Internet. Mobile.

Dag Olav Norem

VP Product Management, Mobile

24.01.2011

The Internet population breakdown

% of totalInternetpopulation

Source: US Census Bureau / Nielsen Online, International Telecommunications Union, GfK via www.internetworldstats.com

In % of market

Internet penetration per market

Source: US Census Bureau / Nielsen Online, International Telecommunications Union, GfK via www.internetworldstats.com

In % of market

Remaining growth potential per market

Source: US Census Bureau / Nielsen Online, International Telecommunications Union, GfK via www.internetworldstats.com

In % of market

web

video

p2p

Opera mobile browsers

Touch InterfaceKeypad Interface

Our products: Opera Mini vs. Opera Mobile

Opera Mini Opera Mobile

User Interface Same cross platform UI Same cross platform UI

Rendering Engine Server side Client side

Compression technology Always enabled Enable or disable with Opera Turbo

Target platforms All devices Mid to high end devices only

More information at www.opera.com/mobile/specs

What the mobile Web looks like today

Spotlights key trends affecting mobile Web adoption worldwide through analysis of Opera Mini stats

http://www.opera.com/smw/

Opera Mini: 5 years today!

The future of the Web is mobile

2006 2007 2008 2009 20100

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

70,000,000

80,000,000

90,000,000

0

5,000,000,000

10,000,000,000

15,000,000,000

20,000,000,000

25,000,000,000

30,000,000,000

35,000,000,000

40,000,000,000

45,000,000,000

50,000,000,000

Opera Mini growth

Unique users

Page views

Where is the growth happening?

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 20140

1000

2000

3000

4000

5000

6000

7000

Mobile subscribers emerging markets (mill) Mobile subscribers Developed markets (mill)

Drivers: Feature phones

Opera Mini runs on over 3000 handsets

OS B2B solution Public Download

J2ME

Android

iOS

RIM (Blackberry)

Symbian

MTK

BMP

Windows Mobile*

Other OS upon request

Mobile Browser Market Share iPhone vs. Opera

Source Data: Stat Counter March 2010Opera MiniiPhone | Opera Mini

The top countries for Opera Mini

Since our first ever monthly report (May 2008), the U.S. has fallen from 5th to 7th, while Poland and Germany have both fallen out of the top 10

Recently Philippines and Bangladesh went up in the top 20 countries ranking

Other notables:

#11: Malaysia

#20: Germany

Top 10 countries for Opera Mini usage

1 Indonesia

2 Russia

3 India

4 China

5 Ukraine

6 South Africa

7 Vietnam

8 United States

9 Nigeria

10 Brasil

Source: http://www.opera.com/smw/2010/08/

What we found in India

Mobile Web in India is a massive opportunity

Key metrics grow at significant rate

Mobile browsing per user is increasing

Source: Opera research

India Stats (YoY)

User growth 277.5 %

Page view growth 354.2 %

Data transfer growth 293.7 %

Page views per user 414

Data transferred 7 MB per user

Data transferred 17 KB per page

What we found in India

Source: Opera research

Top 10 websites

1 google.com 6 yahoo.com

2 facebook.com 7 songs.pk (8)

3 orkut.com (2) 8 wikipedia.org

4 9 zedge.net

5 getjar.com 10 vuclip.com

youtube.com

Top 10 handsets

1 Nokia 5130 XpressMusic 6 Nokia 7210c

2 Nokia 2700c 7 Nokia N70 3 Nokia 2690 8 Nokia 6300

4 9 Nokia 5233 5 Nokia 3110c 10 Nokia N72

Nokia 2730c

What we found in India: lifestyle survey

Source: Opera research

Users in India and Nigeria are the most tolerant when it comes to text messaging during restaurant meals.

In India 88.5 % respondents said they browse the Web on their handsets more than they browse on a laptop or desktop computer

Only 11.5 % respondents in India use desktop or laptop computers as the primary means of Internet access

The ‘Mobile Only’ Internet Generation

December 2010

Alistair Hill

The ‘mobile only’ Internet generation

In developed economies the mobile internet is commonly thought of as an extension of the desktop internet, providing an additional, convenient and portable access method.

However for many people around the world, the mobile phone will be the primary, or only way to access the internet. This will have profound effects, not only on the lives of these people, but on the Internet industry and the way brands communicate and interact with these consumers – the next billion consumers.

The mobile Internet is becoming the sole or primary access method for many

Egypt

Indi

a

South

Afri

ca

Ghana

Kenya

Niger

ia

Indo

nesia

Thaila

nd

China US UK

Russia

0 %

10 %

20 %

30 %

40 %

50 %

60 %

70 %

80 %70 %

59 % 57 % 55 % 54 % 50 %44 %

32 % 30 %25 % 22 % 19 %

Mobile Internet Users Who Never or Infrequently Use the Desktop Internet

% M

ob

ile B

row

se

rs

• It has often been assumed that the mobile Internet will be the sole access method for many. The results of recent client studies show that for roughly 50% of African and Asian mobile internet browsers this is the primary access method.

• In contrast 22-25% of US and UK mobile internet browsers never or infrequently use the desktop internet.

Countries: Egypt, South Africa, Ghana, Nigeria, India, Indonesia, Thailand, China, US, UK and RussiaDate: July- November 2010 -N= 15,204

Emerging markets ‘mobile only’ browsersare mostly under 25

Nigeria India UK US0 %

10 %20 %30 %40 %50 %60 %70 %80 %90 %

100 %

76 % 72 %

42 %24 %

24 % 26 %

58 %76 %

Mobile Only Generation

Under 24 Over 25

% M

ob

ile O

nly

Ge

ne

rati

on

• In emerging markets the vast majority of the ‘mobile only’ are under 25, the vast majority are male and many are in education.

• In the developed world the ‘mobile only’ are a different segment. In the UK they are split more evenly with 58% over 25.

• The US however provides interesting results, with most being over 25 and many on lower incomes.

Countries: Nigeria, India, US, and UKDate: July- November 2010 N= 6165

Content downloads and social networking leads mobile browsing behaviour in Africa

Downl

oadi

ng G

ames

Downl

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ng M

usic

Socia

l Net

workin

g

Searc

h

E-mai

l

Video

s

Wal

lpap

ers +

Gra

phics

Other

App

s

Footb

all N

ews

Enter

tain

men

t New

s

Wor

ld a

nd L

ocal

New

s0 %

10 %

20 %

30 %

40 %

50 %

60 % 55 % 54 % 52 %48 % 46 % 44 % 43 % 43 %

35 % 32 % 30 %

Top Genres of Mobile Internet Sites – Africa 7

% M

ob

ile B

row

se

rs

• Over 50% of mobile browsers go to sites for downloading games and music

• Communication services such as social networking and email are popular

• Almost half of respondents use search

Countries: Nigeria, Kenya, Egypt, South Africa, Ghana, Tanzania, SenegalDate: October 2010N= 7325

Opera provides quasi-smartphone experience for feature phone users in Africa

Email Social networking Search News Sports information0 %

10 %

20 %

30 %

40 %

50 %

60 %

70 % 65 % 63 %

53 %46 %

40 %

55 %60 %

54 %

34 %38 %

Mobile Internet Genres - Opera vs Non-Opera

UK Africa 7 - Opera Africa 7 - Non-Opera

% G

rou

p

• Opera users are 33% more likely to use social networks than Non-Opera users and are comparable in behaviour to UK mobile browsers.

• In the UK, smartphone owners are 20% more likely to use social networking than those who don’t own a smartphone.

Countries: Nigeria, Kenya, Egypt, South Africa, Ghana, Tanzania, Senegal, UKDate: October 2010N= 7325 + UK=1448

Opera browsers use the mobile internet for longer

Less than 5 mins 5-30mins 30-60 mins More than 1 hour-10 %

0 %

10 %

20 %

30 %

40 %

50 %

60 %

70 %

0

20

40

60

80

100

120

140

61

85

107119

Average Session Lengths - Opera vs Non-Opera Browsers

Opera Browsers Non-Opera Browsers Index

% G

rou

p

• Opera users are 19% more likely, compared to non-Opera users, to browse for more than 1 hour each time they go on the mobile internet.

• Although not shown on this slide they are also 19% (the same percentage is a coincidence) more likely to browse for at least 1 hour each and every day.

Countries: ThailandDate: January 2011N= 1074

Nokia dominates mobile browsing in Africa

OEM0 %

10 %

20 %

30 %

40 %

50 %

60 %

70 %

80 %

90 %

100 %

61 %

12 %

11 %

9 %

Mobile Internet Device Manufactures

NAOtherZTEMotorolaBlackBerryLGSamsungSony EricssonNokia

% M

ob

ile B

row

se

rs

• 85% accessed the internet with a feature phone.

• Of the 15% who used a smartphone nearly all were Nokia Symbian devices with almost no reported use of Android or iPhones.

Countries: Nigeria, Kenya, Egypt, South Africa, Ghana, Tanzania, SenegalDate: October 2010N= 7325

66% of Kenyan ‘mobile only’ users download mobile music

Music Games Videos0 %

10 %

20 %

30 %

40 %

50 %

60 %

70 % 66 %

44 % 46 %

Content Downloading - Kenya

% M

ob

ile O

nly

Ge

ne

rati

on

• With limited or no access to the desktop Internet for many in Africa, the mobile Internet provides a significant opportunity for media and content companies.

• 66% of the Kenyan ‘mobile only’ have downloaded music on their mobile, with almost half downloading games and videos.

Countries: KenyaDate: October 2010N= 1009

75% of Indonesian mobile browsers use social networks

Searc

h

E-mai

l

Socia

l Net

workin

g

Cricke

t New

s

Wor

ld a

nd L

ocal

New

s

Socce

r (Foo

tbal

l) New

s0 %

20 %

40 %

60 %

80 % 69 %

42 % 39 % 38 %29 %

8 %

75 %

49 %

78 %

5 %

51 %36 %

Mobile Internet Genres in India and Indonesia

India Indonesia

% M

ob

ile B

row

sers

• Only 39% of Indian browsers use social networking. Social networking is interactive and lends itself to faster data speeds. India currently doesn’t have mass market 3G services, Indonesia does.

• Search is the most popular mobile Internet activity in India.

• Indian browsers look for cricket scores, Indonesian for soccer (football).

Countries: India + IndonesiaDate: July-August 2010N= 2138

Over 90% browse the mobile Internet at home

At home Whilst outside Whilst on public transport

At work At university or school

0 %10 %20 %30 %40 %50 %60 %70 %80 %90 %

100 % 94 %

60 %

33 % 33 % 31 %

90 %

31 %

19 %26 %

19 %

Location of Mobile Browsing

Indonesia India

% M

ob

ile B

row

se

rs

• With roughly half of Indonesian and Indian mobile browsers not using the desktop internet and over 90% using it in the home, it becomes clear that the mobile will play a very different role in these Asian countries compared to western markets.

Countries: India + IndonesiaDate: July-August 2010N= 2138

57% of the Indian ‘mobile only’ don’t have a bank account

No Yes0 %

10 %

20 %

30 %

40 %

50 %

60 %

70 %

57 %

43 %

Mobile Only Generation - Do you have a bank account?

% M

ob

ile O

nly

Ge

ne

rati

on

• In India, not only do the ‘mobile only’ not use the desktop internet but 57% also don’t have bank account.

• There is a huge opportunity for the previously unbanked and unconnected to use electronic payments to purchase goods and services.

• Everyone of this 57% has a billing relationship with their mobile operator.

Countries: India Date: July 2010N= 1070

The Emerging markets opportunity

The new digital audience creates opportunities for brands, Internet, media and financial services companies. The following section highlights some of these:

Internet Companies + Brands – There is an appetite for mobile friendly Internet services (email, social networking, news, etc) many of which are ad funded. Brands have a new opportunity to market to these users, reaching the previously unconnected emerging middle classes in developing countries.

Media – Downloading content is extremely popular (games and music downloading are the top browsing genres in Africa). Media companies have the opportunity to market and sell directly on the device where the content will be consumed, to an audience who don’t have the option to download on PC.

Financial – Many ‘Mobile Only’ browsers don’t have a back account (in India 57% of the ‘Mobile Only’ don’t have a bank account). All of these people have a billing relationship with their mobile operator, giving them the opportunity to purchase electronically for the first time.

Download at m.opera.com