global consumer survey of in-home mobile services and ... assoc... · 2 in 2010, 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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