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www.arieso.com
Author:
Michael Flanagan
Version:
Final
Issued:
6 January 2012
The information contained in this document and any documentation referred to herein or
attached hereto, is of a confidential nature and is supplied for the purpose of discussion only
and for no other purpose.
This information should only be disclosed to those individuals directly involved with
consideration and evaluation of any proposals, all of who shall be made aware of this
requirement for confidentiality.
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Executive Summary
Recent Tier-1 market information reveals increasingly sophisticated devices with user demands
that continue to grow over time. This represents a double-threat to the industry: smartphone
penetration rates continue to climb while smartphone user demands reach new heights. As
shown in earlier studies, the demands of prior smartphone subscribers are formidable and well
known, especially with regards to iPhone 3G data volumes and numbers of data calls. A
comparison of newer smartphones with the benchmark iPhone 3G reveal that the latest breed
of subscriber has a more insatiable demand for data on a per-subscriber basis than ever seen
before. The iPhone 4S released in 2011 is measured to be the most voracious smartphone with
unprecedented increases in uplink and downlink data demands on a per subscriber basis. In a
per-subscriber study of the eighteen hungriest smartphones across six manufacturers we find:
iPhone 4S users demand three times as much data as the benchmark iPhone 3G
users
iPhone 4S users demand twice as much data as iPhone 4 users (who were most
demanding last year)
Google Nexus One users make twice as many data calls than iPhone 3G users
(consistent with last year)
Devices like the iPhone 4S will proliferate the market within the next 12-18 months
The extreme 1% of all users consume half of the downlink data
Strategies to deal with these extreme users are considered and a subscriber-centric, locationaware technique is shown to not only provide requisite off-loading from 3G systems in the near
term, but is also shown to satisfy longer-term theoretical limits on system performance. This
constitutes an important SON (Self-Optimizing Networks) use case involving optimal site
placement, and network operators will require this type of technique in order to satisfy the
inexorable data demands that are expected to continue into the foreseeable future.
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Introduction
Recent smartphone launches continue to reveal new breeds of data subscribers with
increasingly voracious appetites. The demands of prior smartphone subscribers are formidable
and well known in the industry, especially with regards to iPhone 3G data volumes and numbers
of data calls. However, the introduction of new data-intense features on recent smartphones
(such as dual-core A5 processor, 8-Megapixel camera, 1080p HD video, and iCloud processing to
increase ease of data access on the iPhone 4S) raises the expectation that the users of these
new smartphones will be even more intense data consumers. The purpose of this paper is to
quantify this increased usage behaviour as seen in a variety of popular smartphones in order to
continue the analysis performed a year ago.
This paper addresses the recent data demands of over 1.1 million distinct subscribers over a
single, 24-hour weekday in a Tier-1 UMTS market1 with a mixture of urban and suburban
morphologies. The following comparative analysis focuses on popular devices which were
represented by at least 1000 subscribers (and the most popular devices were represented by
well over 10,000 subscribers). While any device could be used as a point of reference, the
iPhone 3G is chosen due to its historical and statistical significance (since it constituted both a
past pinnacle in user network demand as well as exhibiting a typical demand across all current
devices). Therefore, increases in demand over the iPhone 3G continue to constitute a new
standard for subscriber behaviour that network operators must prepare for.
The remainder of this paper is broken into three parts: device demand, extreme user behaviour
and network operator response.
It should be noted that this is a different Tier-1 market than that considered in 2010s study. While this
market difference impacts absolute quantities (such as Mbytes/subscriber and total data calls), the
comparative approach in this report is seen to be largely robust in spite of this difference. For example,
relative to the iPhone 3G, the iPhone 4 is seen to have similar data demands as those seen last year.
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The voice calls/subscriber is not studied this year since the results of last year showed no significant
changes in voice calling patterns. The data Minutes of Use/subscriber is not studied this year data
volumes are the best measure of aggregate data demands while signalling demands are addressed by the
data calls/subscriber category. It should also be noted that several devices from 2010s study do not
appear in this table due to the decreased popularity of those devices (i.e., <1000 subscribers seen).
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The Google Nexus One has twice the data calls per subscriber
compared to the iPhone 3G
The number of data calls per subscriber is 121% higher for the HTC Google Nexus One than for
the iPhone 3G. This device held the distinction of the most data calls per subscriber in the
analysis performed last year by a similar amount. By way of comparison, the iPhone 4S shows
54% more data calls per subscriber than the iPhone 3G. Part of this increase may be due to the
relative novelty of the iPhone 4S, but this can also be consistent with the greater ease-of-use of
the iPhone 4S over the iPhone 3G. Similar ease-of-use arguments may apply to the Google
Nexus One. The applications predominantly used on the Google Nexus One and the iPhone 4
(especially automated applications) may also contribute to this increase. Finally, there is also
the question of the impact of operating system and the related, (potentially excessive) signalling
demand of the smartphone on the number of data calls. This remains a topic of on-going study
by network operators in partnership with smartphone vendors.
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In a study of over 100 smartphone and non-smartphone devices (each represented by more
than 1000 users per device), nearly half of the devices had a downlink data volume per user less
than the iPhone 3G (normalized to unity on the x-axis above). As such, the iPhone 3G
represents the median demand for the collection of devices (smartphones and nonsmartphones) under study. It should be noted that the x-axis above is plotted logarithmically: as
seen in Table 1, many devices (especially USB dongles) will have demands that are substantially
greater than that of the iPhone 3G. The Nokia E71 is shown as an example of a lower-demand
device (39% of the iPhone 3G); only 15% of the reported devices had a lesser demand. As
noted earlier in this study, the iPhone 4S is located at pinnacle of smartphone demand; only USB
dongles and data cards are situated above the iPhone 4S in Figure 2. Similar results can be
observed for uplink data volumes and numbers of data calls.
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It is remarkable that the hungriest 1% of all subscribers consume half of the downlink data
volume. By way of comparison, the hungriest 0.1% consume one-fifth of the downlink data
while the hungriest 10% consume 90% of the downlink data. In 2009, it was reported that 3% of
the users were consumed 40% of the data 3. For this (different) Tier-1 market under study, 3% of
the users consume 70% of the data, suggesting that the hungry are getting hungrier. This
remains a topic for further study. Migration of these extreme users off of the UMTS macro
network provides an enormous opportunity for UMTS capacity relief.
The distribution of device types for the hungriest 1% of all users is shown in Figure 4.
http://www.pcworld.com/article/173320/atandt_wireless_ceo_hints_at_managing_iphone_data_usage.
html)
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where the extreme data users are located. In a recent case study with a Tier-1 network
operator, 250 microcells were added to a macro cell network in order to offload data traffic. A
location-aware product was used to determine where data traffic demands were located in
order to best place the new microcells, as shown in Figure 6 below.
These solutions also provide actionable insights to geo-marketing intelligence teams. For
example, knowledge of which devices perform better in different areas of the network allows
better marketing to customers who are planning to move from feature phones to smartphones.
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Summary
Recent Tier-1 market information reveals increasingly sophisticated devices that are unleashing
unprecedented levels of user demand. The iPhone 4S, in particular, was seen to effectively be
the hungriest handset according to per-subscriber uplink and downlink data demands. The
iPhone 4S was seen to have twice the demand of 2010s hungriest handset, the iPhone 4.
Other recent devices, including the HTC Desire S, were seen to have dramatic gains in data
demand. The average device demand was seen to be increasing at a rate of 40% per annum,
suggesting a proliferation of devices rivalling the iPhone 4S in the next 12-18 months. As noted
in last years study, tablet users were seen to be more like smartphone users than 3G Modem
users; this motivates new data plan pricing strategies for tablets.
The study of extreme data devices motivated the study of extreme data users and the hungriest
1% were seen to consume half of the transmitted data. The most extreme data users mostly
made use of USB dongles, some smartphones and a few tablets. The disparity in consumption
appears to be increasing over time compared to earlier, well-publicised reports.
The extreme data user problem triggers a variety of network operator responses, including use
of customer-centric, location-aware techniques to surgically place a relatively-limited number of
small cells. This SON (Self-Optimizing Network) use case not only satisfies near-term offload
objectives, but also longer-term design objectives in a theoretically optimal manner. Case
studies involving the targeted application of small cells illustrated the benefits of customercentric, location-aware products for the following groups within the network operator:
RAN Planning
Performance Engineering
Customer Experience Assurance
Geo-Marketing Intelligence
It must be noted that the particular results in this paper correspond to the specific market that
was studied, and that these results can vary depending on a number of circumstances (including
morphologies, available devices, regional customer behaviours, and socio-economic user
factors). As such, these results are intended to be illustrative rather than definitive. Each
network operator should embark upon a similar subscriber and network evaluation programme
in order to determine the clear and present data demands being placed on their network as well
as the most appropriate response strategies to best satisfy this demand.
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