20081104 internet goes mobile, where are the users
TRANSCRIPT
Uroš Cvetko, Valicon d.o.o.
Internet goes mobile, where are the consumers?
VALICON © 2008 | www.valicon.net November 4th 2008
2Telecommunications 08
Internet goes mobile - content
3Telecommunications 08
Internet goes mobile - devices
4Telecommunications 08
But where are the users?
5Telecommunications 08
Word of clarification – what we understand by mobile internet
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6Telecommunications 08
Methodology used
� Phone survey, October 2008
� Slovenia� N=600� National representative sample 15-65
� Internet survey, October 2008
� Slovenia� N=347� Web representative for internet users
� Desk research, October 2008
7Telecommunications 08
Why the results of our survey are relevant
EU
Slovenia
Croatia
Serbia
BIHMacedonia
Internet penetration EU vs. Slovenia vs. regionPercentage of monthly users
8Telecommunications 08
Two possible reasons for observed slow growth in mobile internet usage
USAGE = # OF USERS X FREQUENCY
Hypothesis 1:
Low mobile internet usage due to small number of users having experience
Hypothesis 2:
Low mobile internet usage due to infrequent usage of mobile services
9Telecommunications 08
30% of internet users use mobile device as one of the access points
Internet users segmentsFrom where do you access internetPercent, 100 = all internet users
Home
Source: CATI survey, october 2008, n=600
94
58
30
Work / school
Mobile device
32%
33%
20%
5%
1%
9%
Overlaps between users segmentsFrom where do you access internetPercent, 100 = all internet users
Home
Mobile device
Work / school
10Telecommunications 08
Less than 10% of internet users use mobile internet service on daily basis
Frequency of usageHow often do you use...?
Source: web su rvey, method CAWI, october 2008, n=347
30%
11Telecommunications 08
With exception of mobile e- mail 2/3 of users of mobile services use these occasionally (monthly)
Frequency of usage among usersHow often do you use...? Only among those who use
Source: web su rvey, method CAWI, october 2008, n=347
12Telecommunications 08
Frequency of usage identified as main culprit. Ques tion remains why?
USAGE = # OF USERS X FREQUENCY
30% of all internet users use mobile device as one of their access points
Less than 10% of internet users use mobile internet service on daily basis
13Telecommunications 08
Top obstacles for not using mobile internet
Reasons for not using mobile internet servicesWhich are biggest obstacles for not using mobile internet or mobile internet services?
Source: web su rvey, method CAWI, october 2008, n=347
14Telecommunications 08
“Expensive use“ is more customer perception issue than real obstacle
15Telecommunications 08
Top obstacles for not using mobile internet
Reasons for not using mobile internet servicesWhich are biggest obstacles for not using mobile internet or mobile internet services?
Source: web su rvey, method CAWI, october 2008, n=347
16Telecommunications 08
Convenience remains an issue that operators alone cannot deal with
Internet DEVICES that can make calls
Ex-email devices Mobile PHONES with internet
17Telecommunications 08
Perceived slow connection due to small share of sma rt phones.
89% 11%
Smart-phone market worldwide shareSales in Q2 2008
Source: Gartner, 2008
Smart phones
18Telecommunications 08
Top obstacles for not using mobile internet
Reasons for not using mobile internet servicesWhich are biggest obstacles for not using mobile internet or mobile internet services?
Source: web su rvey, method CAWI, october 2008, n=347
19Telecommunications 08Source: web su rvey, method CAWI, october 2008, n=347
optimal price
low high
indiference price
137,081,1
95,5154,9
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0 10 20 30 40 50 60 70 80 90 100
110
120
130
140
150
160
170
180
190
200
210
220
230
240
250
260
270
280
290
300
310
320
330
340
350
360
370
380
390
400
410
420
430
440
450
460
470
480
490
500
too expensivetoo inexpensiveexpensiveinexpensive
End-users are prepared to pay for their smart phone 100-140 EUR
Price sensitivity – all mobile phone usersWhich price is so high you would not make a purchase? Which price is so low you would think something is wrong with device? Which price is high, but you would make a purchase? At which price would you say “this is best buy”.
20Telecommunications 08
To meet user price expectations mobile operators wi ll need to continue subsidizing smart phones
2008, October 27
U.S. operator AT&T says it activated 2.4 million iPhone3G customers in the third-quarter — around 40 percent being new customers — but added that the costs of subsidizing the device had reduced its pre-tax earnings in the quarter by US $900 million .
http://www.telecommagazine.com/
21Telecommunications 08
Top obstacles for not using mobile internet
Reasons for not using mobile internet servicesWhich are biggest obstacles for not using mobile internet or mobile internet services?
Source: web su rvey, method CAWI, october 2008, n=347
22Telecommunications 08
19%9%8%
6%1%
21%8%
6%
8%2%1%1%
14%6%
2%4%
1%
19%16%16%
19%0%18%
51%69%
10%12%13%
42%84%
3%4%
13%20%
26%46%
78%
4%23%
34%34%
64%MSN MessengerSkype
Google talkYahoo Messenger
ICQ
GmailHotmail/MSN mail
Yahoo mail
FacebookMyspace
Hi5Flickr
YouTubeMoj Video
Genspot.comPicasa WebSlovid.com
Najdi.si zemljevidGoogle maps
GarminNokia maps
uses on internet uses mobile next 12 months
The m. versions of internet sites already exist an d their appeal correlates with current service use
Internet servicesUse on internet, use on mobile device and intention to use service in next 12 months
Source: web su rvey, method CAWI, october 2008, n=347
Geo-positioning and location-based services truly capitalize on mobile device advantages
23Telecommunications 08
Low frequency of usage appears to be driven by (mis)perception rather than real issues
USAGE = # OF USERS X FREQUENCY
30% of all internet users use mobile device as one of their access points
Less than 10% of internet users mobile internet service on daily basis
BUT there are few REAL obstacles:
� Expensive use - mis-perception� Usability - remains an issue� Slow connection - matter of phone-replacement� Expensive devices - operators already subsidizing� Content - increasingly attractive
24Telecommunications 08
The last remaining question is what is the potentia l for mobile internet usage
Internet users segmentsFrom where do you access internetPercent, 100 = all internet users
Home
Source: CATI survey, october 2008, n=600
94
58
30
Work / school
Mobile device POTENTIAL?
25Telecommunications 08
Intention to use mobile services reaches 30% of internet population
General types of mobile internet servicesUse on mobile device and intention to use service in next 12 months
Source: web su rvey, method CAWI, october 2008, n=347
30% short term potential
26Telecommunications 08
21%29%31%31%
40%40%41%42%42%43%43%
46%46%48%
56%57%
0% 20% 40% 60% 80% 100%
Blackberry e-mail
QUERTY keyboard
Install games
Application for IM
Internal memory at least 100MB
WiFi
Install free applications
FM receiver
Application for e-mail
Computer synchronization
Additional memory card slot
MP3 player
Browser for regular web sites
Advanced data transfer (UMTS/HSDPA)
GPS navigation
Advanced camera
30% coincides with desirability for mobile- service functions on mobile phones
Desirability of mobile device capabilitiesWhich of the following functions of mobile device would you to have on your personal mobile phone?
Source: web su rvey, method CAWI, october 2008, n=347
30% short term potential
27Telecommunications 08
30% potential is driven by demography of mobile internet users
Age profile of segments of usersSegments by age groups – 15 to 30 years, 30 up to 40 years, 40 to 65
Mobile generation
Source: telephone surve y, method CATI, october 2008, n=433
28Telecommunications 08
Conclusion and summary
� Users are slow at embracing mobile services� Despite proliferation of mobile internet content and devices, the growth in usage of mobile
internet services is lagging behind the expected pace� Lack of users with experience is not a short-term i ssue
� Moreover, the majority of short-term potential population, estimated at 30% of internet users, is already using mobile internet
� The threat is however, that “bad experience” will inhibit future growth� Major issue is, however, low frequency of usage
� Less than 10% of internet users use mobile internet services daily, compared to 85% for internet
� 2/3 of users of mobile internet services use them only occasionally (monthly)� Low frequency is driven mostly by mis-perceptions a bout the service
� 4 out of 5 major obstacles to usage are not “real issues” i.e. can be overcome by mobile operators’ marketing activities
� The only “real” obstacle remains device usability that limits the potential to younger segments, which are, however, price-sensitive
� And business model, that will motivate content provider to develop attractive mobile content / services
THANK YOU!
Internet goes mobile, where are the consumers?
VALICON © 2008 | www.valicon.net November 4th 2008
where is the usage?is