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A multiplicity
of connected
devices
Where the industry is going
Mobile data demand is being accelerated by devices
and network improvements
Mobile penetration
March 2011 (%)
Emerging market customer growth will be driven by
rising mobile penetration and GDP growth
Market customers growth
(2010 – 2014 estimated cumulative annual growth rate) (%)
A growing industry
Data traffic has more
than doubled year-
on-year due to usage
of smart connected
devices and significant
progress in mobile
network technology.
Mobile data and networks
■Mobile data traffic is driving revenue growth.
■Network speeds are increasing dramatically
because of improving technology.
■The pace of product innovation remains high.
In 2006 data accounted for 3% of industry revenue, in 2010
it reached 13% and by 2014 it is expected to be 21%. Demand
is being driven by the widening range of smart connected
devices, such as mobile broadband sticks, smartphones and
tablets, greater network speeds and an increased range of
applications with greater functionality. Smartphone sales
grew by 66% in the 2010 calendar year, compared to a 16%
increase in the 2009 calendar year, and are expected to
continue to grow due to lower entry prices, device innovation
and attractive applications.
Today’s 3G networks offer typically achieved data download
speeds of up to 4 Mbps which is around 100 times faster than
that delivered by 2G networks ten years ago. The industry has
recently begun to deploy 4G/LTE networks which will provide
typically achieved rates of up to 12 Mbps, depending on the
capability of the devices and the network.
Device innovation is a key feature of our industry. Recent
developments include femtocells which enhance customers’
indoor 3G signals via a xed line broadband connection and
mobile Wi-Fi devices which allow customers to share their
mobile broadband connection with others.
Emerging markets
■Mobile phone usage continues to grow rapidly.
■Data represents a significant growth opportunity.
The number of customers using mobile services in emerging
markets such as India and Africa has grown rapidly over
the last ten years, increasing by over 17 times, compared
to nearly 130% in more mature markets such as Europe.
The key driver of growth has been a fundamental need
for communication services against a background of often
low quality alternative xed line infrastructure and strong
economic growth.
Most of the future growth in mobile customers is
expected to continue to be in emerging markets where
mobile penetration is only around 70% compared to
approximately 130% in mature markets such as Europe,
supported by the expectation of continued strong
economic growth.
Data also represents a substantial growth opportunity in
emerging markets both in terms of mobile broadband and
mobile internet services. It is being driven partly by the lack
of xed line broadband infrastructure but also by locally
relevant content and services in local languages, and
software innovations that give customers a high-quality
mobile internet experience on affordable handsets.
2006 2010
Smartphone share of industry handset
shipments (%) 8 21
Typically achieved data download
speeds (Mbps) 2.2 4 6%
The industry data on pages 8 and 9 has been sourced from Wireless Intelligence, Strategy Analytics, Merrill Lynch, Informa WCIS and CISCO.
7%
India
18%
South Africa Egypt
Vodafone Group Plc Annual Report 2011 9
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