Telefonaktiebolaget Lm Ericsson Class A · OMXSTO:ERIC_A
Telefonaktiebolaget Lm Ericsson Class A — Ericsson — Investor Presentation (January 2015)
17 slides from Telefonaktiebolaget Lm Ericsson Class A's investor presentation, Jan 28, 2015
Slide 1: Embracing data sharing
Embracing data sharing Understanding the perceived value of shared data plans among smartphone users Ericsson ConsumerLab January 2015
Slide 2: Background and objectives
Background and objectives Objectives › Understand the perceived value of › Discover the specific triggers and innovations such as shared data barriers to adoption plans among consumers › As mobile data traffic accelerates, › Assess how the introduction of consider how consumer expectations shared da
Slide 3: The digital connectivity conundrum
The digital connectivity conundrum The growing number of options available is creating a high level of complexity in managing multiple subscriptions within households. Source: Ericsson ConsumerLab, Embracing data sharing, 2015 © Ericsson AB 2015 | 2015-01-28 | Page 3 Base: 9,000 smartphone users in
Slide 4: Consumers feel shared data offerings can help
Consumers feel shared data offerings can help The figure below show the main reasons for acquiring a new shared data plan. Save money by bundling 23% One data plan for all devices 20% Single bill for the family 19% Share allowance with family 12% Flexible plan 8% Share allowance with friends 7% Tail
Slide 5: Devices on shared data plans
Devices on shared data plans On average, three devices are added to shared data accounts. Average number of devices Average increase/decrease to the number of devices added on a shared data plan to mobile data plans after subscribing to a shared data plan UK 2.6 UK 13% 25% US 3.0 US 0% 36% India 2.5
Slide 6: Smartphones form the majority
Smartphones form the majority The figure below shows the devices owned and added to shared data plans in the US and Brazil. Smartphone only Smartphone and laptop only Smartphone and tablet only Smartphone, laptop and tablet None on these/don’t know Source: Ericsson ConsumerLab, Embracing data sharin
Slide 7: Impact on loyalty
Impact on loyalty 47% claim shared data plans are more flexible 54% indicated that they intend to continue with their plans and existing providers This leads to an increase in positive perception and loyalty to the service provider © Ericsson AB 2015 | 2015-01-28 | Page 7
Slide 8: Perceived rise in cost
Perceived rise in cost Some users perceive a rise in costs since switching to a shared data plan. This perception is particularly visible in high growth markets like India and Brazil. Not expensive Expensive 2 out 5 shared data users are dissatisfied with value for money Source: Ericsson ConsumerLab
Slide 9: Central barriers to taking up shared data plans
The central barriers preventing some users from taking up shared data plans are: › Perceived higher costs › The belief that sharing will lead to slower connection speeds Source: Ericsson ConsumerLab, Embracing data sharing, 2015 Base: Smartphone users in Brazil, India, Japan, South Korea, the UK © E
Slide 10: Smartphone user profiles
Smartphone user profiles Smartphone users can be segmented into six different user groups based on: › What type of applications and services they use › How often they use them © Ericsson AB 2015 | 2015-01-28 | Page 10
Slide 11: Developed and high growth markets
Developed and high growth markets Developed markets in the US High growth markets in Brazil 2 in 5 are married adults between 51% 69% ARE BETWEEN OF THEM 40–59 years old 25–39 ARE EARLY YEARS OLD ADOPTERS 45% 1/3 ARE LATE ARE LIGHT DATA USERS 1/3 FOLLOWERS are power users and video-centric app users
Slide 12: Shared data plans must cater for heavy data users
Shared data plans in the future must be designed to cater for heavy data users, since they will have very different expectations from the users of today. Heavy data users (power users and Other users video-centric smartphone users) Source: Ericsson ConsumerLab, Embracing data sharing, 2015 © Ericsso
Slide 13: 55% would replace Wi-Fi with shared data plan
Existing shared data users are less inclined to replace Wi-Fi, however intenders express a higher interest. Shared data user Shared data intender would replace their 55% SHARED Wi-Fi usage with a DATA PLAN if the cost was EQUAL OR LOWER than Wi-Fi combined with an individual subscription. Source: Er
Slide 14: Shared satisfaction
Shared satisfaction While high data allowances are the most sought-after element of a shared data plan, unlimited voice and texting are also appealing. Elements that users and intenders consider critical to a shared data plan Source: Ericsson ConsumerLab, Embracing data sharing, 2015 © Ericsson AB 2
Slide 15: App coverage must improve
App coverage must improve › 40 percent of future shared data users are likely to be power and video- centric app users › It is critical that app coverage is improved, or these customers will not experience the benefits Percentage of smartphone users who have stopped using apps due to bad coverage So
Slide 16: Summary
summary As consumer needs continue to rapidly shift, so the need for innovation increases when it comes to mobile data plans. REAL-TIME VISIBILITY AND MANAGEMENT ENHANCED VALUE SIMPLE AND THAT EXTENDS TO STREAMLNED OTHER DEVICES OFFERING AND CONCEPTS CLEAR SUPERIOR UNDERSTANDING APP COVERAGE OF COST
Slide 17: Ericsson
ERICSSON