German American Business Association Mobile Internet Strategy Series 2009Mobile Internet Strategy Series 2009

06/11/2009

Panelists:

Holger Luedorf, Senior Director - Strategic Partnerships, Yahoo! Mobile

Willie Jow, Vice President - Business Operations & Mobility Products, Sybase

Prashant Chatterjee, Director - Mobility & Industry Analytics, SAP

Nischal Piratla, Chief Scientist - Mobile Services & Platforms, T-Labs USA

Moderator: Daniel Kellmereit, CEO Detecon Inc. – Deutsche Telekom Group

Deutsche Telekom Group

The traditional fixed Internet transitioned from a closed model dominated by ISPs to anFixed vs Mobile InternetA Brief History of the Internet

Awareness2000

Open Internet1995

Closed Internet2005

Closed Mobile Internet2008 - 2010?

Open Mobile Internet

The traditional fixed Internet transitioned from a closed model dominated by ISPs to an open model dominated by software service providers. Will the mobile Internet follow?

Beginning of serviceMost content through service provider portalNews and basic

Open InternetClosed Internet Closed Mobile Internet Open Mobile Internet

Service and application providers such: as Yahoo, Google, Microsoft, Amazon, Ebay, startups, etc.

Basic serviceMost content through service provider portalNews and basic

Service and application providers such: as Yahoo, Google, Microsoft, startups, Apple? Nokia? Carriers?News and basic

communications services (email, messenger, etc.)

Today

Ebay, startups, etc. News and basic communications services (email, carrier messenger, etc.)

pp

Early ISPs such as: America Online, Deutsche Telekom,British Telecom, etc.

Proliferation of servicesMost content from major news and search portals

Tier 1 carriers such as: NTT DoCoMo, Deutsche Telekom,Vodafone, etc.

Proliferation of servicesWell-known software

news and search portals run by software playersDot-com crash shows need for monetizationAdvanced communication

i ( t t social

players transfer to mobileCarriers and OEMs want to enter service spaceAdvanced services like status, LBS, etc. mature

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Timeservices (status, social groups)

New players from the software and internet space bring new mobile competencies whichCompetitive ChallengesEcosystem and Key Players

Global ReachService Scale

New players from the software and internet space bring new mobile competencies which threaten to put carriers at a competitive disadvantage for the mobile service opportunity.

Millions of Unique Visitors Dec. 2007 Major Markets

Innovative ServicesEcosystem

Global Mobile IM Revenues (US $B)

TV Mobile

Services

Apps

Store

Partners

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Source: comScore, Detecon Research, Strategy Analytics, Ovum

Computer Entertainment Online Content2010 2011 20122008 2009

SmartphonesVendorsSince 2007 BlackBerry has doubled and Apple has tripled its market share at the expenseSince 2007 BlackBerry has doubled and Apple has tripled its market share at the expense of Nokia, Motorola, Sharp and Fujitsu.

Global Smartphone Market Sharep

2007

Others

2008 Q1 2009

Nokia

3%Fujitsu 2%Palm 3%

Sony Ericsson 14%

Others

40%3%

Nokia

3%3%2%

2%12%

37%

Nokia15%

1%3%

1%3%2%

RIE

S.P

PT

5%

6%

49%

10%3%

A l

3%

HTC

2%

SamsungMotorola

Sharp4%

7%

16%9%

A l

3%

HTC

4%6%HTC

Apple

1%

20%10%

3%

TER

NET

STR

ATEG

Y SE

R

BlackBerryApple 16%

BlackBerryApple Apple

BlackBerry

20%

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Source: Strategy Analytics 2009

SmartphonesOSSymbian declines Microsoft stagnates Apple BlackBerry and Android rise upSymbian declines. Microsoft stagnates. Apple, BlackBerry and Android rise up.

Global Smartphone OS Market Sharep

2007

SymbianOthers Android Symbian Symbian

2008 Q1 2009

Symbian

12%Microsoft

3%Apple 12%

Others

9%

9%

%

Symbian

Apple

LiMo1%

2%2%

7%

41%Android

Symbian

LiMo4%1%3%

1%

1%

15%

RIE

S.P

PT

63%10%BlackBerry

49%

16%

13%

Microsoft

7%

12%

18%13%Apple

LiMo 1%

TER

NET

STR

ATEG

Y SE

R

BlackBerry BlackBerryMicrosoft

GA

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Source: Strategy Analytics 2009

Mobile Internet UsageUsage per OSThe iPhone and Android phones clearly generate the most mobile web traffic of allThe iPhone and Android phones clearly generate the most mobile web traffic of all smartphones relative to sales.

Handset Sales Compared to Mobile Internet Usagep g

HTML (Net Applications)Mobile Web (AdMob)Handset Sales

52%

43%

65%

( pp )

RIE

S.P

PT

17%

43%36%

TER

NET

STR

ATEG

Y SE

R

9%1%2%

8%12%

17%

2%3%2%5%9% 9%9%

2%6%3%

7%

Palm OtherAndroidiPhoneRIM WindowsSymbian

GA

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y

Source: AdMob 2009

Android vs. iPhone

Both the iPhone and Android support a similar range of apps but Android has the edgeComparison of functionalityBoth the iPhone and Android support a similar range of apps, but Android has the edge in location while the iPhone leads in media.

62%Android All categories are

39%

iPhoneAndroid All categories are

well covered by both platforms,Android has a larger number of location-based applications

Percentages represent the number of apps within the sample set that support each feature; each app can potentially support multiple features

35%32%

22%22%

39%

32%32%

20%20%

The iPhone generally has more media applications, such as those dealing with images, video and audio.

RIE

S.P

PT

5%3%

14%14%11%

0%5%

10%

20%

12%

20%17%

audio. Android is more multi-functional , each Android app handles 2.2 functions, while each iPhone app handles 1 8 functions

TER

NET

STR

ATEG

Y SE

R0%

Back-End

Admin.

Browser-Based

Update Info

Navi. and

Location

ImagesAudioIndirect Comm.

VideoDirect Comm.

Front-End

Admin

handles 1.8 functions

GA

BA

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Source: Detecon Analysis

Mobile EnterpriseResults of Ovum EVUA study: Which applications matter?Mobile email field force automation and M2M are widespread Supply chainMobile email, field force automation and M2M are widespread. Supply chain management, fleet management and mobile marketing are on the agenda.

Which mobile data applications does your company currently use or plan to use?

84%

49% 7%

Currently useDon’t use now but plan toin next 2 yearsDon’t use and don’t plan toField sales force a tomation 39%

Mobile office/mobile email 16%

pp y p y y p

49%

44%

31%

29%

31%25%13%Field service automation

7%

Don’t know

in next 2 yearsDon’t use and don’t plan to

M2M 15% 12%

Field sales force automation 39% 5%

RIE

S.P

PT

24%

13%

42%

46%9%32%Supply chain management

Dispatch/command control 21%13%

TER

NET

STR

ATEG

Y SE

R

13%

9%

42%

43%

57%5% 23%Other location based applications

24%24%Mobile marketing

28%17%Tracking and fleet management

15%

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57%5% 23%Other location-based applications 15%

Source: Ovum EVUA 2008

Mobile EnterpriseCorporate user survey resultsMost corporate users want enterprise applications on their cell phone but are notMost corporate users want enterprise applications on their cell phone but are not convinced by the solutions currently available.

What users think

Mobile access to corporate applications is crucial 82%

What users think…

76% Current virtualization interfaces are inadequate

I t th t li ti f

RIE

S.P

PT

67%

38%

I want the same access to applications from mobile and laptop

My IT department is behind the times in mobile

TER

NET

STR

ATEG

Y SE

R38%

6%

y penterprise applications

My mobile enterprise applications are intuitive to use

GA

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Source: Open Kernel Labs 2009

to use

Social Network Centric PhonesINQ1 integrates social networks. Skype phone sold over 700 00 times since launch in 2007 Twitter feature announced forSkype phone sold over 700,00 times since launch in 2007. Twitter feature announced for this Summer.

RIE

S.P

PTTE

RN

ET S

TRAT

EGY

SER

GA

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Source:

The Apple vs. the Android ModelUser experience vs. freedomAt Apple user experience trumps openness at Android it’s vice versa

AndroidiPhone

At Apple user experience trumps openness, at Android it s vice versa.

Restrictive SDKOne handset makerOne device, one

Open SDK8-10 handset makersAbout 20 devices end of 2009,

screen sizeOne carrier per marketLittle app customization

multiple screen sizesMultiple carriersPlenty of customization options, e. g. carrier brandingLittle rules

RIE

S.P

PT

customizationStrict graphic guidlines

Little rules

TER

NET

STR

ATEG

Y SE

R

Limited options, superior and consistent user e perience

Many options, fragmented, inconsistent user e perience

GA

BA

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Source: Detecon Inc.

experience experience

Thanks for attending!

contact:

Daniel Kellmereit CEO

Detecon, Inc. 128 Spear Street, 4th floorSan Francisco, CA 94105,

Daniel.Kellmereit@detecon.com