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Analysys Mason Document Consumer smartphone analytics: roaming usage RESEARCH SURVEY REPORT CONSUMER SMARTPHONE ANALYTICS: ROAMING USAGE GIULIO SINIBALDI and STEPHEN SALE analysysmason.com © Analysys Mason Limited 2018 Consumer smartphone analytics: roaming usage About this report This report analyses real-world smartphone usage data to answer SURVEY OUTLINE GEOGRAPHICAL COVERAGE questions about mobile usage when roaming. It looks at consumer engagement with various apps and services, and assesses the The analysis is based on data ▪ Germany extent to which behaviour differs when users are abroad. Of provided by Verto Analytics, ▪ United Kingdom (UK) collected using a passive on-device particular interest is the level of data usage over both cellular and monitoring app called Smart Panel. ▪ United States of America (USA) Wi-Fi networks. This report also examines the use of legacy operator services such as voice and SMS, and quantifies the The app tracks: effect of roaming on substitution by OTT services. ▪ app download and usage ▪ system processes It is based on data collected by Verto Analytics using a passive on- ▪ data traffic by each app/process device monitoring app during July and August 2016. ▪ voice traffic ▪ web browser activity. KEY QUESTIONS ANSWERED IN THIS REPORT WHO SHOULD READ THIS REPORT ▪ What is the level of potential demand for mobile services being unmet ▪ Strategy and planning executives who are responsible for mobile under premium pricing regimes? operators’ roaming service design and pricing. ▪ How does usage differ at home and abroad? ▪ Executives in mobile operators’ technology and innovations teams who ▪ What are the differences in cellular and Wi-Fi attachment when away are responsible for developing communication services. from home? ▪ Marketing executives at vendors of telecommunication services equipment and software, because it will help them to understand the needs of operator customers and their end users. © Analysys Mason Limited 2018 2 Consumer smartphone analytics: roaming usage The average cellular data usage when roaming was 56MB per day, which is 40% less than the domestic usage Regulatory and consumer pressure has forced international Figure 1: Average and median daily data consumption by country (n=233) roaming prices to fall substantially in many countries. The effects have been particularly pronounced in the EU, where ‘roam-like-at- home’ (RLAH) legislation has ended, with some caveats, premium charges for roaming within the EU. The data analysed in this report was collected before the June 2017 implementation of RLAH and so serves to offer a snapshot of behaviour before these changes occurred. Overall smartphone engagement levels were broadly similar for our participants when at home and abroad. The average time spent using their smartphone was 150 minutes per day while abroad and 155 minutes per day while at home, representing only a negligible difference. People, it seems, are not turning their devices off when abroad. We do, however, see marked differences in data consumption when users are roaming. The average daily usage was 540MB when at home, counting both cellular and Wi-Fi use, but only 332MB when abroad, denoting a decrease of 39%. The average cellular data usage was down 40%, though the median decreased by 73%, showing the effect of a relatively small number of heavy users, likely on roaming plans. Wi-Fi use also declined by 39% on average and the median decreased by 47%. Consumers have less access to private Wi-Fi, which constitutes 95% of Wi-Fi usage when at home, and must instead rely more on open Wi-Fi hotspots. © Analysys Mason Limited 2018 4 Consumer smartphone analytics: roaming usage 26% of the participants were ‘silent roamers’ and a further 26% used minimal mobile data while abroad At home, only 6% of participants did not use the cellular network Figure 3: Reliance on the cellular network from 0 to 100% both at home and abroad (n=233) at all during the period of the study, compared to 26% while roaming. These are so-called ‘silent roamers’ who continue to use their devices but switch off mobile data. There is a further 26% of participants that used less than 10MB per day, and only used cellular connectivity for the bare minimum number of functions. There is a strong likelihood that these customers are dissatisfied with their experience of mobile operators while roaming. The connectivity of the roaming participants shows a high degree of polarisation when compared to the domestic usage: panellists are more likely to rely solely on either cellular data or Wi-Fi for their needs while abroad. From the 56th percentile onwards, for each percentile of the sample the share of cellular attachment abroad increases so quickly that it crosses the path of the home attachment rate and progresses more quickly to the 100% cellular attachment mark, reaching it at the 92nd percentile of the sample, compared to the 100th percentile for the home distribution. As the availability of Wi-Fi, and thus the Wi-Fi consumption, drops significantly, individuals, especially those whose demand of connectivity is less elastic, rely as much as they can on cellular networks. © Analysys Mason Limited 2018 6 Consumer smartphone analytics: roaming usage CONTENTS EXECUTIVE SUMMARY ROAMING VS HOME SMARTPHONE ENGAGEMENT CELLULAR AND WI-FI ATTACHMENT RATES METHODOLOGY AND PANEL INFORMATION ABOUT THE AUTHORS AND ANALYSYS MASON © Analysys Mason Limited 2018 25 Consumer smartphone analytics: roaming usage About the authors Stephen Sale (Research Director, Consumer Services) oversees Analysys Mason’s consumer research and is also the lead analyst for the Future Comms research programme. His primary areas of specialisation include next-generation communication services, over-the-top (OTT) player strategies and mobile pricing. He also has extensive experience in analysing operator strategies and forecasting fixed and mobile service markets. Before joining Analysys Mason in 2004, Stephen worked in the industry on areas that include VoIP, next-generation service architecture and broadband access. He has a degree in economics and an interdisciplinary MRes from the University of London. Giulio Sinibaldi (Research Analyst) is a key contributor to Analysys Mason's Consumer Services and Digital Economy research practices. He is interested in mobile strategies, over-the-top (OTT) platforms, Internet regulation and consumer behaviour, and his skillset includes quantitative forecast modelling and big data analytics. Giulio holds a BSc and an MSc in Economics from Bocconi University. © Analysys Mason Limited 2018 26 Consumer smartphone analytics: roaming usage Analysys Mason’s consulting and research are uniquely positioned Analysys Mason’s consulting services and research portfolio CONSULTING ▪ We deliver tangible benefits to clients across the telecoms industry: communications and digital service providers, vendors, financial and strategic investors, private equity and infrastructure funds, governments, regulators, broadcasters, and service and content providers. ▪ Our sector specialists understand the distinct local challenges facing clients, in addition to the wider effects of global forces. ▪ We are future-focused and help clients understand the challenges and opportunities that new technology brings. RESEARCH ▪ Our dedicated team of analysts track and forecast the different services accessed by consumers and enterprises. ▪ We offer detailed insight into the software, infrastructure and technology delivering those services. ▪ Clients benefit from regular and timely intelligence, and direct access to analysts. © Analysys Mason Limited 2018 27 Consumer smartphone analytics: roaming usage Research from Analysys Mason © Analysys Mason Limited 2018 28 Consumer smartphone analytics: roaming usage Consulting from Analysys Mason © Analysys Mason Limited 2018 29 Consumer smartphone analytics: roaming usage PUBLISHED BY ANALYSYS MASON LIMITED IN FEBRUARY 2018 Bush House • North West Wing • Aldwych • London • WC2B 4PJ • UK Tel: +44 (0)20 7395 9000 • Email: [email protected] • www.analysysmason.com/research • Registered in England No. 5177472 © Analysys Mason Limited 2018. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means – electronic, mechanical, photocopying, recording or otherwise – without the prior written permission of the publisher. Figures and projections contained in this report are based on publicly available information only and are produced by the Research Division of Analysys Mason Limited independently of any client-specific work within Analysys Mason Limited. The opinions expressed are those of the stated authors only. Analysys Mason Limited recognises that many terms appearing in this report are proprietary; all such trademarks are acknowledged and every effort has been made to indicate them by the normal UK publishing practice of capitalisation. However, the presence of a term, in whatever form, does not affect its legal status as a trademark. Analysys Mason Limited maintains that all reasonable care and skill have been used in the compilation of this publication. However, Analysys Mason Limited shall not be under any liability for loss or damage (including consequential loss) whatsoever or howsoever arising as a result of the use of this publication by the customer, his servants, agents or any third party. © Analysys Mason Limited 2018.
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