Mobile InternetIsaac HillelManaging General PartnerFebruary 2009

“Surfing the Web on a personal computer will become old-fashioned in less than ten years when the majority of Internet users are expected to access the Net through their mobile handsets”

Geraldine Wilson, vice president of Yahoo! Europe Connected Life

Is Fixed Internet to Become a “Niche”

Smart Phone penetration

4B Mobile Users

Mobile Internet Users

3G Penetration

1.5B Fixed Internet users

13%

25% in 2013

Vs.~

~

~

>>

>>

...Users are Actually Using the Service

15.6%

15.6%

+59%+59%

Download maps &

directions

17.6%

17.6%

+63%

+63%

Search for products &

services

Connected with Social Networks

9.6%9.6%

+182%+182% 13.7%

13.7%

Obtained information about

movies & entertainment

+67%

+67%

* % of users using the service in 2008** Increase from 2007Source: Kelsey Group Mobile Market View Consumer Survey, Nov 2008

**

*

Increased Mobile Browsing

MySpace sees mobile use

driving 50% of the visits within 2-3

years’ time

50% more use of Google

among iPhone owners(vs.

regular phones)

Application StoreiPhone App Store: >500M downloads, >15K

applications

Application Stores

iPhone App Store

Palm App Catalog

BlackBerry Application Center

Google’s Android Market

Samsung Application store

Nokia Ovi

Microsoft's SkyMarket

Application Stores - Operators

China Mobile

Orange

O2 UK Litmus

Vodafone

T-Mobile

Web Giants Provide Mobile Applications

Yahoo! Mobile

Google Latitude Skypefor Mobile

ebay

Operators See Data Revenue Growth

• US data revenues 20% of overall revenues

• T-Mobile US Data revenues represents 17% of total revenues

• AT&T has 1.6X ARPU on IPhone users, expects data ARPU to become 34% of ARPU by 2013

• Telstra ARPU in 3G is $20 higher than in 2G

Food for Thought

• Is this the end of the “Fixed Internet” era?

• Nokia, Apple, Google, Carriers; who will own the customer?

• Browser vs. Applications downloads – will both sustain?

• Who will make money in the mobile internet?

End