The Mobile Future

1
The Mobile Future

• Shannon Snyder
• MOTM 4160 Business Internet Strategies
• November 5, 2007

2
Class Room Survey

• How many of you have home phone lines?
• How many landlines do you have?
• What do you use them for?
• How many of you have cell phones?
• How many cell phones do you have in your
  household?
• What do you use your cell phone for?
• Primary contact, emergencies, e-mail, games,
  texting, video, in the car, business?
• What is the primary driver for cell phone
  packages?
• Equipment, pricing plan, friends in network?

3
Primary and Secondary Wireless Usage in the Home
Gartner, User Survey Analysis Fixed-to-Mobile
Substitution and Calling Patterns, United States,
2006
4
Mobile Penetration Rates

• Where are your customers are..

5
Waves of Innovation
Source The Mobile Revolution The Making of
Mobile Services Worldwide
6
Why mobile matters?

• Access to customers
• Market penetration much higher than traditional
  phone network (PSTN) and DSL
• Outside of the U.S., mobile phone penetration
  significantly exceeds PC penetration
• Cowen and Company October 2007
• Mobile is especially hot in emerging nations
• 1.2 Million new users added daily
• McKinsey, Wireless Unbound, December 2006
• All in one device
• E-mail, Web, Voice, TV, Banking, Music, you name
  it.

7
Wireless Adoption Better, Faster, Cheaper
The Insight Research Corporation FIXED MOBILE
CONVERGENCE SINGLE PHONE SOLUTIONS FOR WIRELESS,
WIRELINE, AND VOIP CONVERGENCE 2007-2012
8
Mobile penetration continued
Source McKinsey Company, Wireless Unbound
9
Mobile Technologies Convergence
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Convergence
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Trends in Mobile
12
Gartner Telecommunications Hype Cycle
13
What is Mobile Commerce?
Source Gartner, Overview of Consumer Market
Applications
14
Mobile Data InterestWestern Europe v. North
America
Source Gartner, Market Trends Consumer Mobile
Applications,Worldwide, 2007
15
Current Events in the Mobile Landscape
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Free My Phone

• http//mossblog.allthingsd.com/20071021/free-my-ph
  one/

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iPhone

• Primary uses are in the consumer market,
  enterprise opportunities currently limited
• Changes the way consumers use phones
• Greater focus on data and services over
  traditional cell phones that are centered around
  voice
• In the US, ATT Wireless had an exclusive with
  the iPhone
• In one quarter they had a 41 increase in net
  income, added 2M new subscribers (1.1 M signed up
  for the iPhone)
• Source NY Times
• Force the industry to change
• iPhone Hacks

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• Google to enter Mobile Space
• Today Google announced gPhone Launch with
  partnerships with the telcos and equipment
  providers
• Rumors that Google may bid on the 700 MHz
  spectrum auction
• GrandCentral Acquisition July 2007
• Drive telco industry to move from walled garden
  to dumb pipe
• Lobbying for Open Access conditions
• May use threat of 700 MHz acquisition to force
  telcos to open their networks
• Drivers for Googles entry into Mobile (1)
• Drive the growth of mobile searches
• Drive overall broadband adoption
• Eliminate the risk of carriers abandoning the
  principles of net neutrality
• Extend Google Apps to the mobile environment

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Visionaries

• NTT DoCoMo

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Cutting Edge NTT DoCoMo
Osaifu-Keitai Payment/ID Card System
Source NTT DoCoMo Services, http//www.nttdocomo
.com/services/osaifu/index.html
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NTT DoCoMo Continued

• Barcoding
• 3D Imaging
• NTT DoCoMo Vision for Future
• http//www.nttdocomo.com/features/leading.html

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Questions
23
Back Up
24
CTIA Wireless Stats

• Revenue on wireless data services (just data, not
  voice) totalled 10.5 billion in the first half
  of 2007. An increase of 63 over the same period
  in 2006.
• Total wireless services revenue was over 67
  billion in the first six months of 2007.
• CTIA reports 28.8 billion text messages in the
  U.S. in the month of June 2007 alone.

Source CTIA's Semi-Annual Wireless Industry
Survey 2007
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Mobile Adoption
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What do customers want?

• Same factors are at play as in any other product
• Price
• Ease of use
• Brand Names Marketing
• Convenience
• Access
• Experience
• Service Availability
• Customer Service
• Billing
• Issue Resolution

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Mobile Penetration
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