1. WHITE PAPER BYINTERSOGState of 4G AppsDevelopmentTrends, Challenges, SolutionsSEPTEMBER 2014

2. 2Executive SummaryAs mobile technology continues to evolve at a stunning pace, thebusiness world starts to apply it more broadly by integrating newdevelopments into internal processes, customer relationships, HRmanagement, corporate branding, and other activities. As theenterprise mobility improves, it adds significant merit to businessapplication performance and brings a range of positive changesincluding increased sales and improved products and services,productivity gains and management effectiveness, innovation,improved agility of business processes and developmentmethodologies as well as enhanced employee morale. The 4thgeneration long-term evolution (4G LTE) technology is one of suchbusiness drivers.Compared with older generation mobile network technologiessuch as 3G or Wi-Fi, 4G LTE has a proven track record of: Allowing more rich content apps to be used on mobiledevices without draining their batteries fast Allowing fully-mobile use of apps that require highbroadband speeds Accelerating real time sharing of streaming media and largefiles Accelerating delivery of time sensitive data used in real timeinteractions or transactions4G LTE improves performance of many existing mobile apps andgives birth to new generation apps dependent on reliable high-speedInternet or responsive data transfer. 3. Worldwide 4G LTE subscribers reached 170 million worldwide inQ1 2014. In general, the 4G technology is set to create a USD $340billion market opportunity by 2017 and become the key driver ofthe Internet of Things and Connected World. As such, 4G LTE willinevitably change the way we build and interact with mobile apps,bringing our app usage habits to the next maturity level.This Report is a compilation of the most up-to-date research datathat aims to demonstrate how exactly 4G LTE will affect the appsdevelopment business, apps usability and what innovative appfeatures will be enabled to make our user experiences even morepersonalized and seamless.3 4. 4ContentsThe Latest 4G LTE Stats | 54G App Definition | 6What Does 4G LTE Offer For Business Mobility? | 74G LTE Challenges For App Development | 15What to Consider When Building Killer 4G Apps | 16Conclusion | 19References | 20 5. The Latest 4G LTE StatsAs of Q2 2014, there are 225 operators in 98 countries that provideand manage 4G LTE networks. The table below compares LTEfunctioning across the three continents, according to 4G-Portal.5Com:Europe Americas AsiaCommercial 4GLTE networksdeployed84 in 34 countries53 in 16 countries47 in 23 countries4G LTEsubscribers9.4 million84.3 million (50%worldwide share)66.1 million (40%worldwide share)Key operators /countries in termsof subscriber basesizeUK EE over 2millionUK Vodafone 0.5millionVerizon over 42.7millionAT&T 25.4 millionJapan over 31millionSouth Korea 28millionAs the comparison shows, the United States is the worlds #1 4GLTE enabled nation, followed by Japan and South Korea. Europe islagging badly in the rollout of 4G LTE coverage and services. Thiscan be explained by the facts that the EU hasnt reformed its mobilespectrum policies or consolidated telecommunications industry toclose the gap with the U.S. Another reason is that at a time whenheavy investments were needed (from 2005 to 2010), the EUsannual capital expenditure on telecom infrastructure dropped 14%to $52 billion, which accounted for only two-thirds of investmentsmade in the U.S. Now Europe is desperately trying to catch up, butmainly at the cost of carriers such as Vodafone that had doubled itsnetwork investments in the UK market to over USD $1.5 billion inQ1 2014, partly to support 4G network coverage as well (The WallStreet Journal, 2013). 6. 4G App DefinitionMany mobile developers often view 4G apps as spiced-up orboosted versions of 3G. But is it really so? As a matter of fact, superspeedy connection isnt the only benefit of 4G LTE. Low latency, i.e.the time it takes for data to make a round trip through the network,is one of the underestimated features of this new-gen technology.Unlike 3G with latencies as high as 750 milliseconds and producinga significant delay into the data transactions, LTE boasts latencies of30 milliseconds. And anything that is less than 50 milliseconds isconsidered real time. So, this is one of the key distinguishingfeatures of 4G apps developers must put real time in front of theirapplications.A lot of applications actually couldnt make their way from wire-lineto wireless networks. Videoconferencing apps make a goodexample. When Apple introduced their Facetime video chat app, itmade a splash among users, but the fact that its limited to Wi-Ficonnections repulsed many from using it. Low latency is believed tocreate more great opportunities for mobile network gaming and,thus, we should anticipate a new wave of user obsession with MMOrole-playing games and 1st person shooters.As such, the 5 types of apps that are most affected by 4G LTE are:1. Video streaming apps2. Mobile and social gaming apps3. Navigation and geo-location based apps4. Apps for wearable devices and machine to machine (M2M)6communications5. Augmented reality apps 7. What Does 4G LTE Offer For Business Mobility?According to Arthur D. Little Research, 67% of U.S. organizationsalready using 4G LTE report increased productivity, especially withregards to business development and customer services (seeFigures 1 & 2).In the United States, 76% of businesses agree that 4G has helpedthem to better innovate and jump the competition and 86% admitbeing able to have more work done on the move.7Source: Arthur D. Little Analysis 8. 8When compared with 3G, 4G LTE allows applications to be trulymobile by enabling: Higher bandwidth able to handle really Big Data Improved network responsiveness, i.e. lower latency and idle-to-active times Higher spectrum efficiency that results in better cost efficiencyand network capacity Velocity tolerance Backwards compatibility and future proofing Enhanced security due to network authentication (128-bitkeys), SIM robust and non-invasive key storage, RANencrypted data communication (that helps preventeavesdropping or malware intrusions), IMSI/IMEI identityprotection against snooping, etc.Unlike 3G that is built for voice and data, LTE is built for Big Data,Cloud and machine-to-machine communication, i.e. ConnectedWorld. 9. 9Source: Arthur D. Little Analysis 10. 10Source: Arthur D. Little AnalysisHow 4G LTE affects certain vertical (i.e., industry-specific) mobileapps: 11. 11VerticalAppexamplesUse CasesBenefitsHealthcareHealth trackingappsFitness andnutrition appsPatient decisionaid appsDoctor patientinteraction appsVideo consultingappsLogistics appsMedicationcompliance appsRemote care appsRemotehealthcare /telemedicineHealthcaremanagementAmbulancemanagementIn-patient /outpatientmanagementData securityand resilientservice criticalfor remote real-timediagnosticsUp to 25%reduction inpatient carecostsBetter patienttreatment as aresult of real-timetherapeuticinterventionsAccess topatient recordsin Cloud (anytime, fromanywhere)Significantsaving ofadministrativeand paramedicstime 20-30%on average 12. Reduction inmedian timefrom alarm totherapy by over50%12RetailMobile stores /kiosksmCommerce appsMulti-channelcustomermanagement appsSales / goalstracking appseSignage appsStore managementappsMobile fittingroomsInventory controlappsOnline andmobilecommerceMulti-channelcustomermanagementPartner /customerrelationshipmanagementIn-storemarketingRetail supplychainRetail analyticsSales supportImprovedeffectiveness asa result ofcommunicationsbeing tailoredto specificsegments andengaging usersImprovedoperationalefficiencythroughoptimizedsupply chainand logistics,better inventorycontrol andqualitymanagementCustomer-profiledadswith facerecognitionIncreased in-storeshoppingQuickerresponsivenessto immediatecustomer needs 13. and reductionof buying cycletime byproviding salesstaff anddistributors withinstant access toin-depth up-to-dateinformationabout productsavailable instock, etc.No need to payfor fixedbroadbandlines, i.e.increased costefficiency13AutomotiveApps to improvein-car control,monitoring andtelematicsTraffic alerts /monitoring appsJourney planningappsNavigation appswith location-basedrich contentRemote conditionmonitoring appsConnectedvehicles andpublic transportUrban transportsystemsInformationdelivery and in-dashinfotainmentIn-vehicle mediaandentertainmentNavigationImprovedinteroperabilityReal-timesharing oftechnicaldocumentation,project plans,diagrams andother dataReal-timeupdates ofnavigationsystemImprovedvehicle issues 14. 14Remote vehiclecontrol appsAsset managementappsTelemetry appsDocumentationsharing appsmanagementSmartphoneintegration intovehicleGamingMobile and socialgamesVirtual / live casinoOnlinesportsbooksIn-play bettingMobile bettingCompetitionPlayer vs player(PvP)Multi-channelgamingAffiliatemanagementImprovedlatency and, as aresult, scalablegamesproviding greatperformance nomatter howmany playersare involvedHigh resolutionstreamingHigher securityof all in-apppaymenttransactions 15. 4G LTE Challenges For App DevelopmentDespite all of the above benefits that 4G LTE technology providesfor application development, therere some factors that may affectthe perceived speed and mobile apps usability:1. Channel qualityThe LTE channel quality is generally affected by the number ofconcurrent subscribers on the same radio frequency (RF) channel.As such, densely populated areas may experience lower channelquality and, thus, poorer app performance at peak usage times.2. Network speedFactors such as distance from cell towers, network congestion, appdesign and RF interference due to walls, weather, terrain, etc.3. Battery life4G LTE enabled devices normally consume up to 20% morecapacity than the older-generation gadgets, so apps should bemade light no matter how data-heavy they are.4. Handover timeWhen apps switch from 4G LTE to 2G, 3G or 4G HSPA+ networksthey should be robust enough to handle the handover delays thatcan vary from 2.4 up to over 10 seconds (and these delays can becrucial for mobile network gaming or other real-time apps).15 16. What to Consider When Building Killer 4G Apps1. Data capTodays 4G LTE subscription plans are all capped meaning thatusers are charged for overages. Data caps count both data uploadsand downloads. Tools such as AT&T Application ResourceOptimizer (ARO) help app developers eliminate duplicate contentthat can account for as much as 20% of HTTP traffic. This allowsusers to actually consume 50 hours of standard definition (SD) oronly 20 hours of high definition (HD) video on YouTube and, thus,avoid exceeding their plan cap limits.2. No large video thumbnailsHigh-resolution video thumbnails used in many apps can drain userphone battery very quickly. To avoid this, app developers shouldprogram automatic check of the device resolution for the app todownload only those thumbnails that are most appropriate for thegiven resolution. The rule of thumb is to use high-resolutionthumbnails in apps on high-resolution devices, and, vice versa, uselow-resolution thumbnails on low-resolution devices.3. Data transfer settings should be16configurableIts highly recommended that app developers always provideconfiguration settings for high volume data transfer scenarios suchas big data download and upload over Wi-Fi. For instance, thesesettings may include: Forcing Wi-Fi for specific features 17. Switching to Wi-Fi rather than 3G to avoid battery drain Prompting users before they use high volume data that mayexceed their cap limits Limiting data or audio / video quality and upload / downloadrates Limiting streaming time, etc.4. Conserving battery life should be one ofthe biggest concerns among 4G appdevelopersAs RRC_CONNECTED state consumes more power to enable fasterdata transfer speed in LTE, 4G apps should be built with the abilityto use the minimum amount of battery power. As such, developersshould: Reduce polling, as frequent switches between mobilenetworks may cause timeout during the network handover.The rule of thumb here is to poll as seldom as possible ratherthan leave a channel open all the time. Avoid continuous video streaming, as it drains battery muchfaster than downloads do. So, if your 4G app provides astreaming service, it should warn users about excessive powerconsumption and data costs.17 Avoid hammering the network, since apps that continuouslyattempt to regain lost data packages can aggravate originalfailure conditions, which may result in service denial andtraffic overload. Additionally, aggressive behavior towardscrowded wireless networks will drain device battery veryquickly. 18. 5. 4G apps should feel fastApps speed is impacted by the bandwidth, latency andresponsiveness to user actions. In order to enhance users feeling ofusing a really fast 4G app, its recommended that app developers:18 Decouple UX transitions from data interactions to provide asmoother UX flow Cache often, as apps that function properly when theres nonetwork availability are usually more valuable than thoserelying solely on the Internet connection. As such, keepingand maintaining a local data copy that is unlikely to change inthe short term will benefit 4G apps by reducing repeatedretrieval of duplicate data, improving apps responsiveness,and reducing battery drain. Yet, its also important to flush thecache on a regular basis to prevent some files fromconsuming too much storage space. Pre-fetch data to provide a better user experience.6. 4G apps should feel robust4G apps have to deal with different real-time scenarios such ashandovers between mobile networks, crossing dead zones, etc. Foreffective management of these and other real-time scenarios itsrecommended that app developers: Plan for a mix of networks such as 2.5G EDGE, 3G / 4G HSPA,4G LTE Use larger buffers Support IPv6 19. ConclusionRecent polls among organizations that already use 4G LTEdemonstrate that 4G is not only a revolutionary mobile networktechnology providing better security and speed of data transfer,but also a powerful business tool that actually takes such functionsas sales and marketing, customer relationship and HRmanagement, software development and others to the next level ofmaturity.Yet, when developing corporate mobile strategies, manyorganizations still underestimate the importance of building 4G LTEoptimized applications, which can result in user experiencebottlenecks in the long run. When building mobile apps,developers should address the two key concerns:19 How to avoid draining user device batteries when lettingthem use rich content / heavy data apps, and How to prevent users from exceeding the limits of theircapped 4G subscription plans while using mobile appsThese concerns challenge app developers to revisit their mobiledevelopment habits and processes and focus specifically onfeatures that would allow smooth and seamless user experience,better mobile safety and cost efficiency. 20. 20ReferencesThe Business Benefits of 4G LTE By Arthur D. Little for EE, 2012,http://www.adlittle.com/downloads/tx_adlreports/ADL_UK_Business_Benefits_01.pdf4G-Portal.Com, 2014, http://4g-portal.com/worldwide-lte-subscribers-to-exceed-170-million-in-1q-2014-as-top-3-operators-account-for-52-of-total-subscribersThe Wall Street Journal, 2013,http://online.wsj.com/news/articles/SB10001424127887324412604578515222989449746 21. 21About IntersogIntersog is a Chicago-based provider of web and mobileapplication development and UX design solutions for education,eCommerce, eHealthcare, wearable tech, digital media andentertainment, automotive, and other industries.Our Contacts:233 S Wacker Dr. Suite 9390Chicago, IL 60606 USA(773) 305-0885375 Water St. Vancouver, BC V6B5C6, Canada(604) 379 1514www.intersog.comcontact@intersog.com