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MOBILE WORLD CONGRESS 2014:5 KEY TAKEAWAYS

This year at the MWC, manufacturers, telcos and content

providers all seemed to share a common goal: to bring

technology and Internet access to every corner in the

world. Beyond the bigger and better screens, faster

processors, and integration of new functionalities in

mobile devices, there was a notable shift in focus from

high-end devices to less expensive and more accessible

technology.

Five key areas of focus for 2014 in the mobile industry:

1. More affordable smartphonesBrands have made it clear that their objective for the next

years is to reach the next 1 billion consumers by conti-

nuing to eliminate cost barriers between feature phones

and smart phones. FirefoxOS presented a smartphone

that will be sold for $25 in partnership with the Chinese

manufacturer Spreadtrum Communication; LG, winner for

“most innovative device manufacturer”, introduced

a smartphone to bring 4G to the masses; Nokia presented

its first Android-powered phone, and Canonical, develo-

per of Ubuntu, the most mainstream Linux distribution,

presented the mobile version of its mobile OS in partners-

hip with Meizu and BQ phones.

2. More ubiquitous connectivity During his MWC inauguration speech, Mark Zuckerberg

communicated his desire to “make Internet access

available to the two thirds of the world not yet connec-

ted”. That raised the discussion about whether “Over The

Top” providers (companies that deliver content through

third party networks) should provide significant inves-

tment to build the infrastructure. Already we have seen

settlements between cable operators, telecommunication

companies and content providers in some countries, but

the real challenge will be in developing markets, where

the investment in high-speed internet connection infras-

tructure hasn’t event started.

3. More sensors make life smarter The trend today is around MEMS (Micro ElectroMechani-

cal Sensors), small and inexpensive sensors that can

be placed anywhere (such as a refrigerator, car, or room)

to capture data and transfer it back to the consumer’s

smartphone display through technologies such as NFC or

BLE. Brands seeking to better connect with consumers

are focusing on finding ways that sensors can add value,

from managing energy usage, tracking movements or

monitoring room temperatures.

4. More fashionable, wearable devicesRealizing that consumers don’t necessarily want to look

like robots, new players (like Lumus and Weon) are

creating augmented reality devices, smart watches, and

fitness bands that consumers feel comfortable wearing.

The space is growing rapidly as brands recognize that

wearable technology is becoming a meaningful part of

consumers‘ lifestyles.

5. More awareness around privacy & identity protection As consumers become more concerned about safeguar-

ding their personal data, brands are starting to launch

products, services and features such as facial detection

software and fingerprint and biometric scanners.

Blackphone, a carrier and vendor independent device, is

allowing users to control their communications by

offering them the possibility to encrypt all incoming and

outcoming calls, messages and files. We expect to see

personal security features become even more prominent

and sophisticated going forward.

For marketers, more people connected to the Internet in

more places through more touch points (sensors

everywhere), translates into a need for better data

management, more micro targeting and more customized

ways to deliver meaningful messages and experiences.

Rori DuBoffGlobal Head of Strategy

Daniel RodrigoGlobal Strategy Director

Lara VelázquezGlobal Strategist

March 3, 2014

MARKET INSIGHTS

See live footage from Mobile World Congressat 3istrategy.tumblr.com/tagged/MWC