mobileSQUARED Roadshow, Nov 5th 2009

Taking Internet

Mobile: UKNick Lane, chief analyst,

mobileSQUARED

The UK market

Market revenues

The UK market

Market revenues

The UK market

Market revenues

The Gadgets

Devices

The Gadgets

Devices

The Gadgets

Devices

LegacyBasic WAP functionality

FeaturephoneRich-media device, WAP with open Internet enablement

SmartphoneAdvanced capabilities with PC-like functionality (5-10 times higher usage)

iPhoneYardstick (20-50 times higher usage)

The Gadgets

Devices

The Users

Subscribers

The Users

Subscribers

The Users

Subscribers

The Behaviour

Usage

The Behaviour

UsageThe mobile Internet usage hierarchy:

• Communication (email, SN)

• Information and Services (news, weather sport)

• Content and entertainment (video clips games, apps…)

WE AR HERE

• Payment platform

The mobile Internet experience is getting richer

The Behaviour

Condensed PC-like usage

BBC, SN, Google, Yahoo, MSN

Average browsing session 3 mins

Average browsing session in 2014 will be almost 6 mins

The Behaviour

Usage

The Killer Sites

Social networking

The Killer Sites

Social networking

• Mobile social networking accounts for 40% of UK mobile traffic• 2009: 1,686 p.i.s = £1 revs• 2014: 1,339 p.i.s = £1 revs

The Killer Sites

Social networking

The Content

Browsing for revenues

The Content

Browsing for revenues

Fundamental shift in usage

Content revenues down content no longer centred on ringtones/wallpapers/games

Video clip usage up 60-70% in 2009 – 10% watch videos, but only 0.6% purchase videos

20% play games – 2% purchase games

90% of apps purchased from App Store are free

The Content

Browsing for revenues

Time to get mobile

Consumers

Distance between consumers and revenues will close

Communication

Why mobile? 15+ million reasons today & 33 mil. In 2014

About having presence on a device that is always on and with consumers 16hrs per day

Brand awareness and user interaction… building a community

Extending communication and information transition towards payments

Communication

Revenues

Use mobile Internet with care