Mobile Internet Matters
Justin Lee

In fact,
80% has internet capability
by 2008.
Source: IDC

What is
Mobile Internet Service?

Download Games
Banking Instant Message Voting
Surf Internet News
Email
Video Location based service
Download Music Voice Over IP
Social Network Maps
Mobile TV

Why
Mobile Internet Matters?

More than 50%
of world population will
have mobile phone by
end of year.
Source: UN

30 countries
exceeded 100% mobile
phone penetration.
Source: Experian

Worldwide shipments of
mobile Phone growth rate per annual
2001-2007
20%
2007-2012
5.8%
Source: IBM Institute for Business Value

Average selling price
-7% per year
since 2002
Source: IBM Institute for Business Value

Mobile ARPU
of USA are dec
lining
.
$60
$45
$30
$15
$0
2002 2003 2004 2005 2006 2007 2008
Source: Chetan Sharma

Talk
less

Voice revenues
$60
are d
eclinin
g.
$45
$30
$15
$0
2002 2003 2004 2005 2006 2007 2008
Source: Chetan Sharma

What stops user
from using mobile internet?
50%
Find it expensive
40%
Connection is slow
37%
Don’t find it convenient
17%
Tried but don’t find it useful
16%
Never tried
8%
Don’t know about it
Source: IBM Institute for Business Value

Time based pricing
0.4 NTD / minutes
or volume based pricing
0.005 NTD / per packet
to flat rate data tariff
850 NTD / per month

What stops user
from using mobile internet?
50%
Find it expensive
40%
Connection is slow
37%
Don’t find it convenient
17%
Tried but don’t find it useful
16%
Never tried
8%
Don’t know about it
Source: IBM Institute for Business Value

3.5G is speedy!
43 seconds
14K
WAP
64K
PHS
114K
GPRS (2.5G)
237K
EDGE (2.75G)
384!
WCDMA (3G)
1440K
HSDPA (3.5G)

What stops user
from using mobile internet?
50%
Find it expensive
40%
Connection is slow
37%
Don’t find it convenient
17%
Tried but don’t find it useful
16%
Never tried
8%
Don’t know about it
Source: IBM Institute for Business Value

Screen size
is getting bigger.
240x320
172x208/220
128x128/160
2005 2006 2007 2008
Source: Sender 11

Touch screen phone
growth over 230% this year!
9.6M
4.2M
2007 2008
Source: New York Times

Better
internet experience

Better
internet experience

What stops user
from using mobile internet?
50%
Find it expensive
40%
Connection is slow
37%
Don’t find it convenient
17%
Tried but don’t find it useful
16%
Never tried
8%
Don’t know about it
Source: IBM Institute for Business Value

More
Useful Application
10202 apps
on the App store!
May Jun Jul Aug Sep Oct Nov
2008
Source: 148Apps

What stops user
from using mobile internet?
50%
Find it expensive
40%
Connection is slow
37%
Don’t find it convenient
17%
Tried but don’t find it useful
16%
Never tried
8%
Don’t know about it
Source: IBM Institute for Business Value

e
or
ay
m
Pl
e
or
rfm
Su
e
or
nm
te
Lis

Mobile internet service is
Useful!

g.
in
ow
$10
gr
Data revenues re
a
$8
$5
$3
$0
2002 2003 2004 2005 2006 2007 2008
Source: Chetan Sharma

Players Types at 2G Era
Customer
Mobile Competitor
Competitor
Mobile
Device Operator
50% 50%
Services
Makers
Partners
Source: IBM Institute for Business Value

3G open the door to
Internet Service Provider

Players Types at 3G Era
Mobile
33%
Device
Makers
Customer
Competitor
Partners Partners
Mobile
Internet
Co
r
Services
o
etit
m
Internet
pe
mp
tito
Service Operator
Co
r
33% 33%
Providers
Partners
Source: IBM Analysis

Challenges
to Mobile Device Maker

Competition
Mobile
Internet

Content and service
packaging

User Experience

User Experience

Business relationships
and channel conflicts

Business model
transformation

Thank You!