JPS' presentation for the 3 Mobile Internet Seminar

1. Mobile Internet Seminar
John Penberthy-Smith
28th June 2007

2. In ten years time the internet
on the mobile will be more a
part of everyday life than the
fixed internet.

3. Mobile internet – convenience key benefit
“It allows me to do what I want, when and where I want, and without a PC”
The benefit, at this stage, is not necessarily speed
DIVERSION CONVENIENCE
ALTERNATIVE TO
PRIVACY It’s something to It allows me to do
HOME PC
do when I’m what I want to do
It’s easier / faster I can look at
trapped / bored …without a PC
than getting on PC whatever I want
usually at home / work usually on the go
MAJORITY
MINORITY
Source : Mobile internet research, March 2007 – 20 in depth qualitative interviews

4. Internet Market Analysis
Varying levels of involvement by UK operators in Mobile Internet. Developing
trend to offer a flat rate monthly fee, as well as pay-as-you-surf for casual users.
3 offer X-Series applications, Yahoo! Search and mobile page
adaptation, as well as unrestricted internet access.
High Vodafone offer some applications (such as Google Maps) and
mobile page adaptation, but have usage restrictions.
T-Mobile keep it simple, offering open access with the aid of
Google Search, but no mobile page adaptation means they try
to keep the internet to PDA devices primarily.
O2 developed iMode, in an attempt to make internet services
available for mobile. Beyond this they offer open internet
access but nothing to aid the customer.
Orange currently do nothing to aid the internet experience of
Low
the customer, but do offer full access.

5. Mobile Internet on 3
Central to 3’s business
• X-Series launched Nov 06 – leading the way
• Best internet applications – Skype, Yahoo, Windows
Messenger, Google, Sling, Orb, eBay
• New pricing model – flat rate charging
• Global deal with Yahoo on search, mail and messenger
• MSN Instant Messenger launched August 2006
• Internet popularity among 16 to 24 year old
demographic fits 3 customer base

6. Access for all
Significant increase in internet usage across customer base
•Yahoo – July 2006 to January 2007 there were 82 million
page views. From March 2007 to June 2007 there were 62
million page views
•MSN Instant Messenger – 118 million messages sent and
received in May 2007
•Customer research indicates vast majority of 3 mobile
internet customers would recommend it and see the service as
an integral part of what we do
Source : Mobile internet research, March 2007 – 20 in depth qualitative interviews

7. A simple and rewarding experience will be the
critical factor in driving mobile internet use
Product
Challenge for
Price
mobile
Place
industry
Promotion
People

8. The future…..
Customers will expect pc convenience - software
download becomes the norm
Advertising – what impact will it have?
Mobile operators/established internet players
• how will they work together?
• Sharing the value chain?
Devices – will hardware develop at the same pace as
software?
Impact of HSDPA – broadband speeds the internet