Bangkok--27 Jun--Ericsson
Thai Smartphone subscription will surpass basic phone subscription in 2016: Ericsson Mobility Report
• Thailand is one of the top 10 countries globally for net mobile subscription additions in Q1 2016
• Smartphone subscriptions in Thailand are estimated to reach almost 50 million by the end of 2016.
• Almost half of smartphone users in Thailand accessing social network, instant messaging and online videos on a daily basis
The latest edition of the Ericsson (NASDAQ: ERIC) Mobility Report, published earlier this month, reveals that the Internet of Things (IoT) is set to overtake mobile phones as the largest category of connected device by 2018.
Between 2015 and 2021, the number of IoT connected devices is expected to grow 23 percent annually, of which cellular IoT is forecast to have the highest growth rate. Of the 28 billion total devices that will be connected by 2021, close to 16 billion will be IoT devices.
Camilla Vautier, Country Head of Ericsson Thailand, says: "We are witnessing IoT growing at a rapid pace as device costs get more competitive and ground breaking applications emerge. IoT is coming to life within many industries. 4G/LTE is here now and with it, many industries have the opportunity to leverage digital technologies to innovate their business and provide customers with amazing experiences.
Smartphone subscriptions in Thailand are expected to continue to increase and are forecast to surpass those for basic phones this year. By 2021, smartphone subscriptions will double from close to 40 million in 2015 to around 80 million. Globally, almost 80% of all mobile phones sold in first quarter this year were smartphones, compared to around 75% in the last quarter of 2015.
Vautier also shared that in the South East Asia and Oceania region, smartphone subscriptions are anticipated to increase at a Compound Annual Growth Rate (CAGR) of 15 percent, up until 2021. "The rise of mobile broadband is attributed to a number of factors, including the affordability of devices, as well as the increasing popularity of data-intensive apps, such as video. Consumers have moved the attention from voice coverage to app coverage. Voice now constitutes less than five percent of mobile traffic and while excellent voice coverage is a hygiene factor, application coverage and performance is what consumers want. You will see in the report that in Thailand, almost half of consumers with a smart device access social networking, instant messaging and online videos on a daily basis" she added.
The report also details that mobile subscriptions in the region will grow annually at about 4 percent between 2015 and 2021 - foreseen to amount to around 1.2 billion by the end of 2021. In 2016, Thailand, Malaysia, Australia, and Singapore are expected to have more than 100 percent subscription penetration for mobile broadband.
In addition, the region has been seeing a growth in middle income households that will drive the demand for high speed broadband services in residential areas, particularly in emerging markets such as Thailand, Malaysia, Indonesia, Philippines and Vietnam. Fixed broadband subscriptions for Thai households and small medium enterprises have reached almost 30 percent penetration in 2015 and are expected to increase to around 40 percent in 2021.
The report also shared that LTE subscription will continue to grow in the region and is expected to reach 100 million LTE subscriptions in 2016. In Thailand, LTE subscription is expected to be more than 10 percent of total mobile subscriptions in 2016 and is expected to increase to around 50 percent by 2021. Thailand, Malaysia, Australia, Singapore, Indonesia, and Philippines are among the countries in the region that are rolling out LTE and continuing to improve coverage.
"Our recent ConsumerLab analysis also shows that Thai consumers are embracing the Networked Society lifestyle. In the Networked Society, Thai people will live in a culture of increased openness, sharing, collaboration and self-organization. This will fundamentally change the way we engage, innovate and collaborate. However, a key foundation in the Networked Society will be a powerful and affordable ICT infrastructure that supports the flow of information exchange and collaboration. The mobile network will serve as a common knowledge utility and a foundation for innovations", Vautier adds.