Mobile Internet MattersJustin Lee

80% Source: IDC

has internet capabilityby 2008.

In fact,

What is

Mobile Internet Service?

Download Games

Download Music

Email

Instant Message

Voice Over IP

Maps

Location based service

Surf Internet

Banking

News

Video

Mobile TV

Voting

Social Network

WhyMobile Internet Matters?

More than 50%of world population will have mobile phone by end of year.

Source: UN

30 countries exceeded 100% mobile phone penetration.

Source: Experian

20%

mobile Phone growth rate per annual

2001-2007

5.8%2007-2012

Worldwide shipments of

Source: IBM Institute for Business Value

per year-7%

since 2002

Average selling price

Source: IBM Institute for Business Value

$0

$15

$30

$45

$60

2002 2003 2004 2005 2006 2007 2008

of USA are Mobile ARPU

declining.

Source: Chetan Sharma

Talkless

$0

$15

$30

$45

$60

2002 2003 2004 2005 2006 2007 2008

are declining.

Voice revenues

Source: Chetan Sharma

What stops user from using mobile internet?

Find it expensive

Connection is slow

Don’t find it convenient

Tried but don’t find it useful

Never tried

Don’t know about it 8%

16%

17%

37%

40%

50%

Source: IBM Institute for Business Value

Time based pricing

or volume based pricing

to flat rate data tariff

0.4 NTD / minutes

0.005 NTD / per packet

850 NTD / per month

What stops user from using mobile internet?

Find it expensive

Connection is slow

Don’t find it convenient

Tried but don’t find it useful

Never tried

Don’t know about it 8%

16%

17%

37%

40%

50%

Source: IBM Institute for Business Value

3.5G is speedy!

WAP

PHS

GPRS (2.5G)

EDGE (2.75G)

WCDMA (3G)

HSDPA (3.5G)

14K

64K

114K

237K

384!

1440K

43 seconds

What stops user from using mobile internet?

Find it expensive

Connection is slow

Don’t find it convenient

Tried but don’t find it useful

Never tried

Don’t know about it 8%

16%

17%

37%

40%

50%

Source: IBM Institute for Business Value

is getting bigger.

2005 2006 2007 2008

Source: Sender 11

240x320

128x128/160

172x208/220

Screen size

Touch screen phonegrowth over 230% this year!

2007 2008

9.6M

4.2M

Source: New York Times

internet experienceBetter

internet experienceBetter

What stops user from using mobile internet?

Find it expensive

Connection is slow

Don’t find it convenient

Tried but don’t find it useful

Never tried

Don’t know about it 8%

16%

17%

37%

40%

50%

Source: IBM Institute for Business Value

More

Useful Application

May Jun Jul Aug Sep Oct Nov

2008

10202 apps on the App store!

Source: 148Apps

What stops user from using mobile internet?

Find it expensive

Connection is slow

Don’t find it convenient

Tried but don’t find it useful

Never tried

Don’t know about it 8%

16%

17%

37%

40%

50%

Source: IBM Institute for Business Value

Surfmore

Playm

ore

Listenm

ore

Mobile internet service is

Useful!

$0

$3

$5

$8

$10

2002 2003 2004 2005 2006 2007 2008

Data revenues are growing.

Source: Chetan Sharma

50% 50%MobileDeviceMakers

OperatorMobile

Services

Partners

Players Types at 2G Era

Customer

Co

mp

etit

or

Co

mp

etit

or

Source: IBM Institute for Business Value

3G open the door to

Internet Service Provider

33% 33%

33%MobileDeviceMakers

OperatorInternetService

Providers

Mobile

Internet

Services

Competitor

Com

petit

orC

ompetitor

Partners

Partners

Customer

Partners

Players Types at 3G Era

Source: IBM Analysis

Challengesto Mobile Device Maker

Competition

Mobile

Internet

packagingContent and service

User Experience

User Experience

Business relationshipschannel conflictsand

Business modeltransformation

Thank You!