Habari Digital Symposium

1. Global Telecoms Insights 2009
A world of mobile insight
Karin Du Chenne
Karin.DuChenne@tns-global.co.za
March 2009
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2. GTI 2009 is designed to provide insight into the four key drivers of the
telecoms market
Consumerisation Convergence
Why do consumers How converged is
act the way they do? consumer behaviour?
What will they do And how convergence-
next? ready are they?
Mobility Innovation
Are consumers using Which features and services
their mobile potential? are positioned for future
growth?
How do different
mobile devices and Which niche brands will
services interact? become mass market?
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3. It looks to understand the evolution of global, regional and local trends in
mobile technology
32 markets; 20622 respondents; Interviewing Nov/Dec 2008 Regions covered:
•N America: USA, Canada
•Europe: UK, France, Germany, Spain,
Italy, Netherlands, Sweden
•Dev Asia: Japan, Korea, Hong Kong,
Malaysia, Singapore, Taiwan, Australia
•China: China only
•India: India only
•Russia: Russia only
•Emerg Asia: Pakistan, Indonesia,
Vietnam, Thailand
•Lat Am: Mexico, Brazil, Argentina
•N Africa: Morocco, Egypt
•M East: Saudi Arabia, UAE, Kuwait
•S Africa: South Africa only
New markets for ‘09: Singapore,
Malaysia, Pakistan
Markets omitted : Algeria
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4. THE BIG
PICTURE
What do you need to know?
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5. THE BRAND FACTOR
What is the current state of the consumer-brand
relationship?
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6. TNS uses a set of questions to calculate the level of ‘involvement’ a
consumer has in the mobile phone sector
An ‘involved’ consumer is categorised as displaying some of the following behaviours:
Chooses quality over price
Brand is an important
driver of purchase
‘Involved’ and ‘Uninvolved’ consumers are different
and by understanding the level of involvement,
High levels of research
prior to purchase local market strategies can be developed
Active pursuit of new
products and services
Engages in discussions
with friends and colleagues
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7. The mobile phone sector continues to engage consumers, although
sector involvement is regional
% ‘Involved consumers’ Level of sector involvement – mobile phones
61
55
High involvement Average involvement Low involvement
2008 2009
Involvement segmentation: See slide 5 for explanation. Measure defines level of consumer involvement in the mobile phone sector
(Highly involved +8%, Involved within 8%; Uninvolved -8% on global average)
2008 Base: All mobile users; 13468
2009 TNS Copyright users; 17264 1439 333 451 373 460 437 473 492 536 557 489 607 498 494 433 523 2031 724 325 379 432
Bases: All mobile
7
706 325 349 361 447 506 368 496 377 393 450

8. TNS Conversion Model profiles the consumer relationship with individual
brands, both handset and network providers
NON-USERS
USERS
Weakly Strongly
Available Ambivalent
Entrenched Average Shallow Convertible
Unavailable Unavailable
Committed Uncommitted Open Unavailable
Brand Users Brand Users Non-Users Non-Users
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9. Conversion Model also profiles the relationships with mobile phones
brands generally
Consumers are asked a series of questions based on their current use of brands and
attitudes to competitors, and are placed in appropriate segments
• Strong attachment to one brand
Single-minded
• Committed, but less interested in general
Passive
Shared (committed /
• Equally attracted to two or more brands
uncommitted
• Unhappy with current brand
Seekers
• Do not care which brand they use
Uninterested
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10. As single-minded commitment to brands is declining, substantial
numbers are openly looking to switch
Relationship with mobile handset brands
Single-minded Shared Passive Seekers Uninterested
% 1
2 2
4 4 4
7 7
8 1
11 9
12 13 4
1
16 12 3
17 14
21 5
15 3
21 4
17 5
14 4
13 15
5 6
6
19 6 4
21
7 8
6
14
24
5
19
10
11 4 6
5
4 9 6
91 91
4 87 83
75
73
71
65
63
58 56
50 49 48
42
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E: Conversion model brand segmentation: See slide 5 for explanation. Measure defines commitment of consumers to brands in the
mobile handset sector
2008 TNS Copyright
Base: All mobile users; 12489 Local market
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2009 Bases: All mobile users; 17264 8522 8742 1772 3222 3528 724 2031 523 1380 1513 1370 808 393 data cuts

11. Nokia continues to dominate global brand commitment
% of committed users Committed Uncommitted Open Unavailable / Unaware
Users Non-users
2008 2009
77% 78% 35 6 16 42
Nokia
49% 49% 8 5 10 75
Samsung
53% 54% 8 6 10
Motorola 76
52% 56% 7 3 11 79
Sony Ericsson
44 5 87
47% 50% LG
E: Conversion model brand segmentation: See slide 5 for explanation. Measure defines commitment of consumers to brands in the
mobile handset sector
‘% of committed users’ calculated by dividing the number of committed users by the total number of users
2008 TNS Copyright
Base: All mobile users; 13468 Local market
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2009 Bases: All mobile users; 17264 data cuts

12. Nokia remains the dominant global player, particularly in emerging markets
Brand market share
Nokia Samsung Motorola Sony Ericsson LG Apple Other
1
2
0
5 4
5
11 3
14 14
15 2
18 4 3
21
24 24 12
% 27
29 6
1 3 11
34
4 8
2 7
4 12
1 7
52 4
5 13
16
3
7 8
1 17 25
8
7
8 10 2
9 8 5
6
12 9
24
15 10
12 14
11 20
16 28
3 6
12 89
12 13 12
8
70
25 5 64
15 8
59 56
13
44 40 39
36 35 34
14 26
24
17
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A5: Brand of main handset
2008 TNS Copyright
Base: All mobile users; 13468 Local market
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2009 Bases: All mobile users: 17264 8522 8742 1772 3222 3528 523 2031 724 1513 1380 808 1370 393 data cuts

13. THE PURCHASE DECISION
PROCESS
How do consumers decide what they will buy?
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14. Distress purchases continue to drive purchase decisions, requiring
effective mechanisms to be in place to react to these urgent needs
% Main trigger for purchasing last phone
6 4 4 8 2 4 4 6 7 5 11 7
2
4 10
3
1 0 0 11 Gave away old phone
2 3 2
5 2
1 2
1 6
0 2
6 1 3
6 0
24
5
5 0
12 12 14 7
8 8
7 7
6 4 16 15 Given phone by employer ‘Convenience’
14
10 8
6 5
1 5
8
6 7
10 19 triggers
9 6 13 6 Given phone by network provider
10
5 14
46
37 25
13 30
37 Given phone by friends
11 20
41
37 47
33
36 31 Dissatisfied with previous phone
24
9
39 31 ‘Distress’
Phone stopped working
15 triggers
6 7 35
20 32 34
31 24
33 23
42
16 Phone lost/stolen
10 10
4
27
8 6 7 32 Wanted a phone that was better looking
4 8
6
18 12 4
18 2
14 13 5
6 6
8 14 12
11 ‘Want’
Wanted a phone with more features
11
5 37
2 triggers
26 5 15
17 15
14
15 11 13 12 15 14
9 10
7 Wanted a phone with latest technology
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A11: Trigger to change to current mobile phone
2009 TNS Copyright
Bases: All who have owned more than one mobile: 14016 6757 10507 7873 6143 1559 2950 3364 574 753 Local market
14
494 1190 1033 1158 669 272 data cuts

15. Internet consumer reviews are becoming an important source of
information for consumers in developed markets
All sources of information consulted when looking to buy a mobile phone
% (2008)
Global Developed Emerging (2008)
(2008)
Speak w ith (42%) (55%)
(25%) 64
53 34
friends/colleagues
Word of
Online (N/A) (N/A)
4
(N/A)
6 10
mouth
blogs/forum s
Internet consum er (N/A) (N/A)
(N/A) 8
15 27
review s
(37%) (41%)
(31%) 46
43 36
Store displays
Speak w ith store (35%) (45%)
50
(21%)
42 30
staff
Retail
Manufacturer (15%) (11%)
8
(21%)
15 25
w ebsite
Netw ork provider (14%) (10%)
(20%) 8
14 24
w ebsite
Telecom s retailer (N/A) (N/A)
(N/A) 5
8 12
w ebsite
(18%) (18%)
13
(19%)
17 23
Prom otions
Marketing /
ads
(15%) (21%)
23
(8%)
19 11
New spapers
(14%) (20%)
(4%) 27
19 6
TV
Contact service (2%) (3%)
(2%) 2
3 3
centre
Previous (21%) (21%)
18
(22%)
23 32
experience
A12: Sources of information consulted when buying a mobile phone
2008 TNS Copyright 5793
Bases: 12489 6696 Local market
15
2009 Bases: All mobile users: 18482 8655 9827 data cuts

16. Mobile music is a rapidly growing driver of choice, particularly in
emerging markets
Most important features when choosing mobile phone
(2008)
(2008)
% Global Developed Emerging
(2008)
(40%) (38%) (42%)
41 37 43
Still camera
Imaging
Video (15%) (11%) (22%)
18 8 24
camera
(39%) (51%) (24%)
34 40 31
SMS
Messaging
(6%) (8%) (5%)
14 14 14
MMS
Mobile
(7%) (8%) (7%)
9 11 8
email
(10%) (12%) (8%)
21 15 24
MP3
Music
FM / AM
(12%) (6%) (7%)
19 8 26
Radio
(15%) (18%) (14%)
15 17 13
Bluetooth
(4%) (7%) (2%)
8 12 6
GPS
(11%) (7%) (17%)
8 5 11
Games
Mobile
(6%) (6%) (6%)
8 11 7
internet
A24: Most important features when looking to buy next mobile phones (top-3)
2008 TNS Copyright 5793
Bases: 12489 6696 Local market
16
2009 Bases: All mobile users: 17264 8522 8742 data cuts

17. Retail channels in emerging markets are still heavily fragmented across
multiple channels, offering opportunities for large retailers to consolidate
Sources of purchase for last mobile phone
3 3 4 1 3 2 1 3 2
1 3 1 1 1
2 5
6 5 7
3
% 3
8 Telesales
6 5 5
1
4
15
11
1
1 1
13
13 3 7
16
15
8 13
9 10 16
Other
Internet
1 13
6
11 29
18
5 13
13
1
10 3
8 8
7 2 12
5 19 12
Open air market
8 11 6 8
7
7 7
7 10 9
3
5
7
7 Generalist store
15 5
5
17
23
28
Consumer electronics store
50 33
63 25
50 46 Retail
56 Manufacturer store
59
40 56
stores
46
43
39
Network provider store
31
29
19
13
Independent retailer
12
6 6 6
1
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A9: Source of last phone purchase
2008 TNS Copyright
Base: All mobile users: 12489 Local market
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2009 Bases: All mobile users: 17264 8522 8742 1772 3222 3528 724 2031 523 1380 1513 1370 808 393 data cuts

18. USAGE:
THE CONSUMER ANGLE
How do consumers use their phone?
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19. Smartphones are moving from a niche desirable towards mass market
penetration levels, especially in Developed Asia
% of mobile users with a Smartphone
34
30
27
25
21
20 18 17 15 15
14
13
6 5 3
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A22. Ownership of Smartphones (defined on feature-set of current mobile phone. See study overview for details)
2009 TNS Copyright users: 17264 8522 8742 1772 3222 3528 724 2031 523 1380 1513 1370 808 393
Bases: All mobile Local market
19 data cuts

20. Messaging capabilities are diversifying to include MMS, email and IM
% using
(2008)
(2008) (2008)
Global Developed Emerging
(69%)
77 82
80 (78%)
SMS (84%)
(37%)
48 35
(36%)
40 (35%)
MMS (pictures)
(17%)
24 28
(18%) (19%)
26
MMS (video)
Messaging
(14%)
18 13
(11%) (9%)
Pull email 15
(6%)
12 10
(5%) (4%)
Push email 12
(5%)
13 13
(8%)
Instant Messaging 13 (10%)
(30%)
35 36
(27%)
36 (24%)
Bluetooth
Connecting
(9%)
16 8
(5%) (3%)
3G capabilities 11
(4%)
(3%) 10 6 (2%)
WiFi 8
Internet
(N/A)
(N/A) 19 (N/A)
15
Dedicated brow ser 16
(N/A)
(N/A) (N/A)
23 14
17
Netw ork provider brow ser
(4%)
(3%) (2%)
5 3
Blogging 3
A22+B1: Use of connectivity features and services on mobile phone
2008 TNS Copyright users: 12489 6696 5793
Bases: All mobile Local market
20
2009 Bases: All mobile users: 15479 7114 8365 data cuts

21. While there is plenty of room for new messaging forms to grow, they are
not being used as frequently as SMS
Daily users Weekly users Infrequent users White space (interested non-users) Rejectors
%
SMS 54 17 9 10 7
%
MMS (pictures) 8 13 19 37 18
MMS (video) 5 8 13 42 24
Messaging
Pull email 6 4 5 47 28
Push email 4 3 4 47 30
Instant Messaging 5 3 4 44 30
Bluetooth 11 12 12 37 19
Connecting
3G capabilities 5 3 3 46 27
WiFi 3 2 3 47 30
Internet
Dedicated brow ser 6 5 5 45 28
Netw ork provider brow ser 5 4 8 42 30
Blogging 1 1 1 41 39
A22+A23+B2+B4: Use of connectivity features and services on mobile phone + interest from non-users
2009 TNS Copyright users: 17264
Bases: All mobile 21

22. The mobile internet is critical for giving emerging markets users access
to mobile entertainment and music
% visiting mobile internet site
(2008) (2008)
(2008)
Global Developed Emerging
38 31
34 (42%) (46%)
(37%)
Search
Connecting
20 19
20 (16%) (16%)
(16%)
Social net working
1 3
2 (N/A) (N/A)
(N/A)
Virt ual worlds
13 8
11 (14%) (17%)
(9%)
Shopping
Purchasing
13 2
8 (10%) (7%)
(11%)
Auct ion sit es
5 1
3 (5%) (2%)
(6%)
Gambling
14 25
20 (30%) (38%)
M usic (26%)
6 20
14 (19%) (21%)
(12%)
Ent ert ainment
Media
8 12
10 (N/A) (N/A)
(N/A)
Video sit es
4 6
5 (N/A) (N/A)
Pict ure sit es (N/A)
1 1
1 (N/A) (N/A)
(N/A)
Adult
27 27
27 (30%) (28%)
(31%)
News
27 6
16 (25%) (11%)
(34%)
Weat her
Information
16 14
15 (18%) (18%)
(18%)
Sport
11 11
11 (16%) (20%)
(13%)
Games
8 7
8 (12%) (14%)
(11%)
Business/ f inance
2 3
2 (6%) (9%)
(4%)
Aut omotive
3 4
3 (6%) (8%)
(5%)
Healt h
7 4
6 (9%) (6%)
(11%)
Travel
A33: Websites visited on mobile phone
2008 TNS Copyright internet users: 9640 6337 3303
Bases: All mobile
22
2009 Bases: All mobile internet users: 6792 4789 2003

23. Mobile music continues to boom with mobile gaming somewhat stagnant
% using
(2008)
(2008)
(2008)
Global Developed Emerging
(49%)
(64%) 53
71
59 (55%)
Still camera
(33%)
(31%) 43
40
42 (32%)
Video camera
Do wnlo ad
Imaging /
(5%)
(3%) 6
5 3
(4%)
TV/Video
video
Sidelo ad
(9%)
(5%) 9
(7%)
8 5
TV/Video
(3%)
(5%) 9
(4%) 14
11
Live TV
Lo ad graphics &
(19%)
(12%)
(15%) 10
17 10
themes
(35%)
(25%) 16
(31%) 31
38
M P 3 player
(27%)
(14%)
(22%) 42
28 14
FM /A M Radio
(19%)
(11%)
(15%) 36 Music
9
17
Do wnlo ad music
(28%)
(16%)
(22%) 21
26 5
Sidelo ad music
(27%)
(20%)
(24%) 30
17
25
Lo ad ringto nes
(22%)
(14%)
(18%) 11
18 11
Lo ad caller tunes
(57%)
(38%)
(48%) 40
37
46 Gaming
P lay games
(11%)
(10%)
(10%) 14
10 9
Do wnlo ad games
(12%)
(7%)
(10%) 29
7
11
Sidelo ad games
(N/A)
(N/A)
Uplo ad co ntent
(N/A)
9 22
9
to mo bile internet
(N/A)
(N/A)
Uplo ad co ntent
(N/A) 21
25
19
to P C
A22+B1: Use of content features and services on mobile phone
2008 TNS Copyright users: 12489 6696 5793
Bases: All mobile Local market
23
2009 Bases: All mobile users: 17264 8522 8742 data cuts