1. Mobile Internet Matters
Justin Lee

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

3. What is
Mobile Internet Service?

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

5. Why
Mobile Internet Matters?

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

7. 30 countries
exceeded 100% mobile
phone penetration.
Source: Experian

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

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

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

11. Talk
less

12. $60 Voice revenues
are d
eclinin
$45
g.
$30
$15
$0
2002 2003 2004 2005 2006 2007 2008
Source: Chetan Sharma

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

14. 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

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

16. 3.5G is speedy!
43 seconds
WAP 14K
PHS 64K
GPRS (2.5G) 114K
EDGE (2.75G) 237K
WCDMA (3G) 384!
HSDPA (3.5G) 1440K

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

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

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

20. Better
internet experience

21. Better
internet experience

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

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

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

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

26. Mobile internet service is
Useful!

27. in g.
$10
grow
$8
Data revenues are
$5
$3
$0
2002 2003 2004 2005 2006 2007 2008
Source: Chetan Sharma

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

29. 3G open the door to
Internet Service Provider

30. 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%
Providers 33%
Partners
Source: IBM Analysis

31. Challenges
to Mobile Device Maker

32. Competition
Mobile
Internet

33. Content and service
packaging

34. User Experience

35. User Experience

36. Business relationships
and channel conflicts

37. Business model
transformation

38. Thank You!