Market size and penetration


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Market size and penetration
Market value
Market share
Mobile phone purchasing
Mobile phone usage
Kids ‘ideal mobile phone’

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Market size and penetration

  1. 1. November 2001 Orlando Moreno [email_address] 408.656.2498
  3. 3. <ul><li>A unique opportunity to understand mobile ownership & usage among 7-16 year olds </li></ul><ul><li>NOP Research Group assembled a team across mobile telephony and child research divisions </li></ul><ul><li>Combination of robust quantitative benchmark data and depth understanding via focus groups </li></ul>Introducing NOP’s M-Kids:
  4. 4. Methodology & Sample <ul><li>conducted via the nationally representative ‘Young Generation Omnibus’. Interviews conducted in-home and parental consent obtained. </li></ul>1,000 interviews amongst 7-16 year olds 4 single sex focus groups comprising boys aged 8-10 <ul><ul><ul><li>boys aged 14-16 </li></ul></ul></ul>girls aged 8-10 <ul><ul><ul><li>girls aged 14-16 </li></ul></ul></ul>
  5. 5. Main findings: Agenda <ul><li>Market size and penetration </li></ul><ul><li>Market value </li></ul><ul><li>Market share </li></ul><ul><li>Mobile phone purchasing </li></ul><ul><li>Mobile phone usage </li></ul><ul><li>Kids ‘ideal mobile phone’ </li></ul><ul><li>3G </li></ul><ul><li>Concerns </li></ul><ul><li>Advertising </li></ul>
  6. 6. Girls more likely than boys to own mobile phone, particularly in 11-13 age group Mobile Phone Penetration - July 2001 Base: All 7-16 year olds 52% of those interviewed own a mobile 72% of 11-13 yr old girls own a mobile, compared to 54% of 11-13 yr old boys 14+ age group have extremely high level of mobile phone penetration. Potential group 11-13 year old boys?
  7. 7. 11-13 girls - group showing largest increase in ownership in past 6 months Mobile Phone Penetration - Jan 2001 Base: All parents of 7-16 year olds (Jan 2001) 48% parents interviewed said kids owned a mobile Largest growth is in lower age groups, particularly 11-13 year old girls: Jan - 58% owned mobile
  8. 8. With over half 7-16s owning phones, size of ‘youth’ market impressive Size of the market % Handsets owned by kids = (4,016,116/ 30,870,000) * 100 = 13% UK population 7-16 year olds = 7, 723,300 ‘kids’ Mobile penetration is 52% = 4,016,116 ‘kids’ UK penetration of active handsets = (91/100) * 69% = 63% = 30,870,000 people
  9. 9. Key Takeouts <ul><li>The ‘mobile phone culture’ is now deeply engrained amongst youths, particularly in 14-16 age group </li></ul><ul><li>As older age group increasingly saturated, expect to see growth in 11-13s, particularly boys </li></ul>
  10. 10. Main findings: Agenda <ul><li>Market size and penetration </li></ul><ul><li>Market value </li></ul><ul><li>Market share </li></ul><ul><li>Mobile phone purchasing </li></ul><ul><li>Mobile phone usage </li></ul><ul><li>Kids ‘ideal mobile phone’ </li></ul><ul><li>3G </li></ul><ul><li>Concerns </li></ul><ul><li>Advertising </li></ul>
  11. 11. Market value of mobile kids is considerable Market value (Monthly spend) 11-13s MARKET VALUE = £ 14,097,224 14-16s MARKET VALUE = £ 34,142,081 7-10s MARKET VALUE = £7,104,689 TOTAL MARKET VALUE = £55,344,081
  12. 12. Clear group of ‘heavy users’ spending £20+ a month How much does it cost each month? Base: All owning mobile phone (533) Evident phones used for more than just for ‘odd call’ to parents or odd text to a friend 93% 7-16 yr olds have pre-pay phones Average Monthly spend: 7-10s = £9 11-13s = £9 14-16s = £19
  13. 13. Who are the ‘Heavy Users’ & what is their market value? <ul><li>‘ Heavy users’ (£20+ monthly spend) represent... </li></ul><ul><li>20% kids with mobiles </li></ul><ul><li>But they account for... </li></ul><ul><li>53% market value (£29 million) </li></ul><ul><li>And... </li></ul><ul><li>40% are 14-16 girls </li></ul><ul><li>33% are 14-16 boys </li></ul>
  14. 14. Kids not relying on parents for payment, even ‘Heavy Users’ Who pays for it? Base: All owning mobile phone (533), DK 1% Over 50% pay or contribute No gender difference 14-16s more likely to pay 57% ‘heavy users’ pay themselves or contribute 62% ‘Upgraders’ (kids owned 2+ phones) pay or contribute I pay for it - 44% Mum / dad pay for it - 40% Me and mum / dad - 12% Someone else pays - 3%
  15. 15. Key Takeouts <ul><li>With revenues of over £650m per annum, this is a very important market </li></ul><ul><li>14 to 16 year olds are particularly active in this market </li></ul><ul><ul><li>Demanding users of mobile services, challenge for network operators to keep them brand loyal </li></ul></ul><ul><li>A fifth of kids, predominantly 14-16 year olds, account for just over half kids’ revenue = ‘Heavy Users’ </li></ul><ul><ul><li>Focus on ARPU rather than share means this group increasingly important </li></ul></ul>
  16. 16. Main findings: Agenda <ul><li>Market size and penetration </li></ul><ul><li>Market value </li></ul><ul><li>Market share </li></ul><ul><li>Mobile phone purchasing </li></ul><ul><li>Mobile phone usage </li></ul><ul><li>Kids ‘ideal mobile phone’ </li></ul><ul><li>3G </li></ul><ul><li>Concerns </li></ul><ul><li>Advertising </li></ul>
  17. 17. One2One smallest market share of top operators but boasts most ‘Heavy Users’ Which network is phone connected to? Base: All owning mobile phone (533) Orange 27% BT Cellnet 27% Vodafone 22% Virgin 4% One2One 17% Kids most likely to have same operator as parents Little sense of ‘brand loyalty’ - cost is biggest factor for M-kids One2One smallest market share of ‘top4’ BUT has highest % ‘Heavy Users’ - 32% Vodafone has least ‘Heavy Users’ – 16% DK = 2% Other network = 1%
  18. 18. Revenue % show One2One benefiting from larger ‘Heavy User’ base Base: All owning mobile phone (533) Base: All spending £20+ (114) Orange 26% BTCellnet 26% One2One 25% Vodafone 19% Virgin – 3% Total Revenue Share One2One 33% Orange 26% BTCellnet 24% Vodafone 15% Virgin – 2% ‘ Heavy Users’ Revenue Share
  19. 19. Nokia top choice among kids - ‘phone to have’ Type of mobile phone Base: All owning mobile phone (533) Nokia 50% Motorola 14% Ericsson 5% Other 23% Trium Mars 4% Nokia popular among boys & girls of all ages Nokia clearly seen as ‘phone to get’ - 75% of ‘two-time upgraders’ own Nokia handsets DK 4% Others: Sagem = 3% Siemens = 2% Alcatel = 2% ‘ Other’ = 16%
  20. 20. No problem for M-kids when identifying different Nokia phones <ul><li>Complete familiarity with Nokia models </li></ul><ul><ul><li>Even 8 year old girls know difference between 3210 and 3330 </li></ul></ul><ul><li>Several mentions of Nokia advertising among older kids </li></ul><ul><ul><li>Had encouraged some ‘older’ boys to buy </li></ul></ul><ul><li>Very little reference to other manufacturers, except… </li></ul><ul><ul><li>‘ Old phones like Motorolas’ </li></ul></ul>
  21. 21. Age determines model - 3210s for young kids & 8210s for older kids <ul><li>Majority of ‘younger’ (8-10) kids had fairly basic models </li></ul><ul><ul><li>3210’s very common </li></ul></ul><ul><li>‘ Older’ (14-16) kids had most up to date phones </li></ul><ul><ul><li>3330’s and 8210’s popular </li></ul></ul><ul><li>3330’s and 8210s models kids want to have </li></ul><ul><ul><li>3330 = ‘Internet Access’ </li></ul></ul><ul><ul><li>8210 = ‘Small and stylish’ </li></ul></ul>
  22. 22. Mobile phone ‘status symbol’ for kids of any age <ul><li>Pressure to having the ‘right’ phone increases with age </li></ul><ul><li>For younger kids, having ‘any’ phone conferred status </li></ul><ul><ul><li>Having a good make and model a bonus </li></ul></ul><ul><li>For older kids, mobile phones one of most important branded goods to own </li></ul><ul><ul><li>Considerable peer pressure to have ‘right’ phone </li></ul></ul><ul><ul><li>‘ Right’ phone = 8210 </li></ul></ul>
  23. 23. Customisation popular with kids, especially Nokia owners Base: All owning mobile phone (533), All 7-10s (105), All 11-13s (204), All 14-16s (224) <ul><li>Boys & Girls customise phones </li></ul><ul><li>Nokia phones customised most: </li></ul><ul><ul><li>78% changed cover </li></ul></ul><ul><ul><li>69% changed ringtone </li></ul></ul><ul><ul><li>54% added icons </li></ul></ul><ul><li>Older kids (14-16s) most likely to customise but is popular across all ages </li></ul>Have you ever done any of the following to your phone? <ul><li>Changed covers: </li></ul><ul><ul><li>28% 7-10s </li></ul></ul><ul><ul><li>44% 11-13s </li></ul></ul><ul><ul><li>54% 14-16s </li></ul></ul><ul><li>Changed ringtones: </li></ul><ul><ul><li>36% 7-10s </li></ul></ul><ul><ul><li>36% 11-13s </li></ul></ul><ul><ul><li>55% 14-16s </li></ul></ul>
  24. 24. Key Takeouts <ul><li>Value of ‘Heavy Users’ clearly demonstrated by One2One </li></ul><ul><ul><li>Fourth in terms of market share </li></ul></ul><ul><ul><li>Third in terms revenue share </li></ul></ul><ul><li>Personalisation of handset helps to increase revenues for variety of mobile players </li></ul><ul><ul><li>Also demonstrates how kids see their mobile phone as something very personal to them </li></ul></ul>
  25. 25. Main findings: Agenda <ul><li>Market size and penetration </li></ul><ul><li>Market value </li></ul><ul><li>Market share </li></ul><ul><li>Mobile phone purchasing </li></ul><ul><li>Mobile phone usage </li></ul><ul><li>Kids ‘ideal mobile phone’ </li></ul><ul><li>3G </li></ul><ul><li>Concerns </li></ul><ul><li>Advertising </li></ul>
  26. 26. Parents likely to buy first, second or even third phones but generosity stops with 4 Who purchased the phone? Base: All owning mobile phone (533) Majority have phone bought by parents Parents also purchase 61% first and 62% second upgrades However, ‘frequent upgraders’ (4 or more phones) not so fortunate – 48% purchased current phone
  27. 27. Older boys least reliant on parents for phones <ul><li>Who bought own phone? </li></ul><ul><li>Gender variance: </li></ul><ul><ul><li>31% boys </li></ul></ul><ul><ul><li>14% girls </li></ul></ul><ul><li>Broadened by age: </li></ul><ul><ul><li>48% older boys </li></ul></ul><ul><ul><li>24% older girls </li></ul></ul>Who purchased the phone? Base: Boys (247), Girls (286), 7-10s (105), 11-13s (204), 14-16s (224)
  28. 28. However, parents clearly not buying phones just because kids ‘want one’ Why was phone purchased? Base: All owning mobile phone (533) Safety – no age or gender difference ‘ I just wanted one’ - an ‘older kid’ reason ‘ All my friends have one’ – as likely from 8 year olds as 16 year olds Parents buy - main reason is ‘a present’ Kids buy - main reason is ‘I wanted one’
  29. 29. Upgrading common, almost half having had more than 1 mobile 50% of kids have had one phone 23% of kids have had 2 phones 14% of kids have had 3 phones 10% of kids have had 4 or more phones No gender difference 76% ‘Heavy Users’ have upgraded Majority ‘Upgraders’ spend £10+ a month Base: All owning mobile phone (533), DK 2% Number of phones had including current phone
  30. 30. Older kids have had more phones but nearly quarter ‘young kids’ using 2 nd , 3 rd , even 4 th phone <ul><li>Age biggest factor: </li></ul><ul><ul><li>62% older kids ‘upgraders’ </li></ul></ul><ul><ul><li>40% older kids ‘two-time upgraders’ </li></ul></ul>Number of phones had including current phone <ul><li>Upgrades not totally confined to older kids: </li></ul><ul><ul><li>38% 11-13s ‘upgraders’ </li></ul></ul><ul><ul><li>23% 7-10s ‘upgraders’ </li></ul></ul>However, young kids likely to receive ‘hand-me-downs’ from parents / siblings Base: 7-10s (105), 11-13s (204), 14-16s (224)
  31. 31. Likelihood to upgrade pre-Christmas influenced most by spend & number of phones owned New phone before Christmas? Base: All owning mobile phone (533), 7-10s (105), 11-13s (204), 14-16s (224) Yes 24% Maybe 10% No 58% <ul><li>Who expects to get a new phone (yes/maybe)? </li></ul><ul><li>No gender difference </li></ul><ul><li>Little age difference: </li></ul><ul><ul><li>31% 7-10s </li></ul></ul><ul><ul><li>31% 11-13s </li></ul></ul><ul><ul><li>39% 14-16s </li></ul></ul><ul><li>No difference between networks or handsets </li></ul><ul><li>Spend and whether already upgraded influential factors: </li></ul><ul><ul><li>54% ‘Heavy Users’ </li></ul></ul><ul><ul><li>64% ‘3-time Upgraders’ </li></ul></ul>DK 7%
  32. 32. Key Takeouts <ul><li>M-kids are a pretty sophisticated bunch with around a quarter having owned 3+ mobile phones </li></ul><ul><li>Clear group of M-kids looking for ‘latest’ & ‘best’ phones </li></ul><ul><ul><li>Likely to respond favourably to introduction of new phones with enhanced features / functions </li></ul></ul><ul><li>Value of ‘Heavy Users’ illustrated again </li></ul><ul><ul><li>Three quarters having owned 2+ phones </li></ul></ul><ul><ul><li>Just over half think they might get new phone pre-Christmas </li></ul></ul>
  33. 33. Main findings: Agenda <ul><li>Market size and penetration </li></ul><ul><li>Market value </li></ul><ul><li>Market share </li></ul><ul><li>Mobile phone purchasing </li></ul><ul><li>Mobile phone usage </li></ul><ul><li>Kids ‘ideal mobile phone’ </li></ul><ul><li>3G </li></ul><ul><li>Concerns </li></ul><ul><li>Advertising </li></ul>
  34. 34. Explosion in use of text messaging really evident among kids What is phone used for? Base: All owning mobile phone (533)
  35. 35. However, virtually all kids make one call a day Once 35% Twice 20% 3 times 14% More than 4 14% 4 times 8% None 8% How many times a day do you make a call? <ul><li>Who’s talking most (4+ calls per day)? </li></ul><ul><li>Girls slightly more than boys: </li></ul><ul><ul><li>24% girls </li></ul></ul><ul><ul><li>18% boys </li></ul></ul><ul><li>Age more influential: </li></ul><ul><ul><li>35% 14-16s </li></ul></ul><ul><ul><li>10% 11-13s </li></ul></ul><ul><ul><li>9% 7-10s </li></ul></ul>Base: All making calls (510) Boys (240), Girls (270), 7-10s (95), 11-13s (197), 14-16s (218)
  36. 36. One2One’s larger ‘heavy user’ base reflected by number of calls made <ul><li>% ‘Talkative’ (4+ calls) kids on each network </li></ul><ul><ul><li>One2One 28% </li></ul></ul><ul><ul><li>BT Cellnet 25% </li></ul></ul><ul><ul><li>Vodafone 20% </li></ul></ul><ul><ul><li>Orange 19% </li></ul></ul>How many calls per day? Base All calling: Orange (142), BT Cellnet (135), Vodafone (116), One2One (89)
  37. 37. Considerable proportion are calling parents, even ‘older’ kids Who do you call? Base: All making calls (510), All made calls in last 2 weeks (470) <ul><ul><li>69% 7-10s </li></ul></ul><ul><ul><li>63% 11-13s </li></ul></ul><ul><ul><li>68% 14-16s </li></ul></ul><ul><ul><li>51% 7-10s </li></ul></ul><ul><ul><li>59% 11-13s </li></ul></ul><ul><ul><li>79% 14-16s </li></ul></ul>
  38. 38. However, most money spent calling friends rather than parents Base: All made calls in last 2 weeks, 7-10s (83), 11-13s (175), 14-16s (212) Base: All made calls in last 2 weeks, Low (186), Middle (167), Heavy (108) <ul><li>Two key differentiators: </li></ul><ul><li>Age </li></ul><ul><ul><li>51% 7-10s </li></ul></ul><ul><ul><li>40% 11-13s </li></ul></ul><ul><ul><li>18% 14-16s </li></ul></ul><ul><li>Spend </li></ul><ul><ul><li>40% low spenders </li></ul></ul><ul><ul><li>28% middle spender </li></ul></ul><ul><ul><li>19% heavy spenders </li></ul></ul>Call parents most often <ul><li>Two key differentiators: </li></ul><ul><li>Age </li></ul><ul><ul><li>25% 7-10s </li></ul></ul><ul><ul><li>43% 11-13s </li></ul></ul><ul><ul><li>63% 14-16s </li></ul></ul><ul><li>Spend </li></ul><ul><ul><li>38% low spenders </li></ul></ul><ul><ul><li>53% middle spender </li></ul></ul><ul><ul><li>66% heavy spenders </li></ul></ul>Call friends see most often
  39. 39. Texting really taken off among 14-16s and girls <ul><li>Who’s ‘text-keen’ (5+ messages per day)? </li></ul><ul><li>Girls more than boys: </li></ul><ul><ul><li>43% girls </li></ul></ul><ul><ul><li>25% boys </li></ul></ul><ul><li>Age big factor: </li></ul><ul><ul><li>50% 14-16s </li></ul></ul><ul><ul><li>23% 11-13s </li></ul></ul><ul><ul><li>14% 7-10s </li></ul></ul>Less than 1 18% 1-4 messages 46% 5-9 messages 15% 10-19 messages 13% 20+ messages 6% How many times a day do you send text messages? Base: All using text messaging (484), DK 2% Boys (221), Girls (263), 7-10s (83), 11-13s (185), 14-16s (216)
  40. 40. One2One has clear lead in number of ‘text-keen’ kids <ul><li>% ‘text-keen’ kids (5+ messages) on each network </li></ul><ul><ul><li>One2One 48% </li></ul></ul><ul><ul><li>Orange 37% </li></ul></ul><ul><ul><li>BT Cellnet 31% </li></ul></ul><ul><ul><li>Vodafone 28% </li></ul></ul>How many texts per day? Base All texting: Orange (138), BT Cellnet (128), Vodafone (109), One2One (84)
  41. 41. Texting is language of M-kids, parents not texted because ‘wouldn’t understand it’ Who do you text? Base: All sending texts (484), All sent texts in last 2 weeks (424) All used Internet Boys (184), Girls (170) <ul><li>37% had used internet to send text messages: </li></ul><ul><ul><li>40% Boys </li></ul></ul><ul><ul><li>32% Girls </li></ul></ul>
  42. 42. Texting has more advantages than calling for kids - notably cost <ul><li>Calling better for chatting or if want ‘intimacy’ </li></ul><ul><li>BUT... </li></ul><ul><li>Texting cheaper - can always send message ‘call me’ </li></ul><ul><li>Texting more discreet - parents can’t listen in to texts </li></ul><ul><li>Texting better for ‘high risk’ scenarios </li></ul><ul><ul><li>Arguments </li></ul></ul><ul><ul><li>‘ Ditching’ boyfriends/girlfriends </li></ul></ul><ul><ul><li>Flirting </li></ul></ul>
  43. 43. However, sizeable group of kids who just love to do both Base: All making calls (510) Texting Calling 4+ calls 5+ texts 15% Kids 4+ calls Less 5 texts 6% Kids Less 4 calls Less 5 texts 46% Kids Less 4 calls 5+ texts 16% Kids
  44. 44. ‘ Talkative’ & ‘text-keen’ but money also spent on games and other services <ul><li>HEAVY USERS </li></ul><ul><ul><li>71% play games </li></ul></ul><ul><ul><li>23% use text alerts </li></ul></ul><ul><ul><li>14% use information services </li></ul></ul>A really important group of kids who make considerable use of all available functions on their mobile Base: All making heavy users (114)
  45. 45. WAP usage very limited, slightly more popular among boys WAP Ownership & Usage Base: All owning mobile phone (533), Boys (247), Girls (286) 7-10s (105), 11-13s (204), 14-16s (224) <ul><li>Who owns one? </li></ul><ul><ul><li>15% of boys & 8% of girls </li></ul></ul><ul><ul><li>12% of 11-13s & 13% of 14-16s </li></ul></ul><ul><ul><li>12% of ‘Heavy Users’ </li></ul></ul><ul><li>Who has used it? </li></ul><ul><ul><li>4% of boys & 1% of girls </li></ul></ul><ul><ul><li>2% of 11-13s & 3% of 14-16s </li></ul></ul><ul><ul><li>1% of ‘Heavy Users’ </li></ul></ul><ul><li>Who has used it recently? </li></ul><ul><ul><li>2% of boys & 1% of girls </li></ul></ul><ul><ul><li>1% of 11-13s & 2% of 14-16s </li></ul></ul><ul><ul><li>1% of ‘Heavy Users’ </li></ul></ul>11% own WAP phone 5% used WAP 3% used WAP in last 4 weeks
  46. 46. Key Takeouts <ul><li>M-kids receptive to m-services with encouraging number using text alerts & information services </li></ul><ul><ul><li>Particularly ‘Heavy Users’ </li></ul></ul><ul><li>Has yet to be reflected in WAP usage </li></ul><ul><ul><li>However, cost likely to be key factor rather than lack of interest </li></ul></ul><ul><ul><li>Pre-pay kids need instant information - makes m-services more appealing </li></ul></ul>
  47. 47. Main findings: Agenda <ul><li>Market size and penetration </li></ul><ul><li>Market value </li></ul><ul><li>Market share </li></ul><ul><li>Mobile phone purchasing </li></ul><ul><li>Mobile phone usage </li></ul><ul><li>Kids ‘ideal mobile phone’ </li></ul><ul><li>3G </li></ul><ul><li>Concerns </li></ul><ul><li>Advertising </li></ul>
  48. 48. Kids want colourful phones with big colour screens... Please draw a picture of your ideal mobile phone and explain what sort of things it will be able to do
  49. 49. … because kids want phones to be more than just communication tools CONSOLE GAMES WEBCAM RADIO TV COMPUTER MP3 INTERNET ACCESS MINI CD PLAYER
  50. 50. Ideal phone = ‘Portable entertainment & communication system’ FOR M-KIDS - ANSWER IS CONVERGENCE POTENTIALLY PHONE COULD BE FAVOURITE M-KID TECHNOLOGY M-kids are ‘Technology Generation’ Technology means Communication and Entertainment Currently, mobile phones = Communication M-kids’ favourite technology = TV & Web So mobiles with Internet link and TV capability Will make phones entertainment and communication tools
  51. 51. Main findings: Agenda <ul><li>Market size and penetration </li></ul><ul><li>Market value </li></ul><ul><li>Market share </li></ul><ul><li>Mobile phone purchasing </li></ul><ul><li>Mobile phone usage </li></ul><ul><li>Kids ‘ideal mobile phone’ </li></ul><ul><li>3G </li></ul><ul><li>Concerns </li></ul><ul><li>Advertising </li></ul>
  52. 52. Little awareness of & interest in 3G among M-kids <ul><li>Clear that ‘older’ M-kids (particularly boys) are pretty knowledgeable bunch </li></ul><ul><ul><li>Most aware of 3G </li></ul></ul><ul><ul><li>Several references to ‘Bluetooth’ - seen programmes on TV </li></ul></ul><ul><li>Little interest in next generation technology </li></ul><ul><ul><li>Likely to be too expensive </li></ul></ul><ul><ul><li>Don’t think it will be that good </li></ul></ul><ul><ul><li>More for ‘business’ users </li></ul></ul><ul><li>However, expectation that 3G will evolve and improve </li></ul><ul><ul><li>Always happens like this with technology </li></ul></ul><ul><ul><li>Likely to be attractive option for them in 3/4 years </li></ul></ul>
  53. 53. Main findings: Agenda <ul><li>Market size and penetration </li></ul><ul><li>Market value </li></ul><ul><li>Market share </li></ul><ul><li>Mobile phone purchasing </li></ul><ul><li>Mobile phone usage </li></ul><ul><li>Kids ‘ideal mobile phone’ </li></ul><ul><li>3G </li></ul><ul><li>Concerns </li></ul><ul><li>Advertising </li></ul>
  54. 54. Biggest worry for kids is having phone stolen <ul><li>Overwhelming concern is phone being stolen </li></ul><ul><ul><li>Stories from all ages about friends having phones stolen </li></ul></ul><ul><li>Latest phones recognised as biggest targets for thieves </li></ul><ul><ul><li>Two older boys had been approached to hand over their phones </li></ul></ul><ul><li>Some had changed way they use phones due to safety concerns </li></ul><ul><ul><li>Using hands free </li></ul></ul><ul><ul><li>Only using phone in ‘safe’ areas </li></ul></ul><ul><li>A number of ‘ideal’ phones reflected importance of safety </li></ul><ul><li>However, parents and kids do feel safer if have a mobile </li></ul>
  55. 55. Some awareness of health risks but not a concern for kids <ul><li>Younger kids had little awareness of health risks associated with mobile phones </li></ul><ul><ul><li>A couple mentioned radiation leading to brain tumour </li></ul></ul><ul><li>Older kids more aware about potential health risks </li></ul><ul><ul><li>But claimed that no links to health problems have been proved yet </li></ul></ul><ul><li>For all, benefits of using phone far outweighed risks </li></ul>
  56. 56. Main findings: Agenda <ul><li>Market size and penetration </li></ul><ul><li>Market value </li></ul><ul><li>Market share </li></ul><ul><li>Mobile phone purchasing </li></ul><ul><li>Mobile phone usage </li></ul><ul><li>Kids ‘ideal mobile phone’ & 3G </li></ul><ul><li>Concerns </li></ul><ul><li>Advertising </li></ul>
  57. 57. Limited experience of SMS ads, most unimpressed <ul><li>No younger kids had received SMS ads </li></ul><ul><ul><li>Felt they would get fed up if received too many </li></ul></ul><ul><ul><li>Others sceptical about authenticity </li></ul></ul><ul><li>Many older kids had received SMS ads </li></ul><ul><ul><li>Most claimed they had deleted them </li></ul></ul><ul><ul><li>Not considered to be visually interesting compared to some ads on Internet </li></ul></ul><ul><li>Some older kids had entered competitions via text messaging </li></ul><ul><li>But lacks security of phoning </li></ul><ul><ul><li>Don’t know whether message got through </li></ul></ul><ul><ul><li>Could dial wrong number/miss type text </li></ul></ul>
  59. 59. Conclusions <ul><li>Mobile handset works on a variety of levels to this group </li></ul><ul><ul><li>Handset device says a lot about your identity so willing to upgrade, customise etc </li></ul></ul><ul><ul><li>Communication device: Part of their social fabric, fulfilling large number of daily social functions </li></ul></ul><ul><li>Challenge for network operators is to extend this away from hardware to focus on network services </li></ul><ul><li>Some evidence that mobile usage varies by life-stage </li></ul><ul><ul><li>Younger = more likely to be voice based, as get older = more likely to be text based </li></ul></ul><ul><ul><li>Driven by who pays for calls and who communicate with? </li></ul></ul><ul><li>Again a short-term challenge for network operators to continue to encourage higher value voice calls </li></ul><ul><ul><li>But provides grounds for optimism for take-up of data </li></ul></ul>
  60. 60. Conclusions <ul><li>Focus on hardware means little brand loyalty to network operators </li></ul><ul><ul><li>Although One-2-One appears to have created some dominance among higher spenders (prob. due to lower costs) </li></ul></ul><ul><ul><li>Challenge is to have innovative and competitive pricing structures that encourage these ‘user groups’ </li></ul></ul><ul><li>No barriers to using handset for variety of purposes </li></ul><ul><ul><li>Rich market in future for handset being part of multi-media ‘kit’ </li></ul></ul><ul><ul><li>But also low optimism that new services will deliver </li></ul></ul><ul><li>Concern that this potentially fertile market will become cynical and jaded by operator claims unless start seeing them really delivering </li></ul>
  61. 61. Your contact point for further information is: Orlando Moreno [email_address] 408.656.2498