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SPECIAL REPORT

4G, new services driving Saudi smartphone market

RIYADH, March 31, 2016

Mobile broadband usage behaviour in Saudi Arabia stands out compared to the global markets, driven by high smartphone ownership, access to 4G networks and strong interest in new services, a report said.

The latest Ericsson ConsumerLab report “Evolving Expectations” presents insights from research involving more than 2,000 smartphone users, who use mobile broadband, and sheds light on the changing mobile broadband usage and behaviour in Saudi Arabia.

The study reveals that the share of time spent watching video on mobile devices is 62 per cent, which is significantly high in Saudi Arabia when compared with countries like the United Arab Emirates, the US, the UK and Germany.

In fact, consumers in Saudi Arabia are almost on par with their western counterparts in terms of internet usage throughout the day with 66 per cent saying they use the internet constantly throughout the day. Another 54 per cent claim that the internet is their main source of news and entertainment surpassing both the UK and the US.

On the other hand, user expectations are constantly evolving over time. The report finds that as users become more experienced with mobile broadband services, their expectations rise. This is translated in lower satisfaction of experienced 4G users than that of the new users.

Ali Eid, Head of Ericsson, Saudi Arabia, said: “The fact is that consumers in the Kingdom of Saudi Arabia are increasingly mobile, video driven, to the extent that their connectivity and mobility is surpassing many other countries, which is truly exciting. One of the key points highlighted by this report is that consumer expectations from mobile services are increasingly evolving over time. In order to meet the expectations, there is a challenge for operators to improve service quality with reliable and faster mobile broadband and better customer support.”

Other highlights from the report include:

Faster connectivity, latest devices: Amongst smartphone users, there is a 10 per cent growth in tablet ownership and a 17 per cent growth in the usage of 4G connections in the last 2 years.

High video consumption on mobile devices: 43 per cent of smartphone users in the 16–29 age group watch on-demand video weekly. Also, in Saudi Arabia 62 per cent of the time spent watching videos is on smartphones and tablets, compared to 40 per cent in the US.

Strong interest in new services: 54 per cent of smartphone users aged 16–24 are interested in social discovery services and 64 per cent aged 25–29 are interested in connected home services. 49 per cent of 30–39 year olds are interested in streaming music services, like Spotify.

Video leads the way: Across locations, 66 per cent feel Wi-Fi offers a desirable performance for watching videos, compared to 23 per cent, who feel the same about mobile networks. Connection preferences vary depending on which connection they think is going to meet their expectations in different locations.

Expectations impact satisfaction: In spite of having a high-quality video streaming experience, only 57 per cent of consumers are satisfied with online video streaming, compared to the 88 per cent who are satisfied with instant messaging and chat services.

Data issues and poor customer service could result in switching operators: For 79 per cent of smartphone users, the reasons for switching operators are all related to mobile data such as unstable data connectivity, slow connections and poor customer support for data services.

Simplicity is key: Consumers are increasingly looking for simplified services, and they consider simplicity to be a crucial factor. Trust and credibility, followed by bundled offers are some of the most important simplicity-related factors for choosing an operator. – TradeArabia News Service




Tags: 4G | Video | Ericsson | Smartphone |

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