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Global Consumer Survey of In-Home Mobile Services and Femtocells A Parks Associates white paper developed for the Femto Forum

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Global Consumer Survey of In-Home Mobile Services and Femtocells

A Parks Associates white paper developed for the Femto Forum

2

In 2010, the Femto Forum commissioned Parks Associates to study global consumer attitudes toward femtocells and femtocell

benefits for users of mobile services. This global consumer study revealed that more than one-half of mobile consumers (59%)

find femtocells attractive and confirmed a long-held hypothesis that boosting in-home service coverage is the main driver of

interest. The survey also showed that femtocells may bring multiple benefits to mobile operators. Eighteen percent of mobile

users would switch to a provider in order to gain femtocell services. Among those already intending to switch providers, 42%

would stay with their current provider if it offered femtocell services. Moreover, 36% of households using multiple operators said

they would consolidate their services with a single provider if it offered femtocell services.

Country level data indicated that there are multiple means to market and generate revenue from femtocells in each nation:

direct sale, subscription services, value-added features, etc. Services hold additional revenue potential. Eight hypothetical services

were tested and each was appealing to 20-30% of all respondents. Among those who are interested in femtocells, a substantial

portion of them are willing to subscribe to one of these new services at an entry-level price point on a monthly basis. Finally, the

survey found that Wi-Fi use is not a barrier to consumers’ femtocell interest. At the global level, 84% of people who heavily use Wi-Fi

on their 3G devices found femtocells appealing1. Those using mobile Wi-Fi are equally interested in femtocells and willing to pay

more for femtocells than those who do not use Wi-Fi.

1 Heavy Wi-Fi users are defined as those who use Wi-Fi on their phone at least once a week. They represent approximately 15% of the global sample in this survey. The appeal percentage is based on ratings of 5-7 on a 7-point scale with 7 being “extremely appealing.”

The Femto Forum is a not-for-profit membership organisation founded in 2007 to promote femtocell deployment worldwide.

The Forum is chartered to encourage the growth of a partner ecosystem committed to innovation in standards-based network

infrastructure and to achieve high levels of collaboration and product interoperability. The consumer research and analysis

described in this white paper were commissioned by the Femto Forum on behalf of its members. Full members gain access to

the full results and underlying data. See www.femtoforum.org or contact [email protected] for further details.

Executive Summary

3

www.parksassociates.com | All rights reserved.

Global Consumer Study of In-Home Mobile Services and Femtocells | The Femto Forum

In-home mobile experience varies by country. In general, consumers report fewer problems with their voice service, (dropped calls,

poor voice quality), than data problems like slow Internet speed and mobile email trouble. Chinese consumers are particularly

likely to suffer in-home, mobile service quality issues. For instance, nearly one-half of Chinese respondents experienced poor voice

quality at least once a month, a rate twice as high as their peers in the U.S., U.K., Germany, and Japan.

The momentum for residential femtocell deployment picked up in 2010. AT&T launched its 3G Microcell service in March 2010,

following Sprint and Verizon’s footsteps in the U.S. In Europe, Vodafone U.K. re-branded its femtocell offering as Sure Signal service

at the beginning of 2010. Telefonica’ Movistar unit in Spain also debuted its “Mi Cobertura Movil” (My Mobile Coverage) service

during the summer of 2010. In Asia, China Unicom’s 3G Inn service became available to residents in the Northern provinces from

early 2010. In neighboring Japan, Softbank gave away femtocell hardware in a bid to assuage coverage concerns for some of its

customers. KDDI also began offering femtocells to customers who experienced coverage problems.

Despite expanded deployments, there has been little in the way of widely-published systematic research on consumers’ attitudes

toward femtocells. To better understand consumer perceptions and interest in in-home mobile services and how they are related

to femtocell solutions, the Femto Forum commissioned Parks Associates to conduct a global consumer survey on the topic. Parks

surveyed 6,100 broadband Internet heads-of-household with mobile phone services in six countries (U.S., U.K., Germany, Spain,

Japan, and China). All respondents were 18 or over and had an equal or greater share in household decisions on telecommunication

services and consumer electronics. The sample in each country matches broadband household characteristics in terms of age,

gender, and income. The results of the survey have a margin of error of +/- 3% at a 95% confidence level. A profile of the respondents

is contained in the Appendix.

In-home Mobile Experience and Femtocell Interest Drivers—Global Consumer Perspectives

Research Background

4

Figure 1: Frequency of Encountering Mobile Service Issues at Home

A closer look at the frequency of voice quality issues reveals that, contrary to common opinion, voice quality concerns do exist in

Western Europe. As shown in Figure 2, at least 10% of households reported having mobile voice quality issues 1 to 3 times a week

in the U.K., Germany and Spain.

Figure 2: Frequency of Encountering Poor Voice Quality at Home

US(n=69, ±11.80%)

UK(n=195, ±7.02%)

Germany(n=138, ±8.34%)

Spain(n=194, ±7.04%)

China(n=337, ±5.34%)

Japan(n=74, ±11.39%)

% Finding Femtocells Very Appealing (Rating 6-7)

% Finding Femtocells Appealing (Rating 5-7)

How often do you experience these problems with your mobile phone while at home?

Problems with Mobile ServicesHow often do you experience these problems with your mobile phone while at home?

(Among all Broadband HHs with Mobile Phone, with Speci�ed Capability)

U.S. Broadband Households; % rating likelihood of cancellation

0%

80%41

% 46%

40% 48

%72

%32

% 35%

32% 38

% 42%

51%

21% 23

%24

%24

%35

%49

%

26%

21%

18%

29%

47%

16%19

%

40%

60%

20%

US UK Germany Spain China Japan

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Slow access to mobile Internet

Poor voice qualitySlow to send/receive emails

Dropped calls

0%

40%

10% 10%

12%

Global Churn Average: 13.6%

11%16% 14%

28%30%

41% 41%

20%

Never 1-3 Times a Month

Daily/Almost Daily

Less Than Once a Month

1-3 Times a Week

Poor Voice QualityHow often do you experience these problems with your mobile phone while at home?

(Among all Broadband HHs with Mobile Phone, with Speci�ed Capability)

0%

80%

100%

40%

60%

20%

US UK Germany Spain China Japan

Daily/Almost Daily

1-3 Times a Week

1-3 Times a Month

<Once a Month

Never

Dropped calls

Poor voice quality

US

% E

xper

ienc

ing

Prob

lem

s

% o

f Res

pond

ents

Lik

ely

to

Chur

n w

ithin

nex

t 12

mon

ths

UK Germany Spain China Japan

46%

31%

13%

5%

50%

26%

14%

7%

48%

28%

14%

7%

48%

26%

18%

10%

23%

28%

27%

17%

59%

22%

12%

4%

Dropped Calls vs. ARPU

0%

80%

100%

40%

60%

20%

Monthly

Weekly

Daily

Monthly

% E

xper

ienc

ing

Prob

lem

s

Weekly Daily

2%4%

9%

4%8%

17%

6%10

%17

%

High ARPU Households Find Femtocells More Appealing

0%

40%

60%

20%

Low

% th

at �

nds F

emto

cells

ap

peal

ing

(ratin

gs 5

-7)

Medium High

Churn vs. Call Quality ProblemsHow often do you experience these problems with your mobile phone while at home?

0%

90%

38%

57%

33%

55%

26%

39%

ARPU Households

Likelihood of Churning

Frequency of Wi-Fi use at home

49%

36%

58%49%

71%

16%

37%

53%

81%

30%

60%

% In

dica

ting

App

eal

Appeal of FemtocellsHow appealing is this product to you?

(Among all Broadband HHs with Mobile Phone)

US UK Germany Spain China Japan

0%

6%11%

6% 5%

22%

36%

45%

25%

50%

% th

at �

nds

Fem

toce

lls

conc

ept a

ppea

ling

% F

indi

ng F

eatu

re V

ery

App

ealin

g Sp

eci�

ed P

rice

Poin

t

Femtocells Appeal and ChurningHow interested are you in a solution that improves your in-home

mobile service quality or experience?

Extremely Unlikely 1

2 3 Neutral 5 Extremely Likely 7

6

Price Sensitivity of New Femtocell ServicesHow likely are you to purchase your top-ranked service at these price points?

(Among Femtocells Fans Ranking Speci�ed Service As Their Most Desired Service)

0%

80%

35% 41

%51

%

32% 38

% 47%

32% 38

%47

%

25% 31

%41

%

40%

60%

20%

High Price Medium Price Low Price

Ratings 6-7 Ratings 5-7

17% 25

%38

%

13%

22%

35%

15% 22

%32

%

12% 17

%26

%

Family Locator

Virtual Home

Number

Family Alerts

Cellphone Remote Control

Home Reminders

Music Sync

Photo Sync

Contact/Calendar

Sync

$4.99/2.99/0.99

£4.99/2.99/0.99

€4.99/2.99/0.99

€4.99/2.99/0.99

RMB 10/5/2

Yen 499/299/99

0%

90%

36%

56%

38%

62%56%

84%

48%

75%

30%

60%

Appeal of Femtocell by Mobile Wi-Fi UsageHow often do you use Wi-Fi at home to make voice calls or surf the Web?

(Among all Broadband HHs with Wi-Fi on their mobile phone, global sample N=2,670)

Never Less than once a month

1-3 times a month

At least weekly

% �

nd F

emto

cells

app

ealin

g

44%

33%28%

36%

70%

29%

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

E�ect of Femtocells on Reducing Churn“You mentioned earlier that you are likely to switch mobile service providers within the

next 12 months. If your current mobile service provider began o�ering a femtocell product with those bene�ts at a price that you like, how likely would you be to stay with it?”

(Among all Broadband HHs Likely to Switch Mobile Service Providers)

Likelihood to Churn to a Competing Carrier with Femtocell O�erings“If your current mobile service provider does not o�er a femtocell product, how likely are

you to switch to a provider that o�ers a femtocell solution?”(Among all Broadband HHs with Mobile Phone)

0%

60%

70%

40%

20%

10%

US(n=237, ±6.3%)

% V

ery

Like

ly to

Sta

y w

ith C

urre

nt P

rovi

der

UK(n=235, ±6%)

Germany(n=191, ±6.4%)

Spain(n=356, ±5%)

China(n=282, ±5.3%)

Japan(n=118, ±8.2%)

Global Average: 42%

15%12% 12%

22%

44%

6%

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

0%

40%

50%

30%

20%

10%

US

% V

ery

likel

y to

Sw

itch

to

Prov

ider

O�e

ring

Fem

toce

lls

UK Germany Spain China Japan

Global Average: 18%

Provider Consolidation for Femtocell“You said that your household uses multiple mobile service providers. If femtocells were o�ered by

one of them, how likely would household members be to switch their service to this provider?” (Among all Broadband HHs with Mobile Phones, Using Muliple Carriers)

19%

32%

53%

15%

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

0%

40%

50%

60%

30%

20%

10%

% V

ery

Like

ly to

Sw

itch

to a

Sin

gle

Prov

ider

Global Average: 36%

35% 35%

US(n=69, ±11.80%)

UK(n=195, ±7.02%)

Germany(n=138, ±8.34%)

Spain(n=194, ±7.04%)

China(n=337, ±5.34%)

Japan(n=74, ±11.39%)

% Finding Femtocells Very Appealing (Rating 6-7)

% Finding Femtocells Appealing (Rating 5-7)

How often do you experience these problems with your mobile phone while at home?

Problems with Mobile ServicesHow often do you experience these problems with your mobile phone while at home?

(Among all Broadband HHs with Mobile Phone, with Speci�ed Capability)

U.S. Broadband Households; % rating likelihood of cancellation

0%

80%

41% 46

%40

% 48%

72%

32% 35

%32

% 38% 42

%51

%21

% 23%

24%

24%

35%

49%

26%

21%

18%

29%

47%

16%19

%

40%

60%

20%

US UK Germany Spain China Japan

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Slow access to mobile Internet

Poor voice qualitySlow to send/receive emails

Dropped calls

0%

40%

10% 10%

12%

Global Churn Average: 13.6%

11%16% 14%

28%30%

41% 41%

20%

Never 1-3 Times a Month

Daily/Almost Daily

Less Than Once a Month

1-3 Times a Week

Poor Voice QualityHow often do you experience these problems with your mobile phone while at home?

(Among all Broadband HHs with Mobile Phone, with Speci�ed Capability)

0%

80%

100%

40%

60%

20%

US UK Germany Spain China Japan

Daily/Almost Daily

1-3 Times a Week

1-3 Times a Month

<Once a Month

Never

Dropped calls

Poor voice quality

US

% E

xper

ienc

ing

Prob

lem

s

% o

f Res

pond

ents

Lik

ely

to

Chur

n w

ithin

nex

t 12

mon

ths

UK Germany Spain China Japan

46%

31%

13%

5%

50%

26%

14%

7%

48%

28%

14%

7%

48%

26%

18%

10%

23%

28%

27%

17%

59%

22%

12%

4%

Dropped Calls vs. ARPU

0%

80%

100%

40%

60%

20%

Monthly

Weekly

Daily

Monthly

% E

xper

ienc

ing

Prob

lem

s

Weekly Daily

2%4%

9%

4%8%

17%

6%10

%17

%

High ARPU Households Find Femtocells More Appealing

0%

40%

60%

20%

Low

% th

at �

nds F

emto

cells

ap

peal

ing

(ratin

gs 5

-7)

Medium High

Churn vs. Call Quality ProblemsHow often do you experience these problems with your mobile phone while at home?

0%

90%

38%

57%

33%

55%

26%

39%

ARPU Households

Likelihood of Churning

Frequency of Wi-Fi use at home

49%

36%

58%49%

71%

16%

37%

53%

81%

30%

60%

% In

dica

ting

App

eal

Appeal of FemtocellsHow appealing is this product to you?

(Among all Broadband HHs with Mobile Phone)

US UK Germany Spain China Japan

0%

6%11%

6% 5%

22%

36%

45%

25%

50%

% th

at �

nds

Fem

toce

lls

conc

ept a

ppea

ling

% F

indi

ng F

eatu

re V

ery

App

ealin

g Sp

eci�

ed P

rice

Poin

t

Femtocells Appeal and ChurningHow interested are you in a solution that improves your in-home

mobile service quality or experience?

Extremely Unlikely 1

2 3 Neutral 5 Extremely Likely 7

6

Price Sensitivity of New Femtocell ServicesHow likely are you to purchase your top-ranked service at these price points?

(Among Femtocells Fans Ranking Speci�ed Service As Their Most Desired Service)

0%

80%

35% 41

%51

%

32% 38

% 47%

32% 38

%47

%

25% 31

%41

%

40%

60%

20%

High Price Medium Price Low Price

Ratings 6-7 Ratings 5-7

17% 25

%38

%

13%

22%

35%

15% 22

%32

%

12% 17

%26

%

Family Locator

Virtual Home

Number

Family Alerts

Cellphone Remote Control

Home Reminders

Music Sync

Photo Sync

Contact/Calendar

Sync

$4.99/2.99/0.99

£4.99/2.99/0.99

€4.99/2.99/0.99

€4.99/2.99/0.99

RMB 10/5/2

Yen 499/299/99

0%

90%

36%

56%

38%

62%56%

84%

48%

75%

30%

60%

Appeal of Femtocell by Mobile Wi-Fi UsageHow often do you use Wi-Fi at home to make voice calls or surf the Web?

(Among all Broadband HHs with Wi-Fi on their mobile phone, global sample N=2,670)

Never Less than once a month

1-3 times a month

At least weekly

% �

nd F

emto

cells

app

ealin

g

44%

33%28%

36%

70%

29%

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

E�ect of Femtocells on Reducing Churn“You mentioned earlier that you are likely to switch mobile service providers within the

next 12 months. If your current mobile service provider began o�ering a femtocell product with those bene�ts at a price that you like, how likely would you be to stay with it?”

(Among all Broadband HHs Likely to Switch Mobile Service Providers)

Likelihood to Churn to a Competing Carrier with Femtocell O�erings“If your current mobile service provider does not o�er a femtocell product, how likely are

you to switch to a provider that o�ers a femtocell solution?”(Among all Broadband HHs with Mobile Phone)

0%

60%

70%

40%

20%

10%

US(n=237, ±6.3%)

% V

ery

Like

ly to

Sta

y w

ith C

urre

nt P

rovi

der

UK(n=235, ±6%)

Germany(n=191, ±6.4%)

Spain(n=356, ±5%)

China(n=282, ±5.3%)

Japan(n=118, ±8.2%)

Global Average: 42%

15%12% 12%

22%

44%

6%

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

0%

40%

50%

30%

20%

10%

US

% V

ery

likel

y to

Sw

itch

to

Prov

ider

O�e

ring

Fem

toce

lls

UK Germany Spain China Japan

Global Average: 18%

Provider Consolidation for Femtocell“You said that your household uses multiple mobile service providers. If femtocells were o�ered by

one of them, how likely would household members be to switch their service to this provider?” (Among all Broadband HHs with Mobile Phones, Using Muliple Carriers)

19%

32%

53%

15%

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

0%

40%

50%

60%

30%

20%

10%

% V

ery

Like

ly to

Sw

itch

to a

Sin

gle

Prov

ider

Global Average: 36%

35% 35%

5

www.parksassociates.com | All rights reserved.

Global Consumer Study of In-Home Mobile Services and Femtocells | The Femto Forum

US(n=69, ±11.80%)

UK(n=195, ±7.02%)

Germany(n=138, ±8.34%)

Spain(n=194, ±7.04%)

China(n=337, ±5.34%)

Japan(n=74, ±11.39%)

% Finding Femtocells Very Appealing (Rating 6-7)

% Finding Femtocells Appealing (Rating 5-7)

How often do you experience these problems with your mobile phone while at home?

Problems with Mobile ServicesHow often do you experience these problems with your mobile phone while at home?

(Among all Broadband HHs with Mobile Phone, with Speci�ed Capability)

U.S. Broadband Households; % rating likelihood of cancellation

0%

80%

41% 46

%40

% 48%

72%

32% 35

%32

% 38% 42

%51

%21

% 23%

24%

24%

35%

49%

26%

21%

18%

29%

47%

16%19

%

40%

60%

20%

US UK Germany Spain China Japan

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Slow access to mobile Internet

Poor voice qualitySlow to send/receive emails

Dropped calls

0%

40%

10% 10%

12%

Global Churn Average: 13.6%

11%16% 14%

28%30%

41% 41%

20%

Never 1-3 Times a Month

Daily/Almost Daily

Less Than Once a Month

1-3 Times a Week

Poor Voice QualityHow often do you experience these problems with your mobile phone while at home?

(Among all Broadband HHs with Mobile Phone, with Speci�ed Capability)

0%

80%

100%

40%

60%

20%

US UK Germany Spain China Japan

Daily/Almost Daily

1-3 Times a Week

1-3 Times a Month

<Once a Month

Never

Dropped calls

Poor voice quality

US

% E

xper

ienc

ing

Prob

lem

s

% o

f Res

pond

ents

Lik

ely

to

Chur

n w

ithin

nex

t 12

mon

ths

UK Germany Spain China Japan

46%

31%

13%

5%

50%

26%

14%

7%

48%

28%

14%

7%

48%

26%

18%

10%

23%

28%

27%

17%

59%

22%

12%

4%

Dropped Calls vs. ARPU

0%

80%

100%

40%

60%

20%

Monthly

Weekly

Daily

Monthly

% E

xper

ienc

ing

Prob

lem

s

Weekly Daily

2%4%

9%

4%8%

17%

6%10

%17

%

High ARPU Households Find Femtocells More Appealing

0%

40%

60%

20%

Low

% th

at �

nds F

emto

cells

ap

peal

ing

(ratin

gs 5

-7)

Medium High

Churn vs. Call Quality ProblemsHow often do you experience these problems with your mobile phone while at home?

0%

90%

38%

57%

33%

55%

26%

39%

ARPU Households

Likelihood of Churning

Frequency of Wi-Fi use at home

49%

36%

58%49%

71%

16%

37%

53%

81%

30%

60%

% In

dica

ting

App

eal

Appeal of FemtocellsHow appealing is this product to you?

(Among all Broadband HHs with Mobile Phone)

US UK Germany Spain China Japan

0%

6%11%

6% 5%

22%

36%

45%

25%

50%

% th

at �

nds

Fem

toce

lls

conc

ept a

ppea

ling

% F

indi

ng F

eatu

re V

ery

App

ealin

g Sp

eci�

ed P

rice

Poin

t

Femtocells Appeal and ChurningHow interested are you in a solution that improves your in-home

mobile service quality or experience?

Extremely Unlikely 1

2 3 Neutral 5 Extremely Likely 7

6

Price Sensitivity of New Femtocell ServicesHow likely are you to purchase your top-ranked service at these price points?

(Among Femtocells Fans Ranking Speci�ed Service As Their Most Desired Service)

0%

80%

35% 41

%51

%

32% 38

% 47%

32% 38

%47

%

25% 31

%41

%

40%

60%

20%

High Price Medium Price Low Price

Ratings 6-7 Ratings 5-7

17% 25

%38

%

13%

22%

35%

15% 22

%32

%

12% 17

%26

%

Family Locator

Virtual Home

Number

Family Alerts

Cellphone Remote Control

Home Reminders

Music Sync

Photo Sync

Contact/Calendar

Sync

$4.99/2.99/0.99

£4.99/2.99/0.99

€4.99/2.99/0.99

€4.99/2.99/0.99

RMB 10/5/2

Yen 499/299/99

0%

90%

36%

56%

38%

62%56%

84%

48%

75%

30%

60%

Appeal of Femtocell by Mobile Wi-Fi UsageHow often do you use Wi-Fi at home to make voice calls or surf the Web?

(Among all Broadband HHs with Wi-Fi on their mobile phone, global sample N=2,670)

Never Less than once a month

1-3 times a month

At least weekly

% �

nd F

emto

cells

app

ealin

g

44%

33%28%

36%

70%

29%

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

E�ect of Femtocells on Reducing Churn“You mentioned earlier that you are likely to switch mobile service providers within the

next 12 months. If your current mobile service provider began o�ering a femtocell product with those bene�ts at a price that you like, how likely would you be to stay with it?”

(Among all Broadband HHs Likely to Switch Mobile Service Providers)

Likelihood to Churn to a Competing Carrier with Femtocell O�erings“If your current mobile service provider does not o�er a femtocell product, how likely are

you to switch to a provider that o�ers a femtocell solution?”(Among all Broadband HHs with Mobile Phone)

0%

60%

70%

40%

20%

10%

US(n=237, ±6.3%)

% V

ery

Like

ly to

Sta

y w

ith C

urre

nt P

rovi

der

UK(n=235, ±6%)

Germany(n=191, ±6.4%)

Spain(n=356, ±5%)

China(n=282, ±5.3%)

Japan(n=118, ±8.2%)

Global Average: 42%

15%12% 12%

22%

44%

6%

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

0%

40%

50%

30%

20%

10%

US

% V

ery

likel

y to

Sw

itch

to

Prov

ider

O�e

ring

Fem

toce

lls

UK Germany Spain China Japan

Global Average: 18%

Provider Consolidation for Femtocell“You said that your household uses multiple mobile service providers. If femtocells were o�ered by

one of them, how likely would household members be to switch their service to this provider?” (Among all Broadband HHs with Mobile Phones, Using Muliple Carriers)

19%

32%

53%

15%

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

0%

40%

50%

60%

30%

20%

10%

% V

ery

Like

ly to

Sw

itch

to a

Sin

gle

Prov

ider

Global Average: 36%

35% 35%

The survey points to a significant correlation between voice service quality issues and the intention to churn. As expected,

a positive correlation exists—the more a consumer experiences in-home voice call issues, the more likely he/she is to consider

switching providers. Among those who experience service trouble on a daily basis, the intent to churn is as high as 41%, compared

with 10% for those who never experience in-home voice quality problems.

Those who have bad, in-home, mobile service experiences are also the households spending heavily on mobile services. In

our analysis, we segmented global mobile consumers into high-ARPU, medium-ARPU, and low-ARPU categories. The high-ARPU

households comprise the top 30th percentile in terms of mobile service spending (in their respective country) and the low ARPU

households fall in the bottom 25th percentile, with the rest in the medium ARPU category. Survey data shows that high-ARPU

households are twice as likely as low-ARPU households to experience in-home, mobile service issues. For instance, 16% of high-

ARPU households experience in-home mobile service issues at least once a week, compared with only 6% among low-ARPU

households. This may be due to the fact that high ARPU households use their mobile services more frequently, or because they are

more sensitive to service disruptions as they are spending more on mobile services.

Figure 3: In-home Mobile Voice Call Problems Impact Customer Churn

Service Churn is Half of the Story

6

US(n=69, ±11.80%)

UK(n=195, ±7.02%)

Germany(n=138, ±8.34%)

Spain(n=194, ±7.04%)

China(n=337, ±5.34%)

Japan(n=74, ±11.39%)

% Finding Femtocells Very Appealing (Rating 6-7)

% Finding Femtocells Appealing (Rating 5-7)

How often do you experience these problems with your mobile phone while at home?

Problems with Mobile ServicesHow often do you experience these problems with your mobile phone while at home?

(Among all Broadband HHs with Mobile Phone, with Speci�ed Capability)

U.S. Broadband Households; % rating likelihood of cancellation

0%

80%

41% 46

%40

% 48%

72%

32% 35

%32

% 38% 42

%51

%21

% 23%

24%

24%

35%

49%

26%

21%

18%

29%

47%

16%19

%

40%

60%

20%

US UK Germany Spain China Japan

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Slow access to mobile Internet

Poor voice qualitySlow to send/receive emails

Dropped calls

0%

40%

10% 10%

12%

Global Churn Average: 13.6%

11%16% 14%

28%30%

41% 41%

20%

Never 1-3 Times a Month

Daily/Almost Daily

Less Than Once a Month

1-3 Times a Week

Poor Voice QualityHow often do you experience these problems with your mobile phone while at home?

(Among all Broadband HHs with Mobile Phone, with Speci�ed Capability)

0%

80%

100%

40%

60%

20%

US UK Germany Spain China Japan

Daily/Almost Daily

1-3 Times a Week

1-3 Times a Month

<Once a Month

Never

Dropped calls

Poor voice quality

US

% E

xper

ienc

ing

Prob

lem

s

% o

f Res

pond

ents

Lik

ely

to

Chur

n w

ithin

nex

t 12

mon

ths

UK Germany Spain China Japan

46%

31%

13%

5%

50%

26%

14%

7%

48%

28%

14%

7%

48%

26%

18%

10%

23%

28%

27%

17%

59%

22%

12%

4%

Dropped Calls vs. ARPU

0%

80%

100%

40%

60%

20%

Monthly

Weekly

Daily

Monthly

% E

xper

ienc

ing

Prob

lem

s

Weekly Daily

2%4%

9%

4%8%

17%

6%10

%17

%

High ARPU Households Find Femtocells More Appealing

0%

40%

60%

20%

Low

% th

at �

nds F

emto

cells

ap

peal

ing

(ratin

gs 5

-7)

Medium High

Churn vs. Call Quality ProblemsHow often do you experience these problems with your mobile phone while at home?

0%

90%

38%

57%

33%

55%

26%

39%

ARPU Households

Likelihood of Churning

Frequency of Wi-Fi use at home

49%

36%

58%49%

71%

16%

37%

53%

81%

30%

60%

% In

dica

ting

App

eal

Appeal of FemtocellsHow appealing is this product to you?

(Among all Broadband HHs with Mobile Phone)

US UK Germany Spain China Japan

0%

6%11%

6% 5%

22%

36%

45%

25%

50%

% th

at �

nds

Fem

toce

lls

conc

ept a

ppea

ling

% F

indi

ng F

eatu

re V

ery

App

ealin

g Sp

eci�

ed P

rice

Poin

t

Femtocells Appeal and ChurningHow interested are you in a solution that improves your in-home

mobile service quality or experience?

Extremely Unlikely 1

2 3 Neutral 5 Extremely Likely 7

6

Price Sensitivity of New Femtocell ServicesHow likely are you to purchase your top-ranked service at these price points?

(Among Femtocells Fans Ranking Speci�ed Service As Their Most Desired Service)

0%

80%

35% 41

%51

%

32% 38

% 47%

32% 38

%47

%

25% 31

%41

%

40%

60%

20%

High Price Medium Price Low Price

Ratings 6-7 Ratings 5-7

17% 25

%38

%

13%

22%

35%

15% 22

%32

%

12% 17

%26

%

Family Locator

Virtual Home

Number

Family Alerts

Cellphone Remote Control

Home Reminders

Music Sync

Photo Sync

Contact/Calendar

Sync

$4.99/2.99/0.99

£4.99/2.99/0.99

€4.99/2.99/0.99

€4.99/2.99/0.99

RMB 10/5/2

Yen 499/299/99

0%

90%

36%

56%

38%

62%56%

84%

48%

75%

30%

60%

Appeal of Femtocell by Mobile Wi-Fi UsageHow often do you use Wi-Fi at home to make voice calls or surf the Web?

(Among all Broadband HHs with Wi-Fi on their mobile phone, global sample N=2,670)

Never Less than once a month

1-3 times a month

At least weekly

% �

nd F

emto

cells

app

ealin

g

44%

33%28%

36%

70%

29%

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

E�ect of Femtocells on Reducing Churn“You mentioned earlier that you are likely to switch mobile service providers within the

next 12 months. If your current mobile service provider began o�ering a femtocell product with those bene�ts at a price that you like, how likely would you be to stay with it?”

(Among all Broadband HHs Likely to Switch Mobile Service Providers)

Likelihood to Churn to a Competing Carrier with Femtocell O�erings“If your current mobile service provider does not o�er a femtocell product, how likely are

you to switch to a provider that o�ers a femtocell solution?”(Among all Broadband HHs with Mobile Phone)

0%

60%

70%

40%

20%

10%

US(n=237, ±6.3%)

% V

ery

Like

ly to

Sta

y w

ith C

urre

nt P

rovi

der

UK(n=235, ±6%)

Germany(n=191, ±6.4%)

Spain(n=356, ±5%)

China(n=282, ±5.3%)

Japan(n=118, ±8.2%)

Global Average: 42%

15%12% 12%

22%

44%

6%

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

0%

40%

50%

30%

20%

10%

US

% V

ery

likel

y to

Sw

itch

to

Prov

ider

O�e

ring

Fem

toce

lls

UK Germany Spain China Japan

Global Average: 18%

Provider Consolidation for Femtocell“You said that your household uses multiple mobile service providers. If femtocells were o�ered by

one of them, how likely would household members be to switch their service to this provider?” (Among all Broadband HHs with Mobile Phones, Using Muliple Carriers)

19%

32%

53%

15%

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

0%

40%

50%

60%

30%

20%

10%

% V

ery

Like

ly to

Sw

itch

to a

Sin

gle

Prov

ider

Global Average: 36%

35% 35%

US(n=69, ±11.80%)

UK(n=195, ±7.02%)

Germany(n=138, ±8.34%)

Spain(n=194, ±7.04%)

China(n=337, ±5.34%)

Japan(n=74, ±11.39%)

% Finding Femtocells Very Appealing (Rating 6-7)

% Finding Femtocells Appealing (Rating 5-7)

How often do you experience these problems with your mobile phone while at home?

Problems with Mobile ServicesHow often do you experience these problems with your mobile phone while at home?

(Among all Broadband HHs with Mobile Phone, with Speci�ed Capability)

U.S. Broadband Households; % rating likelihood of cancellation

0%

80%

41% 46

%40

% 48%

72%

32% 35

%32

% 38% 42

%51

%21

% 23%

24%

24%

35%

49%

26%

21%

18%

29%

47%

16%19

%

40%

60%

20%

US UK Germany Spain China Japan

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Slow access to mobile Internet

Poor voice qualitySlow to send/receive emails

Dropped calls

0%

40%

10% 10%

12%

Global Churn Average: 13.6%

11%16% 14%

28%30%

41% 41%

20%

Never 1-3 Times a Month

Daily/Almost Daily

Less Than Once a Month

1-3 Times a Week

Poor Voice QualityHow often do you experience these problems with your mobile phone while at home?

(Among all Broadband HHs with Mobile Phone, with Speci�ed Capability)

0%

80%

100%

40%

60%

20%

US UK Germany Spain China Japan

Daily/Almost Daily

1-3 Times a Week

1-3 Times a Month

<Once a Month

Never

Dropped calls

Poor voice quality

US

% E

xper

ienc

ing

Prob

lem

s

% o

f Res

pond

ents

Lik

ely

to

Chur

n w

ithin

nex

t 12

mon

ths

UK Germany Spain China Japan

46%

31%

13%

5%

50%

26%

14%

7%

48%

28%

14%

7%

48%

26%

18%

10%

23%

28%

27%

17%

59%

22%

12%

4%

Dropped Calls vs. ARPU

0%

80%

100%

40%

60%

20%

Monthly

Weekly

Daily

Monthly

% E

xper

ienc

ing

Prob

lem

s

Weekly Daily

2%4%

9%

4%8%

17%

6%10

%17

%

High ARPU Households Find Femtocells More Appealing

0%

40%

60%

20%

Low

% th

at �

nds F

emto

cells

ap

peal

ing

(ratin

gs 5

-7)

Medium High

Churn vs. Call Quality ProblemsHow often do you experience these problems with your mobile phone while at home?

0%

90%

38%

57%

33%

55%

26%

39%

ARPU Households

Likelihood of Churning

Frequency of Wi-Fi use at home

49%

36%

58%49%

71%

16%

37%

53%

81%

30%

60%

% In

dica

ting

App

eal

Appeal of FemtocellsHow appealing is this product to you?

(Among all Broadband HHs with Mobile Phone)

US UK Germany Spain China Japan

0%

6%11%

6% 5%

22%

36%

45%

25%

50%

% th

at �

nds

Fem

toce

lls

conc

ept a

ppea

ling

% F

indi

ng F

eatu

re V

ery

App

ealin

g Sp

eci�

ed P

rice

Poin

t

Femtocells Appeal and ChurningHow interested are you in a solution that improves your in-home

mobile service quality or experience?

Extremely Unlikely 1

2 3 Neutral 5 Extremely Likely 7

6

Price Sensitivity of New Femtocell ServicesHow likely are you to purchase your top-ranked service at these price points?

(Among Femtocells Fans Ranking Speci�ed Service As Their Most Desired Service)

0%

80%

35% 41

%51

%

32% 38

% 47%

32% 38

%47

%

25% 31

%41

%

40%

60%

20%

High Price Medium Price Low Price

Ratings 6-7 Ratings 5-7

17% 25

%38

%

13%

22%

35%

15% 22

%32

%

12% 17

%26

%

Family Locator

Virtual Home

Number

Family Alerts

Cellphone Remote Control

Home Reminders

Music Sync

Photo Sync

Contact/Calendar

Sync

$4.99/2.99/0.99

£4.99/2.99/0.99

€4.99/2.99/0.99

€4.99/2.99/0.99

RMB 10/5/2

Yen 499/299/99

0%

90%

36%

56%

38%

62%56%

84%

48%

75%

30%

60%

Appeal of Femtocell by Mobile Wi-Fi UsageHow often do you use Wi-Fi at home to make voice calls or surf the Web?

(Among all Broadband HHs with Wi-Fi on their mobile phone, global sample N=2,670)

Never Less than once a month

1-3 times a month

At least weekly

% �

nd F

emto

cells

app

ealin

g

44%

33%28%

36%

70%

29%

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

E�ect of Femtocells on Reducing Churn“You mentioned earlier that you are likely to switch mobile service providers within the

next 12 months. If your current mobile service provider began o�ering a femtocell product with those bene�ts at a price that you like, how likely would you be to stay with it?”

(Among all Broadband HHs Likely to Switch Mobile Service Providers)

Likelihood to Churn to a Competing Carrier with Femtocell O�erings“If your current mobile service provider does not o�er a femtocell product, how likely are

you to switch to a provider that o�ers a femtocell solution?”(Among all Broadband HHs with Mobile Phone)

0%

60%

70%

40%

20%

10%

US(n=237, ±6.3%)

% V

ery

Like

ly to

Sta

y w

ith C

urre

nt P

rovi

der

UK(n=235, ±6%)

Germany(n=191, ±6.4%)

Spain(n=356, ±5%)

China(n=282, ±5.3%)

Japan(n=118, ±8.2%)

Global Average: 42%

15%12% 12%

22%

44%

6%

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

0%

40%

50%

30%

20%

10%

US

% V

ery

likel

y to

Sw

itch

to

Prov

ider

O�e

ring

Fem

toce

lls

UK Germany Spain China Japan

Global Average: 18%

Provider Consolidation for Femtocell“You said that your household uses multiple mobile service providers. If femtocells were o�ered by

one of them, how likely would household members be to switch their service to this provider?” (Among all Broadband HHs with Mobile Phones, Using Muliple Carriers)

19%

32%

53%

15%

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

0%

40%

50%

60%

30%

20%

10%

% V

ery

Like

ly to

Sw

itch

to a

Sin

gle

Prov

ider

Global Average: 36%

35% 35%

Figure 4: High ARPU Households Disproportionately Experience More Dropped Calls

After examining respondents’ mobile service habits and experiences, the survey then explained the benefits of femtocells and asked

consumers to rate the appeal of femtocells. On average, 59% of global consumers find the femtocell benefits appealing2 though

variations exist among countries in relation to reported service problems. For instance, Chinese respondents, who reported the

greatest frequency of mobile voice and data problems, expressed the most interest in femtocells whereas Japanese respondents,

who were least likely to report mobile service issues, found femtocells least appealing.

Figure 5: Femtocell’s Global Appeal

2 The appeal is rated on a 7-point Likert scale with 1 being “not appealing at all” and 7 being “extremely appealing.” The 56% appeal is based on ratings of 5, 6, and 7.

7

www.parksassociates.com | All rights reserved.

Global Consumer Study of In-Home Mobile Services and Femtocells | The Femto Forum

In general, technology savvy consumers are more likely to find femtocells appealing. Consumers with mobile data plans or 3G

smartphones are disproportionately drawn to the benefits of femtocells. Heavy Wi-Fi users3, despite the fact that they have Wi-Fi

as an alternative for in-home mobile connectivity, are strongly attracted to the femtocells’ benefits.

More importantly, high-ARPU households are also more likely to find the femtocell benefits appealing. Figure 6 shows that high-

ARPU households are almost twice as likely as low-ARPU households to find femtocells appealing. Another characteristic that

positively correlates with femtocell appeal is churn—those who are interested in switching service providers are more likely to find

femtocells appealing.

Figure 6: Mobile ARPU and Femtocell Appeal: High ARPU Households Interested in Femtocells

Figure 7: Service Churn and Femtocell Appeal: Potential Service Switchers Interested in Femtocells

US(n=69, ±11.80%)

UK(n=195, ±7.02%)

Germany(n=138, ±8.34%)

Spain(n=194, ±7.04%)

China(n=337, ±5.34%)

Japan(n=74, ±11.39%)

% Finding Femtocells Very Appealing (Rating 6-7)

% Finding Femtocells Appealing (Rating 5-7)

How often do you experience these problems with your mobile phone while at home?

Problems with Mobile ServicesHow often do you experience these problems with your mobile phone while at home?

(Among all Broadband HHs with Mobile Phone, with Speci�ed Capability)

U.S. Broadband Households; % rating likelihood of cancellation

0%

80%

41% 46

%40

% 48%

72%

32% 35

%32

% 38% 42

%51

%21

% 23%

24%

24%

35%

49%

26%

21%

18%

29%

47%

16%19

%

40%

60%

20%

US UK Germany Spain China Japan

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Slow access to mobile Internet

Poor voice qualitySlow to send/receive emails

Dropped calls

0%

40%

10% 10%

12%

Global Churn Average: 13.6%

11%16% 14%

28%30%

41% 41%

20%

Never 1-3 Times a Month

Daily/Almost Daily

Less Than Once a Month

1-3 Times a Week

Poor Voice QualityHow often do you experience these problems with your mobile phone while at home?

(Among all Broadband HHs with Mobile Phone, with Speci�ed Capability)

0%

80%

100%

40%

60%

20%

US UK Germany Spain China Japan

Daily/Almost Daily

1-3 Times a Week

1-3 Times a Month

<Once a Month

Never

Dropped calls

Poor voice quality

US

% E

xper

ienc

ing

Prob

lem

s

% o

f Res

pond

ents

Lik

ely

to

Chur

n w

ithin

nex

t 12

mon

ths

UK Germany Spain China Japan

46%

31%

13%

5%

50%

26%

14%

7%

48%

28%

14%

7%

48%

26%

18%

10%

23%

28%

27%

17%

59%

22%

12%

4%

Dropped Calls vs. ARPU

0%

80%

100%

40%

60%

20%

Monthly

Weekly

Daily

Monthly

% E

xper

ienc

ing

Prob

lem

s

Weekly Daily

2%4%

9%

4%8%

17%

6%10

%17

%

High ARPU Households Find Femtocells More Appealing

0%

40%

60%

20%

Low

% th

at �

nds F

emto

cells

ap

peal

ing

(ratin

gs 5

-7)

Medium High

Churn vs. Call Quality ProblemsHow often do you experience these problems with your mobile phone while at home?

0%

90%

38%

57%

33%

55%

26%

39%

ARPU Households

Likelihood of Churning

Frequency of Wi-Fi use at home

49%

36%

58%49%

71%

16%

37%

53%

81%

30%

60%

% In

dica

ting

App

eal

Appeal of FemtocellsHow appealing is this product to you?

(Among all Broadband HHs with Mobile Phone)

US UK Germany Spain China Japan

0%

6%11%

6% 5%

22%

36%

45%

25%

50%

% th

at �

nds

Fem

toce

lls

conc

ept a

ppea

ling

% F

indi

ng F

eatu

re V

ery

App

ealin

g Sp

eci�

ed P

rice

Poin

t

Femtocells Appeal and ChurningHow interested are you in a solution that improves your in-home

mobile service quality or experience?

Extremely Unlikely 1

2 3 Neutral 5 Extremely Likely 7

6

Price Sensitivity of New Femtocell ServicesHow likely are you to purchase your top-ranked service at these price points?

(Among Femtocells Fans Ranking Speci�ed Service As Their Most Desired Service)

0%

80%

35% 41

%51

%

32% 38

% 47%

32% 38

%47

%

25% 31

%41

%

40%

60%

20%

High Price Medium Price Low Price

Ratings 6-7 Ratings 5-7

17% 25

%38

%

13%

22%

35%

15% 22

%32

%

12% 17

%26

%

Family Locator

Virtual Home

Number

Family Alerts

Cellphone Remote Control

Home Reminders

Music Sync

Photo Sync

Contact/Calendar

Sync

$4.99/2.99/0.99

£4.99/2.99/0.99

€4.99/2.99/0.99

€4.99/2.99/0.99

RMB 10/5/2

Yen 499/299/99

0%

90%

36%

56%

38%

62%56%

84%

48%

75%

30%

60%

Appeal of Femtocell by Mobile Wi-Fi UsageHow often do you use Wi-Fi at home to make voice calls or surf the Web?

(Among all Broadband HHs with Wi-Fi on their mobile phone, global sample N=2,670)

Never Less than once a month

1-3 times a month

At least weekly

% �

nd F

emto

cells

app

ealin

g

44%

33%28%

36%

70%

29%

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

E�ect of Femtocells on Reducing Churn“You mentioned earlier that you are likely to switch mobile service providers within the

next 12 months. If your current mobile service provider began o�ering a femtocell product with those bene�ts at a price that you like, how likely would you be to stay with it?”

(Among all Broadband HHs Likely to Switch Mobile Service Providers)

Likelihood to Churn to a Competing Carrier with Femtocell O�erings“If your current mobile service provider does not o�er a femtocell product, how likely are

you to switch to a provider that o�ers a femtocell solution?”(Among all Broadband HHs with Mobile Phone)

0%

60%

70%

40%

20%

10%

US(n=237, ±6.3%)

% V

ery

Like

ly to

Sta

y w

ith C

urre

nt P

rovi

der

UK(n=235, ±6%)

Germany(n=191, ±6.4%)

Spain(n=356, ±5%)

China(n=282, ±5.3%)

Japan(n=118, ±8.2%)

Global Average: 42%

15%12% 12%

22%

44%

6%

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

0%

40%

50%

30%

20%

10%

US

% V

ery

likel

y to

Sw

itch

to

Prov

ider

O�e

ring

Fem

toce

lls

UK Germany Spain China Japan

Global Average: 18%

Provider Consolidation for Femtocell“You said that your household uses multiple mobile service providers. If femtocells were o�ered by

one of them, how likely would household members be to switch their service to this provider?” (Among all Broadband HHs with Mobile Phones, Using Muliple Carriers)

19%

32%

53%

15%

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

0%

40%

50%

60%

30%

20%

10%

% V

ery

Like

ly to

Sw

itch

to a

Sin

gle

Prov

ider

Global Average: 36%

35% 35%

US(n=69, ±11.80%)

UK(n=195, ±7.02%)

Germany(n=138, ±8.34%)

Spain(n=194, ±7.04%)

China(n=337, ±5.34%)

Japan(n=74, ±11.39%)

% Finding Femtocells Very Appealing (Rating 6-7)

% Finding Femtocells Appealing (Rating 5-7)

How often do you experience these problems with your mobile phone while at home?

Problems with Mobile ServicesHow often do you experience these problems with your mobile phone while at home?

(Among all Broadband HHs with Mobile Phone, with Speci�ed Capability)

U.S. Broadband Households; % rating likelihood of cancellation

0%

80%

41% 46

%40

% 48%

72%

32% 35

%32

% 38% 42

%51

%21

% 23%

24%

24%

35%

49%

26%

21%

18%

29%

47%

16%19

%

40%

60%

20%

US UK Germany Spain China Japan

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Slow access to mobile Internet

Poor voice qualitySlow to send/receive emails

Dropped calls

0%

40%

10% 10%

12%

Global Churn Average: 13.6%

11%16% 14%

28%30%

41% 41%

20%

Never 1-3 Times a Month

Daily/Almost Daily

Less Than Once a Month

1-3 Times a Week

Poor Voice QualityHow often do you experience these problems with your mobile phone while at home?

(Among all Broadband HHs with Mobile Phone, with Speci�ed Capability)

0%

80%

100%

40%

60%

20%

US UK Germany Spain China Japan

Daily/Almost Daily

1-3 Times a Week

1-3 Times a Month

<Once a Month

Never

Dropped calls

Poor voice quality

US

% E

xper

ienc

ing

Prob

lem

s

% o

f Res

pond

ents

Lik

ely

to

Chur

n w

ithin

nex

t 12

mon

ths

UK Germany Spain China Japan

46%

31%

13%

5%

50%

26%

14%

7%

48%

28%

14%

7%

48%

26%

18%

10%

23%

28%

27%

17%

59%

22%

12%

4%

Dropped Calls vs. ARPU

0%

80%

100%

40%

60%

20%

Monthly

Weekly

Daily

Monthly

% E

xper

ienc

ing

Prob

lem

s

Weekly Daily

2%4%

9%

4%8%

17%

6%10

%17

%

High ARPU Households Find Femtocells More Appealing

0%

40%

60%

20%

Low

% th

at �

nds F

emto

cells

ap

peal

ing

(ratin

gs 5

-7)

Medium High

Churn vs. Call Quality ProblemsHow often do you experience these problems with your mobile phone while at home?

0%

90%

38%

57%

33%

55%

26%

39%

ARPU Households

Likelihood of Churning

Frequency of Wi-Fi use at home

49%

36%

58%49%

71%

16%

37%

53%

81%

30%

60%

% In

dica

ting

App

eal

Appeal of FemtocellsHow appealing is this product to you?

(Among all Broadband HHs with Mobile Phone)

US UK Germany Spain China Japan

0%

6%11%

6% 5%

22%

36%

45%

25%

50%

% th

at �

nds

Fem

toce

lls

conc

ept a

ppea

ling

% F

indi

ng F

eatu

re V

ery

App

ealin

g Sp

eci�

ed P

rice

Poin

t

Femtocells Appeal and ChurningHow interested are you in a solution that improves your in-home

mobile service quality or experience?

Extremely Unlikely 1

2 3 Neutral 5 Extremely Likely 7

6

Price Sensitivity of New Femtocell ServicesHow likely are you to purchase your top-ranked service at these price points?

(Among Femtocells Fans Ranking Speci�ed Service As Their Most Desired Service)

0%

80%

35% 41

%51

%

32% 38

% 47%

32% 38

%47

%

25% 31

%41

%

40%

60%

20%

High Price Medium Price Low Price

Ratings 6-7 Ratings 5-7

17% 25

%38

%

13%

22%

35%

15% 22

%32

%

12% 17

%26

%

Family Locator

Virtual Home

Number

Family Alerts

Cellphone Remote Control

Home Reminders

Music Sync

Photo Sync

Contact/Calendar

Sync

$4.99/2.99/0.99

£4.99/2.99/0.99

€4.99/2.99/0.99

€4.99/2.99/0.99

RMB 10/5/2

Yen 499/299/99

0%

90%

36%

56%

38%

62%56%

84%

48%

75%

30%

60%

Appeal of Femtocell by Mobile Wi-Fi UsageHow often do you use Wi-Fi at home to make voice calls or surf the Web?

(Among all Broadband HHs with Wi-Fi on their mobile phone, global sample N=2,670)

Never Less than once a month

1-3 times a month

At least weekly

% �

nd F

emto

cells

app

ealin

g

44%

33%28%

36%

70%

29%

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

E�ect of Femtocells on Reducing Churn“You mentioned earlier that you are likely to switch mobile service providers within the

next 12 months. If your current mobile service provider began o�ering a femtocell product with those bene�ts at a price that you like, how likely would you be to stay with it?”

(Among all Broadband HHs Likely to Switch Mobile Service Providers)

Likelihood to Churn to a Competing Carrier with Femtocell O�erings“If your current mobile service provider does not o�er a femtocell product, how likely are

you to switch to a provider that o�ers a femtocell solution?”(Among all Broadband HHs with Mobile Phone)

0%

60%

70%

40%

20%

10%

US(n=237, ±6.3%)

% V

ery

Like

ly to

Sta

y w

ith C

urre

nt P

rovi

der

UK(n=235, ±6%)

Germany(n=191, ±6.4%)

Spain(n=356, ±5%)

China(n=282, ±5.3%)

Japan(n=118, ±8.2%)

Global Average: 42%

15%12% 12%

22%

44%

6%

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

0%

40%

50%

30%

20%

10%

US

% V

ery

likel

y to

Sw

itch

to

Prov

ider

O�e

ring

Fem

toce

lls

UK Germany Spain China Japan

Global Average: 18%

Provider Consolidation for Femtocell“You said that your household uses multiple mobile service providers. If femtocells were o�ered by

one of them, how likely would household members be to switch their service to this provider?” (Among all Broadband HHs with Mobile Phones, Using Muliple Carriers)

19%

32%

53%

15%

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

0%

40%

50%

60%

30%

20%

10%

% V

ery

Like

ly to

Sw

itch

to a

Sin

gle

Prov

ider

Global Average: 36%

35% 35%

3 Heavy Wi-Fi users are defined as those who have Wi-Fi on their phone and use it at least on a weekly basis. They represent approximately 15% of the global sample in this survey.

Interest Levels Also Vary by Consumer Segments

8

To better understand why consumers are interested in femtocells, Parks Associates’ statistically identified the primary and secondary

interest drivers and compared them across the six countries, with the results shown in Figure 8. Globally, the desire to improve in-home

mobile service coverage/signal strength is the most significant motivator, with the exception of Japan where few respondents reported

voice coverage problems. Instead, the top driver for Japanese respondents is high mobile Internet speed. The desire for an enhanced

audio/video experience on the mobile phone and savings on home voice calling/mobile data services are key, secondary drivers.

Figure 8: Major Drivers of Interest in Femtocells

Eight services were tested with the attributes of each described below:

1. Family Alerts: The ability to receive automated notifica-

tions (by text message, email, etc.) whenever a family

member enters/leaves your home. For example, a parent

at work could automatically receive a text message when

their child arrives or leaves home

2. Virtual Home Number: A phone number that, when di-

aled, rings all the cell phones that are currently within your

home. This allows you to have a “home number” that you

can provide people, even if you choose to discontinue

your landline phone service.

3. Music Sync: A feature that automatically (and wirelessly)

transfers all of the music files stored on your home com-

puter to your cell phone.

4. Photo Sync: A feature that automatically (and wirelessly)

transfers all the photo and video files on your cell phone

to your home computer.

5. Contact/Calendar Sync: A feature that automatically (and

wirelessly) synchronizes the calendars and contacts you

use on your computer with those on your cell phone.

6. Cell Phone Remote Control: The ability to control home

electronics (DVRs, DVD players, TVs, etc.) with your cell

phone.

7. Family Locator: A screen or password-protected web

page that shows current locations of family members, us-

ing a combination of GPS and femtocell presence capabili-

ties. For example it could show that one child is at home,

another at a friend’s house, and the parent is at work.

8. Home Reminders: The ability to leave electronic reminder

messages for family members via a website, that are de-

livered as text messages on their phone when they arrive

home (just like finding a note on the refrigerator).

Primary and Secondary Interest Drivers

Consumers are Receptive to Some of the New Service Features Enabled by Residential Femtocells

Drivers Global U.S. U.K. Germany Spain China Japan

Top Driver

Better in-home coverage/ signal strength

Better in-home coverage/ signal strength

Better in-home coverage/ signal strength

Better in-home coverage/ signal strength

Better in-home coverage/signal strength

Better in-home coverage/signal strength

Higher mobile Internet speed

Second Driver

Enhanced audio/video download/streaming speed

Enhanced audio/video download/streaming speed

Higher mobile Internet speed

Higher mobile Internet speed

Enhanced audio/video download/streaming speed

Enhanced audio/video download/streaming speed

Better in-home coverage/ signal strength

Third Driver

Cheaper in-home voice calling/mobile data rate

Cheaper in-home voice calling/mobile data rate

Cheaper in-home voice calling/mobile data rate

Cheaper in-home voice calling/mobile data rate

Cheaper in-home voice calling/mobile data rate

Cheaper in-home voice calling/mobile data rate

Enhanced audio/video download/streaming speed

9

www.parksassociates.com | All rights reserved.

Global Consumer Study of In-Home Mobile Services and Femtocells | The Femto Forum

In each country, three price points were presented in a cascading order4 to test consumers’ willingness to pay for the services.

The survey tested prices on the services respondents found most appealing. From the results shown in Figure 9, “Family Locator”

garners the highest interest followed by the “family alert” and “virtual home number” services. The “contact/calendar sync,” “music

sync,” and “photo sync” services, on the other hand, are less appealing. On average, 20-30% of consumers that find femtocells

appealing are willing to pay for at least one of the enhanced femtocell services.

Figure 9: Price Sensitivity of New Femtocell Services

Among heavy Wi-Fi users, the global survey indicated that femtocells offer a benefit that Wi-Fi users find very appealing: battery

life extension. In our driver analysis, the battery life benefit is ranked second behind service coverage improvement in four out of

six countries among this consumer group—strong evidence that Wi-Fi users will welcome femtocells as an additional option for

better mobile service access at home.

US(n=69, ±11.80%)

UK(n=195, ±7.02%)

Germany(n=138, ±8.34%)

Spain(n=194, ±7.04%)

China(n=337, ±5.34%)

Japan(n=74, ±11.39%)

% Finding Femtocells Very Appealing (Rating 6-7)

% Finding Femtocells Appealing (Rating 5-7)

How often do you experience these problems with your mobile phone while at home?

Problems with Mobile ServicesHow often do you experience these problems with your mobile phone while at home?

(Among all Broadband HHs with Mobile Phone, with Speci�ed Capability)

U.S. Broadband Households; % rating likelihood of cancellation

0%

80%

41% 46

%40

% 48%

72%

32% 35

%32

% 38% 42

%51

%21

% 23%

24%

24%

35%

49%

26%

21%

18%

29%

47%

16%19

%

40%

60%

20%

US UK Germany Spain China Japan

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Slow access to mobile Internet

Poor voice qualitySlow to send/receive emails

Dropped calls

0%

40%

10% 10%

12%

Global Churn Average: 13.6%

11%16% 14%

28%30%

41% 41%

20%

Never 1-3 Times a Month

Daily/Almost Daily

Less Than Once a Month

1-3 Times a Week

Poor Voice QualityHow often do you experience these problems with your mobile phone while at home?

(Among all Broadband HHs with Mobile Phone, with Speci�ed Capability)

0%

80%

100%

40%

60%

20%

US UK Germany Spain China Japan

Daily/Almost Daily

1-3 Times a Week

1-3 Times a Month

<Once a Month

Never

Dropped calls

Poor voice quality

US

% E

xper

ienc

ing

Prob

lem

s

% o

f Res

pond

ents

Lik

ely

to

Chur

n w

ithin

nex

t 12

mon

ths

UK Germany Spain China Japan

46%

31%

13%

5%

50%

26%

14%

7%

48%

28%

14%

7%

48%

26%

18%

10%

23%

28%

27%

17%

59%

22%

12%

4%

Dropped Calls vs. ARPU

0%

80%

100%

40%

60%

20%

Monthly

Weekly

Daily

Monthly

% E

xper

ienc

ing

Prob

lem

s

Weekly Daily

2%4%

9%

4%8%

17%

6%10

%17

%

High ARPU Households Find Femtocells More Appealing

0%

40%

60%

20%

Low

% th

at �

nds F

emto

cells

ap

peal

ing

(ratin

gs 5

-7)

Medium High

Churn vs. Call Quality ProblemsHow often do you experience these problems with your mobile phone while at home?

0%

90%

38%

57%

33%

55%

26%

39%

ARPU Households

Likelihood of Churning

Frequency of Wi-Fi use at home

49%

36%

58%49%

71%

16%

37%

53%

81%

30%

60%

% In

dica

ting

App

eal

Appeal of FemtocellsHow appealing is this product to you?

(Among all Broadband HHs with Mobile Phone)

US UK Germany Spain China Japan

0%

6%11%

6% 5%

22%

36%

45%

25%

50%

% th

at �

nds

Fem

toce

lls

conc

ept a

ppea

ling

% F

indi

ng F

eatu

re V

ery

App

ealin

g Sp

eci�

ed P

rice

Poin

t

Femtocells Appeal and ChurningHow interested are you in a solution that improves your in-home

mobile service quality or experience?

Extremely Unlikely 1

2 3 Neutral 5 Extremely Likely 7

6

Price Sensitivity of New Femtocell ServicesHow likely are you to purchase your top-ranked service at these price points?

(Among Femtocells Fans Ranking Speci�ed Service As Their Most Desired Service)

0%

80%

35% 41

%51

%

32% 38

% 47%

32% 38

%47

%

25% 31

%41

%

40%

60%

20%

High Price Medium Price Low Price

Ratings 6-7 Ratings 5-7

17% 25

%38

%

13%

22%

35%

15% 22

%32

%

12% 17

%26

%

Family Locator

Virtual Home

Number

Family Alerts

Cellphone Remote Control

Home Reminders

Music Sync

Photo Sync

Contact/Calendar

Sync

$4.99/2.99/0.99

£4.99/2.99/0.99

€4.99/2.99/0.99

€4.99/2.99/0.99

RMB 10/5/2

Yen 499/299/99

0%

90%

36%

56%

38%

62%56%

84%

48%

75%

30%

60%

Appeal of Femtocell by Mobile Wi-Fi UsageHow often do you use Wi-Fi at home to make voice calls or surf the Web?

(Among all Broadband HHs with Wi-Fi on their mobile phone, global sample N=2,670)

Never Less than once a month

1-3 times a month

At least weekly

% �

nd F

emto

cells

app

ealin

g

44%

33%28%

36%

70%

29%

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

E�ect of Femtocells on Reducing Churn“You mentioned earlier that you are likely to switch mobile service providers within the

next 12 months. If your current mobile service provider began o�ering a femtocell product with those bene�ts at a price that you like, how likely would you be to stay with it?”

(Among all Broadband HHs Likely to Switch Mobile Service Providers)

Likelihood to Churn to a Competing Carrier with Femtocell O�erings“If your current mobile service provider does not o�er a femtocell product, how likely are

you to switch to a provider that o�ers a femtocell solution?”(Among all Broadband HHs with Mobile Phone)

0%

60%

70%

40%

20%

10%

US(n=237, ±6.3%)

% V

ery

Like

ly to

Sta

y w

ith C

urre

nt P

rovi

der

UK(n=235, ±6%)

Germany(n=191, ±6.4%)

Spain(n=356, ±5%)

China(n=282, ±5.3%)

Japan(n=118, ±8.2%)

Global Average: 42%

15%12% 12%

22%

44%

6%

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

0%

40%

50%

30%

20%

10%

US

% V

ery

likel

y to

Sw

itch

to

Prov

ider

O�e

ring

Fem

toce

lls

UK Germany Spain China Japan

Global Average: 18%

Provider Consolidation for Femtocell“You said that your household uses multiple mobile service providers. If femtocells were o�ered by

one of them, how likely would household members be to switch their service to this provider?” (Among all Broadband HHs with Mobile Phones, Using Muliple Carriers)

19%

32%

53%

15%

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

0%

40%

50%

60%

30%

20%

10%

% V

ery

Like

ly to

Sw

itch

to a

Sin

gle

Prov

ider

Global Average: 36%

35% 35%

4 The highest price is presented first, and only those who show no interest (ratings 1-4) are presented with a lower price point until all prices are tested. Cumulative percentages are used for each price point based on the assumption that people willing to spend at a higher price point will also pay at the lower price points.

Femtocells Offer a Benefit that Wi-Fi users Find Very Appealing: Battery Life Extension

10

Average Good Value Price U.S. U.K. Germany Spain China Japan

Overall Broadband Households $35 £21 €34 €23 363 Yuan 4,814 Yen

Heavy Mobile Wi-Fi Users $62 £28 €56 €31 447 Yuan 6,617 Yen

US(n=69, ±11.80%)

UK(n=195, ±7.02%)

Germany(n=138, ±8.34%)

Spain(n=194, ±7.04%)

China(n=337, ±5.34%)

Japan(n=74, ±11.39%)

% Finding Femtocells Very Appealing (Rating 6-7)

% Finding Femtocells Appealing (Rating 5-7)

How often do you experience these problems with your mobile phone while at home?

Problems with Mobile ServicesHow often do you experience these problems with your mobile phone while at home?

(Among all Broadband HHs with Mobile Phone, with Speci�ed Capability)

U.S. Broadband Households; % rating likelihood of cancellation

0%

80%

41% 46

%40

% 48%

72%

32% 35

%32

% 38% 42

%51

%21

% 23%

24%

24%

35%

49%

26%

21%

18%

29%

47%

16%19

%

40%

60%

20%

US UK Germany Spain China Japan

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Slow access to mobile Internet

Poor voice qualitySlow to send/receive emails

Dropped calls

0%

40%

10% 10%

12%

Global Churn Average: 13.6%

11%16% 14%

28%30%

41% 41%

20%

Never 1-3 Times a Month

Daily/Almost Daily

Less Than Once a Month

1-3 Times a Week

Poor Voice QualityHow often do you experience these problems with your mobile phone while at home?

(Among all Broadband HHs with Mobile Phone, with Speci�ed Capability)

0%

80%

100%

40%

60%

20%

US UK Germany Spain China Japan

Daily/Almost Daily

1-3 Times a Week

1-3 Times a Month

<Once a Month

Never

Dropped calls

Poor voice quality

US

% E

xper

ienc

ing

Prob

lem

s

% o

f Res

pond

ents

Lik

ely

to

Chur

n w

ithin

nex

t 12

mon

ths

UK Germany Spain China Japan

46%

31%

13%

5%

50%

26%

14%

7%

48%

28%

14%

7%

48%

26%

18%

10%

23%

28%

27%

17%

59%

22%

12%

4%

Dropped Calls vs. ARPU

0%

80%

100%

40%

60%

20%

Monthly

Weekly

Daily

Monthly

% E

xper

ienc

ing

Prob

lem

s

Weekly Daily

2%4%

9%

4%8%

17%

6%10

%17

%

High ARPU Households Find Femtocells More Appealing

0%

40%

60%

20%

Low

% th

at �

nds F

emto

cells

ap

peal

ing

(ratin

gs 5

-7)

Medium High

Churn vs. Call Quality ProblemsHow often do you experience these problems with your mobile phone while at home?

0%

90%

38%

57%

33%

55%

26%

39%

ARPU Households

Likelihood of Churning

Frequency of Wi-Fi use at home

49%

36%

58%49%

71%

16%

37%

53%

81%

30%

60%

% In

dica

ting

App

eal

Appeal of FemtocellsHow appealing is this product to you?

(Among all Broadband HHs with Mobile Phone)

US UK Germany Spain China Japan

0%

6%11%

6% 5%

22%

36%

45%

25%

50%

% th

at �

nds

Fem

toce

lls

conc

ept a

ppea

ling

% F

indi

ng F

eatu

re V

ery

App

ealin

g Sp

eci�

ed P

rice

Poin

t

Femtocells Appeal and ChurningHow interested are you in a solution that improves your in-home

mobile service quality or experience?

Extremely Unlikely 1

2 3 Neutral 5 Extremely Likely 7

6

Price Sensitivity of New Femtocell ServicesHow likely are you to purchase your top-ranked service at these price points?

(Among Femtocells Fans Ranking Speci�ed Service As Their Most Desired Service)

0%

80%35

% 41%

51%

32% 38

% 47%

32% 38

%47

%

25% 31

%41

%

40%

60%

20%

High Price Medium Price Low Price

Ratings 6-7 Ratings 5-7

17% 25

%38

%

13%

22%

35%

15% 22

%32

%

12% 17

%26

%

Family Locator

Virtual Home

Number

Family Alerts

Cellphone Remote Control

Home Reminders

Music Sync

Photo Sync

Contact/Calendar

Sync

$4.99/2.99/0.99

£4.99/2.99/0.99

€4.99/2.99/0.99

€4.99/2.99/0.99

RMB 10/5/2

Yen 499/299/99

0%

90%

36%

56%

38%

62%56%

84%

48%

75%

30%

60%

Appeal of Femtocell by Mobile Wi-Fi UsageHow often do you use Wi-Fi at home to make voice calls or surf the Web?

(Among all Broadband HHs with Wi-Fi on their mobile phone, global sample N=2,670)

Never Less than once a month

1-3 times a month

At least weekly

% �

nd F

emto

cells

app

ealin

g

44%

33%28%

36%

70%

29%

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

E�ect of Femtocells on Reducing Churn“You mentioned earlier that you are likely to switch mobile service providers within the

next 12 months. If your current mobile service provider began o�ering a femtocell product with those bene�ts at a price that you like, how likely would you be to stay with it?”

(Among all Broadband HHs Likely to Switch Mobile Service Providers)

Likelihood to Churn to a Competing Carrier with Femtocell O�erings“If your current mobile service provider does not o�er a femtocell product, how likely are

you to switch to a provider that o�ers a femtocell solution?”(Among all Broadband HHs with Mobile Phone)

0%

60%

70%

40%

20%

10%

US(n=237, ±6.3%)

% V

ery

Like

ly to

Sta

y w

ith C

urre

nt P

rovi

der

UK(n=235, ±6%)

Germany(n=191, ±6.4%)

Spain(n=356, ±5%)

China(n=282, ±5.3%)

Japan(n=118, ±8.2%)

Global Average: 42%

15%12% 12%

22%

44%

6%

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

0%

40%

50%

30%

20%

10%

US

% V

ery

likel

y to

Sw

itch

to

Prov

ider

O�e

ring

Fem

toce

lls

UK Germany Spain China Japan

Global Average: 18%

Provider Consolidation for Femtocell“You said that your household uses multiple mobile service providers. If femtocells were o�ered by

one of them, how likely would household members be to switch their service to this provider?” (Among all Broadband HHs with Mobile Phones, Using Muliple Carriers)

19%

32%

53%

15%

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

0%

40%

50%

60%

30%

20%

10%

% V

ery

Like

ly to

Sw

itch

to a

Sin

gle

Prov

ider

Global Average: 36%

35% 35%

Figure 10: Battery Life Extension Benefit of Femtocells Appeals to Heavy Wi-Fi Users

As another piece of evidence, the extent of mobile Wi-Fi usage at

home is positively correlated with their view of femtocells’ benefits.

Figure 11 shows that the more frequent their usage is, the more

likely they find femtocells appealing. Heavy Wi-Fi users are 50%

more likely to find femtocells appealing than are those who have

Wi-Fi on their phone but never use it. This data also suggests that

Wi-Fi users are at least as interested in femtocells as general mobile

households and heavy users are actually more interested.

Finally, in our price expectation analysis, heavy Wi-Fi users also

stand out as a consumer group who are willing to pay more

for a femtocell solution than general broadband households

(Figure 12). These findings, when analyzed in a holistic way, lead

to our conclusion that consumers do not necessarily view Wi-Fi

as a substitute for femtocells, or vice versa. Hence Wi-Fi usage is

a positive predictor rather than a barrier to consumers’ interest

in femtocells.

Figure 11: Wi-Fi Usage Frequency Positively Correlates with Femtocell Appeal

Figure 12: Mobile Wi-Fi Heavy Users are Willing to Pay More for Femtocells

Drivers Global U.S. U.K. Germany Spain China Japan

Top Driver

Better in-home coverage/ signal strength

Better in-home coverage/ signal strength

Better in-home coverage/ signal strength

Better in-home coverage/ signal strength

Better in-home coverage/signal strength

Better in-home coverage/signal strength

Enhanced audio/video download/streaming speed

Second Driver

Enhanced audio/video download/streaming speed

Improved phone battery life

Higher mobile Internet speed

Higher mobile Internet speed

Improved phone battery life

Improved phone battery life

Improved phone battery life

Third Driver

Improved phone battery life

Enhanced audio/video download/streaming speed

Cheaper in-home calling/data rate

Enhanced audio/video download/streaming speed

Enhanced audio/video download/streaming speed

Enhanced audio/video download/streaming speed

N/A

11

www.parksassociates.com | All rights reserved.

Global Consumer Study of In-Home Mobile Services and Femtocells | The Femto Forum

US(n=69, ±11.80%)

UK(n=195, ±7.02%)

Germany(n=138, ±8.34%)

Spain(n=194, ±7.04%)

China(n=337, ±5.34%)

Japan(n=74, ±11.39%)

% Finding Femtocells Very Appealing (Rating 6-7)

% Finding Femtocells Appealing (Rating 5-7)

How often do you experience these problems with your mobile phone while at home?

Problems with Mobile ServicesHow often do you experience these problems with your mobile phone while at home?

(Among all Broadband HHs with Mobile Phone, with Speci�ed Capability)

U.S. Broadband Households; % rating likelihood of cancellation

0%

80%

41% 46

%40

% 48%

72%

32% 35

%32

% 38% 42

%51

%21

% 23%

24%

24%

35%

49%

26%

21%

18%

29%

47%

16%19

%

40%

60%

20%

US UK Germany Spain China Japan

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Slow access to mobile Internet

Poor voice qualitySlow to send/receive emails

Dropped calls

0%

40%

10% 10%

12%

Global Churn Average: 13.6%

11%16% 14%

28%30%

41% 41%

20%

Never 1-3 Times a Month

Daily/Almost Daily

Less Than Once a Month

1-3 Times a Week

Poor Voice QualityHow often do you experience these problems with your mobile phone while at home?

(Among all Broadband HHs with Mobile Phone, with Speci�ed Capability)

0%

80%

100%

40%

60%

20%

US UK Germany Spain China Japan

Daily/Almost Daily

1-3 Times a Week

1-3 Times a Month

<Once a Month

Never

Dropped calls

Poor voice quality

US

% E

xper

ienc

ing

Prob

lem

s

% o

f Res

pond

ents

Lik

ely

to

Chur

n w

ithin

nex

t 12

mon

ths

UK Germany Spain China Japan

46%

31%

13%

5%

50%

26%

14%

7%

48%

28%

14%

7%

48%

26%

18%

10%

23%

28%

27%

17%

59%

22%

12%

4%

Dropped Calls vs. ARPU

0%

80%

100%

40%

60%

20%

Monthly

Weekly

Daily

Monthly

% E

xper

ienc

ing

Prob

lem

s

Weekly Daily

2%4%

9%

4%8%

17%

6%10

%17

%

High ARPU Households Find Femtocells More Appealing

0%

40%

60%

20%

Low

% th

at �

nds F

emto

cells

ap

peal

ing

(ratin

gs 5

-7)

Medium High

Churn vs. Call Quality ProblemsHow often do you experience these problems with your mobile phone while at home?

0%

90%

38%

57%

33%

55%

26%

39%

ARPU Households

Likelihood of Churning

Frequency of Wi-Fi use at home

49%

36%

58%49%

71%

16%

37%

53%

81%

30%

60%

% In

dica

ting

App

eal

Appeal of FemtocellsHow appealing is this product to you?

(Among all Broadband HHs with Mobile Phone)

US UK Germany Spain China Japan

0%

6%11%

6% 5%

22%

36%

45%

25%

50%

% th

at �

nds

Fem

toce

lls

conc

ept a

ppea

ling

% F

indi

ng F

eatu

re V

ery

App

ealin

g Sp

eci�

ed P

rice

Poin

t

Femtocells Appeal and ChurningHow interested are you in a solution that improves your in-home

mobile service quality or experience?

Extremely Unlikely 1

2 3 Neutral 5 Extremely Likely 7

6

Price Sensitivity of New Femtocell ServicesHow likely are you to purchase your top-ranked service at these price points?

(Among Femtocells Fans Ranking Speci�ed Service As Their Most Desired Service)

0%

80%

35% 41

%51

%

32% 38

% 47%

32% 38

%47

%

25% 31

%41

%

40%

60%

20%

High Price Medium Price Low Price

Ratings 6-7 Ratings 5-7

17% 25

%38

%

13%

22%

35%

15% 22

%32

%

12% 17

%26

%

Family Locator

Virtual Home

Number

Family Alerts

Cellphone Remote Control

Home Reminders

Music Sync

Photo Sync

Contact/Calendar

Sync

$4.99/2.99/0.99

£4.99/2.99/0.99

€4.99/2.99/0.99

€4.99/2.99/0.99

RMB 10/5/2

Yen 499/299/99

0%

90%

36%

56%

38%

62%56%

84%

48%

75%

30%

60%

Appeal of Femtocell by Mobile Wi-Fi UsageHow often do you use Wi-Fi at home to make voice calls or surf the Web?

(Among all Broadband HHs with Wi-Fi on their mobile phone, global sample N=2,670)

Never Less than once a month

1-3 times a month

At least weekly

% �

nd F

emto

cells

app

ealin

g

44%

33%28%

36%

70%

29%

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

E�ect of Femtocells on Reducing Churn“You mentioned earlier that you are likely to switch mobile service providers within the

next 12 months. If your current mobile service provider began o�ering a femtocell product with those bene�ts at a price that you like, how likely would you be to stay with it?”

(Among all Broadband HHs Likely to Switch Mobile Service Providers)

Likelihood to Churn to a Competing Carrier with Femtocell O�erings“If your current mobile service provider does not o�er a femtocell product, how likely are

you to switch to a provider that o�ers a femtocell solution?”(Among all Broadband HHs with Mobile Phone)

0%

60%

70%

40%

20%

10%

US(n=237, ±6.3%)

% V

ery

Like

ly to

Sta

y w

ith C

urre

nt P

rovi

der

UK(n=235, ±6%)

Germany(n=191, ±6.4%)

Spain(n=356, ±5%)

China(n=282, ±5.3%)

Japan(n=118, ±8.2%)

Global Average: 42%

15%12% 12%

22%

44%

6%

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

0%

40%

50%

30%

20%

10%

US

% V

ery

likel

y to

Sw

itch

to

Prov

ider

O�e

ring

Fem

toce

lls

UK Germany Spain China Japan

Global Average: 18%

Provider Consolidation for Femtocell“You said that your household uses multiple mobile service providers. If femtocells were o�ered by

one of them, how likely would household members be to switch their service to this provider?” (Among all Broadband HHs with Mobile Phones, Using Muliple Carriers)

19%

32%

53%

15%

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

0%

40%

50%

60%

30%

20%

10%

% V

ery

Like

ly to

Sw

itch

to a

Sin

gle

Prov

ider

Global Average: 36%

35% 35%

The survey also reveals that in competitive global mobile markets, femtocells would help mobile operators retain valuable

customers, attract new ones, or potentially persuade families with multiple operators’ accounts to consolidate service plans. For

instance, among global consumers who indicated a strong likelihood of changing operators within the next twelve months, 42%

expressed strong willingness to stay with their current provider if it offered them a femtocell (Figure 13). Eighteen percent of all

respondents indicated they would be likely to switch away from their current provider if a competing provider offered them a

femtocell (Figure 14). Among those households using multiple operators, 36% are likely to consolidate services with a provider that

offers femtocells (Figure 15).

Figure 13: Femtocells’ Impact on Churn

Femtocell’s Effect on Churn and Customer Retention

12

www.parksassociates.com | All rights reserved.

Global Consumer Study of In-Home Mobile Services and Femtocells | The Femto Forum

US(n=69, ±11.80%)

UK(n=195, ±7.02%)

Germany(n=138, ±8.34%)

Spain(n=194, ±7.04%)

China(n=337, ±5.34%)

Japan(n=74, ±11.39%)

% Finding Femtocells Very Appealing (Rating 6-7)

% Finding Femtocells Appealing (Rating 5-7)

How often do you experience these problems with your mobile phone while at home?

Problems with Mobile ServicesHow often do you experience these problems with your mobile phone while at home?

(Among all Broadband HHs with Mobile Phone, with Speci�ed Capability)

U.S. Broadband Households; % rating likelihood of cancellation

0%

80%

41% 46

%40

% 48%

72%

32% 35

%32

% 38% 42

%51

%21

% 23%

24%

24%

35%

49%

26%

21%

18%

29%

47%

16%19

%

40%

60%

20%

US UK Germany Spain China Japan

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Slow access to mobile Internet

Poor voice qualitySlow to send/receive emails

Dropped calls

0%

40%

10% 10%

12%

Global Churn Average: 13.6%

11%16% 14%

28%30%

41% 41%

20%

Never 1-3 Times a Month

Daily/Almost Daily

Less Than Once a Month

1-3 Times a Week

Poor Voice QualityHow often do you experience these problems with your mobile phone while at home?

(Among all Broadband HHs with Mobile Phone, with Speci�ed Capability)

0%

80%

100%

40%

60%

20%

US UK Germany Spain China Japan

Daily/Almost Daily

1-3 Times a Week

1-3 Times a Month

<Once a Month

Never

Dropped calls

Poor voice quality

US

% E

xper

ienc

ing

Prob

lem

s

% o

f Res

pond

ents

Lik

ely

to

Chur

n w

ithin

nex

t 12

mon

ths

UK Germany Spain China Japan

46%

31%

13%

5%

50%

26%

14%

7%

48%

28%

14%

7%

48%

26%

18%

10%

23%

28%

27%

17%

59%

22%

12%

4%

Dropped Calls vs. ARPU

0%

80%

100%

40%

60%

20%

Monthly

Weekly

Daily

Monthly

% E

xper

ienc

ing

Prob

lem

s

Weekly Daily

2%4%

9%

4%8%

17%

6%10

%17

%

High ARPU Households Find Femtocells More Appealing

0%

40%

60%

20%

Low

% th

at �

nds F

emto

cells

ap

peal

ing

(ratin

gs 5

-7)

Medium High

Churn vs. Call Quality ProblemsHow often do you experience these problems with your mobile phone while at home?

0%

90%

38%

57%

33%

55%

26%

39%

ARPU Households

Likelihood of Churning

Frequency of Wi-Fi use at home

49%

36%

58%49%

71%

16%

37%

53%

81%

30%

60%

% In

dica

ting

App

eal

Appeal of FemtocellsHow appealing is this product to you?

(Among all Broadband HHs with Mobile Phone)

US UK Germany Spain China Japan

0%

6%11%

6% 5%

22%

36%

45%

25%

50%

% th

at �

nds

Fem

toce

lls

conc

ept a

ppea

ling

% F

indi

ng F

eatu

re V

ery

App

ealin

g Sp

eci�

ed P

rice

Poin

t

Femtocells Appeal and ChurningHow interested are you in a solution that improves your in-home

mobile service quality or experience?

Extremely Unlikely 1

2 3 Neutral 5 Extremely Likely 7

6

Price Sensitivity of New Femtocell ServicesHow likely are you to purchase your top-ranked service at these price points?

(Among Femtocells Fans Ranking Speci�ed Service As Their Most Desired Service)

0%

80%

35% 41

%51

%

32% 38

% 47%

32% 38

%47

%

25% 31

%41

%

40%

60%

20%

High Price Medium Price Low Price

Ratings 6-7 Ratings 5-7

17% 25

%38

%

13%

22%

35%

15% 22

%32

%

12% 17

%26

%

Family Locator

Virtual Home

Number

Family Alerts

Cellphone Remote Control

Home Reminders

Music Sync

Photo Sync

Contact/Calendar

Sync

$4.99/2.99/0.99

£4.99/2.99/0.99

€4.99/2.99/0.99

€4.99/2.99/0.99

RMB 10/5/2

Yen 499/299/99

0%

90%

36%

56%

38%

62%56%

84%

48%

75%

30%

60%

Appeal of Femtocell by Mobile Wi-Fi UsageHow often do you use Wi-Fi at home to make voice calls or surf the Web?

(Among all Broadband HHs with Wi-Fi on their mobile phone, global sample N=2,670)

Never Less than once a month

1-3 times a month

At least weekly

% �

nd F

emto

cells

app

ealin

g

44%

33%28%

36%

70%

29%

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

E�ect of Femtocells on Reducing Churn“You mentioned earlier that you are likely to switch mobile service providers within the

next 12 months. If your current mobile service provider began o�ering a femtocell product with those bene�ts at a price that you like, how likely would you be to stay with it?”

(Among all Broadband HHs Likely to Switch Mobile Service Providers)

Likelihood to Churn to a Competing Carrier with Femtocell O�erings“If your current mobile service provider does not o�er a femtocell product, how likely are

you to switch to a provider that o�ers a femtocell solution?”(Among all Broadband HHs with Mobile Phone)

0%

60%

70%

40%

20%

10%

US(n=237, ±6.3%)

% V

ery

Like

ly to

Sta

y w

ith C

urre

nt P

rovi

der

UK(n=235, ±6%)

Germany(n=191, ±6.4%)

Spain(n=356, ±5%)

China(n=282, ±5.3%)

Japan(n=118, ±8.2%)

Global Average: 42%

15%12% 12%

22%

44%

6%

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

0%

40%

50%

30%

20%

10%

US

% V

ery

likel

y to

Sw

itch

to

Prov

ider

O�e

ring

Fem

toce

lls

UK Germany Spain China Japan

Global Average: 18%

Provider Consolidation for Femtocell“You said that your household uses multiple mobile service providers. If femtocells were o�ered by

one of them, how likely would household members be to switch their service to this provider?” (Among all Broadband HHs with Mobile Phones, Using Muliple Carriers)

19%

32%

53%

15%

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

0%

40%

50%

60%

30%

20%

10%

% V

ery

Like

ly to

Sw

itch

to a

Sin

gle

Prov

ider

Global Average: 36%

35% 35%

Figure 15: Femtocell’s Impact on Service Plan Consolidation

US(n=69, ±11.80%)

UK(n=195, ±7.02%)

Germany(n=138, ±8.34%)

Spain(n=194, ±7.04%)

China(n=337, ±5.34%)

Japan(n=74, ±11.39%)

% Finding Femtocells Very Appealing (Rating 6-7)

% Finding Femtocells Appealing (Rating 5-7)

How often do you experience these problems with your mobile phone while at home?

Problems with Mobile ServicesHow often do you experience these problems with your mobile phone while at home?

(Among all Broadband HHs with Mobile Phone, with Speci�ed Capability)

U.S. Broadband Households; % rating likelihood of cancellation

0%

80%

41% 46

%40

% 48%

72%

32% 35

%32

% 38% 42

%51

%21

% 23%

24%

24%

35%

49%

26%

21%

18%

29%

47%

16%19

%

40%

60%

20%

US UK Germany Spain China Japan

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

Slow access to mobile Internet

Poor voice qualitySlow to send/receive emails

Dropped calls

0%

40%

10% 10%

12%

Global Churn Average: 13.6%

11%16% 14%

28%30%

41% 41%

20%

Never 1-3 Times a Month

Daily/Almost Daily

Less Than Once a Month

1-3 Times a Week

Poor Voice QualityHow often do you experience these problems with your mobile phone while at home?

(Among all Broadband HHs with Mobile Phone, with Speci�ed Capability)

0%

80%

100%

40%

60%

20%

US UK Germany Spain China Japan

Daily/Almost Daily

1-3 Times a Week

1-3 Times a Month

<Once a Month

Never

Dropped calls

Poor voice quality

US

% E

xper

ienc

ing

Prob

lem

s

% o

f Res

pond

ents

Lik

ely

to

Chur

n w

ithin

nex

t 12

mon

ths

UK Germany Spain China Japan

46%

31%

13%

5%

50%

26%

14%

7%

48%

28%

14%

7%

48%

26%

18%

10%

23%

28%

27%

17%

59%

22%

12%

4%

Dropped Calls vs. ARPU

0%

80%

100%

40%

60%

20%

Monthly

Weekly

Daily

Monthly

% E

xper

ienc

ing

Prob

lem

s

Weekly Daily

2%4%

9%

4%8%

17%

6%10

%17

%

High ARPU Households Find Femtocells More Appealing

0%

40%

60%

20%

Low

% th

at �

nds F

emto

cells

ap

peal

ing

(ratin

gs 5

-7)

Medium High

Churn vs. Call Quality ProblemsHow often do you experience these problems with your mobile phone while at home?

0%

90%

38%

57%

33%

55%

26%

39%

ARPU Households

Likelihood of Churning

Frequency of Wi-Fi use at home

49%

36%

58%49%

71%

16%

37%

53%

81%

30%

60%

% In

dica

ting

App

eal

Appeal of FemtocellsHow appealing is this product to you?

(Among all Broadband HHs with Mobile Phone)

US UK Germany Spain China Japan

0%

6%11%

6% 5%

22%

36%

45%

25%

50%

% th

at �

nds

Fem

toce

lls

conc

ept a

ppea

ling

% F

indi

ng F

eatu

re V

ery

App

ealin

g Sp

eci�

ed P

rice

Poin

t

Femtocells Appeal and ChurningHow interested are you in a solution that improves your in-home

mobile service quality or experience?

Extremely Unlikely 1

2 3 Neutral 5 Extremely Likely 7

6

Price Sensitivity of New Femtocell ServicesHow likely are you to purchase your top-ranked service at these price points?

(Among Femtocells Fans Ranking Speci�ed Service As Their Most Desired Service)

0%

80%

35% 41

%51

%

32% 38

% 47%

32% 38

%47

%

25% 31

%41

%

40%

60%

20%

High Price Medium Price Low Price

Ratings 6-7 Ratings 5-7

17% 25

%38

%

13%

22%

35%

15% 22

%32

%

12% 17

%26

%

Family Locator

Virtual Home

Number

Family Alerts

Cellphone Remote Control

Home Reminders

Music Sync

Photo Sync

Contact/Calendar

Sync

$4.99/2.99/0.99

£4.99/2.99/0.99

€4.99/2.99/0.99

€4.99/2.99/0.99

RMB 10/5/2

Yen 499/299/99

0%

90%

36%

56%

38%

62%56%

84%

48%

75%

30%

60%

Appeal of Femtocell by Mobile Wi-Fi UsageHow often do you use Wi-Fi at home to make voice calls or surf the Web?

(Among all Broadband HHs with Wi-Fi on their mobile phone, global sample N=2,670)

Never Less than once a month

1-3 times a month

At least weekly

% �

nd F

emto

cells

app

ealin

g

44%

33%28%

36%

70%

29%

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

E�ect of Femtocells on Reducing Churn“You mentioned earlier that you are likely to switch mobile service providers within the

next 12 months. If your current mobile service provider began o�ering a femtocell product with those bene�ts at a price that you like, how likely would you be to stay with it?”

(Among all Broadband HHs Likely to Switch Mobile Service Providers)

Likelihood to Churn to a Competing Carrier with Femtocell O�erings“If your current mobile service provider does not o�er a femtocell product, how likely are

you to switch to a provider that o�ers a femtocell solution?”(Among all Broadband HHs with Mobile Phone)

0%

60%

70%

40%

20%

10%

US(n=237, ±6.3%)

% V

ery

Like

ly to

Sta

y w

ith C

urre

nt P

rovi

der

UK(n=235, ±6%)

Germany(n=191, ±6.4%)

Spain(n=356, ±5%)

China(n=282, ±5.3%)

Japan(n=118, ±8.2%)

Global Average: 42%

15%12% 12%

22%

44%

6%

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

0%

40%

50%

30%

20%

10%

US

% V

ery

likel

y to

Sw

itch

to

Prov

ider

O�e

ring

Fem

toce

lls

UK Germany Spain China Japan

Global Average: 18%

Provider Consolidation for Femtocell“You said that your household uses multiple mobile service providers. If femtocells were o�ered by

one of them, how likely would household members be to switch their service to this provider?” (Among all Broadband HHs with Mobile Phones, Using Muliple Carriers)

19%

32%

53%

15%

Source: Femto Forum: Global Consumer Study of In-Home Mobile Services and Femtocells | © Parks Associates

0%

40%

50%

60%

30%

20%

10%

% V

ery

Like

ly to

Sw

itch

to a

Sin

gle

Prov

ider

Global Average: 36%

35% 35%

Figure 14: Femtocell’s Impact on Customer Acquisition

13

www.parksassociates.com | All rights reserved.

Global Consumer Study of In-Home Mobile Services and Femtocells | The Femto Forum

The global consumer survey revealed important differences

in perceptions and experiences between countries. Some of

the differences can be attributed to demographic variations of

broadband households in the countries surveyed. For instance,

Chinese and Spanish broadband households are younger than

households in a mature broadband market such as the U.S. or

Japan. Other differences can be attributed to unique market

characteristics and cultural variations.

Chinese and Spanish consumers, for instance, are significantly

more interested in femtocell benefits than those in any of

the other four countries—a finding attributable in part to the

fact that they experience in-home mobile service issues most

frequently (Figure 1). To a lesser degree, the fact that broadband

consumers in China and Spain are younger may also lead them

to be more receptive to new technologies such as femtocells.

Spain’s high interest in femtocells may be an indicator of likely

demand in similarly developed Mediterranean and Latin Ameri-

can countries, although further research would be needed to

establish certainty on this.

Japanese consumers, on the other hand, expressed the lowest

levels of interest in femtocells, which is consistent with the fact

that they have fewer problems with in-home mobile voice and

data services. Still, with over 33 million broadband households

in Japan, the 16% of Japanese respondents that found femto-

cells to be very appealing represents a potential customer base

of over 5 million households.

Finally, when it comes to new femtocell services, consumers in

the U.S., U.K., and Germany tend to favor the “virtual home num-

ber” feature whereas in China and Japan the “family locator” ser-

vice is a more appealing. These differences are natural because

individual service attractiveness is a function of specific mobile

usage patterns and cultural norms in that country. For instance,

family safety is of great importance to households in China

and Japan, particularly the safety of children. Japanese service

providers in the past successfully launched kid-friendly phones

with built-in location and emergency alert services5. This safety

concern maybe is the reason behind Chinese and Japanese’ in-

terest in the “family locator service.” In the U.S., the popularity of

DECT phone system with multiple cordless handsets may ex-

plain why “virtual home number” is a more favored service.

Compare and Contrast: Country-Level Differences

5 For example, NTT DoCoMo offers a series of kids-friendly phones with a built-in location service “Imadoko-Search” for parents to find their children. The phone can also sound a loud alarm for kids to alert others for help in case of emergency.

14

www.parksassociates.com | All rights reserved.

Global Consumer Study of In-Home Mobile Services and Femtocells | The Femto Forum

Femtocells’ benefits broadly appeal to global mobile consumers and in-home mobile service coverage is the primary driver of

consumer interest. The survey also shows that poor service at home affects service satisfaction among high ARPU households the

most and correlates strongly with mobile consumers’ intention to switch providers. Femtocells can bring multiple benefits to mobile

operators in the form of reduced customer churn, improved customer loyalty, and service plan consolidation among families using

multiple operators, and these benefits will be concentrated among the highest-ARPU customers. Furthermore, a healthy portion of

consumers express interest in subscribing to additional, femtocell-enabled services. Last but not least, consumers do not consider

femtocells and Wi-Fi to be direct substitutes for each other, and therefore Wi-Fi use is a predictor of, not a barrier to, adoption.

The femtocell industry would benefit from consumer education efforts that explain the benefits femtocells can bring to mobile

users. Broad interest in advanced femtocell services can then help femtocells evolve from being a service enhancement to a service

platform in their own right. The femtocell industry’s marketing efforts would also benefit from taking into account the unique

needs and perceptions of mobile consumers in each country and emphasizing to consumers the most compelling femtocell

benefits to encourage adoption.

Conclusions

15

www.parksassociates.com | All rights reserved.

Global Consumer Study of In-Home Mobile Services and Femtocells | The Femto Forum

The U.S. online survey was conducted between April 30, 2010 and May 12, 2010. It surveyed 1,100 broadband Internet heads-of-

household with mobile phone services in the U.S. The surveys of consumers in the U.K., Germany, Spain, Japan, and China took place

between October 15, 2010 and October 30, 2010 and each survey collected data from 1,000 respondents. All respondents were 18

or over and had an equal or greater share in household decisions on telecommunication services and consumer electronics. The

sample matches broadband household characteristics on age, gender, and income. The results of the survey have a margin of error

of +/- 3% at a 95% confidence level. Profiles of the respondents from each nation can be obtained by contacting Femto Forum or

Parks Associates directly. A summary of respondent demographics is provided in the table below.

In the survey, the concept of femtocell and its benefits are described as below:

A femtocell is a small device that works through your DSL/cable/fiber broadband connection to provide your existing cell phone(s)

with the following benefits while you and your family are within your home:

Topics examined in the survey include the following:

• Improved indoor coverage, consistently 4-5 “bars” throughout your home

• Improved battery life of your cell phones

• Improved speed of Internet access and audio/video streaming/downloading speed on your cell phones throughout your home

• Potentially lower calling costs/mobile data costs

• Current mobile service subscription & mobile device ownership• Mobile service usage, phone features and usage • Mobile Internet usage & phone Wi-Fi features & use frequency• Mobile service satisfaction, service issues, & churn factors• Femtocell familiarity and interest

• Femtocell pricing expectations• New femtocell service features and consumer interests• Effects of femtocell on churn, provider switching

and consolidation• Preferred methods to acquire femtocell products

Appendix A: About the Survey

Demographics United States United Kingdom Germany Spain China Japan

Age

18-24 8% 11% 12% 21% 25% 7%

25-34 19% 23% 24% 26% 37% 17%

35-44 22% 22% 27% 28% 25% 17%

45-54 24% 22% 18% 15% 10% 17%

55-64 15% 15% 13% 9% 2% 18%

65 or older 11% 8% 6% 1% 1% 24%

Gender

Female 56% 45% 41% 45% 45% 51%

Male 44% 55% 59% 55% 55% 49%

Education

12 years or less 33% 20% 50% 23% 6% 25%

13-15 years 29% 27% 21% 24% 25% 23%

16-17 years 24% 24% 21% 20% 59% 45%

18+ years 14% 30% 8% 33% 10% 7%

16

Attribution: Authored by Harry Wang Published by Parks Associates © Parks Associates

All rights reserved. No part of this book may be reproduced, in any form or by any means, without permission in

writing from the publisher. Printed in the United States of America.

Disclaimer: Parks Associates and the Femto Forum have made every reasonable effort to ensure that all information in this report is correct. We assume no responsibility for any inadvertent errors.

WP08-083011-2

About The AuthorHarry Wang studies the consumer electronics and entertainment service industries with a focus

on portable and mobile CE hardware, software, and associated applications and services. He is

also the lead analyst for Parks Associates’ digital health research program. Harry has presented

his research in numerous industry events including CES, Digital Hollywood, Photo Marketing

Association Annual Show, American Telemedicine Association Annual Show, World Health

Congress, and Parks Associates’ CONNECTIONS™ conferences.

Harry earned his MS degree in marketing research from the University of Texas at Arlington. He also

holds an MBA degree in finance from Texas Christian University and a BA degree in international

business from Guangdong University of Foreign Studies, P.R. China.

INDUSTRY EXPERTISE: Portable and Mobile Access Platforms and Applications, Digital Imaging Products and Services, Digital

Health Products and Services

About Parks AssociatesParks Associates is an internationally recognized market research and consulting company specializing in emerging consumer

technology products and services. Founded in 1986, Parks Associates creates research capital for companies ranging from Fortune

500 to small start-ups through market reports, primary studies, consumer research, custom research, workshops, executive confer-

ences, and annual service subscriptions.

The company’s expertise includes new media, digital entertainment and gaming, home networks, Internet and television services,

digital health, mobile applications and services, consumer electronics, energy management, and home control systems and security.

Each year, Parks Associates hosts executive thought leadership conferences CONNECTIONS™, with support from the Consumer

Electronics Association (CEA) ®, and CONNECTIONS™ Europe.

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