The Mobile Internet Report Key Themes*

Bottom Line =
Wi-Fi Offload Will Be Used as Often as Possible in Overloaded Areas
Mobile video expected to be primary driver of mobile data growth + requires high-speed connection to
ensure quality streaming – By 2013E, mobile video traffic expected to reach ~1,400 PB / month (64% of
all mobile data traffic) / demands high throughput speed and low latency.
Mobile video is a stationary activity, for the most part – It’s doubtful you can watch TV on your phone
and walk at the same time so most video watching is done in a stationary place where Wi-Fi (when
accessible) is the cheaper option by far. The two exceptions are in a car or on a train.
~42% of iPhone traffic + 100% of iTouch traffic on Wi-Fi = implies ~65% of Apple mobile Internet
devices on Wi-Fi.
1,500,000
Mobile Video Traffic, 2008 – 2013E
AT&T Wi-Fi Hotspots
1,200,000
Traffic (TB / Month)
900,000
600,000
300,000
0
2008 2009E 2010E 2011E 2012E 2013E
Video Traffic
Source: Cisco Visual Networking Survey, AT&T, Ehud Gelblum, Morgan Stanley Research estimates.
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