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The Mobile Economy 2019 Copyright © 2019 GSM Association
The GSMA represents the interests of mobile operators GSMA Intelligence is the definitive source of global mobile
worldwide, uniting more than 750 operators with over operator data, analysis and forecasts, and publisher of
350 companies in the broader mobile ecosystem, authoritative industry reports and research. Our data
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Contents
EXECUTIVE SUMMARY 2
1 THE MOBILE MARKET IN NUMBERS 10
1.1 Key milestones 11
1.2 Where will the next 710 million come from? 12
1.3 4G takes the lead, while 5G launches begin 13
1.4 Consumers transition from ‘connected’ to ‘digital’ 15
1.5 Financial pressures continue, but outlook improving 18
2 MOBILE CONTRIBUTING TO ECONOMIC GROWTH 19
AND ADDRESSING SOCIAL CHALLENGES
2.1 Mobile contribution to economic growth 20
2.2 Expanding the benefits of the mobile internet 24
2.3 Mobile delivering social impact 30
3 KEY TRENDS SHAPING THE MOBILE INDUSTRY 32
3.1 The 5G era is here: where is the money? 33
3.2 IoT: seizing a share of the trillion-dollar opportunity 35
3.3 Content: operators seeking to capitalise on rapidly evolving ecosystem 40
3.4 AI: transforming telcos 43
3.5 Devices: onset of a third wave focused on AI and immersive entertainment 45
4 POLICIES FOR DIGITAL ADVANCEMENT 49
4.1 Laying the regulatory groundwork 50
4.2 Regulatory reforms for the digital age 51
The Mobile Economy 2019
Executive
Summary
2 Executive Summary
The Mobile Economy 2019
5G is here: opportunity awaits
5G is now upon us, bringing with it the drive increasingly autonomous and intelligent
promise of a host of exciting new services. networks and improve customer experience
As the boundaries between mobile and the through greater learning of customer
wider digital ecosystem continue to blur, behaviour. Operators across the globe are
and as data monetisation poses a continued growing their focus on AI, with AI-based
challenge, many operators are moving applications including chatbots and digital
beyond their traditional telco businesses to assistants, network operation/planning,
explore new opportunities in a fast-changing customer care, advertising and AI as a service.
competitive landscape:
Devices: while their ubiquity means
IoT: between 2018 and 2025, the number smartphones remain the focal point of the
of global IoT connections will triple to 25 consumer internet economy, the range of
billion, while global IoT revenue will quadruple connected devices (and therefore internet
to $1.1 trillion. With connectivity becoming access channels) is greater than ever. In the
increasingly commoditised, mobile operators most advanced countries, today’s digital
are looking to expand their role in the value consumers (using PCs and smartphones)
chain – from providing essential tools and will likely become tomorrow’s augmented
capabilities for ecosystem partners to build customers, adopting emerging technologies
IoT solutions, to becoming end-to-end IoT such as AI (via smart speakers) and
solution providers themselves. immersive reality.
Content: the content sector is undergoing Over the coming years, these new
significant transformation driven by shifting opportunities have the potential to provide
consumer behaviour, new players and an uplift to mobile operator revenue
changing content production and distribution which, particularly in developed markets,
models. To benefit from an unprecedented is still under pressure from slowing unique
level of content consumption, an increasing subscriber growth, regulatory intervention
number of telecoms operators are entering and intense competition. The US is already
the content space or strengthening their seeing early signs of this uplift: modest
existing content offerings, through vertical revenue growth is returning after a difficult
integration, partnerships with OTT video 2017, largely due to mobile operators
service providers or creating content aggressively pursuing new incremental
themselves. revenue opportunities in content, IoT and 5G.
Overall, the global revenue outlook remains
Artificial intelligence: AI will be key to future
positive, with an annual average growth rate
business and digital transformation. It will
of 1.4% between 2018 and 2025.
Executive Summary 3
The Mobile Economy 2019
Some 700 million new mobile subscribers by 2025
By the end of 2018, 5.1 billion people around globally, a contribution that will reach
the world subscribed to mobile services, $4.8 trillion (4.8% of GDP) by 2023 as
accounting for 67% of the global population. countries increasingly benefit from the
A total of 1 billion new subscribers have improvements in productivity and efficiency
been added in the four years since 2013 brought about by increased take-up of mobile
(representing an average annual growth rate services. Further ahead, 5G technologies are
of 5%), but the speed of growth is slowing. An expected to contribute $2.2 trillion to the
average annual growth rate of 1.9% between global economy over the next 15 years.
2018 and 2025 will bring the total number of
The connectivity gap also continues to close:
mobile subscribers to 5.8 billion (71% of the
over the next seven years, 1.4 billion people
population).
will start using the mobile internet for the
Of the 710 million people expected to first time, bringing the total number of mobile
subscribe to mobile services for the first time internet subscribers globally to 5 billion
over the next seven years, half will come by 2025 (over 60% of the population). This
from the Asia Pacific region and just under a growth in connectivity is helping the mobile
quarter will come from Sub-Saharan Africa. industry increase its impact across all the
UN’s Sustainable Development Goals and
Meanwhile, mobile continues to make a
is spurring adoption of mobile-based tools
significant contribution to socioeconomic
and solutions (for example, in agriculture,
development around the world. In 2018,
education and healthcare) that aim
mobile technologies and services generated
to improve livelihoods in low- to middle-
$3.9 trillion of economic value (4.6% of GDP)
income countries.
4G takes the lead, while commercial 5G is now a reality
In 2018, 4G overtook 2G to become the mass, some markets will see relatively
leading mobile technology across the world, rapid growth (for example, South Korea,
with 3.4 billion connections accounting US and Japan). Three factors will affect the
for 43% of the total (excluding licensed speed at which 5G is adopted and the value
cellular IoT). With growth continuing apace, that it will generate: the opportunities for
particularly across developing markets, value generation, cost considerations and
4G will soon become the dominant mobile deployment dependencies.
technology, surpassing half of global mobile
To support this generational shift and further
connections in 2019 and reaching 60% in
drive consumer engagement in the digital
2023.
era, mobile operators will invest around
Meanwhile, 5G is now a reality. Following $480 billion worldwide between 2018 and
commercial launches in the US and South 2020 in mobile capex. Half of this will be
Korea towards the end of 2018, 16 more major from countries expected to have launched
countries will have launched 5G networks by 5G by 2020. However, since the majority of
the end of 2019. In parallel, 5G smartphones 5G deployments will happen post-2020 (64
are set to be released in the first half of the markets over the 2021–2025 period, bringing
year and WRC-19 in October/November will the total to 116), we expect capex then to
have an impact on the future of 5G. While grow above the approximately $160 billion
it will take some time for 5G to hit critical expected in 2020.
4 Executive Summary
The Mobile Economy 2019
Enabling policies for digital advancement
Advanced mobile networks are a critical Besides 5G, there remains a need in
component of the digital future, and most countries to modernise regulatory
governments must play their part. The mobile frameworks for the mobile sector. The
industry urges governments to set enabling world has changed, and regulation needs to
policies for 5G and to reform regulatory advance with the times. Authorities should
frameworks no longer suited to today’s digital be looking at two key areas for review and
economy. reform: firstly, regulatory frameworks should
be reviewed and updated to promote market
The first priority is to allocate sufficient
dynamism, competition and consumer
spectrum for 5G. Compared with previous
welfare, while discarding legacy rules that
mobile generations, 5G requires larger
are no longer relevant in the context of the
contiguous blocks of spectrum in the
digital ecosystem. Secondly, governments
mid-range (e.g. 3.5 GHz) and mmWave
should reduce the sector-specific tax
(e.g. 26 GHz) frequency bands to achieve
burden to encourage investment in new
its potential. Additionally, given 5G’s need
technologies. By setting the right regulatory
for network densification, governments are
context, governments create incentives for
encouraged to adopt a national code for
technological innovation and investment that
new mobile sites and modification of existing
benefit all of society.
sites, and should facilitate access to public
sites (e.g. buildings and street furniture) for
operators to deploy network equipment.
Executive Summary 5
Global market
Unique Mobile
mobile internet
subscribers users
3.6bn
2018 2018
5.1bn
67%
PENETRATION RATE
(% of population) 71% CAGR 47%
PENETRATION RATE
(% of population) 61% CAGR
2018–25 2018–25
5.8bn
2025
1.9%
5.0bn
2025
4.8%
SIM Operator revenues
connections and investment
Excluding cellular IoT 2018
7.9bn $1.03tn
$1.14tn
2018
9.2bn 2.2%
2025
2025
PENETRATION RATE CAGR Operator capex of $321 billion
103% (% of population) 112% 2018–25
for the period 2019–2020
Internet of Things
9.1bn 25.2bn
2018 Total connections 2025
Smartphones
% of connections*
60% 2018
2025
4G 43% 59%
% of connections*
2018 2025
79% 5G 1.4bn 15% 2025 of connections*
*Excluding cellular IoT
Mobile
industry
4.6% $3.9tn 2018
$4.8tn
of GDP
contribution
to GDP 4.8% 2023
Public funding Employment
Mobile ecosystem contribution
14m
to public funding (before regulatory 2018
$510bn
and spectrum fees)
2018
Jobs
directly supported by
the mobile ecosystem
+17m indirect jobs
The Mobile Economy 2019
World TECHNOLOGY MIX* SUBSCRIBER PENETRATION
5G 15% 5% 2025 2018 2025
20%
59%
43% 2G
67% 71%
4G 2018 29% SMARTPHONE ADOPTION
2018 2025
28%
3G
60% 79%
Asia Pacific TECHNOLOGY MIX* SUBSCRIBER PENETRATION
5G 15% 5% 2025 2018 2025
67%
34%
45%
13%
2G
66% 72%
4G SMARTPHONE ADOPTION
2018
34% 2018 2025
25%
54% 82%
41%
21%
3G
CIS TECHNOLOGY MIX* SUBSCRIBER PENETRATION
5G 12% 2% 2025 2018 2025
68% 19%
18%
2G
80% 82%
4G 45%
2018 SMARTPHONE ADOPTION
36% 2018 2025
3G
53% 73%
Europe TECHNOLOGY MIX* SUBSCRIBER PENETRATION
5G 29% 1% 7% 2025 2018 2025
46%
18%
2G
85% 88%
4G
2018 SMARTPHONE ADOPTION
63% 2018 2025
36%
3G
72% 82%
8 Executive SummaryThe Mobile Economy 2019
Latin America TECHNOLOGY MIX* SUBSCRIBER PENETRATION
5G 8% 5% 2025 2018 2025
67% 74%
65% 2G
35%
4G 26% 21%
2018 SMARTPHONE ADOPTION
2018 2025
79%
39%
3G
65%
MENA TECHNOLOGY MIX* SUBSCRIBER PENETRATION
5G 6% 2025 2018 2025
52% 10%
23%
2G
64% 69%
4G SMARTPHONE ADOPTION
40% 2018
37% 2018 2025
32%
3G
52% 74%
North America TECHNOLOGY MIX* SUBSCRIBER PENETRATION
5G 47% 2% 2025 2018 2025
7%
69% 9%
2G
83% 85%
4G SMARTPHONE ADOPTION
2018 21%
2018 2025
3G
80% 90%
44%
Sub-Saharan Africa TECHNOLOGY MIX* SUBSCRIBER PENETRATION
5G 24% 3% 2025 2018 2025
35%
6% 14% 2G
45% 51%
4G
2018 SMARTPHONE ADOPTION
59%
2018 2025
59%
3G
36% 66%
*% of mobile connections excluding cellular IoT
Executive Summary 9The Mobile Economy 2019 01 The mobile market in numbers 10 The mobile market in numbers
The Mobile Economy 2019
1.1
Key milestones
Figure 1 Source: GSMA Intelligence
Mobile subscribers approach 6 billion by 2025
Over 70% of the
Over 5 billion Nearly 6 billion
population are
unique subscribers unique subscribers
mobile subscribers
SUBSCRIBERS Almost ½ of
3.6 billion mobile population are 5 billion mobile
internet users mobile internet internet users
users
MBB covers 90%
of population
4G overtakes 4G accounts
1.4 billion 5G
2G to be leading for half of total
TECHNOLOGY connections
technology connections
Almost ½ of
5G launches gain 5G covers 1/3 of
Early 5G launches countries have
momentum population
launched 5G
Smartphones
Smartphones Over 5 billion 7 billion
account for
account for 60% smartphone smartphone
nearly 80% of
of connections connections connections
connections
DEVICES 9 billion IoT 10 billion IoT 25 billion IoT
connections connections connections
2018 2019 2024 2025
The mobile market in numbers 11The Mobile Economy 2019
1.2
Where will the next 710 million come from?
Figure 2 Source: GSMA Intelligence
Some 700 million new subscribers by 2025; half from Asia Pacific
Million
22 14 8 710
69
72
165
359
Asia Pacific Sub- MENA Latin Northern Europe CIS Total new
Saharan America America subscribers
Africa by 2025
Figure 3 Source: GSMA Intelligence
Seven countries will account for half of new subscribers
Percentage of global new additions by 2025
24% 8% 4% 4% 3% 3% 3%
1 2 3 4 5 6 7
India China Pakistan Nigeria Indonesia USA Brazil
12 The mobile market in numbersThe Mobile Economy 2019
1.3
4G takes the lead, while 5G launches begin
Figure 4 Source: GSMA Intelligence
4G took the lead in 2018 and will exceed half of connections in 2019
Percentage of connections (excluding licensed cellular IoT)
70%
60%
59% 4G
50%
40%
30%
20% 20% 3G
15% 5G
10%
5% 2G
0%
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
The mobile market in numbers 13The Mobile Economy 2019
Figure 5 Source: GSMA Intelligence
2019 will see 5G launches accelerate and devices hit the market
Bahrain Austria
Czech Republic China
Major South Korea Estonia Australia Hong Kong Portugal
launches US Finland Qatar Kuwait UK
Saudi Arabia Spain
Switzerland UAE
Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019
Other
3GPP Release 15 5G smartphones
milestones WRC 2019
completed hit the market
Figure 6 Source: GSMA Intelligence
The US, East Asian and European markets will lead 5G adoption
5G as a share of total connections in 2025 (excluding licensed cellular IoT)
15% 59% 50% 48% 29%
WORLD SOUTH KOREA US JAPAN EUROPE
29% 16% 12% 8% 3%
CHINA GCC STATES CIS LATIN AMERICA SUB-SAHARAN
AFRICA
14 The mobile market in numbersThe Mobile Economy 2019
1.4
Consumers transition from ‘connected’ to ‘digital’
Figure 7 Source: GSMA Intelligence
1.4 billion more people will be using the mobile internet by 2025
Mobile internet subscribers (% population)
100%
80%
5 billion people
60%
40%
3.6 billion people
20%
0%
World Europe Northern CIS Latin Asia MENA Sub-Saharan
America America Pacific Africa
2018 2025
Figure 8 Source: GSMA Intelligence
Four in five connections globally will be smartphones by 2025; smartphone
connections in Sub-Saharan Africa will more than double
Percentage of connections (excluding licensed cellular IoT)
1.2x 1.2x 1.6x 1.6x 1.3x 1.7x 1.4x 2.3x
90% 82%
81% 82% 79% 79% 74%
73% 67% 73%
60% 60% 66%
54% 55%
39%
Northern Europe Asia Pacific World Latin America MENA CIS Sub-Saharan
America Africa
2018 2025 Growth 2018-25
The mobile market in numbers 15The Mobile Economy 2019
Figure 9 Source: GSMA Intelligence
Three new smartphone super-powers will emerge by 2025
Russia
6
USA China
4 1 7
Pakistan
Bangladesh Japan
8
10
Nigeria 2
9 India
3
Indonesia
5
Brazil
2025 Smartphone Change in rank
rank Country connections, 2025 (m) since 2018
1 China 1,458 =
2 India 1,171 =
3 Indonesia 410 1
4 USA 346 1
5 Brazil 204 =
6 Russia 187 =
7 Japan 162 =
8 Pakistan 146 14
9 Nigeria 143 11
10 Bangladesh 134 11
16 The mobile market in numbersThe Mobile Economy 2019
Figure 10 Source: GSMA Intelligence Consumer Survey 2018
Smartphone ubiquity across the world enables consumer engagement in
numerous use cases
Percentage of smartphone users engaging at least once per month
Communication Information Entertainment Financial/digital commerce
100%
80%
60%
40%
20%
0%
Voice calls
VoIP
Video calls
SMS/MMS
IP messaging
Email
Visit social networks
Access health information/services
Access government services
Job search/applications
Access education information/services
Use maps or travel information/services
Product information
Read the news
Browsing
Download/use apps
Play games
Watch free to access online video
Pay for on-demand TV/movies
Listen to free online music
Pay to download or stream music online
Book transport
Online purchase
Transfer money
Use contactless payment
Developed markets Developing markets Pay utility bills
Figure 11 Source: Ericsson, GSMA Intelligence
Global mobile data usage will grow five-fold by 2024, spurred by increased
smartphone adoption and availability of affordable high-speed networks
GB per subscriber per month
56
x5
32
24 26 22 19
10 8.5
5.3 5.8 3.3 5.8 3.7 1.1
World Northern Europe & CIS Asia Pacific Latin America MENA Sub-Saharan
America Africa
2018 2024
The mobile market in numbers 17The Mobile Economy 2019
1.5
Financial pressures continue, but outlook improving
Figure 12 Source: GSMA Intelligence
Slowing unique subscriber growth, regulatory intervention and intense
competition continue to put pressure on operators’ traditional mobile revenue
Mobile revenue ($ billion)
Developing
Developed $1,138
$1,033
China and India
$412 $416 $420 $425 $429 driving most of the
$369 $379 $386 $400 $407
increase
Europe flat, but
$629 $636 $646 $659 $664 $672 $681 $691 $701 $709 US showing
improvement
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Figure 13 Source: GSMA Intelligence
Over a fifth of the world’s markets will have launched 5G by 2020, spending a
combined $244 billion on networks in the process
Capex ($ billion)
$161 $161 $160
Investing in...
$37 Rest of world
$80 New rollouts
(3G/4G/5G)
$120
Countries that Network
$123 have (or will have)
launched 5G
optimisation
$81 Capabilities
$41 beyond core telco
2018 2019 2020
US 19 markets 52 markets
South Korea
18 The mobile market in numbersThe Mobile Economy 2019
02
Mobile contributing
to economic growth
and addressing social
challenges
Mobile contributing to economic
growth and addressing social challenges 19The Mobile Economy 2019
2.1
Mobile contribution to economic growth
In 2018, mobile technologies and services generated globe increasingly benefit from the improvements
4.6% of GDP globally, a contribution that amounted in productivity and efficiency brought about by
to $3.9 trillion of economic value added. The mobile increased take-up of mobile services.
ecosystem also supported almost 32 million jobs
Further ahead, 5G technologies are expected to
(directly and indirectly) and made a substantial
contribute $2.2 trillion to the global economy
contribution to the funding of the public sector,
over the next 15 years, with key sectors such as
with more than $500 billion raised through general
manufacturing, utilities and professional/financial
taxation. By 2023, mobile’s contribution will reach
services benefiting the most from the new
$4.8 trillion (4.8% of GDP) as countries around the
technology.
Figure 14 Source: GSMA Intelligence
The global mobile ecosystem generated $1.1 trillion of economic value in 2018,
with mobile operators accounting for 60%
$ billion, % GDP 2018
$690
0.8%
$180
$120
$80 $70 0.2%
0.1%
0.1% 0.1%
Infrastructure Mobile Device Distributors and Content, Apps and
Providers Operators Manufacturers Retailers Service Providers
Mobile contributing to economic
20 growth and addressing social challengesThe Mobile Economy 2019
Figure 15 Source: GSMA Intelligence
Additional indirect and productivity benefits bring the total contribution of the
mobile industry to $3.9 trillion
$ billion, % GDP 2018
$2,270 $3,920
2.7%
$500 4.6%
$450 0.6%
$690 0.5%
0.8%
MOBILE RELATED INDIRECT PRODUCTIVITY TOTAL
OPERATORS INDUSTRIES
MOBILE ECOSYSTEM
Figure 16 Source: GSMA Intelligence
The mobile ecosystem directly employs almost 32 million people globally;
14 million directly and 17 million through related industries
Jobs (millions)
17 32
4 2 14
2
2
3
1
Infrastructure Mobile Device Distributors Distributors Content, Apps Direct Indirect Total
Providers Operators Manufacturers and Retailers and Retailers and Service
(formal) (informal) Providers
Note: totals may not add up due to rounding.
Mobile contributing to economic
growth and addressing social challenges 21The Mobile Economy 2019
Figure 17 Source: GSMA Intelligence
In 2018, the mobile ecosystem contributed more than $500 billion to the
funding of the public sector through general taxation
$ billion
$140
$90
$90 $510
$190
Mobile services VAT, Handset VAT, sales Corporation taxes Employment taxes Total
sales taxes and excise taxes, excise and on profits and social security
duties customs duties
Mobile contributing to economic
22 growth and addressing social challengesThe Mobile Economy 2019
Figure 18 Source: GSMA Intelligence
Driven mostly by productivity gains, the global economic contribution of
mobile will increase by almost $850 billion by 2023
$ billion, % GDP
$5,000
4.8% 4.8%
$4,000 4.6% 4.7% 4.8%
4.6%
$2,710 $2,810
$2,480 $2,600
$3,000
$2,270 $2,370
$2,000
$540 $560 $570 $590
$500 $520
$1,000
$1,140 $1,190 $1,230 $1,270 $1,310 $1,360
$0
2018 2019 2020 2021 2022 2023
Direct Indirect Productivity % of GDP
Figure 19 Source: GSMA1
5G will contribute $2.2 trillion to the global economy over the next 15 years
Agriculture & Mining 6%
ICT & Trade 14%
Manufacturing
35% & Utilities
$2.2 trillion
by 2034
5.3% of GDP growth
Public Services 16%
Professional &
29% Financial Services
1. For more information, see Study on Socio-Economic Benefits of 5G Services
Provided in mmWave Bands, GSMA, 2018
Mobile contributing to economic
growth and addressing social challenges 23The Mobile Economy 2019
2.2
Expanding the benefits of the mobile internet
At the end of 2018, 3.6 billion people were Over the next few years, as the enablers of mobile
connected to the mobile internet, representing internet adoption (infrastructure, affordability,
an increase of just over 300 million compared to consumer readiness and content/services) continue
the previous year. However, more than 4 billion to improve, millions of people will start using the
people remain offline. Around 1 billion of these are mobile internet for the first time. By 2025, 5 billion
not covered by mobile broadband networks (the people across the globe (more than 60% of the
‘coverage gap’), while around 3 billion live within the population) will be mobile internet subscribers.
footprint of a network but are not accessing mobile
internet services (the ‘usage gap’).
Figure 20 Source: GSMA Intelligence
More than 4 billion people don’t use the mobile internet
Percentage of population, 2018
2% 1%
7% 8%
13% 1.0bn 16%
24% 26%
47% Out of MBB coverage
40% (‘coverage gap’)
47%
41% 3.1bn
44%
Covered by MBB but
30% don’t subscribe to
74% 73% the mobile internet
(‘usage gap’)
53%
47% 3.6bn 46%
40%
Mobile internet
24%
subscribers
World Europe Northern Latin Asia Pacific MENA Sub-
America America Saharan
Africa
Mobile contributing to economic
24 growth and addressing social challengesThe Mobile Economy 2019
By 2025,
5 billion people
across the globe (more
than 60% of the population)
will be mobile internet
subscribers.
Mobile contributing to economic
growth and addressing social challenges 25The Mobile Economy 2019
Figure 21 Source: GSMA Intelligence
All four enablers of mobile internet adoption have improved over the last few
years (2014–2017)2
GSMA Mobile Connectivity Index3
Global score 52 60
INFRASTRUCTURE AFFORDABILITY
36 50 64 66
Has progressed the most. Network Has improved, but remains a key
coverage scores are relatively high, consumer barrier.
but network quality and spectrum • The average monthly cost of a 500 MB data plan
assignments are key barriers. fell from 4.8% to 2.5% of monthly GDP per capita
between 2014 and 20177. The average cost of an
• 3G coverage increased from 75% to 87% globally
entry-level internet-enabled device fell from 2.6%
between 2014 and 2017, reaching an additional 1.1
to 2.3% of GDP per capita. However, affordability
billion people.4 However, coverage remains limited
remains one of the biggest barriers for consumers
in rural and remote areas: only around a third of
to mobile internet adoption in low- and middle-
rural populations in low-income countries are
income countries.8
covered by 3G networks.
• In 2017, more than half the low- and middle-
• Network quality has improved5 but there is
income countries in the Index imposed sector-
substantial variation across countries. Average
specific consumer taxes, which on average
download speeds for leading performers are
accounted for around 7% of the total cost of
approaching 40 Mbps but the vast majority (75%)
mobile ownership. The cost of accessing 500 MB
of countries have not achieved speeds of even a
of data in low- and middle-income countries that
quarter of this.
impose sector-specific consumer taxes is almost
• The majority of countries that achieved the 4% of monthly GDP per capita, compared to 2.5%
biggest improvements in network coverage in countries that do not.
and quality between 2014 and 2017 were those
that assigned additional spectrum to operators,
particularly in the digital dividend bands.6
2. For more information, see State of Mobile Internet Connectivity 2018, GSMA, 2018
3. In order to better understand supply- and demand-side factors in connecting the unconnected, the GSMA’s Mobile Connectivity Index measures the performance of 163 countries –
representing 99% of the global population – against the key enablers of mobile internet adoption: infrastructure, affordability, consumer readiness, and content and services.
See https://www.mobileconnectivityindex.com/
4. 4G coverage doubled from 36% to 72%, covering an additional 2.8 billion people
5. Average download speeds increased from 2.6 Mbps to 8.6 Mbps and average upload speeds increased from 0.9 Mbps to 3.3 Mbps between 2014 and 2017 (GSMA Intelligence calculations
based on analysis by Ookla of Speedtest Intelligence data)
6. This includes spectrum in the 600, 700 and 800 MHz bands
7. GSMA Intelligence calculations based on data from Tarifica
8. GSMA Intelligence Consumer Survey
Mobile contributing to economic
26 growth and addressing social challengesThe Mobile Economy 2019
CONSUMER READINESS CONTENT AND SERVICES
68 69 50 58
Slower to change, with literacy levels Proliferating with greater language
and gender inequalities holding back diversity, but still require further
some countries. development.
• While the global adult literacy rate is 87%,9 with • Penetration of social media through mobile,
more than 200 million more adults becoming which can provide a platform to generate relevant
literate between 2014 and 2017, a significant content, increased from 23% to 40% between 2014
proportion of the unconnected continue to lack and 2017, with more than 1 billion new accounts.12
the skills (or confidence) to access and engage
• In 2017, 35% of all mobile applications were
with mobile technology. This issue is particularly
developed outside of North America and Europe,
significant in low-income countries, where 40% of
and 25% were from low- and middle-income
adults are not literate.10
countries (up from 28% and 15% respectively
• There is a significant gender gap in mobile internet in 2014). This has generated significantly more
use in low- and middle-income countries, with mobile content in local languages.13
women 26% less likely than men to use mobile
internet services. This equates to 327 million fewer
women using mobile internet than men.11
9. UNESCO
10. UNESCO. In low-income countries, adults have also generally completed only four years of formal education compared to almost nine years globally
11. The Mobile Gender Gap Report 2018, GSMA, 2018
12. We Are Social
13. Appfigures
Mobile contributing to economic
growth and addressing social challenges 27The Mobile Economy 2019
Figure 22 Source: GSMA Intelligence
Asia-Pacific and MENA are the most improved regions, due to significant
improvements in scores for infrastructure and content & services
83
5
77
2014 score
7
(average)
60 63 60 60 58
8
Improvement 8 9 9 8
by 2017
39
78
70 6
52 55 52 51 50
32
World Northern Europe Latin MENA Asia CIS Sub-
America America Pacific Saharan
Africa
2014-2017
Infrastructure +14 +13 +16 +15 +16 +16 +14 +9
Affordability +2 +1 +1 +1 +2 +4 +4 +3
Consumer readiness +1 +0 +1 +1 +2 +1 +1 +1
Content & services +7 +4 +6 +7 +11 +9 +7 +6
Figure 23 Source: GSMA Intelligence
Top scoring and most improved countries by region
Sub-Saharan
World Americas Asia Pacific Europe & CIS MENA
Africa
Australia Canada Australia Iceland Israel Mauritius
New Zealand US New Zealand Norway Qatar South Africa
Top scoring
Iceland Bahamas Singapore Denmark UAE Cabo Verde
countries
Singapore Uruguay South Korea Sweden Bahrain Ghana
Norway Chile Hong Kong Finland Saudi Arabia Botswana
Iran Guatemala Myanmar Georgia Iran Cameroon
Most Myanmar Guyana India Cyprus Turkey Kenya
improved
India Uruguay Bhutan Serbia Libya Lesotho
countries,
2014–2017 Bhutan Bahamas Indonesia Kyrgyzstan Jordan Côte d’Ivoire
Turkey Panama Vanuatu Macedonia Morocco Angola
Mobile contributing to economic
28 growth and addressing social challengesThe Mobile Economy 2019
In focus: some of the most improved countries
Guatemala was Latin America’s most improved Turkey increased its Index score to almost 70, driven
country between 2014 and 2017, increasing its score by an improvement in its infrastructure score, which
by 10 points. While the majority of countries making was the largest of all countries in the Index between
good progress in the Index have done so with 2014 and 2017. Following the assignment of 800
exceptional gains in one or two enablers, Guatemala MHz spectrum in 2015, operators quickly rolled out
achieved strong progress across three enablers. It 4G networks to 90% of the population by 2017. The
improved its infrastructure score with the rollout of assignment of spectrum in the 2600 MHz capacity
4G networks (from 10% population coverage in 2014 band also helped operators improve network quality
to more than 50% in 2017) and enhanced network for users, with average download speeds almost
quality.14 This was accompanied by the development tripling between 2015 and 2017 to 28 Mbps.16
of more locally relevant content and services,
Kenya’s improved score was due to performance on
including e-government, social media platforms and
two enablers: infrastructure and affordability. The
mobile applications. Guatemala achieved an almost
former was driven by improved network coverage,
10-point increase in its consumer readiness score
with 3G increasing from 67% in 2014 to 85% in
– the largest gain of all countries in the Index. This
2017, and 4G reaching more than a third of the
was driven by improvements in skills, with increases
population. Network quality was enhanced, notably
in education outcomes (such as adult literacy and
in terms of latency. The country also improved
schooling); and gender equality, with increases in
the enabling infrastructure that supports mobile
gender parity ratios for education and financial
connectivity: more than half the population now
inclusion.15 As a result, mobile internet adoption
have access to electricity, compared to around 30%
increased from 23% in 2014 to 32% in 2017.
in 2014. The country has also established additional
Bhutan’s improved performance between 2014 Internet Exchange Points.17 The affordability of
and 2017 was driven by infrastructure in particular, mobile data baskets improved, especially for a 500
pushing it above the regional average. The Bhutan MB allowance; in 2017, this cost 1.3% of monthly GDP
Infocomm & Media Authority (BICMA) assigned per capita compared to 3.7% in 2014.18 Lastly Kenya,
two 2x20 MHz lots in the 700 MHz spectrum along with Uganda and Tanzania, has benefitted
band to operators in 2016 and 2017 respectively, from exponential growth of mobile content in
increasing its dimension score for spectrum. As a Swahili, with the number of mobile apps in the
result, network coverage expanded rapidly, with 4G language increasing from around 5,000 in 2014 to
increasing from 10% in 2014 to more than 70% in almost 30,000 by 2017.19 More than 4 million people
2017, and 3G increasing from 50% to more than 80%. in Kenya connected to the mobile internet between
At the same time, Bhutan’s operators were able to 2014 and 2017, increasing adoption from 16% to 24%.
provide better quality services, with download and
upload speeds substantially improving. Bhutan’s
mobile internet adoption rate consequently
increased from 21% in 2014 to 29% in 2017.
14. GSMA Intelligence calculations based on analysis by Ookla of Speedtest Intelligence data
15. UNESCO and World Bank Global Findex
16. GSMA Intelligence calculations based on analysis by Ookla of Speedtest Intelligence data
17. Packet Clearing House
18. GSMA Intelligence calculations based on data from Tarifica and ITU
19. Appfigures
Mobile contributing to economic
growth and addressing social challenges 29The Mobile Economy 2019
2.3
Mobile delivering social impact
As the connectivity gap closes, mobile internet adoption will increasingly
become the key metric by which to measure the reach and value created
by the mobile industry, including its contribution to the UN’s Sustainable
Development Goals (SDGs). Three years into the 2030 Agenda for
Sustainable Development, the mobile industry is increasing its impact
across all 17 SDGs as a result of wider mobile reach and better networks.
There is also growing adoption of mobile-based tools and solutions
that aim to spur the digitisation of systems, processes and stakeholder
interactions across a number of industries, notably agriculture, education
and healthcare in low- and middle-income countries.
Three industry-specific characteristics help However, there is still much more the mobile
explain how the industry continues to increase its industry can do. For 16 of the 17 SDGs, the industry
contribution across all the SDGs: is achieving less than half its full potential impact,
and the increase in impact has slowed for most
1. Deployment of infrastructure and networks:
SDGs. With just 12 years left until the 2030 deadline,
the mobile industry drives impact through the
concerted action and an acceleration of efforts is
provision of and investment in high-performing
necessary from all stakeholders – governments, the
mobile networks, which provide the foundations
mobile industry and other sectors.
for the digital economy and act as a catalyst for
a diverse and innovative range of services. By the 1. Accelerating mobile connectivity, especially
end of 2018, 3G coverage reached more than 90% mobile internet access, to unconnected
of the world’s population, while over 80% of the populations is the first area of importance. The
global population were covered by a 4G network. private sector and policymakers need to jointly
address the key barriers to mobile connectivity,
2. Access and connectivity: mobile operators are
particularly around incentives for infrastructure
continuing to connect the unconnected, with
investment, affordability, digital skills, the gender
more than half a billion new mobile subscribers
gap and the availability of locally relevant content
since 2015. An increasing number of people are
and services.
moving beyond voice to adopt mobile internet
services, enabling them to participate in the 2. Providing and scaling mobile-enabled solutions
digital economy. Since 2015, there have been over that will help achieve the SDGs, such as mobile
850 million new mobile internet users, bringing money, digital identity and mobile health, as well
the total to 3.6 billion people globally. as the products and services IoT is beginning
to support. Here, it is important that operators,
3. Enabling services and relevant content: mobile
governments, international organisations and
technology has enabled a range of life-enhancing
other industries work together to support the
services such as mobile financial services, mobile
scaling of new and existing mobile business
agriculture and mobile health. By the end of 2018,
solutions.
there were 866 million registered mobile money
accounts worldwide,20 helping to expand financial 3. The mobile industry must also continue to drive
and social inclusion. Meanwhile, emerging areas improvements beyond ‘business as usual’ and
such as IoT, big data and artificial intelligence are accelerate activities that contribute to the SDGs.
demonstrating their potential for transformative As more companies build the SDGs into their core
impacts on lives. business, including the products and services
they provide, the industry’s impact on the SDGs
will continue to grow.
20. 2017 State of the Industry Report on Mobile Money, GSMA
Mobile contributing to economic
30 growth and addressing social challengesThe Mobile Economy 2019
Figure 24 Source: GSMA Intelligence
Mobile is a powerful tool for achieving the UN’s SDGs: since 2015, impact has
increased across all 17 SDGs21
Normalised score (out of 100)
51.0
Greatest impact
46.7 2.8 1.4 • New business models, improved
trade and enhanced productivity
• Affordable educational content
46.2 1.3 0.7 48.2 and reduced inequalities
39.1 46.9
Most improved
4.9 2.9 • Provision of essential
humanitarian assistance
• Mobile-enabled health,
40.2 4.3 2.0 46.5 agriculture and utility services
42.2 2.5 0.9 45.6
37.7 2.6 1.3 41.5
39.1 1.5 0.4 41.0
34.5 4.1 2.2 40.8
34.7 3.8 2.2 40.7
34.1 3.5 2.0 39.6
36.1 2.0 1.0 39.1
33.8 2.9 1.9 38.6
33.8 1.7 1.8 37.3
33.4 2.6 1.3 37.3
30.5 3.2 1.1 34.7
2015
2016 improvement
31.7 1.5 1.1 34.3
2017 improvement
17.0 1.3 1.2 19.4 2017 total
Mobile contributing to economic
21. For more information, see 2018 Mobile Industry Impact Report: Sustainable Development Goals
growth and addressing social challenges 31The Mobile Economy 2019 03 Key trends shaping the mobile industry 32 Key trends shaping the mobile industry
The Mobile Economy 2019
5G is now upon us, bringing with it the promise of a whole host of exciting new services and opportunities.
As the boundaries between mobile and the wider digital ecosystem continue to blur, and as data
monetisation poses a continued challenge, many operators are moving beyond their traditional telco
businesses (mobile and fixed) to explore new revenue streams in a fast-changing competitive landscape.
While this strategic play has different approaches, timelines and scales, the predominant drivers are the rise
of IoT, the evolution of the content ecosystem, the transformative power of AI for network operations and
services, and the onset of a new era of connected devices.
While telecoms will continue to be the dominant source of revenue for operators in the near to medium term,
these new opportunities have the potential to provide new revenue streams and add business capabilities to
allow operators to play a key role in the future digital ecosystem.
3.1
The 5G era is here: where is the money?
The US and South Korea have already launched ownership. Some of these factors are already being
commercial 5G networks, and 16 more major addressed in 4G networks (for example, NFV/SDN
countries will have launched 5G networks by for network flexibility and edge computing for low-
the end of 2019. In parallel, 5G smartphones are latency capabilities), but their impact on the cost of
expected to be released in the first half of the year, 5G network rollout and operations is less clear.
and WRC-19 in October/November will have an
hile much of the industry consensus has been
W
impact on the future of 5G. It will take some time for
shaped by infrastructure competition among
5G to hit critical mass. Three factors will affect the
operators (with networks built by established
speed at which 5G is adopted and the value that it
equipment vendors and managed by engineers), the
will generate.
5G era will likely see the introduction of new models
1. Opportunities: Operators around the world of network ownership (e.g. private 5G networks),
generally agree that the provision of enhanced new ways of building networks (e.g. using open
mobile broadband (eMBB) to the consumer market source concepts) and new network management
will be the core proposition in early 5G deployments, approaches (e.g. using AI-based automation).
along with, in some cases, 5G-based fixed wireless
3. Dependencies: Various elements will act as
access (FWA) services offering a potentially lower
barriers to 5G development if not in place, such as
cost and faster means – compared to FTTH – of
a supportive policy framework (of which spectrum
expanding high-speed services to households and
is key), completion of standards and availability
businesses.
of 5G devices. The rate of 5G adoption will also
nterprise use cases that use massive IoT and/
E be determined by prevailing market conditions
or ultra-reliable, low-latency communications to including legacy network availability, affordability
transform existing verticals (such as manufacturing, and value perception.
utilities, healthcare, retail, agriculture and
In terms of value perception, an immediate
automotive) could gain scale at a later stage.
awareness issue needs to be addressed. Despite
Further unknown use cases could be developed,
much being made at events and in the media of
with the potential to revolutionise industries and
the new services that 5G will enable, these do
consumer experiences.
not resonate so strongly with consumers.22 More
2. Cost considerations: 5G networks are distinct widespread is the perception that 5G will mainly
from previous generations because of the level of deliver improved data speeds and coverage –
heterogeneity, flexibility and automation inherent essentially a continuation of previous generations of
in their design. The cost dynamics of 5G networks mobile technology and doing the same thing, just
will therefore not only be influenced by traditional better. The challenge for operators therefore lies in
factors (e.g. capacity and coverage), but also new influencing how consumers think about 5G; this will
factors such as network flexibility and network go a long way to determining its value.
22. “5G’s great expectations: do consumers see anything novel?”, GSMA Intelligence, January 2019
Key trends shaping the mobile industry 33The Mobile Economy 2019
Figure 25 Source: GSMA
5G is an inevitable network evolution, and will create significant opportunities
if the right conditions are in place
Opportunities
Evolution Transformation
eMBB Enterprise
FWA (multiple verticals)
Revolution
Unknown future
developments
5G
development
Dependencies and adoption Cost considerations
Evolution Transformation
Policy framework Technology readiness Network capacity Energy efficiency
Spectrum Standards Network coverage Network flexibility
availability/ pricing Devices Network latency
Regulatory flexibility
Market conditions Revolution
4G & fixed broadband Network automation
penetration Equipment sourcing
ARPU levels Network ownership
Value perception
34 Key trends shaping the mobile industryThe Mobile Economy 2019
Figure 26 Source: GSMA Intelligence Consumer Survey 2018
Despite opportunities for new services and experiences, consumer
expectations for 5G centre on faster speeds
Percentage of respondents
Question
“From what you know of 5G, what do you expect it will deliver?”
Respondents could select multiple answers.
Marketed as key
differentiator against 4G
Low response rate demonstrates clear need for
more direct messaging around the benefits of
5G beyond speed and coverage
54%
41%
25% 23% 22% 24%
20%
Improved mobile Improved mobile Innovative new Improved fixed Lower service Connectivity Don’t know
data speed service coverage services home broadband costs for previously
unconnected devices
(wearables, appliances,
vehicles, etc)
3.2
IoT: seizing a share of the trillion-dollar opportunity
The number of IoT connections (cellular and non- Global IoT revenue meanwhile will increase
cellular) will triple worldwide between 2018 and at an average annual rate of 23% to 2025 to
2025 to reach 25 billion. Growth will be driven by a reach $1.1 trillion, a fourfold increase on 2018.
proliferation of uses cases in the smart building and However, connectivity will become increasingly
smart home segments, which will together account commoditised, declining from 9% of total IoT
for more than half the 16 billion new IoT connections revenue in 2018 to 5% in 2025. Mobile operators
over this period. Rising investor financing and are therefore deploying different strategies
a supportive ecosystem for innovation will help and business models to move beyond offering
support this growth, along with regulatory pressure connectivity only: their role in the value chain could
for energy efficiency. In addition, developments in vary from providing essential tools and capabilities
network connectivity to suit a variety of IoT use for ecosystem partners to build IoT solutions, to
cases, led by operators, will play a key role. At the becoming an end-to-end IoT solution provider
end of 2018, there were 83 commercial deployments themselves.
of LTE-M and NB-IoT worldwide.
Key trends shaping the mobile industry 35The Mobile Economy 2019
Figure 27 Source: GSMA Intelligence
Some 16 billion new IoT connections by 2025; smart building and smart home
are key growth verticals
Billion Industrial
1.5 25.2
0.7 0.3 0.2
Consumer 1.6 0.8
5.0
0.7 0.5 0.3
1.3
3.2
9.1
2018
Smart home
Consumer electronics
Smart vehicles
Wearables
Consumer others
Smart buildings
Smart utilities
Smart manufacturing
Smart city
Smart retail
Health
Enterprise others
2025
Several trends are driving early development of the two largest growth
areas within IoT:
Smart buildings
• Regulatory: Energy efficiency directives continue • Building automation and security/surveillance:
to drive adoption of IoT technologies in lighting, Traditional building automation giants are
HVAC and building automation, where the expanding their propositions to support increased
reduction of energy consumption becomes the requirements. For example, Siemens acquired
key compliance metric for building owners to building automation software specialists J2
meet emissions reduction targets. Examples Innovations and Englighted Inc in May 2018,
include Europe’s Energy Performance of Buildings while Otis and Kone have added maintenance
and 2012 Energy Efficiency directives, and service packages to their elevator selling/leasing
China’s recent (13th) 5-year Plan. Such directives businesses. Meanwhile, mobile operators such
are also putting pressure on lighting vendors as Vodafone, AT&T and Telefonica are adding
to launch smart products in a bid to be more connected CCTV and security analytics services to
energy efficient and reduce costs. To this end, their IoT contracts.
Osram acquired Digital Lumens in August 2017
• Enterprise readiness and productivity gains:
(gaining IoT capabilities in industrial buildings),
Building and facilities owners are keen to
while Philips Lighting relaunched as a new smart
maximise automation to improve work processes
lighting brand ‘Signify’ in March 2018.
and adapt to changing working methods,
increasingly using IoT and cloud-based IT
processes as part of their digital transformation
strategies.
36 Key trends shaping the mobile industryThe Mobile Economy 2019
Smart home23
• Innovation: Smart home applications are being • Proliferation of use cases: Smart homes are
driven by advances in smart speakers, voice increasingly becoming a platform for a suite
recognition, open-source software and smart of digital services, applications and devices.
lighting/appliances. There are also ongoing Enabling home network infrastructure (routers,
developments in connectivity to best suit a extenders and other home networking devices)
variety of use cases, as well as open labs to is currently the largest application. However,
help developers test new concepts and certify home security devices (internet-enabled cameras,
products. security alarms, smoke alarms and locks), energy
monitoring (smart plugs, lighting, air conditioning
• Financing and M&A: Over the last three years,
and thermostats) and home appliances (a niche
nearly $2 billion has been invested globally in
market consisting of connected fridges, washing
smart home startups and emerging companies:
machines and smaller home appliances such
Amazon, Baidu, Intel, Microsoft, Qualcomm and
as coffee machines) will be the fastest growing
Samsung have been the most active investors
segments.
in recent years. Amazon’s acquisition in March
2018 of Ring (a video doorbell and home security • Early customer benefits: While smart homes
camera maker), worth more than $1 billion, is one are still a niche market, early adopters are
of the largest deals in the smart home arena, along experiencing a range of benefits including greater
with Google’s acquisition of Nest Labs in 2014. energy cost management and simplicity of use of
digital applications. Environmental consciousness
is also a driver of smart home adoption, with an
increasing number of governments and local
municipalities introducing incentives to boost
energy efficiency.
23. For more information, see Smart home: from niche to mainstream by 2025, GSMA Intelligence, 2018
Key trends shaping the mobile industry 37The Mobile Economy 2019
Figure 28 Source: GSMA
Rapid growth in mobile IoT deployments24 supporting applications requiring
broad coverage, a long battery life and low cost, yet secure, connectivity
Smart
Grid
Water Smart
Meters Lighting
Smart Smart
Agriculture Gas
Alarm Wearables
Monitoring
Power Waste
Meters Management
Pallet Logistic
Tracking Tracking
Smart
Parking
24. 83 by the end of 2018, up from 30 in 2017. For more information, see: https://www.gsma.com/iot/deployment-map/#deployments
24.
38 Key trends shaping the mobile industryThe Mobile Economy 2019
Figure 29 Source: GSMA Intelligence
Connectivity will be commoditised; value generation lies in the applications,
platforms and services layer
Percentage of total IoT revenue
$754bn Applications, platforms and services
$176bn (which includes cloud data analytics and
70%
security) is the key growth area of IoT
60%
50%
Professional services (encompassing
40%
systems integration, consulting and
$299bn managed services) will increase in share,
$66bn
30% fuelled by the continued digitisation of
industries
20%
$25bn
$51bn Connectivity will commoditise and decline
10%
in share, making it difficult for operators to
0% compete on the data pipe alone
2018 2025
Figure 30 Source: GSMA
Operators should expand beyond connectivity into service enablement and/or
end-to-end service provision, to create significant value25
INCREASED VALUE
Transform
Support end-to-end and
vertical-specific solutions
Breadth of portfolio
Empower IoT Prime
Operator roles
Add value to IoT and expand contractor
into new areas
Ecosystem Big data
orchestration analytics & AI
Connect
Support general IoT IoT IoT Vertical
functionality with core connectivity infrastructure specialisation
capabilities
IoT service IoT security
management
IoT service
IoT foundation IoT solutions
enablement
25. For more information, see Opportunities in the IoT: Evolving roles for mobile operators, GSMA, 2018
Key trends shaping the mobile industry 39The Mobile Economy 2019
3.3
Content: operators seeking to capitalise on rapidly evolving
ecosystem
The content sector is undergoing significant the addressable market and distribution and pricing
transformation driven by shifting consumer schemes are the same. Meanwhile, operators are
behaviour, new players and changing content looking to reduce subscriber churn in their core
production and distribution models. Consumption of businesses, upselling to existing subscribers and
digital content, particularly video, is growing in most attracting higher ARPU premium customers.
markets around the world, and mobile is a key driver.
Content addresses these different operator needs
The number of people regularly watching video on
and is therefore seen as a natural next move for
their devices, as well as the average time spent and
telecoms operators. There are various potential
frequency, are increasing globally. To benefit from
routes to content, ranging from vertical integration
this unprecedented level of content consumption, a
to partnerships with OTT video service providers.
growing number of telecoms operators are entering
These routes are not mutually exclusive – for many,
the content space or strengthening their existing
the content strategy chosen will be a combination
content offerings.
of routes. For more information, see the GSMA
Telecoms operators have been facing slowing Intelligence reports Digital disruption in consumer
revenue growth in their core mobile and fixed entertainment: what lies ahead? and All eyes on
markets and are therefore looking for opportunities content: operator routes to success.
in adjacent markets. Pay-TV is a clear opportunity,
as it is the most adjacent market to telecoms where
Figure 31 Source: GSMA Intelligence
Four major trends are driving unprecedented transformation in the consumer
entertainment sector
• Millennials lead the trend of
change Mobile is as important as TV to
Evolving consumer • Entertainment through social access and consume content
1 behaviour
platforms, user-generated
video and non-broadcast
(anywhere and anytime). Appetite
for original and exclusive content
content form their consumption is growing
model
• Digital is increasingly replacing
traditional forms of consumer Digital platform conglomerates
2 Digital is the
new normal •
entertainment
Immersive reality will be
(GAFA and BAT) and pure OTT
video content players (Netflix) are
the next phase of digital disrupting traditional powerhouses
development (5-10 years)
• Content delivery over the Some of the traditional pay-TV
internet is the new channel for
companies, including operators,
OTT is the engine video, music and gaming
3 of growth • Whether cord cutting or cord
are also launching their own OTT
offerings. Competing with major
shaving, OTT is disrupting
OTT players is tough though
traditional pay TV
• The direct-to-consumer Traditional content distributors are
subscription model is winning no longer gatekeepers. Content
4 Direct to in customer reach, flexibility in producers, whether established or
consumer watching content, and pricing emerging (OTTs), are going direct
models to the consumer
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