned from sales of equipment/products.
SIM card
It is a smart card that gives GSM handset its user identity. The card is inserted into a GSM/TDMA or
GSM-only mobile handset containing subscriber-related data. The card contains 18 digits code for GSM
markets and 20 digits code for TDMA markets.
SIMPLE
SIMPLE (Session Initiation Protocol for Instant Messaging and Presence Leveraging Extensions) is an
open standard instant messaging (IM) protocol.
SIP
Session Initiation Protocol or SIP is a standard multimedia and telephony protocol for initiating an
interactive user session over mobile networks. The services under SIP may include call forwarding,
number delivery, authentication and other telecoms applications.
Smartphone
A smartphone is a mobile handset which runs on operating system (OS) software and offers some of
the capabilities of a PC. It provides a standardised interface and platform for application developers and
is enabled with advanced features, such as e-mail, Internet and an e-book reader. Some of the other
features expected from a smartphone include built-in full keyboard/external USB keyboard, powerful
microprocessors, memory, built-in modem and large screens. The major differentiating factor between a
smartphone and a feature phone is that an open Operating System (OS) is present in a smartphone.
The OS, through its Application Programming Interface (API), enables subscribers to install and remove
third-party applications. Smartphones are better integrated with the handset's User Interface than Java
applications.


43


Smartphone penetration is described as smartphone users (of the specified market or region) as a
percentage of the specified market or region's mobile subscriber base.
SMS TV
This is defined as the use of SMS for variety of applications, such as voting, teletext chat for TV
programmes.
SMSC
Short Message Service Centre (SMSC) provides the routing of all SMS or text messages in any mobile
network. Similar to e-mail server, the SMSC handles large volumes of messages sent between two
mobile handsets or a mobile handset and a software application.
TDD
Time Division Multiplex: This is a scheme for allowing simultaneous transmission and receiving of data
at the same frequency, but with the different time slots allocated to them.
TDMA
Time Division Multiple Access: A TDMA channel is a single FDMA channel divided up in time into
multiple time slots. TDMA system is able to transmit multiple voice circuits per channel. Three users
can take it in turn to share one radio channel. The channels can vary in bandwidth and depending on
the type of system, the time slots can transmit all or part of a voice circuit. Each user's speech is stored,
compressed and transmitted as a quick packet, using controlled time slots to distinguish them-hence
the phrase 'time division'. It uses 30 KHz channels and a vocoder rate of 8 Kbits/sec. At the receiver,
the packet is de-compressed.
TD-SCDMA
Time Division Synchronous Code Division Multiple Access: It is an air interface used in UMTS mobile
telecommunications networks. It has been deployed in China to replace W-CDMA technology.
UMTS
Universal Mobile Telecommunications System: This is the future transmission network for third
generation mobile telephones, as defined by the International Telecommunications Union (ITU). In time,
UMTS could reach transmission capacities of 2 Mbits/sec. (compared to 9.6 Kbits/sec. for GSM).
Initially UMTS will offer rates of 144 to 384 Kbits/sec. This standard will make the development of new
multimedia services having very wide bands and new uses, notably in the transmission of video,
images and sound possible.
UMTS FDD
Universal Mobile Telecommunication System (UMTS) Frequency Division Duplex (FDD): It is designed
to generate typical data transfer rates of up to 384 Kbps and is suitable for wide area coverage due to
potentially high reach.
UMTS TDD
Universal Mobile Telecommunication System (UMTS) Time-Division-Depleting (TDD): UMTS TDD
Mobile Broadband technology is a packet data implementation of the international 3GPP UMTS
standard and is designed to work in a single unpaired frequency band. It is designed to generate typical
data transfer rates of up to 2 Mbps.
USB
Universal Serial Bus is a specification used to initiate data transfer between devices and a host
controller.
USSD
Unstructured Supplementary Service Data (USSD) is a standard for transmitting information over GSM
networks. It is primarily used to access the information on prepaid balances and similar details.

44



UTRA-FDD
Universal terrestrial radio access–frequency division duplex (FDD) refers to paired frequencies in which
the transmitter and receiver operate simultaneously but at different frequencies
UTRA-TDD
Time division duplex (TDD) refers to unpaired frequency which is shared between uplink and downlink
data rates
VAS
Mobile operators offer various services which are not part of the basic voice offer. These services are
availed off separately by the mobile subscribers. It includes services such as SMS, MMS, mobile email, mobile games, mobile music etc. These also include services such as WAP, voicemail, call
diversion, etc.
Vertical Devices
Vertical devices are smartphones optimised to run mobile enterprise applications and are particularly
useful for a mobile work fleet. These devices are designed to provide high-bandwidth data collection
and enable employees to access and update enterprise databases in a real-time environment. Aside
from powerful processors, vertical devices are often enabled with capabilities such as a bar code
scanner, digital camera, and two-way radio.
Voice over Internet Protocol
Voice over Internet Protocol (VoIP) is an Internet service which enables voice communication over IP
network. This uses a set of communication and transmission protocols.
WAP
Wireless Advance Protocol: WAP is a specification for a set of communication protocols to standardise
the way mobile devices, such as handsets and radio transceivers, can be used for Internet access. The
WAP standard is based on Internet standards (HTML, XML and TCP/IP). It consists of a Wireless
Markup Language (WML) specification, a WMLScript specification, and a Wireless Telephony
Application Interface (WTAI) specification.
The WAP protocol is the leading standard for information services on wireless terminals such as digital
handsets.
Some examples of WAP for accessing information include the following: checking train timings,
purchasing tickets, flight check-in, viewing traffic information, checking weather conditions, looking up
stock values, looking up phone numbers, looking up addresses or looking up sport results, and there
are countless more.
W-CDMA
Wideband Code Division Multiple Access: The third generation standard offered to the International
Telecommunication Union by GSM proponents. This is a 3G technology that increases data
transmission rates in GSM systems by using CDMA instead of TDMA.
W-CDMA has become the Direct Sequence mode in the ITU's 3G specification which includes the 1x
Multi-Carrier mode (1x MC) and 3x Multi-Carrier mode (3x MC). 1x MC (formerly known as cdma2000)
and 3x MC comprise the 3G upgrade paths for operators already using CDMA.
WiBro
Wireless Broadband: The technology was formulated by South Korean telecom industry as an
equivalent to mobile WiMAX international standard.
Wi-Fi
Wireless Fidelity: It is used to provide wireless local area network through enhanced interoperability of
the network. Services such as Internet, VoIP phone access, and gaming, etc., can be provided using
Wi-Fi.


45


WiMAX
Worldwide Interoperability for Microwave Access: It is a telecommunication technology used for
wireless data transfer over long distances through point-to-point links as well as mobile cellular type
access. It is based on standards that are useful in wireless broadband access.
Wireless MAN
Wireless Metropolitan Area Network: The technology is used to provide wireless network over a larger
area as compared to local area network.
WLL
Wireless Local Loop: It refers to the wireless devices that are situated in fixed locations. The signal
transmissions occur through the air and it provides connectivity to the users in remote and isolated
areas without the need for laying new cables.
XMPP
Extensible Messaging and Presence Protocol is a real-time, open-standard communication protocol. It
is based on Extensible Markup Language (XML) and is used for message-oriented middleware. The
open system approach makes it interoperable with other applications.

46



Portio Research Classifications
Geographical Regions:
There is sometimes a difference in the way research firms classify the major geographical territories. At
Portio Research, we follow 'obvious' geographical lines, but for the record, here are the regional
definitions we follow, unless otherwise stated in the report:
Western Europe: Standard classification includes Iceland and various islands
Central and Eastern Europe: Includes standard list of Central and Eastern European countries, and
the Baltic states, Balkans, Russia, Greece and Turkey
Asia Pacific: Includes Australasia, the Indian Sub-Continent, Pakistan, Afghanistan, Sri Lanka,
Maldives and the Former Soviet Union Central Asian republics
North America: Standard classification, including Hawaii and islands to the North
Latin America: Includes all South and Central American countries including Mexico, The Caribbean
and The West Indies
Middle East: Includes Israel and all Middle Eastern countries East of Egypt, South of Turkey and West
of Afghanistan
Africa: Standard classification includes territories in Western Indian Ocean
Mobile Subscribers
Generally, we count active SIMs, and we consider active as being used within 3 months, but, of course
there is some room for variance, depending on what figures operators themselves publish or report to
us when we interview them. When running spot-checks on operator numbers, we are governed by the
figures they give us, and as we are all aware, many individuals and companies around the world count
their subscribers/subscriptions by a number of different criteria. We refer to "total subscribers" for a
network/country or globally, as a count of the total number of active subscriptions those networks have,
and as such this can cause a slight distortion of any country-penetration rate.
Currency and Monetary Values
All monetary values quoted in this report are in US Dollars as the most widely recognised benchmark
internationally. The currency conversion has been done on the year average basis.
Whilst researching global mobile markets, we use http://www.oanda.com/ for all currency conversion
calculations.


47


About the Authors
Naresh
Naresh has nearly a decade’s experience in the telecom, technology and media industry, working
across several functions and businesses – ranging across technical hands-on experience, industry
research and analysis, and new business models and product & service offerings for the b2b domain.
He is a keen observer of trends, and has extensive modelling experience. He holds a bachelors degree
in engineering, and a post graduate diploma in business management.
Sam Gellar
Sam is working as a Project Manager with Portio Research. He has worked on various projects related
to telecom and media domain. He has over 6 years experience in telecommunications vertical primarily
in data analytics and business research domain. He holds a bachelors degree in engineering and is
currently a CFA Level II candidate.
Anil Khurana
Anil is working as a Project Lead with Portio Research. He has worked on various projects related to
telecom and media domain. He has over 4 years experience in telecommunications vertical. He holds a
bachelors degree in engineering.
John White
John White has been Editor and contributing author for this report. John is Business Development
Director for Portio Research and has over 18 years experience in the technical publishing industry.
Working in the IT sector previously and in the telecoms industry for the last 11 years, John has
extensive experience in the mobile sector.

48



Also available from Portio Research Limited
Portio Research Ltd is a UK-based research company focussing on the mobile space, providing
reports, handbooks, directories and database products.
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If you have any questions or if we can be of any assistance to you, please contact us by e-mail:
info@portioresearch.com
Copyright 2013. Portio Research Limited 2013
www.portioresearch.com


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