Accenture mobile-web-watch-internet-usage-survey-2012

Mobile Web Watch 2012

Mobile Internet— spawning new growth opportunities in the convergence era

ContentsExecutive Summary 3

Usage Behavior 6

Drivers of Usage 12

Challenges 16

Opportunities 20

About the Survey 24

Conclusion 26

Executive SummaryMobile devices are rapidly becoming the primary medium to access the Internet across age groups, and across mature and emerging markets. In a world brimming with smarter smartphones, tablets, notebooks and other affordable Web-enabled mobile devices, and powered by better network coverage, faster broadband connections, Wi-Fi networks and the explosive growth of mobile apps, the demand for ubiquitous availability of Internet is only getting stronger. Little wonder then that there is so much excitement around every new version of a smartphone or tablet.

A survey conducted by Accenture on Internet access through mobile devices confirms that mobile Internet usage continues to be on a sharp upward trajectory. Indeed, it has now reached the stage when market players across communications, media and technology should look forward to business opportunities and the operational efficiencies of a mass market. That is, if they are prepared for it.

The survey, conducted across 13 countries in Europe, Latin America and South Africa, brings to the fore five key trends in the digital consumer’s behavior that have implications not only for players in telecommunications, media and technology, but also for those in other industries such as retail, utilities and automotives.

A key finding of the survey is that a majority of Internet users connected to the Internet with a mobile device in the past one year, with smartphones emerging as the most popular mobile Internet access medium. In fact, activities or transactions on mobile Internet have become so much a part of daily life that those who don’t own a mobile Web-enabled device intend to buy one soon. A growing number of mobile Internet users are using their mobile devices to receive and send e-mails, connect on online communities or for instant messaging. The survey identifies usability and mobile apps as the primary drivers of mobile Internet use, with a higher proportion of users having downloaded programs and apps on their mobile devices in the past one year.

Consumers are now more willing than ever before to pay for premium services. The survey also identifies mobile payments as a significant growth avenue with growing use and awareness of these services. The opportunity in augmented reality services is huge with half the mobile Internet users surveyed expressing interest or planning to use these services in the future. In fact, a large segment are even willing to pay for cloud services. A key driver of mobile Internet usage has been significant improvements in network quality and coverage over the years—the user’s primary criterion in selecting a service provider. The survey highlights how consumers are increasingly looking for superior Internet experience on their mobile devices, similar to what they are used to on their computer or television. While on-the-go online services, such as news, traffic and travel information, and banking are of the highest importance to mobile Internet users, concerns regarding data security persist, especially for those using or considering the use of cloud services. With users expressing annoyance with online advertising, marketing companies will need to focus on more targeted advertising.

In the following pages, we explore these findings in greater detail and discuss the implications they may have for companies looking at seizing the opportunity arising out of the growing use of mobile Internet.

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• 69% of all Internet users did so through a mobile device

• 61% did so through a smartphone, 37% through a netbook and 22% through a tablet

• 73% of men compared to 66% of women

• 58% for personal matters compared to 20% for work-related matters

• 45% of those above 50 use mobile internet

• 62% accessed online communities such as Facebook

• 46% conducted a banking transaction using their mobile device

• 71% downloaded programs or apps on their mobile device

• 57% downloaded or viewed short videos (less than 5 minutes)

• 70% have concerns over data security

• 78% are interested in cloud consumer services

• 87% are interested in premium technical services

• 36% accessed the Internet through a TV and 27% through a gaming console

4

Core Findings •Growing use of mobile Internet South Africa and Brazil were ranked as the

highest users accessing the Internet on mobile devices while France, Germany and Finland were among the lowest.

•Narrowing gender gap 73 percent of men among the respondents

accessed the Internet on a mobile device as compared with 66 percent of women.

•More personal than work-related use 58 percent of the respondents accessing the Web

on a smartphone did so for personal matters as against 20 percent doing so for work-related matters.

•Finally the world is always on 85 percent use their mobile device to access the

Internet once a day or more. Of those accessing online communities, Twitter or mobile blogging, over 80 percent do so more than once a week.

•Gen X showing growing appetite for mobile over Internet

A little over 80 percent of those in 14-29 age bracket accessed the Internet on a mobile device, but at least 45 percent of those above the age of 50 were also involved in such activities.

•There is an app for everything More than 60 percent used their mobile device

to access online communities such as Facebook, while mobile banking growth is also evident with 46 percent using a mobile device to conduct a banking transaction. In total, 71 percent of mobile Internet users have downloaded programs or apps on their mobile device.

•Videos on mobile grabbing eyeballs 57 percent of the users downloaded or viewed

short videos of less than five minutes.•Quality is king Quality of the network is an important criterion

in choosing a network provider for access to the Internet over a mobile device while cost of data is ranked as the fourth-most important factor.

•Data security concerns impede mass adoption 70 percent of mobile Internet users are worried

about data security while 23 percent perceive the monthly cost of accessing the Internet on their mobile device to be higher than expected.

•Opportunity to monetize new services. 87 percent of respondents are interested in

premium technical services, and 78 percent in consumer cloud services. Respondents would be willing to pay to benefit from them, with over half of respondents willing to pay up to $10.

5

Usage Behavior

6

Figure 1a. Internet users connecting to the Web through mobile devices. © 2012 Accenture. All rights reserved.

Mobile devices used in the past 12 months to access the Internet

69% of respondents have used mobile devices to access the Web in the last 12 months

94% of respondents have used stationary devices to access the Web in the last 12 months

29%

38%

92%

22%

37%

Gaming console

TV

Computer/Laptop

Tablet

Netbook

Smartphone 61%

Multiselect

Base: All respondents

(n=17,225; Excluded Don´t know answer)

Source: Mobile Web Watch Survey, 2012

• Mobile Internet usage is now a mass market with 69% of users having got connected to the Internet through a mobile device in the past 12 months

• Smartphones are the most popular mobile access method to the Internet with 61% of respondents using smartphones versus 37% for netbooks and 22% for tablets

• Age is a differentiating factor with 82% of those aged 14-29 accessing the Internet on a mobile device versus only 45% for people above 50

Internet through mobile devices poised to outpace access from stationary devices? The mobile Internet, the popularity of which is evident in the buzz generated around every new mobile phone or tablet, is close to being a mass market. An average of 69 percent of Internet users connected to the Web with a mobile device in the past 12 months. Of these, 61 percent used smartphones for accessing the Internet. Among non mobile Internet users, 46 percent expressed interested in buying a Web-enabled mobile device in the future. This as an increasing number of innovative touchscreen models with great image resolution, faster Internet access and attractive built-in social media and mobile payment apps are hitting the market every day.

The increasing use of mobile Internet is relevant across all age groups. Of the 61 percent of respondents who used smartphones for accessing the Internet, more than 70 percent were in the younger age group (between 14 and 39 years). Interestingly, approximately 45 percent of those above

the age of 50 used their smartphones for Internet-related activities.. While the overall upward trend is evident across all the countries that were surveyed, the emerging markets of Brazil, South Africa and Russia showed the highest adoption of smartphones (above 70 percent on average) for Internet use. The rising popularity of smartphones in Brazil, South Africa and Russia for Internet use is in line with developments in other emerging markets such as India. These countries, with a dearth of fixed lines, have been witnessing a mobile phone revolution of hyper growth for some years now, fuelled in part, by declining costs—both of devices and subscription rates—and a growing wealthy middle class. The widespread lack of personal computers, relatively more expensive than mobile phones, meant that for many people, the mobile phone would be the first entry into the Internet world.

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Usage patterns show increasing use of smartphones for work-related activitiesAccording to the survey, 58 percent of the people accessing the Web on a smartphone did so for personal matters versus 20 percent for work-related activities. The proportion of professional work done on other mobile devices such as tablets was higher than that on smartphones. As more and more people use their mobile devices for work-related matters, a trend in consumerization of IT is developing with implications for enterprise IT. Companies are already working towards allowing consumer devices for work-related activities to lower costs, increase productivity and improve employee engagement, creating a mixed device environment where private and social data from native and web apps reside alongside mission-critical enterprise data.

Additionally, the survey shows that of those accessing the Internet a large proportion of them (85%), do so at least once a day. The frequency of use highlights that the mobile or digital consumer now has a choice of activities that can be conducted on a mobile phone other than just making phone calls and texting.

Strong demand for Web-enabled mobile devicesNot surprisingly, the emerging markets lead mature markets in our survey in terms of future demand too. For example, more respondents in the emerging markets than in mature markets, expressed their intention to buy a web enabled mobile phone in the near future (Brazil 78 percent, Russia 73 percent, Mexico 61 percent, South Africa 57 percent versus an average of 40 percent for all countries). However, the demand has been rising over the years. Reflecting inherent demand across all the countries surveyed, an average of 60 percent of those who do not own a mobile phone or who do not access the Internet through their mobile phone have tried to use mobile Internet at least once; 45 percent said they were considering doing so in the near future.

While smartphones are the dominant mobile devices for Internet access, the rising popularity of netbooks (37 percent of the participants) and tablets (22 percent) shows that the digital consumer seeks an array of features while connecting to the Internet, anywhere, anytime. Indeed, their increasing use across countries and across demographics highlights the unprecedented computing power in the hands of the hyperconnected consumer. This segmentation of the mobile device market revealed by the survey has implications for not only device manufacturers but also for players in the communications, media and technology value chain, such as communication service providers, device manufacturers, content providers, communications operators, Internet security companies and Internet advertisers.

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% who used a mobile device to access the Internet

Men are still using mobile Internet more frequently than women

Mobile devices used in the past 12 months to access the Internet(e-mails, apps, news, downloads)

Base: All respondents

(n=17,225; Excluded Don´t know answer)


FemaleMale

8

FI

65%72% 75%

68%

UK

64%

77%

FR

59%

DE

70% 70%

RUAVG

75% 73%

IT

66%

76%

IE

78%76%

AT

71%76%

ES

66%

77%

MX

62%

78%

BR

48%

79%

CH

63%

80%

ZA

53%

82%

58%

Figure 1b. Gender differences in mobile Internet access are narrowing. © 2012 Accenture. All rights reserved.

Gender differences in mobile Internet usage are blurringThe gender differences in the usage pattern continues to be the same as in previous Accenture surveys (which were limited to three countries—Austria, Switzerland and Germany) with more men (73 percent) than women (66 percent) using mobile Internet but there is evidence that the gap is narrowing. For example, in Germany, the differences have nearly disappeared with 59 percent of the men surveyed accessing the Web through mobile devices against 58 percent women compared with 37 percent and 17 percent, respectively in 2011. There are, of course, some countries such as Finland and Austria where the gender bias is significantly wide. However, results from Ireland, where the reverse situation exists with 78 percent of women and 76 percent of men using mobile Internet, also suggest mobile Internet use may follow the overall demographic gender profile of the country in time.

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Growing use of mobile Internet for e-mail, phone or video calls and social mediaReceiving and sending e-mails continues to be the most pervasive use of the Internet on mobile devices with 70 percent using an e-mail program installed on their mobile device or via the website of an e-mail provider (60 percent).

Phone or video calls via Internet ranks as the top activity among mobile device users (79 percent of the users indicated this service as “quite and extremely important”). However, a host of other activities such as messaging through social media, blogging and tweeting, and watching videos are also on the rise; 62 percent of the respondents said they access social media platforms and online communities through a mobile device, and an equal percentage use instant messaging apps. Mexico and South Africa are the top users of these services, especially instant messaging (83 percent and 82 percent, respectively), and blogging and tweeting (40 percent and 39 percent, respectively). Following closely are respondents in Brazil (73 percent) and Spain (70 percent) while France trails far behind with less than the average for all countries in the case of all these online services.

The frequency of these activities is also trending upwards. The survey shows that of those into mobile blogging or accessing online communities or Twitter, over 80 percent did so more than once a week with younger people more active than older people: 53 percent of those aged 14-19 compared to 25 percent of those in the above 50 age bracket. This trend of using mobile devices for social media and online communities provides the key to understanding consumer behavior and many mobile phone manufacturers focus on providing user-friendly features or embedded platform for such activities.

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Sending or receiving e-mails is still the most popular activity but others, such as online communities, blogging and banking, are catching up quicky

Activities carried out on mobile Internet devices

• Sending or receiving e-mail is the most popular activity among mobileInternet users with 70% using their mobile device to receive and send e-mail

• 62% used their mobile device to access online communities

instant messaging, while 27%used it for tweeting and blogging.Mobile banking growth is also evident with 46% using a mobile device to conduct a banking transaction.

Received and sent e-mails via the website of an e-mail provider

Managed banking transactions

Mobile blogging and tweeting

Used instant messaging (AOL, Yahoo, Skype, Windows InstantMessenger, G Talk, Whatsapp, Bbm)

Received and sent e-mails through a mail program installed on the mobile device

62%

46%

27%

61%

62%

70%

Base: All respondents using a mobile device to access the Internet (n=11,884; both personal or work related)


Used online communities/platforms such as MySpace, StudiVZ, Facebook, Xing, Tuenti such as Facebook, 61% for

Figure 1c: Online communities, blogging and mobile payments on the rise n=11884; both personal or work-related © 2012 Accenture. All rights reserved.

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Drivers of Mobile Internet Usage

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Smartphone Tablet Netbook

Which of the following types of programs or apps have you downloaded fromthe Internet on your smartphone/tablet/netbook?


Base: All respondents who download apps for any use (n=8,487, both personal)

Entertainment apps (single or group games)

Information apps(train schedules, weather news)

32%

Educational apps (language learning programs, reference works)

33%

Apps for arranging leisure activities (events, contacts with friends)

72%

70%

53%

46%

43%Organizational apps

(financial spreadsheets, voice recorder

Apps that help, manage your money (household, bookkeeping, budget calculator)

Fitness and health apps (training, planning nutrition guide)

73%

72%

52%

42%

41%

30%

32%

66%

61%

54%

57%

50%

39%

33%

76%

72%

54%

51%

49%

38%

33%

training, planning, nutrition guide)

Figure 2a. Mobile apps fuelling Internet use through mobile devices. © 2012 Accenture. All rights reserved.

Mobile apps accelerating mobile Internet useThe survey identifies mobile apps as one of the primary drivers of mobile Internet use. As a gateway to the Internet, mobile apps are extremely convenient. Not surprisingly, the survey confirms that a higher proportion of those aged 14-29 years downloaded apps (76 percent in the 15-19 age group and 80 percent in the 20-29 age bracket) and music (71 percent in the 15-19 age group and 61 percent in the 20-29 age bracket). A higher share of men download programs or apps (74 percent) as compared to women (68 percent). Mexico and South Africa again lead the pack with the most number of respondents downloading apps and music. A majority of the survey participants in Russia (66 percent) download ringtones.

Information apps are the most popular app download in Austria, Germany, Switzerland, the United Kingdom (UK), France, Italy, Ireland, South Africa and Russia. Entertainment apps are the most popular in Brazil, Mexico, Spain and Finland. More than half the mobile Internet users surveyed have downloaded or viewed short videos (of less than 5-minute duration), checked weather information, retrieved travel information or read the news on their mobiles.

The survey’s findings, highlighting the explosive growth in consumer demand for communications, entertainment, commercial and social networking activities over the Internet will require significant and continued investment in infrastructure upgrades by communications service providers. Planning for this in a systematic way is critical to ensure adequate finance is available and needs to be done as part of an overall strategy which seeks to capitalize on the potential revenue opportunities available to providers through offering new and additional services through this medium.

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Choice of operating systems and usability adding to demandThe availability of different operating systems (OS) is also fuelling the growth of mobile Internet. When it comes to devices, 85 percent of the survey participants said that the OS was the most important factor in selecting a smartphone or tablet. This was the case with more 90 percent of the respondents from countries such as Brazil, South Africa and Mexico where there are heavy users of mobile phone apps. The OS is a crucial factor as consumers want easy access to

Figure 2b. Operating system is crucial in smartphone and tablet selection. © 2012 Accenture. All rights reserved.

Which of the following is your preferred Operating system?

Bada (Samsung)

2%

RIM (Blackberry)

8%

Microsoft Windows

18%

IOS (Apple)

22%

Android

41%

Symbian (Nokia)

9%

Source: Mobile Web Watch Survey, 2012Base: Respondents using a smartphone or tablet who see operating system

(n=9,193; Excludes Don´t know answer)as 'somewhat/very important'

services they consider important—such as communications, traffic and travel information, banking and access to social networks. The most preferred OS was Android (41 percent), followed by Microsoft Windows and iOS. In terms of geographic distribution, Android is the most preferred OS in most countries except in Switzerland, the UK and Ireland where the iOS is more popular and in South Africa where RIM is the most preferred OS.

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Blurring device boundaries: Using the Internet via TV and gaming consolesGoing beyond drawing the attention of communications, media and technology players toward the growing popularity and use of mobile Internet, the Mobile Web Watch Survey 2012 also presents interesting findings around multidevice usage. Ushering in a second stage of evolution with Internet content relocating to multiple devices and platforms, a remarkably high—94 percent of the respondents—have used stationary devices such as personal computer, television (TV) or gaming console—to access the Web in the last 12 months. The survey reveals 38 percent of these respondents accessed the Internet through TV, a significant share considering that the uptake of “smart or connected TV” has been more pronounced only in the last couple of years. France (44 percent), Switzerland and Spain (42 percent), Mexico (42 percent) and Brazil (40 percent) are among the countries with the highest numbers of respondents using the Internet through TVs. Internet TV access is the highest (approximately 40 percent) among those who are less than 40 years old but drops considerably beyond this age group. Around a third of the respondents have watched movies, TV shows or longer video clips (more than 5 minutes) over the Internet on TV.

Another device class that has emerged as an entry platform for consumers’ Internet activities is the gaming console with 29 percent of respondents using these for accessing the Internet. Not surprisingly, the highest penetration of gaming consoles is in the younger age group (44 percent among those between 14 and 19 years) but those in the 30-39 age bracket (33 percent) are also using the Internet via consoles. Internet access via consoles is the highest in Spain (36 percent), followed by Mexico (34 percent), Ireland (33 percent), France (31 percent) and the UK (30 percent).

With the boundaries of devices becoming increasingly blurred, these findings undoubtedly signal a new leap in convergence that calls for market players to shape their service offerings to maximize the “connected world” experience of consumers—both at home and on the go.

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Challenges

Data concerns persist, especially over cloud services The consumer also wants a secure environment—70 percent of the mobile Internet users surveyed had concerns about the security of their data. These concerns ranged from losing personal data, hacking of personal data to viruses harming mobile devices in the case of 80 percent of those using or considering the use of cloud services.

This finding highlights a significant opportunity for cloud service providers to work with network service providers to meet the data security needs of the digital consumer through adapted tariff plans and appropriate privacy policies.

Additionally, companies across the communications, media and technology value chain will need to take note of a finding that reiterates the annoyance factor associated with online advertising. A higher share of the mobile Internet users—who most often come across ad banners and coupons on tablets and advertising through texting on smartphones—find these services annoying. This again brings to light the growing struggle of advertising and marketing companies in finding innovative ways of getting their messages across. Service providers and content developers will need to explore opportunities to collaborate with marketing and advertising companies to overcome this barrier.

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What are the main concerns you have about consumer cloud services?


I am not worried about using21%

I am worried that virusesand malicious programs

could harm my mobile devices32%

I am worried that other peoplewould access my data without my knowledge

44%

I am concerned that my personal data(documents, phone numbers, e-mails)

could be lost47%

Multi select

Base: All respondents interested in cloud/data storage services(n=6,475)

consumer cloud services

Network quality is critical–consumers are looking for ubiquitous coverageConsumers want ubiquitous coverage—a network that follows them everywhere and provides compelling usage experience anywhere. The survey shows that the subscriber’s primary criterion in selecting a service provider is the quality of network—close to 90 percent of the respondents voted for network quality and an almost equal number chose coverage as the basis for network selection. This was closely followed by connection speed (85 percent). This was true across emerging markets as well as mature economies. In countries such Mexico, Brazil and South Africa, more than 90 percent of the survey participants cited network quality as the most important basis on which they chose their network provider for mobile Internet access. The network quality criterion was on the top of the list, which along with connection speeds and cost of data connection, included other factors such as quality of customer service, device subsidy, contract period, devices on offer and content from the service provider, and special offers.

The importance of all these criteria (which more than half of the respondents find crucial to their decision on network selection) implies that network providers will need to pay special attention to two basic things: constantly upgrading their network and offering innovative subscription packages. Significant investments in upgrading network quality and coverage would indeed be a critical driver in driving mobile Internet usage.

Cost of mobile Internet access perceived to be higher than expectedWhile the subscriber’s primary criterion in selecting a service provider is the quality of network, the cost of data connection falls just outside the top three network selection criteria, possibly because such costs have stabilized. However, it is still an important criterion for more than 80 percent of the respondents. Interestingly, while a majority (56 percent) of the survey participants felt the monthly cost of mobile Internet access was within their expectations, nearly a quarter considered it to be high. This perception could be a barrier to a faster adoption of mobile Internet among all Internet users.

Ad banners and advertising through texting considered to be annoyingAdditionally, companies across the communications, media and technology value chain will need to take note of a finding that reiterates the annoyance factor associated with online advertising. About 38 percent of the respondents considered add banners as annoying and while just as many found advertising through texting irritating. However, 66 percent were favorable to information on coupons and promotions—with 46 percent viewing it as informative and 20 percent as amusing. This again brings to light the growing challenge for advertising and marketing companies to develop innovative ways to reach out to their target audience. Service providers and content developers will need to explore opportunities to collaborate with marketing and advertising companies to overcome this barrier.

Figure 3a. Data security is a concern, especially in consumer cloud services. © 2012 Accenture. All rights reserved.

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Quality of network is the most important criteria in choosing a network provider for access to the Internet on a mobile device

Most important criteria in the choice of a network provider for mobile Internet access

24% 29%

64%30% 34%

70%29% 41%

81%

51%

27% 51%24%

24% 27%

52%26% 26%

54%25% 29%

53%

26% 55%

85%28% 57%

88%24% 64%

Past experience with the provider

Quality of customer service

Cost of data connections

Content available fromthe network provider

Special offers

Devices on offer fromthe network providers

Subsidy on device

The device subsidy

Connection speed

Coverage

Quality of network 89%31% 58%

Very important Extremely important

• Quality of network and coverage were the most important criteria in choosing a network provider for Internet access through a mobile device

• 89% of the respondents said quality of network was either very important or extremely important

• Connection speed was the next most important criteria, followed by cost

Base: All able to choose their personal and work-related network providers (n=12,485)


• For 88%, coverage was mostimportant

Figure 3b. Consumers want good network quality and coverage. © 2012 Accenture. All rights reserved.

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Which statement about the monthly costs of accessing the Internet smartphone/tablet/netbook do you most agree with?

More than expected

What is expected

Less than expected

23%

56%

21%

My monthly cost is....

25% 22% 16%

53% 61% 60%

22% 17% 24%

through your


Base: All respondents using a mobile device to access the internet (n=11,884)

Smartphone Tablet Netbook

How do you view these advertising messages?


Ad banners13%24%25%38%

Advertising through texting12%27%24%37%

Text messages or displays onspecial offers or promotions

at a store near you 20%38%20%22%

Information on special offersand promotions sent to your mobile phone 16% 18% 46% 20%

25%48%18%9%Coupons

Annoying Indifferent Informative Amusing

Base: All respondents encountering advertising messages

(n=6,444)

(n=4,679)

(n=4,179)

(n=2,131)

(n=4,184)

Figure 3c. Monthly costs of accessing the Internet considered to be higher than expected. © 2012 Accenture. All rights reserved.

Figure 3d. Mobile Internet users find ad banners and advertising through texting annoying. © 2012 Accenture. All rights reserved.

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Opportunities

20

Smartphone Tablet

Are you using mobile payments on your smartphone/tablet


54% 58%

Unaware

Aware

26%

74%Interested or planning to use 39%

Do not use/not interested in using

Currently using

45%

16%

55%

Awareness Usage

Base: All respondents using smartphone or tablet to access the Internet(n=10,815)

Figure 4a. Mobile payments—growing awareness and use. © 2012 Accenture. All rights reserved.

Mobile payments—a growth engineTelecom players, payment gateway companies and enterprises need to note the growth potential in mobile payments. While only 16 percent of smartphone and tablet users are currently using mobile payment services, 74 percent are aware of such services and an additional 39 percent indicated they would be interested or plan to use mobile payment apps. Indeed, mobile banking (m-banking) features quite high among the more favored mobile Internet activities. The survey shows that 46

percent of the respondents have used their mobile device for banking transactions. Banks are also increasingly adding the mobile platform to their mix of distribution channels to meet the growing demand for mobility. Not surprisingly, marketplace estimates put the number of m-banking users globally at 500 million by 2010.

Augmented reality The improved navigation features, lower data costs and availability of a range of apps are convincing digital consumers about the value addition of using mobile Internet. New and developing areas such as Near Field Communications and augmented reality services are set to push mobile Internet usage to a whole new level altogether. The Accenture survey hints at that possibility with the finding that across the 13 countries it surveyed, 17 percent of the smartphone and tablet users are using augmented reality services and a further 50 percent indicated they would be interested or

plan to use such services soon. Overall, 23 percent of the respondents in emerging markets are using augmented reality services against 14 percent in mature markets. The intended adoption in the next 12 months will further widen this gap, with 26 percent of the respondents in emerging markets saying they plan to use these services as against 20 percent in mature markets.

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For which of these services do you use mobile payments throughyour smartphone/tablet?

Buying food or groceries (n=1,682)

22%

Buying other consumer goods 37%

Buying clothes or shoes 39%

Buying train, flight tickets 46%

Buying tickets for events 55%

Multiselect


Base: All respondents using mobile payments on their mobile device (n=1,682)

(concerts, cinema, theater)

Figure 4b. Mobile Internet users are willing to pay for premium services. © 2012 Accenture. All rights reserved.

Cloud servicesA majority of the mobile Internet users (59 percent) are aware of cloud and data storage services and are currently using or are planning to use these services (56 percent). Moreover, 78 percent of respondents who are interested in consumer cloud services would be ready to pay for these. As expected, there is higher awareness of consumer cloud services among the younger generation: 66 percent of those below 30 are aware of them, and close to half of them are either using these services already or plan to do so in the near future. Surprisingly, 50 percent of those above 50 are also aware of cloud services and 23 percent are either using them or plan to do so.

Awareness of cloud services is marginally higher in emerging markets (64 percent) than in mature market markets (57 percent); the adoption rate is also expected to be far higher in emerging countries with half of our respondents saying they are either using or intend to use these services in the future, as compared to 33 percent in mature markets.

But the high cost in availing cloud services is proving to be a major barrier to cloud adoption. Over half of those interested in cloud services in mature markets would pay between US$5 and US$10 for the services per month, with 22 percent not willing to pay. In emerging markets, only 16 percent were willing to pay up to US$10 per month.

Willingness to pay for premium servicesWhile augmented reality services are yet to take off in a big way, one of the survey findings could have implications for the pricing strategies of mobile service operators (MSO). As many as 87 percent of the respondents were willing to pay for premium services while 78 percent were ready to do so for cloud services. Nearly a quarter of these respondents were willing to pay US$10–20 for premium services.

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Rising tablet usage The growing popularity of tablets to access the Internet, especially among the youth, is opening up new growth avenues for businesses. The survey shows that tablets are used across all age groups but attracts the highest usage among those in the age group 14-39. More than half the tablet users access the Internet at least once a day and about 30 percent of them do so several times a day. A majority of the respondents who own tablets (66 percent) say their Internet activities revolve around downloading and viewing

short videos which run for less than five minutes while 52 percent watched movies, TV shows or longer video clips (more than five minutes). Other significant activities are checking prices (61 percent) and weather information or forecasts (59 percent), reading news (58 percent) and obtaining travel directions.

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About the Survey

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The fifth edition of the Accenture Mobile Web Watch survey extends beyond the three countries (Austria, Switzerland and Germany) of the previous two surveys to include 10 other countries: Brazil, Finland, France, Ireland, Italy, Mexico, Russia, South Africa, Spain, Switzerland and the UK, covering 17,225 respondents. The 15-minute online survey was conducted in native languages with a sample representative of Internet users across age, gender (51 percent men and 49 percent women) and incomes.

# Interviews by countryAustria

Brazil

Finland

France

Germany

Ireland

Italy

Mexico

Russia

South Africa

Spain

Switzerland

United Kingdom

Total

789

1,624

1,085

1,615

1,615

785

1,616

1,611

1,637

1,058

1,615

560

1,615

17,225

Age14-19 years

20-29 years

30-39 years

40-49 years

More than 50 years

10%

24%

21%

18%

27%

The survey probed the use of smartphones, tablets, netbooks, personal computers, television and gaming consoles to access the Internet; frequency of mobile Internet usage; range of activities on the Internet; use of social media, online platforms and online services on mobile devices; brand preferences for devices and operating systems; the consumer’s criteria for network selection, ability and willingness to pay for premium services; and the barriers to the adoption of mobile Internet.

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Conclusion

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The Accenture Mobile Watch survey, 2012, again underscores the need for companies in the mobile Internet business to focus on the basics first as the mobile Internet mass market becomes a reality. For communications service providers (CSPs), that would mean a greater emphasis on building network and more bandwidth, and on investing to ensure better coverage and quality of service. These improvements in infrastructure can help them in building enduring relationships with customers and staying ahead in this intensely dynamic environment. The hyperconnected consumer—with unprecedented levels of computing power than ever before thanks to innovative devices such as smartphones and tablets—is an active participant in the market and not just a passive recipient of services.

The trend of multidevice Web access that the survey highlights presents a real opportunity for communications, media and technology companies to outperform the competition through differentiated, multidevice and multiplatform offerings. The possibilities associated with a “connected world” have already been demonstrated through the growing uptake of connected homes and over-the-top TV services. Broadcasters, technology companies and service providers need to brace themselves for a new generation of Web users looking for increased interoperability, multidevice and multiplatform support, and superior experience.

In this connected world that includes the network and services (Internet, entertainment, video, and gaming), CSPs are taking on the role of enablers. To outperform as enablers, CSPs will need to get smarter about their customers and the way they market to them. Companies that have been successful in this role are differentiating by leveraging analytics to process the vast amounts of data that the consumer generates while using the Internet.

Additionally, as CSPs continuously need to upgrade their infrastructure to keep pace with customer demands as well as their data security concerns, a stronger focus on maximizing cost efficiency (whether through outsourcing of customer service or billing or through back-end integration) could help these companies balance costs as well as service levels.

As communications, media and technology players try to monetize the opportunities in the mobile Internet era (whether in the area of mobile payments, banking transactions, augmented reality services, cloud services or apps for tablets and smartphones), collaboration and innovation will anchor and sustain the new ecosystem. Collaboration with other service operators on network-sharing strategies could well be the key to balance consumers’ demand for quality with the inevitable high cost of infrastructure investments. With the massive capital investments that will be needed to keep up with the increasing bandwidth, speed and quality demands, collaboration among all operators in the value chain will help in bringing innovative services to the market. Building collaboration tools, IT and common industry platforms to incubate and test new ideas could add significant value to offerings and quickly add capabilities which the operators currently lack. This will lead to new alliances and business models, efficient back-office and business processes as companies build faster go-to-market strategies and a strong focus on innovation to stay ahead of the competition. As mobile Internet approaches mass market stage, the various players in the ecosystem—from mobile service providers to content generators—will be compelled to explore avenues for innovation in providing end-to-end services.

This business imperative for change and innovation is also applicable to other industries such as retail or banking where the hyperconnected consumer’s behavior and needs are already transforming operating models and IT infrastructure. Such organizations are making use of mobile and cloud-based customer relationship management technologies to keep pace with the demand for new and improved capabilities as consumers increasingly use smartphones and tablets for online commercial transactions.

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Si

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