THE GLOBAL INTERNET PHENOMENA REPORT JANUARY 2023
How have the past two years
changed us?
The ‘Big 6’ now led by Netflix
Video permeates,
streaming dominates
The Rise of the ‘Super App’
Mobile is reshaping app usage
Telecom reaching inflection point
SPOTLIGHTS
QUIC is here to stay
FIFA World Cup: are sports the
next frontier for streaming?2
A word from Sandvine CEO
Lyn Cantor
Apps have become extensions ofDisney, TikTok and others. We even glance
ourselves, helping us navigate all at the impact HD and UHD devices may
aspects of life, whether our connections have, motivating streaming platforms to
to others, our health, our education, our create 4K plans that promise high picture
work, our happiness through escapism quality and QoE (mind you, without any
and entertainment. The average person input from the operators over whose
spends as much as 5 hours per day on networks the app traffic will travel).
mobile apps, in addition to those they
use at work or in learning, which can Additionally, we take a closer look at the
bring the total time on apps to as much meteoric rise of individual content creators
as 7 or 8 hours per day.over short-form video phenomena like
TikTok, YouTube Shorts, and Instagram
Lyn Cantor Applications are therefore becoming a Reels, and how different categories of apps,
CEO Sandvinemanifestation of all that operators do to like social networking and messaging, are
build and optimize their networks. Customer trying to capitalize on that fervor to make up
satisfaction is inextricably tied to application for now-flailing engagement, as the younger
quality of experience (App QoE). This is why generation continues to move away from
we are committed to App QoE, becoming apps they view as staid and stodgy.
Sandvine, the App QoE company.
As you read through the different sections of
For the purposes of this report, we tap into the report, you’ll see what’s behind the 24%
what makes us the App QoE experts: increase in video traffic, and the 23%
advanced heuristics and machine learning to increase in overall internet traffic – despite
classify network traffic by application, as the fact people in most regions have
well as by the content within those returned to in-person socializing, learning,
applications (as you’ll see on pages 10-15). and working. We put context around those
By calculating throughput at 250ms trends on page 6, where we explain how the
intervals, we “score” App QoE through the pandemic accelerated digitization, catalyzing
lens of 10 app categories, which we stratify the momentum toward new digital behavior
on pages 12-14 and in our regional trends, and app usage.
starting on page 27.
In our Spotlights on pages 25 and 32, we take
By examining the volumetric trends within a closer look at the impact the 2022 FIFA
each category, we reveal which individual World Cup may have on streaming video, and
applications are exerting the most pressure at the growing volume of QUIC traffic
on networks. We can see that this year, in obfuscating views into traffic worldwide.
H1 2022, eight of the top-10 apps by
volume are based on video, and we further On page 22, you’ll see how the growing
identify the biggest culprits, such as penetration of smartphones worldwide, and
Netflix, YouTube (and its QUIC traffic), the higher comfort levels with consumption 3
and creation of content over mobile devices
have had a profound impact on overall Customer satisfaction
traffic, as well as on downstream and
upstream traffic. is inextricably tied to
Whether COVID, or large sporting events, or
natural disasters, or even war, almost every Application Quality of
vicissitude life has to offer now affects fixed
and mobile networks. Because apps are so Experience (App QoE).
central to who we are and what we do,
operators are expected to deliver the highest
level of App QoE. With a greater magnitude This is why we are
of volumetric pressure on their networks,
operators try to scale with huge investments committed to App QoE,
in infrastructure. But continuously building
networks around network tonnage is proving becoming Sandvine,
unsustainable, with profit margins already
squeezed and profitable growth difficult to
achieve. On page 20, we look at how the App QoE company
constant capital-intensive investments will
fail to keep up with unrelenting app andLyn Cantor, CEO, Sandvine
traffic growth, and what’s being done to
foster more equitable business models.
This Report is just a taste of the in-depth
analyses we do for individual customers. We
encourage service providers that want
customized reports on their network traffic to
contact us for a one-on-one meetings with
our subject matter experts. We can help
build customized use cases for CTOs,
network planners, big data teams, market-
ing, and customer care. 4
METHODOLOGY
DEFINITION
Phenomena Report
Application QoE
Global Internet
of day, andfrequencyofuse. contextual factors,suchaslocation,time device factors,suchasperformance;and type, bandwidth,speed,andlatency; behaviors; networkfactors,suchasaccess factors, suchasdemographicsand a particularcontext.Itisbasedonhuman interaction ofauserwithapplicationsin needs andexperiencesarisingfromthe It includessubjectiveandobjectivequality the utility/enjoymentofapplication. resulting fromtheirexpectationsregarding delight orannoyanceofapplicationusers App QoE[Definition]:Thedegreeof
East, andAfrica). (Americas, AsiaPacific,Europe,Middle Mobile, cable,andSatellite)regions subscribers acrossaccesstypes(Fixed, customers representingalmost300million analyzed FirstHalf2022datafrom177 Global InternetPhenomenaReport,we’ve the world.Forpurposesofthis2023 than 2.5billionInternetsubscribersaround ers representaninstalledbaseofmore Sandvine’s 260+Tier 1andTier 2custom-
CONTENTS5
In this Report
6 One Giant Leap
COVID accelerated digitization and elevated app usage.. What Now?
10 When Netflix and MAMAA Rule The Internet
The ‘Big 6’ still generate disproportionate traffic volume
14 Video Permeates, Streaming Dominates
Streaming video exerts ever-more volumetric pressure
16 The Rise of the Super App
Apps are more intricate, defined by mashups and fusions
of previously distinct content
20 Telecom is Reaching an Inflection Point
Building networks for tonnage is not sustainable (edited)
22 Mobile is the Way to Go Smartphones are reshaping app usage
25 Spotlight: QUIC Is Here to Stay – Growing in apps from YouTube,
Facebook, Apple and others
26 Regional Application Popularity Trends Americas, APAC, EMEA
32 Spotlight: FIFA World Cup – Is Sport the Next Frontier of Streaming?
34 Conclusion: So What?
36 About Sandvine Contact Us