China Mobile Internet Development

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China Mobile Internet Development

  1. 1. Mobile Internet Development in China Bob Chao Chief Analyst & Research Academy Vice President Internet Research, Insight Research 2009. 09.09 iResearch Consulting Group Shanghai· Beijing· Guangzhou
  2. 2. Overview 1. About iResearch Consulting Group 2. Evolution of Mobile Internet 3. Development of Mobile Internet Market 4. China Mobile Internet Usage & Demographics 5. Application of Mobile Internet
  3. 3. Who We Are? • iResearch is established in Shanghai in 2002. • With offices in both Shanghai and Beijing, iResearch has about 110 employees. • iResearch is the first company that focused on Internet economy in China. • iResearch focuses on online advertising, online service, search engine, digital recreation, e-business, mobile internet and mobile value-added service, etc.
  4. 4. What We Do? Research and Consulting: Data and info: Media and Events iResearch Inc. iResearch Data+ iResearch.cn & Conferences Industry Customized Website Industry Ad Research User Behavior Consulting Research Advertising Events
  5. 5. iResearch Clients Define the Internet Ecosystem iResearch has hundreds of clients from various fields Internet Enterprises Traditional Enterprises Advertising Agencies Investment related IT Enterprises
  6. 6. Overview 1. About iResearch Consulting Group 2. Evolution of Mobile Internet 3. Development of Mobile Internet Market 4. China Mobile Internet Usage & Demographics 5. Application of Mobile Internet
  7. 7. Evolution of Cellular Standards The Evolution of Cellular Standards in China 1G 2G 3G 4G 1987 1994 2008 2010s GSM TD-SCDMA Systems TACS GPRS WCDMA Beyond EDGE CDMA2000 IMT-2000 Voice/Low Speed Voice/High Speed Voice/Ultra-High Voice Service Data (9.6~64Kbps) Data(384~2000Kbps) Speed Data The Cellular Standards Supported by the Major Vendors in China Vendor Cellular Voice Cellular Data High Speed Data China Mobile GSM GPRS/EDGE TD-SCDMA China Unicom GSM GPRS WCDMA China Telecom CDMA CDMA2000 1X CDMA2000 EV-DO
  8. 8. Mobile Terminal Trend: Smartphone The Evolution of Mobile Phone 2007 Mile Stone 3G 2006 2.5G 2005 2G Mobile Phone: Java Touch screen An Active Node of Internet 2004 Voice Music High Speed Data Camera P2P 2003 WAP WLAN 2002 ... Navigation Cellphone 2001 ... Smartphone 1987-1996 Worldwide Mobile Terminal Market Share Worldwide Smartphone Market Share Nokia Nokia 3.0% 13.9% 19.0% Samsung RIM 23.0% 6.0% 25.1% 36.8% 7.5% 39.5% 45.0% Apple LG 47.4% 4.7% 13.3% 3.3% HTC 5.6% Motorola 4.1% Fujitsu 19.3% 10.0% Sony Ericsson 18.7% 2.8% 17.3% 15.2% 10.7% Others 8.8% Others 2009Q2 2008Q2 2009Q2 2008Q2 Source: Gartner,2009/08
  9. 9. Rich Mobile Internet Service Personal Service Personalization of Mobile Internet Services Business and Life Mobile Commerce / Payment / LBS / Security / Auction … Service Information and Internet Access / Search Engine / Navigation / Video / Music / Gaming / Comic / TV … Content Service Communication SMS / MMS / Push to Talk / E-Mail / IM / Videophone … GSM / CDMA / GPRS/EDGE / TD-SCDMA / WCDMA / CDMA2000 EV-DO/ 3G LTE/ 4G Evolution of Mobile Terminal and Network
  10. 10. Overview 1. About iResearch Consulting Group 2. Evolution of Mobile Internet 3. Development of Mobile Internet Market 4. China Mobile Internet Usage & Demographics 5. Application of Mobile Internet
  11. 11. The Mobile Internet Market Opportunity 2003-2012 China Mobile Telecommunications Market Trend and Forecast China Ministry of Industry and Information Technology(MIIT) issued on January, 2009, 3G licenses for China Mobile, China 1000 Unicom and China Telecom. 24.6% 17.5% 17.2% 17.2% 18.7% 800 641 China Mobile Operator 3G Brand 600 547 461 393 400 335 269 200 0 2003 2004 2005 2006 2007 2008 China Mobile China Unicom China Telecom Total Number of Subscriber(Million) Growth Rate(%) Source: MIIT 2007-2012 China Mobile Internet Market Scale Trend and Forecast 2007-2012 China Mobile Internet User Market Trend and Forecast 80 40.5% 33.8% 47.5% 25.4% 41.4% 60 600 108.5% 41.3 51.3% 29.7% 26.9% 35.1% 500 40 28.0 400 331.9 19.8 300 245.6 14.8 193.5 20 11.8 200 149.2 8.4 98.6 100 47.3 0 0 2007 2008 2009e 2010e 2011e 2012e 2007 2008 2009e 2010e 2011e 2012e Market Scale(Billion RMB) Growth Rate(%) Total Number of User(Million) Growth Rate(%) Source:iResearch
  12. 12. The Mobile Internet Value-Chain Network Equipment IT Solution Provider Vendor Radio Access Network Core Network Technology Solution Transport Network Semiconductor Content Provider Vendor Content Product Processor and Chipsets Network Operator Content Product Information Service Custom-Made Mobile Terminal Information Software Vendor Provider Voice and Data Service Software Service Information and Content Service Mobile Phone Mobile Terminal Mobile Internet Vendor User Digital Content Product
  13. 13. The Mobile Internet Business Models Network Operator Value-Chain Control Platform + Service Portal Terminal + + Software Application Mobile Terminal Vendor Information Provider Integrated Solutions for Best Product and Service Full Service on-Demand
  14. 14. Network Operator Control Value-Chain Network Operator: Platform + Service Information/Content Provider Network Operator Content Information Voice Network Access Content Information ... Music Search Internet News SMS Video Mail VPN Entertainment MMS TV Blog ... Music Email Game SNS ... IM ... ... ... Customer Billing System:Time、Traffic、Content Mobile Terminal Vendor Custom-Made Mobile Phone Netbook Laptop Subscriber Database Network Card USB Data Card Mobile Internet Platform Network Operator:Value-Chain Control Domestic International
  15. 15. Mobile Terminal Vendor Integrates Solutions Mobile Terminal Vendor: Smartphone + Application Information/Content Provider Mobile Terminal Vendor Domestic Content Info Application Platform Terminal Product Music News Ophone + Mobile Market Entertainment Cellphone Video Mail Life Smartphone TV Blog Education Netbook Game SNS Business Laptop ... ... .... MID .... Search Business Customer Application Service Integration Movie Ticket Dinner Check Manu Security Open Environment of Application Development ... ... Product and Service Brand Network Operator Network Access Mobile Terminal Vendor:Integrated Solutions for Full Service on-Demand International International International iPhone + App Store Smartphone + OVI Smartphone + Mobile Market
  16. 16. ISP/CP Provide Best Product and Service ISP/CP: Portal + Software Application Information/Content Provider Terminal Vendor Information Content Search Business Mobile Phone Smartphone Netbook Portal MID News Music Map B2C Laptop Email Video Restaurant C2C Internet Portal ... SNS Game Real Estate Travel Blog Novel Dictionary Credit Card ... ... ... ... Software Customer Network Operator Network Access Information/Content Provider:Best Product and Service Domestic Domestic Portal + IM Portal + Mobile Phone Brower
  17. 17. Network Operator Faces More Challenges Network Operator Mobile Terminal Internet Vendor Vendor Mobile internet Mobile Internet Vendor
  18. 18. Overview 1. About iResearch Consulting Group 2. Evolution of Mobile Internet 3. Development of Mobile Internet Market 4. China Mobile Internet Usage & Demographics 5. Application of Mobile Internet
  19. 19. Age Distribution: Teenage Phenomenon  Male users(88.2%) used mobile internet, compared to female users(17.8%).  The largest user group of mobile internet is 18~30 years old. 2009China Mobile Internet User 2009 China Mobile Internet User Gender Distribution Age Distribution 17.8% 1.8% 40 + 3.5% 36~40 2.6% 5.6% 31~35 5.2% 10.3% 25~30 16.9% 24.4% 18~24 65.5% 50.7% 88.2% 18 - 8.1% 5.5% Male Female 0% 10% 20% 30% 40% 50% 60% 70% 2008 2009 Methodology:36286 mobile internet users from 15 major China mobile phone portal websites in July, 2009
  20. 20. Higher Education Users Growing  61.3% mobile internet users are less than high school education.  The number of undergraduate and below users increased 3.8% year-over-year.  The number of high school users decreased by 6.1% year over year, from 37.7% to 31.6%. 2009 China Mobile Internet User Education Distribution Postgraduate and above 0.4% 1.5% Undergraduate 16.6% 19.3% Junior College 18.1% 17.9% High School 37.7% 31.6% High School and Below 27.2% 29.7% 0% 5% 10% 15% 20% 25% 30% 35% 40% 2008 2009 Methodology:36286 mobile internet users from 15 major China mobile phone portal websites in July, 2009.
  21. 21. Middle and High Income Groups Increase  51.7% mobile internet users were 1000~3000 RMB income-group.  3000 RMB and 1000~3000 RMB users increased by 5.7% and 9.4% year-over-year. 2009 China Moblie Internet User Monthly Income 0.015 5000 Above 0.0315 3001~5000 0.033 0.0738 2001~3000 0.103 0.1736 1001~2000 0.32 0.343 0.529 1000 Below 0.378 RMB 0% 10% 20% 30% 40% 50% 60% 2008 2009 Methodology:36286 mobile internet users from 15 major China mobile phone portal websites in July, 2009.
  22. 22. Frequent Growing, but Slowing  70.9% users surf on the mobile internet 5~7 days per week.  83.9% Users choose “During work day, when I take a break ” as the time when they get mobile internet service. 2009 China Mobile Internet User 2009 China Mobile Internet User Frequent Distribution Time Distribution 5~7 Days 68.3% 70.9% During Work Day, 83.9% when I take a break 3~4 Days 10.5% 11.1% During Holiday 45.2% 1~2 Days 3.8% 3.7% During Work Hours 31.4% 1 Day - 2.0% 1.9% 0% 50% 100% 2009 0% 20% 40% 60% 80% 2008 2009 Methodology:36286 mobile internet users from 15 major China mobile phone portal websites in July, 2009.
  23. 23. News, Chatting and Search are Popular  71.8% of Mobile internet users choose news service.  The most popular mobile internet services are News, Chatting and Search. 2009 China Mobile Internet User Purpose Distribution 68.3% News 71.8% 59.4% Chatting 55.2% 57.7% Seach inf ormation 43.0% Read Novel 42.4% 28.8% Download Ringtone, Picture … 50.5% 28.1% 34.4% SNS 27.1% 18.4% Email 15.9% 16. 9% Other 11.6% 11.7% Media Program 7.4% 0% 10% 20% 30% 40% 50% 60% 70% 80% 2008 2009 Methodology:36286 mobile internet users from 15 major China mobile phone portal websites in July, 2009.
  24. 24. Mobile Browser Increased Especially  Mobile browser, IM and document management grow.  Mobile browser, video, IM, read and game are the killer applications. 2009 Mobile Software Service Distribution Browser 45.0% 60.6% Video 40.4% 40.4% IM 31.2% 35.4% Read 36.3% 34.7% Game 55.6% 33.9% Secruity 17.3% 16.6% Document Management 14.6% 16.5% Stock Information 15.1% 14.4% Picture Edit 17.4% 12.5% other 26.4% 15.9% 0% 10% 20% 30% 40% 50% 60% 70% 2008 2009 Methodology:36286 mobile internet users from 15 major China mobile phone portal websites in July, 2009.
  25. 25. MVAS:Mobile Software Emerging 2009 China Mobile Value-Added Service Pattern Mobile Software 47.3% Mobile Read 20.3% MMS 18.8% Email 16.1% Mobile Game 16.0% Download Ringtone,… 15.3% Nerw Based on SMS 14.6% SNS/Blog 13.4% Mobile Banking 10.9% CRBT 8.3% Mobile Map 7.9% Mobile Payment 7.3% Navigation 6.9% M-Commerce 6.2% Mobile Video 5.3% Mobile Search 3.3% TV Program 2.9% Two-dimensional code 1.3% IVR 0.9% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Methodology:36286 mobile internet users from 15 major China mobile phone portal websites in July, 2009.
  26. 26. Overview 1. About iResearch Consulting Group 2. Evolution of Mobile Internet 3. Development of Mobile Internet Market 4. China Mobile Internet Usage & Demographics 5. Application of Mobile Internet
  27. 27. Mobile Advertising Market Growing Rapidly 2006-2011 China Mobile Advertising Market Trend and Forecast LBS AD 5000 133.3% 125.0% 100.0% Mobile 117.5% 101.5% SNS AD 4000 Video AD Advertising 3000 2760 2000 1370 Search AD 1000 630 Text Link AD 280 60 120 Banner AD 0 2006 2007 2008 2009e 2010e 2011e Mobile Advertising Market Scale(Million RMB) Growth Rate(%) Source:iResearch Mobile Advertising is a sector of the overall advertising industry that is reaching an important milestone. Advertisers Customer AD Networks Mobile Service Agencies
  28. 28. Strong Growth in Mobile Game Market 2007-2012 China Mobile Game User Market 2007-2012 China Mobile Game Market 180 Trend and Forecast 12 Trend and Forecast 85.0% 57.6% 30.0% 38.5% 44.4% 53.8% 37.5% 25.6% 10 150 23.1% 21.9% 8 7.4 120 98 90 78 6 64 4.0 60 52 4 2.6 33 1.8 30 24 2 1 1.3 0 0 2007 2008 2009e 2010e 2011e 2012e 2007 2008 2009e 2010e 2011e 2012e Mobile Game User(Million) Growth Rate(%) Mobile Game Market Scale(Billion RMB) Growth Rate(%) Source:iResearch Mobile game revenues from downloadable games and mobile multi-player online games (MMO).  Sequential strong performance in mobile MMO is driven by an increase in mobile internet users and a higher percentage of users purchasing in-game virtual items.
  29. 29. Future of Mobile Search 2007-2012 China Mobile Search User Market 2007-2012 China Mobile Search Market Trend and Forecast Trend and Forecast 4000 500 300.00% 122.50% 40.40% 37.60% 34.90% 38.80% 141.70% 96.60% 400 3000 84.20% 77.10% 322 300 1860 232 2000 200 172 1050 125 89 1000 570 100 290 40 30 120 0 0 2007 2008 2009e 2010e 2011e 2012e 2007 2008 2009e 2010e 2012e 2013e Mobile Search User(Million) Growth Rate(%) Mobile Search Market Scale(Million RMB) Growth Rate(%) Source:iResearch Mobile Search in the Future Location Search Visual Search Mobile Search Voice Search Social Search Vertical Search Mobile Search will organize the world’s information and make it universally accessible.
  30. 30. iResearch Consulting Group China’s Leading Internet Data Product Provider China’s Leading Research Provider Focuses on Internet Business China’s Leading Research Provider Focuses on Online Advertising Thank You! Bob Chao Bob@iResearch.com.cn

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