2015 VNI Complete Forecast Latin America
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Transcript of 2015 VNI Complete Forecast Latin America
Thomas Barnett, Jr. – Director, SP Thought Leadership
Shruti Jain – Senior Analyst
May 2015
Cisco Visual Networking Index and VNI Service Adoption Latin America (LATAM) Forecast Update, 2014–2019
Arielle Sumits – Senior Analyst
Usha Andra – Senior Analyst Taru Khurana – Senior Analyst
2 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Cisco Visual Networking Index (VNI) Global Service Adoption & IP Traffic Growth
Cisco VNI Forecasts are complementary and statistically aligned.
VNI
Service Adoption Forecast
Fixed & Mobile IP Traffic Forecast
FIXED MOBILE RESIDENTIAL MOBILE BUSINESS
3 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Global IP Traffic & Service Adoption Drivers
More Devices & Connections
More Internet Users
Faster Broadband Speeds
More Video Viewing
Source: Cisco VNI Global IP Traffic Forecast, 2014–2019
By 2019:
2014 2019 14.2 Billion 24.4 Billion
2014 2019 20.3 Mbps 42.5 Mbps
2014 2019 2.8 Billion 3.9 Billion
2014 2019 67% of Traffic
80% of Traffic
IP Broadband Growth Drivers
4 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
LATAM IP Traffic & Service Adoption Drivers
More Devices & Connections
More Internet Users
Faster Broadband Speeds
More Video Viewing
Source: Cisco VNI Global IP Traffic Forecast, 2014–2019
By 2019:
2014 2019 1.2 Billion 1.9 Billion
2014 2019 7.2 Mbps 17 Mbps
2014 2019 260 Million 371 Million
2014 2019 61% of Traffic
82% of Traffic
IP Broadband Growth Drivers
5 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Overview
6 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
2.0 zettabytes is equal to:
• 12X more than all IP traffic generated in 2009 (169 exabytes)
• 30 hours of ultra-HD video per person of the world population
By 2019, global IP traffic will reach an annual run rate of 2.0 zettabytes per year
• One trillion gigabytes
• Approximately 1021 (1,000,000,000,000,000,000,000 bytes)
What is a zettabyte?
Source: Cisco VNI Global IP Traffic Forecast, 2014–2019
Establishing the Zettabyte Era
7 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
34.2%
0%
5%
10%
15%
20%
25%
30%
35%
40%
2009-2014 CAGR
Projected in 2010 Actual
35.6%
Source: Cisco VNI Global IP Traffic Forecast, 2014–2019
VNI Projections and Actuals (Global) Actual Growth Has Been Within 10% of Projected Growth
Compound Annual
Growth Rate (CAGR)
8 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Global IP Traffic Growth / Top-Line Global IP Traffic will Increase 3-Fold from 2014─2019
23% CAGR 2014–2019
59.9 72.4
88.4 109.0
135.5
168.0
0
20
40
60
80
100
120
140
160
180
2014 2015 2016 2017 2018 2019
Exabytes per Month
Source: Cisco VNI Global IP Traffic Forecast, 2014–2019
9 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
0
2
4
6
8
10
12
14
2014 2015 2016 2017 2018 2019
Chile (23% CAGR)
Argentina (21% CAGR)
Mexico (29% CAGR)
Rest of LATAM (31% CAGR)
Brazil (19% CAGR)
LATAM IP Traffic Growth / Regions Rest of LATAM has the Highest Growth Rate (31%) from 2014–2019
Exabytes per Month
Source: Cisco VNI Global IP Traffic Forecast, 2014–2019
25% CAGR 2014–2019
27%
34%
24%
9% 6%
10 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
0
20
40
60
80
100
120
140
160
180
2014 2015 2016 2017 2018 2019
Middle East and Africa (MEA) (44% CAGR) Latin America (LATAM) (25% CAGR) Central and Eastern Europe (CEE) (33% CAGR) Western Europe (WE) (21% CAGR) North America (NA) (20% CAGR) Asia Pacific (APAC) (21% CAGR)
Global IP Traffic Growth / Regions MEA has the Highest Growth Rate (44%) from 2014–2019 APAC will Generate 32% of all IP Traffic by 2019
29.6%
32.4%
10.0%
5.6%
14.7%
Exabytes per Month
7.7%
Source: Cisco VNI Global IP Traffic Forecast, 2014–2019
23% CAGR 2014–2019
11 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Drivers
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Global Internet Users From 2.8 Billion in 2014 to 3.9 Billion by 2019 at 6.9% CAGR
North America Western Europe Central/Eastern Europe
Latin America Middle East & Africa Asia Pacific
319 Million by 2019 CAGR 1.0%
350 Million by 2019 CAGR 0.9%
336 Million by 2019 CAGR 5.3%
371 Million by 2019 CAGR 7.4%
425 Million by 2019 CAGR 10.3%
2.1 Billion by 2019 CAGR 8.7%
Source: Cisco VNI Global IP Traffic Forecast, 2014–2019
13 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Global Device and Connections From 14.2 Billion in 2014 to 24.4 Billion by 2019 at 12% CAGR
North America Western Europe Central/Eastern Europe
Latin America Middle East & Africa Asia Pacific
4.3 Billion by 2019 CAGR 14%
3.5 Billion by 2019 CAGR 13%
2.1 Billion by 2019 CAGR 12%
1.9 Billion by 2019 CAGR 9%
2.1 Billion by 2019 CAGR 9%
10.5 Billion by 2019 CAGR 11%
Source: Cisco VNI Global IP Traffic Forecast, 2014–2019
14 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Global Fixed Broadband Speed Growth Average Broadband Speed Will More Than Double from 20.3 Mbps (2014) to 42.5 Mbps (2019)
North America Western Europe Central/Eastern Europe
Latin America Middle East & Africa Asia Pacific
2.0-fold Growth 21.8 to 43.7 Mbps
2.3-fold Growth 21.8 to 49.1 Mbps
2.0-fold Growth 22.2 to 45.3 Mbps
2.3-fold Growth 7.2 to 16.9 Mbps
2.4-fold Growth 6.1 to 14.9 Mbps
2.1-fold Growth 23.2 to 48.9 Mbps
Source: Cisco VNI Global IP Traffic Forecast, 2014–2019
15 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Global IP Traffic – Increasing Video Viewing By 2019, Video Will Drive 80% of IP Traffic, Up from 67% in 2014
North America Western Europe Central/Eastern Europe
Latin America Middle East & Africa Asia Pacific
84% of traffic by 2019 22% CAGR
80% of traffic by 2019 28% CAGR
72% of traffic by 2019 45% CAGR
82% of traffic by 2019 32% CAGR
78% of traffic by 2019 55% CAGR
79% of traffic by 2019 26% CAGR
Source: Cisco VNI Global IP Traffic Forecast, 2014–2019
16 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Top Trends
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VNI Forecast Update, 2014–2019 Top 10 Networking Trends
1 Continued Shifts in Devices/Connections Mix
2 IPv6 Adoption Enables Internet of Everything (IoE) Connectivity
3
4 Service Adoption Trends – Residential, Consumer Mobile, Business
5 Applications Driving Traffic Growth
6 “Cord-Cutting” Analysis – What’s Really Happening?
7 Impact of Accelerating Speeds on Traffic Growth
8 Mobility (Wi-Fi) Continues to Gain Momentum
9 Traffic Pattern Analysis (Peak vs. Average, Upstream, CDN vs. Metro)
10 Network Performance Drives User Behaviors/Data Plans and Caps
M2M Applications Across Many Industry Verticals Drives IoE Growth
18 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
VNI Forecast Update, 2014–2019 Top 10 Networking Trends
1 Continued Shifts in Devices/Connections Mix
2 IPv6 Adoption Enables Internet of Everything (IoE) Connectivity
3
4 Service Adoption Trends – Residential, Consumer Mobile, Business
5 Applications Driving Traffic Growth
6 “Cord-Cutting” Analysis – What’s Really Happening?
7 Impact of Accelerating Speeds on Traffic Growth
8 Mobility (Wi-Fi) Continues to Gain Momentum
9 Traffic Pattern Analysis (Peak vs. Average, Upstream, CDN vs. Metro)
10 Network Performance Drives User Behaviors/Data Plans and Caps
M2M Applications Across Many Industry Verticals Drives IoE Growth
19 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Global Device/Connection Growth by Type By 2019, M2M Connections Will be More Than 40% of Total Connections
0
5
10
15
20
25
30
2014 2015 2016 2017 2018 2019
Other (4.9%,3.6%)
Tablets (3%,4%)
PCs (11%,6%)
TVs (11%,12%)
Non-Smartphones (32%,13%)
Smartphones (15%,19%)
M2M (24%,43%)
Billions of Devices
* Figures (n) refer to 2014, 2019 device share Source: Cisco VNI Global IP Traffic Forecast, 2014–2019
12% CAGR 2014–2019
20 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
LATAM Device/Connection Growth by Type By 2019, M2M Connections Will be More Than 30% of Total Connections
0.0
0.5
1.0
1.5
2.0
2.5
2014 2015 2016 2017 2018 2019
Other (3.3%,4.1%)
Tablets (3%,5%)
PCs (13%,8%)
TVs (6%,14%)
Non-Smartphones (40%,14%)
Smartphones (17%,24%)
M2M (18%,31%)
Billions of Devices
* Figures (n) refer to 2014, 2019 device share Source: Cisco VNI Global IP Traffic Forecast, 2014–2019
9% CAGR 2014–2019
21 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Global Video Capable Device Growth by Type By 2019, Smartphones More Than 40% of Total Video Capable Devices
0
2
4
6
8
10
12
2014 2015 2016 2017 2018 2019
Other (0.8%,0.3%)
Tablets (7%,8%)
M2M (3%,9%)
PCs (26%,14%)
TVs (26%,27%)
Smartphones (36%,42%)
Source: Cisco VNI Global IP Traffic Forecast, 2014–2019
14% CAGR 2014–2019
* Figures (n) refer to 2014, 2019 device share
Billions of Devices
22 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
SD 2 Mbps
HD 7.2 Mbps
UHD 18 Mbps
10 33
77
146
245
371
0
50
100
150
200
250
300
350
400
2014 2015 2016 2017 2018 2019
Connected 4K TV Sets
(M)
Source: Cisco VNI Global IP Traffic Forecast, 2014–2019
Increasing Video Definition By 2019, More than 31% of Connected Flat Panel TV Sets will be 4K
23 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Global Average IP Traffic Per Device 2014 2019
Wearable Device
Smartphone
Tablet
MBs per Month MBs per Month
1,640 8,419
6,213 14,800
6,258 34,880
23,824 36,311
22,415 50,177
M2M Module
Internet Set-Top or Dongle
Smartphone
Tablet
Laptop / PC
92 433
Ultra High Definition TV*
Source: Cisco VNI Global IP Traffic Forecast, 2014–2019 *Note: Includes IP VoD traffic
24 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
LATAM Average IP Traffic Per Device 2014 2019
Wearable Device
Smartphone
Tablet
MBs per Month MBs per Month
942 5,312
4,717 11,271
6,608 32,113
21,577 34,056
9,979 11,778
M2M Module
Internet Set-Top or Dongle
Smartphone
Tablet
Laptop / PC
49 409
Ultra High Definition TV*
Source: Cisco VNI Global IP Traffic Forecast, 2014–2019 *Note: Includes IP VoD traffic
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Device IP Traffic Comparison 2014 Device IP Traffic Generation Comparisons
Source: Cisco VNI Global IP Traffic Forecast, 2014–2019
Wearable Device
Smartphone
Tablet
M2M Module
Internet Set-Top or Dongle
Smartphone
Tablet
Laptop / PC
Ultra High Definition TV*
Monthly basic mobile phone
data traffic
1077 X =
283 X =
281 X =
74 X =
4 X =
1013 X =
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Global IP Traffic by Device Type By 2019, Non-PC Devices will Drive 67% of Global IP Traffic
0
20
40
60
80
100
120
140
160
180
2014 2015 2016 2017 2018 2019
Other (0.1%,0.1%)
Non-Smartphones (0%,0%)
M2M (1%,3%)
Tablets (4%,19%)
TVs (29%,22%)
Smartphones (6%,23%)
PCs (60%,33%)
Source: Cisco VNI Global IP Traffic Forecast, 2014–2019
23% CAGR 2014–2019
Exabytes per Month
* Figures (n) refer to 2014, 2019 device share
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LATAM IP Traffic by Device Type By 2019, Non-PC Devices will Drive 59% of LATAM IP Traffic
0
2
4
6
8
10
12
14
2014 2015 2016 2017 2018 2019
Other (0.05%,0.1%)
Non-Smartphones (0.08%,0.08%)
M2M (0.3%,2%)
Tablets (5%,24%)
TVs (7%,14%)
Smartphones (4%,19%)
PCs (83%,41%)
Source: Cisco VNI Global IP Traffic Forecast, 2014–2019
25% CAGR 2014–2019
Exabytes per Month
* Figures (n) refer to 2014, 2019 device share
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Global Internet Traffic by Device Type By 2019, Non-PC Devices will Drive 64% of Global Internet Traffic
0
20
40
60
80
100
120
140
160
2014 2015 2016 2017 2018 2019
Other (0.1%,0.1%)
Non-Smartphones (0%,0%)
M2M (1%,3%)
TVs (7%,8%)
Tablets (6%,24%)
Smartphones (8%,28%)
PCs (78%,36%)
Source: Cisco VNI Global IP Traffic Forecast, 2014–2019
26% CAGR 2014–2019
* Figures (n) refer to 2014, 2019 device share
Exabytes per Month
29 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
VNI Forecast Update, 2014–2019 Top 10 Networking Trends
1 Continued Shifts in Devices/Connections Mix
2 IPv6 Adoption Enables Internet of Everything (IoE) Connectivity
3
4 Service Adoption Trends – Residential , Consumer Mobile, Business
5 Applications Driving Traffic Growth
6 “Cord-Cutting” Analysis – What’s Really Happening?
7 Impact of Accelerating Speeds on Traffic Growth
8 Mobility (Wi-Fi) Continues to Gain Momentum
9 Traffic Pattern Analysis (Peak vs. Average, Upstream, CDN vs. Metro)
10 Network Performance Drives User Behaviors/Data Plans and Caps
M2M Applications Across Many Industry Verticals Drives IoE Growth
30 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
0
2
4
6
8
10
12
2014 2015 2016 2017 2018 2019
IPv6 Capable Mobile Devices
IPv6 Capable Fixed Devices
2.0B
3.7B
1.0B
Global IPv6-Capable Devices/Connections By 2019, 41% of Devices/Connections Will be IPv6-Capable
6.2B
Number of Devices
(B)
Source: Cisco VNI Global IP Traffic Forecast, 2014–2019
26% CAGR 2014–2019
31 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
0.0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1.0
2014 2015 2016 2017 2018 2019
IPv6 Capable Mobile Devices
IPv6 Capable Fixed Devices
0.2B
0.3B
0.06B
LATAM IPv6-Capable Devices/Connections By 2019, 46% of Devices/Connections Will be IPv6-Capable
0.6B
Number of Devices
(B)
Source: Cisco VNI Global IP Traffic Forecast, 2014–2019
27% CAGR 2014–2019
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0 5
10 15 20 25 30 35 40 45 50
2014 2015 2016 2017 2018 2019
Middle East and Africa (MEA) (106% CAGR)
Latin America (LATAM) (75% CAGR)
Central and Eastern Europe (CEE) (99% CAGR)
Western Europe (WE) (66% CAGR)
North America (NA) (79% CAGR)
Asia Pacific (APAC) (74% CAGR)
Global IPv6 Traffic Growth / Regions By 2019, IPv6 Will Represent 34% of Total Internet Traffic
22.4%
33.7%
11.6%
6.5%
17.9% Exabytes per Month
7.9%
2.6
46
Source: Cisco VNI Global IP Traffic Forecast, 2014–2019
77% CAGR 2014–2019
33 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Global IPv6 Enabled Content
US 46%
Australia 49% Brazil 57%
UK 46%
Spain 49%
Today Projected in 2019
25%
6.6%
Source: Cisco IPv6 Labs
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Global IPv6 Deployment
Source: World IPv6 Launch
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VNI Forecast Update, 2014–2019 Top 10 Networking Trends
1 Continued Shifts in Devices/Connections Mix
2 IPv6 Adoption Enables Internet of Everything (IoE) Connectivity
3
4 Service Adoption Trends – Residential , Consumer Mobile, Business
5 Applications Driving Traffic Growth
6 “Cord-Cutting” Analysis – What’s Really Happening?
7 Impact of Accelerating Speeds on Traffic Growth
8 Mobility (Wi-Fi) Continues to Gain Momentum
9 Traffic Pattern Analysis (Peak vs. Average, Upstream, CDN vs. Metro)
10 Network Performance Drives User Behaviors/Data Plans and Caps
M2M Applications Across Many Industry Verticals Drives IoE Growth
36 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Global M2M Connections / IoE Growth By 2019, 1.5 M2M Connections Per Capita Globally
0
2
4
6
8
10
12
2014 2015 2016 2017 2018 2019
Middle East & Africa (26.2% CAGR)
Latin America (21.5% CAGR)
Central & Eastern Europe (28.2% CAGR)
Western Europe (25.8% CAGR)
North America (28.6% CAGR)
Asia Pacific (24.4% CAGR)
Source: Cisco VNI Global IP Traffic Forecast, 2014–2019
26% CAGR 2014–2019
Billions of M2M
Connections
37 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Global M2M Traffic Growth M2M Traffic Will Grow 15-Fold from 2014 to 2019
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
2014 2015 2016 2017 2018 2019
Middle East & Africa (94.4% CAGR)
Latin America (85.8% CAGR)
Central & Eastern Europe (86.4% CAGR)
Western Europe (76.3% CAGR)
North America (82.2% CAGR)
Asia Pacific (61.2% CAGR)
Source: Cisco VNI Global IP Traffic Forecast, 2014–2019
71% CAGR 2014–2019
Petabytes per Month
38 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Source: Cisco VNI Global IP Traffic Forecast, 2014–2019
By 2019, M2M modules will be 43% of total global devices and connections and will account for 3% (4.6 EBs/month) of total global IP traffic.
39 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Source: Cisco VNI Global IP Traffic Forecast, 2014–2019
In LATAM, by 2019, M2M modules will be 31% of total devices and connections and will account for 1.9% (0.2 EBs/month) of total IP traffic.
40 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Global M2M Connections / IoE Growth By Vertical By 2019, Connected Home Largest, Connected Health Fastest Growth
-
2
4
6
8
10
12
2014 2015 2016 2017 2018 2019
Other* (38.2% CAGR) Energy (31.9% CAGR) Manufacturing & Supply Chain (8.9% CAGR) Retail (10.5% CAGR) Connected Cities (28.2% CAGR) Connected Health (49.4% CAGR) Connected Car (37.3% CAGR) Utilities (21% CAGR) Connected Work (Ent Mgmnt) (29.4% CAGR) Connected Home (23.1% CAGR)
Source: Cisco VNI Global IP Traffic Forecast, 2014–2019
26% CAGR 2014–2019
Billions of M2M
Connections
*Other includes Agriculture, Construction & Emergency Services
41 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
• Agriculture – livestock, soil monitoring, water and resource conservation, temperature control for milk tanks +
• Construction: Site and equipment monitoring
• Emergency services and national security
• New energy sources – monitoring and power generation support apps
• Smart grid and distribution
• Micro-generation– generation of power, by residential, commercial and community users on their own property
• Mining and extraction • Manufacturing and
processing • Supply chain • Warehousing and
storage
• Retail goods monitoring and payment
• Retail venue access and control
• Slot machines, vending machines
• Environment and public safety – closed-circuit TV, street lighting, waste removal, information +
• Public space advertising • Public transport • Road traffic
management
• Health monitors • Assisted living – medicine
dispensers + • Clinical trials • First responder
connectivity • Telemedicine
• Fleet management • In-vehicle entertainment
systems, emergency calling, Internet
• Vehicle diagnostics, navigation
• Stolen vehicle recovery • Lease, rental, insurance
management
• Electric vehicle charging • Smart metering
• Office building automation
• Building security • Office equipment –
printers + • Routers + • Commercial appliances
• Home automation • Building security • Network equipment –
printers + • Network infrastructure –
routers + • White goods • Tracking applications • Household information
devices
Connected Car Connected Work Connected Home Connected Health Utilities
Other Energy Retail Connected Cities
Manufacturing & Supply Chain
42 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Internet of Everything Increasing Home Connectivity
Source: Cisco VNI Global IP Traffic Forecast, 2014–2019 Note: Globally, there will be 2.2 billion households by 2019
On average, there will be more
than two connected home modules per global
household by 2019
2019 5.0 Billion Connected
Home Modules
2014 1.8 Billion Connected
Home Modules
HVAC and Lighting Systems
Home Security Fire Alarm
Smart Appliances
Child, Pet and Personal Items
Tracking
Printers, Scanners,
Home Routers
Distributed Screens
43 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
VNI Forecast Update, 2014–2019 Top 10 Networking Trends
1 Continued Shifts in Devices/Connections Mix
2 IPv6 Adoption Enables Internet of Everything (IoE) Connectivity
3
4 Service Adoption Trends – Residential, Consumer Mobile, Business
5 Applications Driving Traffic Growth
6 “Cord-Cutting” Analysis – What’s Really Happening?
7 Impact of Accelerating Speeds on Traffic Growth
8 Mobility (Wi-Fi) Continues to Gain Momentum
9 Traffic Pattern Analysis (Peak vs. Average, Upstream, CDN vs. Metro)
10 Network Performance Drives User Behaviors/Data Plans and Caps
M2M Applications Across Many Industry Verticals Drives IoE Growth
44 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Global Residential Market, by 2019:
62% (2.4 billion) of Internet users will have fixed residential internet access. 79% (1.4 billion) TV households will be digital TV households. There will be 9.4 billion fixed residential devices and connections (up from 4.9 billion in 2014). Average household will have 4.3 fixed devices and connections (up from 2.4 in 2014).
Source: Cisco VNI Global IP Traffic Forecast, 2014–2019
45 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Note: By 2019, the global residential fixed Internet population will be 2.4 billion; the number of global TV households will be 1.8 billion
Global Residential Services By 2019, Time Delayed TV Will Grow the Fastest; Digital TV Will Have Highest Adoption
CAGR 2014–2019
Online Music
Social Networking
Online Video Online Gaming
VoIP
Digital TV Video on Demand
Time Delayed TV
0%
2%
4%
6%
8%
10%
0% 20% 40% 60% 80% 100%
2019 % Adoption
Source: Cisco VNI Service Adoption Forecast, 2014–2019
46 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Residential Services Implications / Opportunities
Residential Market Dynamics Residential Opportunities for Service Providers
• More / new connections
• Preference for mobility
• Need to monetize increased network demand
• Extend content / service reach across new devices and connections
• Partner and form new eco-systems with OTTPs
• Develop Wi-Fi / mobility plans
• Bolster service portfolio with value-added IoE / M2M applications
47 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Source: Cisco VNI Global IP Traffic Forecast, 2014–2019
Global Consumer Mobile Market, by 2019: There will be 4.9 billion consumer mobile users (64% of population). There will be 9.8 billion consumer mobile devices and connections. Average consumer mobile user will have 2.0 mobile devices and connections (up from 1.5 in 2014).
48 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Note: By 2019, the global consumer mobile population will be 4.9 billion.
Global Consumer Mobile Services By 2019, Consumer LBS Will Grow the Fastest; Mobile Banking & Commerce Will Have Highest Adoption
CAGR 2014–2019
Source: Cisco VNI Service Adoption Forecast, 2014–2019
MMS
Mobile Social Networking Mobile Email
Consumer LBS
Mobile Gaming
Mobile Banking & Commerce
Mobile Video
Mobile Music
-5%
5%
15%
25%
35%
20% 30% 40% 50% 60% 70% 80% 2019 % Adoption
49 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Consumer Mobile Implications / Opportunities
Consumer Mobile Market Dynamics
Consumer Mobile Opportunities for Service Providers
• More / new devices and connections
• Demand for seamless transition / experience between fixed and mobile
• Demand for Wi-Fi offload and faster speeds
• Need to monetize increased network demand
• Extend reach of traditional / brick and mortar services
• Shared data plans
• Blend service offers with online services / content
• Developing / monetizing Wi-Fi offers
• Partner with device manufacturers / content creators (consider busy /peak demands)
50 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Source: Cisco VNI Global IP Traffic Forecast, 2014–2019
Global Business Market, by 2019: There will be 2.2 billion business Internet users (63% of global work force). There will be 582 million business mobile users (17% of global work force). There will be 5.3 billion business devices and connections (up from 2.8 billion in 2014). Average business internet user will have
2.4 devices and connections There will be 1.7 billion business mobile device and connections (up from 943 million in 2014).
Average business mobile user will have 2.9 mobile devices and connections
51 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Note: By 2019, the global business Internet population will be 2.2 billion; the number of business users will be 582 million.
Global Business Services By 2019, Personal Video Conferencing Will Grow the Fastest; Mobile SMS Will Have Highest Adoption
CAGR 2014–2019
Source: Cisco VNI Service Adoption Forecast, 2014–2019
SMS
Mobile Email Room Based Video
Conferencing
IP Telephony
Business LBS
Audio Conferencing
Desktop Video Conferencing
Web Conferencing w/o Video
-5%
5%
15%
25%
35%
0% 20% 40% 60% 80% 100%
2019 % Adoption
52 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Business Market Dynamics Business Segment Opportunities for Service Providers
• More / new devices and connections—growing demand for BYOD
• Low penetration of mobile devices
• Growing demand for service transition from fixed to mobile
• Premium security
• Enhance productivity, customer support
• Cloud services and storage— network, computing, infrastructure
• Offer vertical specific IoE / M2M services
• Blending and bundling with other services
Business Services Implications / Opportunities
53 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
VNI Forecast Update, 2014–2019 Top 10 Networking Trends
1 Continued Shifts in Devices/Connections Mix
2 IPv6 Adoption Enables Internet of Everything (IoE) Connectivity
3
4 Service Adoption Trends – Residential, Consumer Mobile, Business
5 Applications Driving Traffic Growth
6 “Cord-Cutting” Analysis – What’s Really Happening?
7 Impact of Accelerating Speeds on Traffic Growth
8 Mobility (Wi-Fi) Continues to Gain Momentum
9 Traffic Pattern Analysis (Peak vs. Average, Upstream, CDN vs. Metro)
10 Network Performance Drives User Behaviors/Data Plans and Caps
M2M Applications Across Many Industry Verticals Drives IoE Growth
54 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
0
20
40
60
80
100
120
140
160
180
2014 2015 2016 2017 2018 2019
Gaming (0.05% , 0.08% ) File Sharing (11.6% , 4.3% ) Web/Data (21.3% , 15.5% ) IP VoD (23.6% , 16.0% ) Internet Video (43.4% , 64.1% )
Global IP Video Traffic Growth IP Video Will Account for 80% of Global IP Traffic by 2019
Source: Cisco VNI Global IP Traffic Forecast, 2014–2019
23% CAGR 2014–2019
Exabytes per Month
* Figures (n) refer to 2014, 2019 traffic shares
55 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
0
2
4
6
8
10
12
14
2014 2015 2016 2017 2018 2019
Gaming (0.03% , 0.05% ) File Sharing (16.0% , 5.2% ) Web/Data (23.2% , 13.2% ) IP VoD (6.0% , 10.3% ) Internet Video (54.8% , 71.2% )
LATAM IP Video Traffic Growth IP Video Will Account for 82% of LATAM IP Traffic by 2019
Source: Cisco VNI Global IP Traffic Forecast, 2014–2019
25% CAGR 2014–2019
Exabytes per Month
* Figures (n) refer to 2014, 2019 traffic shares
56 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Global Video Users/ Subscribers Online & Mobile Video Growing Faster Than Digital TV
1,000
1,500
2,000
2,500
3,000
2014 2015 2016 2017 2018 2019
Online Video ( 7.3% CAGR) Digital TV HH ( 4.9% CAGR)
Mobile Video ( 21.0% CAGR)
Users/ Subscriptions
(M)
57 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
0
20
40
60
80
100
120
140
160
2014 2015 2016 2017 2018 2019
Gaming (0.07% , 0.10% )
File Sharing (16.3% , 5.3% )
Web/Data (24.7% , 17.5% )
Internet Video (58.9% , 77.1% )
Global Internet Video Traffic Growth Internet Video Will Account for 77 Percent of Global Internet Traffic by 2019
Source: Cisco VNI Global IP Traffic Forecast, 2014–2019 * Figures (n) refer to 2014, 2019 traffic shares
Exabytes per Month
26% CAGR 2014–2019
58 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
0
2
4
6
8
10
12
2014 2015 2016 2017 2018 2019
Gaming (0.03% , 0.06% )
File Sharing (17.9% , 6.0% )
Web/Data (22.5% , 14.1% )
Internet Video (59.6% , 79.9% )
LATAM Internet Video Traffic Growth Internet Video Will Account for 80 Percent of LATAM Internet Traffic by 2019
Source: Cisco VNI Global IP Traffic Forecast, 2014–2019 * Figures (n) refer to 2014, 2019 traffic shares
Exabytes per Month
24% CAGR 2014–2019
59 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
0
10
20
30
40
50
60
70
80
90
100
2014 2015 2016 2017 2018 2019
Console Game Downloads (1.5% , 4.6% )
Global Internet Gaming Traffic Growth Game Downloads To Account for Nearly 5% Percent of Fixed Consumer Internet by 2019; Currently 2% of Average and 10% of Peak Traffic
Source: Cisco VNI Global IP Traffic Forecast, 2014–2019
Exabytes per Month
24% CAGR 2014–2019
* Figures (n) refer to 2014, 2019 traffic shares
60 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
0
20
40
60
80
100
120
140
160
2014 2015 2016 2017 2018 2019
Ultra-High Def (UHD) Video (0.6% , 13.9% )
High Def (HD) Video (38.6% , 53.5% )
Standard Def (SD) Video (60.8% , 32.6% )
Higher Definition Content Impacts Global IP Video Growth Ultra-HD IP Video Will Account for 14% of Global IP Video Traffic by 2019
Source: Cisco VNI Global IP Traffic Forecast, 2014–2019
27% CAGR 2014–2019
Exabytes per Month
* Figures (n) refer to 2014, 2019 traffic shares
61 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
0
2
4
6
8
10
12
2014 2015 2016 2017 2018 2019
Ultra-High Def (UHD) Video (0.1% , 4.1% )
High Def (HD) Video (15.8% , 38.6% )
Standard Def (SD) Video (84.2% , 57.3% )
Higher Definition Content Impacts LATAM IP Video Growth Ultra-HD IP Video Will Account for 4% of LATAM IP Video Traffic by 2019
Source: Cisco VNI Global IP Traffic Forecast, 2014–2019
32% CAGR 2014–2019
Exabytes per Month
* Figures (n) refer to 2014, 2019 traffic shares
62 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
0
5
10
15
20
25
30
2014 2015 2016 2017 2018 2019
Ultra-High Def (UHD) Video (0.2% , 21.0% ) High Def (HD) Video (55.8% , 69.9% ) Standard Def (SD) Video (44.0% , 9.1% )
Higher Definition Content Impacts Global IP VoD Growth Ultra-HD IP VoD Will Account for 21% of Global IP VoD Traffic by 2019
Source: Cisco VNI Global IP Traffic Forecast, 2014–2019
14% CAGR 2014–2019
Exabytes per Month
* Figures (n) refer to 2014, 2019 traffic shares
63 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
360 Immersive Video – Wild Card
• Ideal format for user-driven sports, entertainment and travel related video content
• YouTube added support for 360 videos (March 2015), making the site more useful to VR headset owners
• Google offers 360 video production support
• Currently a small selection of videos--more expected as new 360 camera options become available
• Live and VoD 360 content (4K) could have a significant “multiplier effect” on traffic due to higher definition and bit rates
64 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
VNI Forecast Update, 2014–2019 Top 10 Networking Trends
1 Continued Shifts in Devices/Connections Mix
2 IPv6 Adoption Enables Internet of Everything (IoE) Connectivity
3
4 Service Adoption Trends – Residential, Consumer Mobile, Business
5 Applications Driving Traffic Growth
6 “Cord-Cutting” Analysis – What’s Really Happening?
7 Impact of Accelerating Speeds on Traffic Growth
8 Mobility (Wi-Fi) Continues to Gain Momentum
9 Traffic Pattern Analysis (Peak vs. Average, Upstream, CDN vs. Metro)
10 Network Performance Drives User Behaviors/Data Plans and Caps
M2M Applications Across Many Industry Verticals Drives IoE Growth
65 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Global Video Users/ Subscribers Online & Mobile Video Growing Faster Than Digital TV
-
1,000
2,000
3,000
2014 2015 2016 2017 2018 2019
Online Video ( 7.3% CAGR) Digital TV HH ( 4.9% CAGR)
Mobile Video ( 21.0% CAGR)
Users/ Subscriptions
(M)
Source: Cisco VNI Global IP Traffic Forecast, 2014–2019
66 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Global Internet and TV Users/ Subscribers Global Residential Internet Growing; TV Household Penetration Flattening
1,000
2,000
3,000
4,000
2014 2015 2016 2017 2018 2019
Residential Internet* ( 6.8% CAGR) Total TV HH ( 1.8% CAGR)
Users/ Subscriptions
(M)
Source: Cisco VNI Global IP Traffic Forecast, 2014–2019 * Residential Internet users include fixed and mobile Internet users
67 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Global Digital Media Adapters* Growth By 2019, DMAs Will Represent 7% of Global Internet Set-Top-Boxes (STB) By 2019, DMAs Will Represent 32% of Global Internet STB Traffic
Digital Media Adapters
(M)
64.4
91.7
119.1
143.4
163.3 181.2
0
50
100
150
200
2014 2015 2016 2017 2018 2019
0.68 1.13
1.67
2.25
2.83
3.43
0.0
1.0
2.0
3.0
4.0
2014 2015 2016 2017 2018 2019
DMA Traffic
(EB/Month)
Source: Cisco VNI Global IP Traffic Forecast, 2014–2019
38% CAGR 2014–2019 23% CAGR 2014–2019
* DMAs include devices such as Roku, Apple TV, Chromecast etc.
68 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
92
0
20
40
60
80
100
2015
Average Household
Cord-Cutting Household
43
Source: Cisco VNI Global IP Traffic Forecast, 2014–2019
GB per Month
Global Cord-Cutting Generates Double the Traffic A Cord-Cutting Household Generates 92 GB per Month in 2015, Compared to 43 GB per Month for an Average Household
69 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
VNI Forecast Update, 2014–2019 Top 10 Networking Trends
1 Continued Shifts in Devices/Connections Mix
2 IPv6 Adoption Enables Internet of Everything (IoE) Connectivity
3
4 Service Adoption Trends – Residential, Consumer Mobile, Business
5 Applications Driving Traffic Growth
6 “Cord-Cutting” Analysis – What’s Really Happening?
7 Impact of Accelerating Speeds on Traffic Growth
8 Mobility (Wi-Fi) Continues to Gain Momentum
9 Traffic Pattern Analysis (Peak vs. Average, Upstream, CDN vs. Metro)
10 Network Performance Drives User Behaviors/Data Plans and Caps
M2M Applications Across Many Industry Verticals Drives IoE Growth
70 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Global Average Fixed Broadband Speeds Doubling in Speeds From 2014-2019
2014 2019 Global Mbps
BY REGION North America Western Europe
Asia-Pacific
Central & Eastern Europe
Middle East & Africa
20.3
21.8 21.8
7.2 23.2
22.2
6.1
42.5
43.7 49.1
16.9 48.9
45.3
14.9
Latin America
GLOBAL
Source: Cisco VNI Global IP Traffic Forecast, 2014–2019
71 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
LATAM Average Fixed Broadband Speeds Doubling in Speeds From 2014-2019
2014 2019 Latin America Mbps
BY COUNTRY Argentina Brazil
7.2
4.4 8.3
16.9
14.9 18.6
REGION
Source: Cisco VNI Global IP Traffic Forecast, 2014–2019
Chile 13.4 27.8 Mexico 7.3 19.1
72 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Global Average Wi-Fi Speeds Wi-Fi Exceeds Average Mobile (Cell) Speeds During 2014-2019
2014 2019 Global Mbps
BY REGION North America Western Europe
Asia-Pacific
Central & Eastern Europe
Middle East & Africa
10.6
14.3 13.0
5.8 10.3
11.7
3.9
18.5
29.0 20.9
8.6 15.6
22.0
4.7
Latin America
GLOBAL
Source: Cisco VNI Global IP Traffic Forecast, 2014–2019
73 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Mobile Network Speeds Increase 2.4X by 2019 Average Cell Connection Speed (1.7 Mbps in 2014) Will Grow at a 19% CAGR—Reaching Nearly 4.0 Mbps by 2019
2014 2019 Global Mbps
BY REGION North America Western Europe
Asia-Pacific
Central & Eastern Europe
Middle East & Africa
1.7
2.8 2.0
1.4 2.0
1.6
0.6
3.9
6.4 4.7
2.9 3.5
3.7
2.1
Latin America
GLOBAL
Source: Cisco VNI Global IP Traffic Forecast, 2014–2019
74 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
VNI Forecast Update, 2014–2019 Top 10 Networking Trends
1 Continued Shifts in Devices/Connections Mix
2 IPv6 Adoption Enables Internet of Everything (IoE) Connectivity
3
4 Service Adoption Trends – Residential, Consumer Mobile, Business
5 Applications Driving Traffic Growth
6 “Cord-Cutting” Analysis – What’s Really Happening?
7 Impact of Accelerating Speeds on Traffic Growth
8 Mobility (Wi-Fi) Continues to Gain Momentum
9 Traffic Pattern Analysis (Peak vs. Average, Upstream, CDN vs. Metro)
10 Network Performance Drives User Behaviors/Data Plans and Caps
M2M Applications Across Many Industry Verticals Drives IoE Growth
75 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Surge of Hotspots Globally, there will be 341 million hotspots by 2018 • By 2018, the US leads in total number of hotspots,
followed by China and France • Europe is the “continent of Wi-Fi” with 50% of the
world’s Wi-Fi estate in 2014. By 2018, Asia will lead. • Today, China has 5 times more commercial Wi-Fi
hotspots than any other country • Community Wi-Fi has been driven by Europe and
then North America, but Asia will catch up in 2018
Source: Maravedis Rethink and iPass Inc.
76 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Future of Wi-Fi as Wired Complement
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
802.11 2 Mbps Max Applications Enabled Basic internet
802.11b 11 Mbps Max Applications Enabled Email
802.11b 11 Mbps Max Applications Enabled Rich Media Web
802.11ac 3.6 Gbps Max
Applications Enabled High Resolution Video
Wired Complement
802.11n 600 Mbps Max Applications Enabled Medium Resolution Video
Number of 802.11ac Home CPE to Increase 20-fold from 2014 to 2019
77 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
0
20
40
60
80
100
120
140
160
180
2014 2015 2016 2017 2018 2019
Mobile Data (57.3% CAGR) Fixed/Wired (11.4% CAGR) Fixed/Wi-Fi from Mobile Devices (67.5% CAGR) Fixed/Wi-Fi from Wi-Fi Only Devices (21.1% CAGR)
17%
Global IP Traffic by Local Access Technology By 2019, Two-Thirds of Total IP Traffic Will Be Wireless*
33%
36%
14%
Source: Cisco VNI Global IP Traffic Forecast, 2014–2019
23% CAGR 2014–2019
Exabytes per Month
* Wireless traffic includes Wi-Fi and mobile
78 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
0
2
4
6
8
10
12
14
2014 2015 2016 2017 2018 2019
Mobile Data (58.9% CAGR) Fixed/Wired (12.9% CAGR) Fixed/Wi-Fi from Mobile Devices (74.5% CAGR) Fixed/Wi-Fi from Wi-Fi Only Devices (20.8% CAGR)
14%
LATAM IP Traffic by Local Access Technology By 2019, 77% of Total LATAM IP Traffic Will Be Wireless*
23%
47%
16%
Source: Cisco VNI Global IP Traffic Forecast, 2014–2019
25% CAGR 2014–2019
Exabytes per Month
* Wireless traffic includes Wi-Fi and mobile
79 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
0
20
40
60
80
100
120
140
160
2014 2015 2016 2017 2018 2019
Mobile Data (57.3% CAGR) Fixed/Wired (9.9% CAGR) Fixed/Wi-Fi from Mobile Devices (67.5% CAGR) Fixed/Wi-Fi from Wi-Fi Only Devices (21.7% CAGR)
Global Internet Traffic by Local Access Technology Wireless Traffic Dominates Internet Traffic
19%
42%
18%
21%
Source: Cisco VNI Global IP Traffic Forecast, 2014–2019
Exabytes per Month
26% CAGR 2014–2019
80 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
VNI Forecast Update, 2014–2019 Top 10 Networking Trends
1 Continued Shifts in Devices/Connections Mix
2 IPv6 Adoption Enables Internet of Everything (IoE) Connectivity
3
4 Service Adoption Trends – Residential, Consumer Mobile, Business
5 Applications Driving Traffic Growth
6 “Cord-Cutting” Analysis – What’s Really Happening?
7 Impact of Accelerating Speeds on Traffic Growth
8 Mobility (Wi-Fi) Continues to Gain Momentum
9 Traffic Pattern Analysis (Peak vs. Average, Upstream, CDN vs. Metro)
10 Network Performance Drives User Behaviors/Data Plans and Caps
M2M Applications Across Many Industry Verticals Drives IoE Growth
81 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Global Busy Hour vs. Average Hour Internet Traffic Driven by Video, Busy Hour Grows Faster than Average Hour
0
200
400
600
800
1,000
1,200
1,400
1,600
2014 2015 2016 2017 2018 2019
Average Hour
Busy Hour
Source: Cisco VNI Global IP Traffic Forecast, 2014–2019
Traffic Rate (Tbps)
82 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
LATAM Busy Hour vs. Average Hour Internet Traffic Driven by Video, Busy Hour Grows Faster than Average Hour
0
10
20
30
40
50
60
70
80
90
100
2014 2015 2016 2017 2018 2019
Average Hour
Busy Hour
Source: Cisco VNI Global IP Traffic Forecast, 2014–2019
Traffic Rate (Tbps)
83 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Busy Hour vs. Average Hour Busy Hour Will Be 3.3x Higher than Average Hour by 2019
2.8 2.6 2.6
3.3
2.9
2.3 2.6
3.4 3.3 3.2
3.7 3.6
3.0 3.1
1.0
1.5
2.0
2.5
3.0
3.5
4.0
Glo
bal
APA
C
LATA
M
NA
WE
CEE
MEA
Axis Title
Source: Cisco VNI Global IP Traffic Forecast, 2014–2019
Ratio of Busy Hour to Average Hour Traffic
84 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
0
2
4
6
8
10
12
14
Upstream
Other File Sharing Web/Data Cloud Downloads Internet Video
Global Upstream Traffic Upstream is 23% of Bi-Directional Traffic Cloud is 13% of Upstream Internet Traffic
Source: Cisco VNI Global IP Traffic Forecast, 2014–2019
Exabytes per Month
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Global Metro vs. Long-Haul Traffic by Topology
Source: Cisco VNI Global IP Traffic Forecast, 2014–2019
2014 Metro is 2.1x Long-Haul
29 EB/mo 60 EB/mo 60 EB/mo
Long-Haul Metro Access
2019 Metro is 3.0x Long-Haul
57 EB/mo 168 EB/mo 168 EB/mo
Long-Haul Metro Access
86 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
LATAM Metro vs. Long-Haul Traffic by Topology
Source: Cisco VNI Global IP Traffic Forecast, 2014–2019
2014 Metro is 1.3x Long-Haul
5 EB/mo 20 EB/mo 20 EB/mo
Long-Haul Metro Access
2019 Metro is 1.7x Long-Haul
5 EB/mo 50 EB/mo 50 EB/mo
Long-Haul Metro Access
87 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Global Content Delivery Network (CDN) Internet Traffic
0
20
40
60
80
100
120
140
160
2014 2015 2016 2017 2018 2019
Non-CDN Internet Traffic (60.6%, 38.1%) CDN Internet Traffic (39.4%, 61.9%)
Source: Cisco VNI Global IP Traffic Forecast, 2014–2019
Exabytes per Month
88 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
LATAM Content Delivery Network (CDN) Internet Traffic
0
2
4
6
8
10
12
2014 2015 2016 2017 2018 2019
Non-CDN Internet Traffic (82.9%, 64.9%) CDN Internet Traffic (17.1%, 35.1%)
Source: Cisco VNI Global IP Traffic Forecast, 2014–2019
Exabytes per Month
89 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
VNI Forecast Update, 2014–2019 Top 10 Networking Trends
1 Continued Shifts in Devices/Connections Mix
2 IPv6 Adoption Enables Internet of Everything (IoE) Connectivity
3
4 Service Adoption Trends – Residential, Consumer Mobile, Business
5 Applications Driving Traffic Growth
6 “Cord-Cutting” Analysis – What’s Really Happening?
7 Impact of Accelerating Speeds on Traffic Growth
8 Mobility (Wi-Fi) Continues to Gain Momentum
9 Traffic Pattern Analysis (Peak vs. Average, Upstream, CDN vs. Metro)
10 Network Performance Drives User Behaviors/Data Plans and Caps
M2M Applications Across Many Industry Verticals Drives IoE Growth
90 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Source: Cisco VNI Global IP Traffic Forecast, 2014–2019
Average Global Internet Bandwidth Usage
Average Traffic per User
2014
16 GB per month
2019
37 GB per month
Future
75 GB per month
Average Traffic per Household
2014
37 GB per month
2019
91 GB per month
Future
150 GB per month
91 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Source: Cisco VNI Global IP Traffic Forecast, 2014–2019
Average LATAM Internet Bandwidth Usage
Average Traffic per User
2014
15 GB per month
2019
34 GB per month
Future
75 GB per month
Average Traffic per Household
2014
44 GB per month
2019
97 GB per month
Future
150 GB per month
92 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
83
61
120
0
20
40
60
80
100
120
140
2014 2019
Other Broadband FTTx
35
Source: Cisco VNI Global IP Traffic Forecast, 2014–2019
GB per Month
Globally, FTTx Traffic is 77% Higher than Non-FTTx FTTx Generates 61 GB per Month in 2014 and 120 GB per Month by 2019
93 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Higher Fixed Speeds Enable Greater Video Consumption Video Behaviors are Consistent Across Multiple Countries
-
500
1,000
1,500
2,000
2,500
3,000
- 10 20 30 40 50 60 Fixed Broadband Speeds (Mbps)
Video Minutes per Viewer
Linear (Video Minutes per Viewer)
Indonesia
India
Argentina Italy
Mexico
Brazil
Australia
Chile
Russia
Canada
U.K.
Japan
Germany
China
New Zealand
France
Spain
U.S.
Source: Cisco VNI Global IP Traffic Forecast, 2014–2019
Video Minutes
per Viewer
94 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Global Faster Networks Enable Better Experiences
68% of all broadband connections by 2019
Online Video (HD movie download)
22 minutes (UHD movie download) 2 hours
10 Mbps
33% of all broadband connections by 2019
Online Video (HD movie download)
9 minutes (UHD movie download) 48 minutes
25 Mbps
7% of all broadband connections by 2019
Online Video (HD movie download)
2 minutes (UHD movie download) 12 minutes
100 Mbps
95 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
LATAM Faster Networks Enable Better Experiences
33% of all broadband connections by 2019
Online Video (HD movie download)
22 minutes (UHD movie download) 2 hours
10 Mbps
12% of all broadband connections by 2019
Online Video (HD movie download)
9 minutes (UHD movie download) 48 minutes
25 Mbps
3% of all broadband connections by 2019
Online Video (HD movie download)
2 minutes (UHD movie download) 12 minutes
100 Mbps
96 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
M2M Monetization and Data Plans Beeline M2M Services – mapping, monitoring, reporting, telemetry targeted at fleet management, oil and gas, point of sale terminal customers; Global M2M roaming alliance with KPN, NTT DoCoMo, Rogers Wireless, SingTel, Telefonica, and Telstra – cohesive global M2M solutions.
Telefónica UK to deploy smart meters in the central and southern regions of Great Britain – over 53m smart meters by 2020; £6.7bn in net benefits to UK through efficiency in management and deployment and reduced energy consumption.
CEE Region
Digital Life ($54.97/ month) home automation and security offer. It provides 24/7 monitoring, video surveillance, garage controller, smoke and carbon monoxide sensor, remote access from smartphone, tablet, or computer. Text and email alerts.
Mobile Shared Data Plan (10GB / $80 per month) can be shared across smartphones, tablets, basic phones, cameras, internet gaming devices, cars.
NA Region
WE Region NA Region
97 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Usage Limits: Fixed vs. Mobile Globally, More Mobile than Fixed Users are Impacted by Usage Limits
Source: Cisco VNI Global IP Traffic Forecast, 2014–2019
% Broadband HH > 500 GB
% Mobile Users > 2 GB
Global
Western Europe
Asia-Pacific
Central & Eastern Europe
Middle East & Africa
Latin America
COUNTRY
North America
7.8%
12.5%
5.8%
6.4%
5.2%
5.0%
28.3%
0.9%
1.0%
0.6%
0.8%
0.1%
1.0%
2.0%
98 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Conclusion
99 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Cisco VNI Global IP Forecast, 2014–2019 Key Takeaways / Summary
Global IP Traffic By 2019, global IP traffic will reach 168 EBs/per month (2.0 ZBs annually).
Global Mobile Traffic By 2019, 14% of IP traffic will be carried over cell networks.
Global Wi-Fi Traffic By 2019, Fixed Wi-Fi will generate 52% of global IP traffic.
Global IP Video Traffic By 2019, over 80% of the world’s IP traffic will be video.
Global Broadband Speeds By 2019, average broadband connection speed will more than double (20.3 Mbps to 42.5 Mbps).
Global Devices/Connections By 2019, there will be 3.2 devices/ connections per capita globally.
Global Internet Users By 2019, there will be 3.9 Billion global internet users, representing 51% of the global population.
Source: Cisco VNI Global IP Traffic Forecast, 2014–2019
100 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Cisco VNI LATAM IP Forecast, 2014–2019 Key Takeaways / Summary
LATAM IP Traffic By 2019, LATAM IP traffic will reach 12.9 EBs/per month (155 EBs annually).
LATAM Mobile Traffic By 2019, 16% of IP traffic will be carried over cell networks.
LATAM Wi-Fi Traffic By 2019, Fixed Wi-Fi will generate 61% of LATAM IP traffic.
LATAM IP Video Traffic By 2019, over 82% of the LATAM IP traffic will be video.
LATAM Broadband Speeds By 2019, average broadband connection speed will more than double (7.2 Mbps to 17 Mbps).
LATAM Devices/Connections
By 2019, there will be 2.9 devices/ connections per capita in LATAM.
LATAM Internet Users By 2019, there will be 371 Million LATAM internet users, representing 57% of the LATAM population.
Source: Cisco VNI Global IP Traffic Forecast, 2014–2019
101 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Cisco VNI Web Sites
• Press Release • White Papers / FAQs
• Cisco VNI Web-based Tools / Free Apps
IP Traffic Forecast inquiries: [email protected] Service Adoption Forecast inquiries: [email protected]
IP Traffic Forecast: http://www.cisco.com/go/vni Service Adoption Forecast: http://www.cisco.com/go/vnisa
103 © 2015 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Internet of Everything By 2019, More Than 2 Connected Home Modules Per Household On an Average
1,781 2,131 2,578
3,191
3,997
5,025
0
1,000
2,000
3,000
4,000
5,000
6,000
2014 2015 2016 2017 2018 2019
Connected Home
Connections (M)