Mike Flanagan discusses Arieso’s second annual study of smartphone data use (including dongles and tablets), which analysed over 1.1 million subscribers in Europe over a 24-hour period. The survey used the iPhone 3G as a benchmark.
Eurocomms.com: The survey showed that iPhone 4S users consume twice as much data as iPhone 4 users. I thought there was minimal difference between the two models so why has data consumption doubled?
Mike Flanagan: I thought the same but there are two key differences that account for the growth: first, the 4S uses the cloud so users are constantly synching with services such as iTunes that increase the number of data calls; second, the 4S has voice recognition software Siri which has made it much easier for users to perform tasks on their smartphone that they might traditionally have used a computer for.
The findings also suggest that “extreme” users are getting more so. Can you explain how?
Our survey found that just one percent of all users are now responsible for consuming 50 percent of all (downlink) data. Three percent consumes 80 percent. Ultimately, it is a case of “build it and they will come”.
What are the implications for operators?
There are three: first, the cloud will become standard on an increasing number of smartphones – where Apple leads, others follow – so operators must ensure they are ready; second, they need to employ and roll out small cells much more aggressively to help with both near-term offload and long-term network capacity. It is also imperative that operators put base stations as close to users as possible; third, the “controlled” churn of extreme users should not necessarily be viewed as a bad thing.
With regard to small cell roll out, surely operators are doing this already?
Yes and no. Many networks today still do not have a good signal to noise ratio and this is partly because [base stations and cells] are not always positioned in the most appropriate places. Operators need to deploy them much more surgically.
Re “controlled” churn, are you really suggesting losing customers is a good thing?
Obviously there are extreme users that operators will want to keep, such as those who create revenue. For such customers – who typically consume the majority of their data from one or a small number of locations – we are advocating that they are given 4G devices and provided with a small cell located as close as possible to where they consume data.
You say in the report that, overall, the industry needs to invest more – how much more and where should it be spent?
Operators have remained consistent in their capex over the past 12 months but expectations around how they spend it are changing, as evidenced by an increase in microcell deployment. I would argue that it is not necessarily about spending more but spending more effectively than your competitors. There is also more that can be done to sweat current assets.
Do you think smartphone sales will fall as a result of the difficult economic conditions?
No, I don’t see any slowdown in spending. Smartphones are now viewed as having a primacy in users’ lives akin to wallets and keys so I expect them to weather any economic downturn.
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