Mobile Life 2012“ Content

Goldmedia Mobile Life Report 2012 Mobile Life in the 21st century Status quo and outlook

Supported by BITKOM

Berlin, October 2008 Goldmedia GmbH Media Consulting & Research

Dr. Klaus Goldhammer, Dr. André Wiegand Daniela Becker, Michael Schmid Oranienburger Str. 27, 10117 Berlin, Germany Tel. +49 30-246 266-0, Fax +49 30-246 266-66 Klaus.Goldhammer[at]Goldmedia.de Andre.Wiegand[at]Goldmedia.de Daniela.Becker[at]Goldmedia.de Michael.Schmid[at]Goldmedia.de All rights belong to their respective owners. Goldmedia has no intention to violate any rights. If you feel we did so, please contact us. Goldmedia-Report “Mobile Life 2012“ Content

1. Executive Summary “Mobile Life 2012“ 2. Overview: “Mobile Life“ 3. Framework Conditions for “Mobile Life“ 3.1 Technical Conditions: Digital Laws of Information Technology 3.2 Economic Parameters: Mobile Market in Germany 3.3 Market Developments: End-User Devices 4. Customer Research and Customer Perspective - Usage Habits in Germany 5. Services and Markets for “Mobile Life“ 5.1 Mobile Entertainment 5.2 Mobile Internet 5.3 Mobile Advertising & Marketing 5.4 Mobile Commerce, Payment and Ticketing 5.5 Mobile Navigation and Location Based Services 6. Benchmark: Experiences in Japan, South Korea and Italy 7. Forecasts for ”Mobile Life“ 8. Outlook and Theses

Supported by 2 1. Executive Summary: “Mobile Life 2012“

Supported by 3 1. Executive Summary: “Mobile Life 2012“ Mobile phones are part of the everyday life!

Importance of mobile handsets in Germany 2008 Online survey “I agree completely / I substantially agree with the following statements:“ Almost half of respon- 0% 10% 20% 30% 40% 50% dents cannot imagine a life without their mobile I cannot imagine a life without my mobile 43.2% phone. phone, ¼ feel “naked“ without their handset. I feel naked/incomplete without my mobile 26.0% phone. One quarter already replaced different devices

My mobile phone already replaced other devices such as MP3-players, 23.3% (e.g. MP3-player, camera, notepad, pen, etc.) cameras, etc. by mobile phones. With mobile phones I organise my entire private 15.6% life. Only ~10% use mobile handsets to organise their Add-ons (such as camera, MP3-player, organiser, etc.) are more important for me than voice 13.0% private and business life! telephony.

With mobile phones I organise my business life. 10.6% Conclusion Mobile phones are o I save all my important personal data on my the N 4 medium in 10.6% mobile phone. Germany right after

Source: Goldmedia Online Survey 2008, n=296 (18-35 years, DE) Internet, PC and TV.

Supported by 4 1. Executive Summary: “Mobile Life 2012“ Communication habits and social behaviour has changed!

Communication environment change Impacts on social behaviour Rise of new business ideas such as “Fake-It”: Being “always on“ gives users the feeling of “being “With Fake-It, now you can make your phone receive important calls from your wife or your in demand“ and “needed“ boss (shown as Caller ID), when you need an excuse to leave a boring meeting.”

Source: www.clickapps.com/moreinfo.htm?pid=15835§ion=S60V3 Social respect and appropriateness are declining: Talking by phone or listening to Artificial creation of music in public transport, checking mails “public communication over smartphone in meetings or even spaces“ helps people to play answering “urgent calls“ during a romantic down insecurity or social candlelit dinner is becoming more and isolation: Every 4th more normal. confessed to having already “Acoustic environmental pollution”: 69% simulated a telephone call!* annoyed by people talking on their phone *Source: James E. Katz „Mobile Kommunikation und die Transformation in public, 63% bothered by ringtones!* des Alltagslebens: Die nächste Phase in der Mobiltelefon-Forschung. In: Glotz/Bertschi/Locke (Hrsg.): Daumenkultur. Source: Survey by Aris for BITKOM 2008, n=1,001 (14+ years in DE)

Supported by 5 Goldmedia-Report “Mobile Life 2012“ Content 1. Executive Summary “Mobile Life 2012“ 2. Overview: “Mobile Life“ 3. Framework Conditions for “Mobile Life“ 3.1 Technical Conditions: Digital Laws of Information Technology 3.2 Economic Parameters: Mobile Market in Germany 3.3 Market Developments: End-User Devices 4. Customer Research and Customer Perspective - Usage Habits in Germany 5. Services and Markets for “Mobile Life“ 5.1 Mobile Entertainment 5.2 Mobile Internet 5.3 Mobile Advertising & Marketing 5.4 Mobile Commerce, Payment and Ticketing 5.5 Mobile Navigation and Location Based Services 6. Benchmark: Experiences in Japan, South Korea and Italy 7. Forecasts for ”Mobile Life“ 8. Outlook and Theses

Supported by 6 2. Overview: “Mobile Life“ Mobile Life encompasses all mobile B2C services & applications!

Services, features and applications Status quo & outlook

Information services Communication services Constant development and (push services e.g. news over (SMS/MMS, e-mail, (video) convergence of mobile features SMS/MMS, web browser, telephony, VoIP, instant and services mobile search etc.) messaging, chat etc.) Traditional services (such as SMS and voice telephony) Multimedia Transaction services (MP3-player, (mobile commerce, could be cannibalised by new videoplayer, photo mobile payment, features and applications (such camera, radio, mobile ticketing) as mobile instant messaging or mobile TV, etc.) Voice2Text) Special Applications Voice telephony still important, Personal Assistant (barcode scanner, (address books, employee locating, but data services will catch up: calenders, etc.) etc.) Share of data service revenue in Western Europe 2008 Location/position- based services Entertainment services Data service (games, communities, revenue (navigation, fleet 20% management and other gambling, etc.) location-based services) Data transfer/synchronisation Others 80% Information memory (…with other mobiles or other (services for data storage such devices such as computers, as office documents, eBooks, laptops, MP3-players, etc. (SyncML, Data service ARPU/month: 7-8 Euros password managers, etc.) ActiveSync, Object Push…)

Source: Goldmedia Analysis 2008 Source: Goldmedia Estimation 2008

Supported by 7 Goldmedia-Report “Mobile Life 2012“ Content 1. Executive Summary “Mobile Life 2012“ 2. Overview: “Mobile Life“ 3. Framework Conditions for “Mobile Life“ 3.1 Technical Conditions: Digital Laws of Information Technology 3.2 Economic Parameters: Mobile Market in Germany 3.3 Market Developments: End-User Devices 4. Customer Research and Customer Perspective - Usage Habits in Germany 5. Services and Markets for “Mobile Life“ 5.1 Mobile Entertainment 5.2 Mobile Internet 5.3 Mobile Advertising & Marketing 5.4 Mobile Commerce, Payment and Ticketing 5.5 Mobile Navigation and Location Based Services 6. Benchmark: Experiences in Japan, South Korea and Italy 7. Forecasts for ”Mobile Life“ 8. Outlook and Theses

Supported by 8 3.1 Technical conditions Growing usability, functionality and storage capacity! Development of mobile devices and technologies in Germany

E-Net UMTS… C-Net D-Net A-Net B-Net 1958 1972 1986 1992 1994 2000… Source: Goldmedia Focus Handygeschichte/ 2008

Increasing display Declining size and resolution, growing storage weight, affordable prices, capacity, integration of multi- intuitive usability & easy media tools (music & video handling player, cameras, etc.)

Supported by 9 3.1 Technical conditions Data transfer rate increases as transmission time declines!

Development of data transfer rates Upgrade of standards …in Western Europe 1992-2008 LTE 50 Mbit/s A-, B- and C-net = analogue nets 10.000 HSDPA UMTS 7.2 Mbit/s D and E-net first digital nets with GSM 1.000 EDGE up to 2 standard (2G): rollout in 1992 led to a rapid GPRS 48.8-384 Mbit/s HSCSD 9,0-107 kbit/s diffusion of mobile telephony. Over 80% 100 14.4-57.6 kbit/s (~3bn people in <200 countries) use GSM. kbit/s 10 GSM GSM upgrades: GPRS, EDGE (EDGE 9.6-14.4 kbit/s Evolution), CSD (HSCSD)

Data transfer rate in kbbit/s transfer Data 1 GSM HSCSD GPRS EDGE UMTS HSDPA LTE Launch of UMTS (3G) in Germany: 1992 2000 2008 Source: Goldmedia / UMIT Innsbruck 2007 Æ auction of licenses in 2000 (~50bn €) Æ 1st commercial offers in 2004 Transmission time by channel UMTS Upgrades: HSPA (High Speed Packet Access), HSDPA, HSUPA, HSPA+ video UMTS e-mail report clip Coming soon: LTE (Long Term Evolution) video GSM 2+ e-mail photo report and HSOPA (Super 3G and 4G) clip video Conclusion ISDN e-mail web photo report clip Transmission time dropped from video PSTN* e-mail web photo report clip hours to seconds! Data transfer video rates increased from 9.6 kbit/s to GSM Phase 1 e-mail web photo report clip 25Mbit/s within 16 years! 0 10 sec 1 min 10 min 1 hour Source: Goldmedia / UMIT Forum 2008, * Public Switched Telephone Network Data rates double every year!

Supported by 10 3.2 Economic parameters: Mobile market High penetration and strong market power of MNOs in DE!

No of subscriptions & market penetration Summary 120 131% 140% …in Germany 1998-2008 118% Mobile subscriptions 120% 100 Subscribers 104% 110 doubled within seven UMTS subscribers 96% 86% 97 100% years (2000-2007). 80 Penetration in % 79% 86 68% 72% 79 80% Mobile penetration: 59% 71 60 65 more than 125% in 56 59 60% 40 48 Q2/2008! 29% 40%

Million subscribers Million 17% Figures of inactive 20 15.9 23 6.5 10.4 20% members (e.g. un- 14 2.3 0 0% in per cent Penetrration used but registered 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008e SIM cards from Source: BITKOM 2008/Goldmedia, e=estimation prepaid providers) MNO & MVNO market share are included. …in Germany Q1/2007 Significant growth in E-Plus 12.4% 3G subscriber figures since rollout of T-Mobile 26.6% UMTS services in O2 12.5% 2005 in Germany. Strong market power of the MNOs: E-Plus,

MNVO 24.3% Vodafone 24.2% T-Mobile, Vodafone and O2 share 75% of Source: Federal Network Agency 2007 the entire market!

Supported by 11 3.2 Economic parameters: Mobile market Shrinking ARPU and revenue in Germany!

Total mobile revenues in Germany Conclusion 2002-2007 Decrease in total mobile revenues while 30 27.33 27.25 26.87 subscriber figures still grow. 25.27 25.02 25 22.62 23.57 20.27 ARPU (Average Revenue Per User) 20 declines constantly, CAGR -6.6% 15 ARPU: Loss of 8.50 € (one third!) within 10 six years from 2002-2008 due to the In billion Euros 5 0 market entry of mobile discounters such 2000 2001 2002 2003 2004 2005 2006 2007e as Simyo, Blau, Fonic, callmobile, Source: Federal Network Agency 2007, e=estimation Federal Network Agency Congstar, etc.) since 2005. Development of ARPU in Germany …of the four MNO, 2002-2008 35 T-Mobile Ø €25.30 E-Plus 30 28.2 Vodafone Telefonica O2 26.0 25 24.0 Ø €16.80 23.0 18.0 20 17.0 ARPU in Euros/Month 16.0 15 16.0 02 03 04 05 06 07 08e Source: Goldmedia 2008 (averaged, weighted APRU based on no of subscriptions (company data), e=estimation)

Supported by 12 3.3 Market development end user devices Mobile and smartphones are more popular than PDAs!

Development of mobile devices Results Mobility Mobile phones, smartphones and laptop sales increasing, PDA losing more and more market share. 291.6 m mobile devices Worldwide, 11% of mobile handsets sold sold in 2007 were smartphones. Mobile phone worldwide in 32m Q1/2008* Diversification of functions and forms smartphones sold has blurred the boundaries between wordwide in mobile devices. Q1/2008** Trends: multimedia mobile phones Smartphone with focus on mobile TV, radio, music, gaming, etc. (e.g. iPhone), organizers 720,000 with web browser and office PDAs sold applications (e.g. BlackBerry), mobile worldwide in navigation devices (e.g. Nüvifone) PDA Q2/2007*** 31.1m Conclusions laptops sold worldwide in Trend is towards specialised Q1/2008**** mobile devices! Mobile market Laptop characterised by short life cycles Processing Storage of mobile devices & enormous power * Source: IDC (2008), ** Source: Gartner (2008), capacity demand for innovation! *** Source: IDC (2007) , **** Source: Display Search (2008)

Supported by 13 Goldmedia-Report “Mobile Life 2012“ Content

Supported by 14 4. Useage habits in Germany Mobile music, games and internet most popular functions!

Usage of m-entertainment services in DE 2008 Conclusions

“Which applications/functions do you use on your mobile phone at least once The Goldmedia Online a month or even more frequently?“ Survey proves that voice Basis: Men and women in DE between 18-35 years (n=296) telephony is still the most- 0% 25% 50% 75% 100% frequently used function on

Telephone 96% mobile handsets (96%). Send SMS 92% SMS is the No 1 non-voice- Take photos 58% application (92%). Watch photos 58% Listen to music 52% More than half of all respon- Play games 48% dents take and view photos Surf the Internet 36% or listen to music at least Write e-mails 33% Send photos/pics/videos via MMS,… 30% once a month. Pay bills 27% Less than 50% play mobile Upload music on my mobile 26% games regularly, about 1/3 Use navigation services 23% Upload photos/pictures on my mobile 20% uses internet & write e-mails Chat 19% at least once a month. Use LBS 14% Navigation services and LBS Upload videos on my mobile 13% Visit blogs 12% are not very popular yet. Upload games on my mobile 12% Mobile TV brings up the rear Upload ringtones on my mobile 12% of all mobile entertainment Watch mobile TV 7% Source: Goldmedia Online Survey 2008, n=296 (18-35 years, DE) services investigated (7%).

Supported by 15 4. Usage habits in Germany Young consumers love mobiles, SMS favourite data service! Mobile phone usage in DE Development of talk time & SMS Spread between age groups in DE 2001-2007 …2000-2007 in DE in bn minutes / bn units 14-19 years 20-29 years 30-39 years Outgoing calls (in min.) SMS (sent) 40-49 years 50-59 years 60+ years 2007. 0% 20% 40% 60% 80% 100% 80 68.34 57.11 60 1/2007 10% 17% 19% 22% 15% 17% 43.00 35.09 38.47 30.13 31.93 40 25.00 1/2005 10% 16% 22% 21% 14% 16% 20 Federal Network Agency

3/2003 11% 17% 24% 21% 14% 13% 2007 19.7 22.3 22.2 22.4 VA 18.4 19.0 0 11.4 17.1 Source: e=estimation Goldmedia 3/2001 12% 20% 26% 20% 13% 10% 2000 2001 2002 2003 2004 2005 2006 2007e Source: Top 10 mobile phone features Conclusions Most frequently-used add-ons, Young consumers (14-29 years) are an attractive 14+ years in DE 2008 0% 20% 40% 60% target group with ~13m users.

SMS 54.6% Due to demographic change, more and Address book 48.1% more elderly people (40+) use mobile n=1001

Camera 40.0% phones Æ Challenge: services and mobile Alarm clock 37.7% 2008, DE Calendar 36.2% devices should be adjusted for different Senior device Calculator 28.3% target and age groups! “easyuse” Music … 19.4% Most-used features (after voice telephony): SMS, BITKOM/Aris, Games 13.4% Reading e-mails 13.2% address book and camera. Source: Writing e-mails 13.0% Development of SMS sent (2000-2007): 11.4-22.4bn

Supported by 16 Goldmedia-Report “Mobile Life 2012“ Content 1. Executive Summary “Mobile Life 2012“ 2. Overview: “Mobile Life“ 3. Framework Conditions for “Mobile Life“ 3.1 Technical Conditions: Digital Laws of Information Technology 3.2 Economic Parameters: Mobile Market in Germany 3.3 Market Developments: End-User Devices 4. Customer Research and Customer Perspective - Usage Habits in Germany 5. Services and Markets for “Mobile Life“ 5.1 Mobile Entertainment 5.2 Mobile Internet 5.3 Mobile Advertising & Marketing 5.4 Mobile Commerce, Payment and Ticketing 5.5 Mobile Navigation and Location Based Services 6. Benchmark: Experiences in Japan, South Korea and Italy 7. Forecasts for ”Mobile Life“ 8. Outlook and Theses

Supported by 17 5.1 Mobile entertainment 2/3 of 15-27 year olds cannot live without their mobile!

Comparison of generations: Media preferences in the USA 2007 Research question: “I cannot live without...“ Basis: Men and women between 15-54 years

63 64 70 62 41 - 54 yearsJahre 60 52 47 28 -41 yearsJahre 50 39 41 35 15 -27 yearsJahre 40 33 33 30 23 20 21 20

In per cent % In per 12 8 Angaben in Prozent in Angaben 10 554 0

123456Mobile Portable Video

TV phone PC / Laptop Print media music player games Source: NBCMedia New Study, 2007 USA Conclusions The youngest age group has the strongest ties to mobile handsets! People prefer media with which they grew up: Mobile technology, internet and games rank high among 15-24 year olds. 41-54 year olds rather use traditional media such as TV, radio or print products.

Supported by 18 5.1 Mobile TV and mobile radio Radio is popular! Mobile TV (DMB/DVB-H) failed in DE!

Most frequently-used data services Interest in mobile radio and TV 2006 “Do you intend to use commercial mobile TV and mobile radio Most frequently-used data service in DE 2008 services in future?”

SMS 84.1% Mobile TV Mobile radio 44% 50% 37% 42% MMS 34.3% 22% 28% 25% 12% 7% 8% Music download 15.2% 0%

most likely likely unlikely definitely not SOFI 2006,DE n=180 in Source: Mobile Internet 13.7%

E-Mail 5.6% Conclusions

*navigation, video download, Mobile TV Others* 2.3% Radio is part of media-usage habit!

Without Video downloads are not very relevant; mobile TV is SMS still in its infancy: 32% of the users are not inter- Most frequently-used data service in DE 2008 ested at all, almost ½ would not accept extra costs* (besides SMS) watcha! (1st commercial mobile TV over DMB, Music download 15.2% launched in May 2006) shut down its service in May 2008; Mobile 3.0 (German consortium which Mobile Internet 13.7% planned to launch a mobile TV subscription service E-Mail 5.6% over DVB-H) ceased before its start in mid 2008 Mi Friends trial and commercial offers (S-DMB in Mobile Navigation 1.1% South Korea) show high uptake of mobile radio Video download 0.7% services Source: “Mobilfunk-Nutzungsverhalten in Deutschland 2008”, TNS Infratest /E-Plus Group, n=1,502 *Source: “Mobile usage habits in Germany 2008”, TNS Infratest /E-Plus Group, n=1,502

Supported by 19 5.1 Mobile games Moderate growth in DE, pre-installed games are preferred!

Mobile games revenue by region Mobile games revenue in Germany Forecast: 2007-2011 2004-2006 60 Sales in million downloads 53.8 54.0 5 Asia/Pacific Revenue in million Euros 4.6 4 40 35.8

3 2.0 Western Europe 20 € 14.9 € 15.0 € 1.8 downloads 10.6 2 In million Euros /

In billion US$ 1.5 1.7 0 1 North America

0.7 2004 2005 2006e Source: BITKOM/GfK 2007 e=estimation 0 2007 2011e Status quo Japan is the largest market Source: Gartner 2007 e=estimation In Q2/2008, worldwide ~10.9m people used their with 2.3bn US$ revenue in 2008! mobile phone for playing mobile games*. Mobile games advertising Only 5.8% of the total amount of digital gamers in Germany (which make out more than 1/3 of all Revenue from ad-financed mobile gamers) use their mobile handset for playing!** games is estimated to grow from Special mobile-gaming end-user devices 97m US$ (2007) to 1.3bn US$ (a mix between games consoles and (2012) worldwide*. mobile phones) are less than successful. This kind of advertising will become Nokia N-Gage popular and accepted by users. It Challenge: Adjustment of games to make them could boost usage of mobile games. compatible for every end-user device. *Source: eMarketer 2008 *Source: ComScore 2008, **BITKOM/Ipsos 2008

Supported by 20 5.1 Mobile games Users prefer classic games! EA Mobile is the market leader!

Mobile games market share Development of mobile games …by company, worldwide 2006 Since Nokia‘s implementation of the first Glu Mobile EA 10% mobile game “Snake“ there has been a 29% Gameloft 9% constant development of new mobile games Hands on Top mobile games download lists show that Mobile 7% users prefer simple and classic games on their I-Play mobile phones! 7% Others Namco 32% 6% Source: M:Metrics 2006 Top 5 mobile games Most downloaded games, worldwide 2006

1. Tetris (EA Mobile)

2. Bejeweled (EA Mobile) Conclusions

3. Platinum Solitaire (Gameloft) Simple and classic games dominate the mobile games market. 4. World Poker (Hands on Mobile) Users are not willing to “pay to play“, they prefer pre-installed or ad-spon- 5. Pac-Man (Namco) sored (i.e., free of charge) games. Source: M:Metrics 2006

Supported by 21 5.1 Mobile social networks & communities Social networks: Drivers of the mobile internet?

Users of mobile social networks Summary …in million users and % of mobile phone subscribers, Estimated global revenue in 2012: 28.9-52bn US$* Forecast: 2007-2012 (worldwide) 12.3m users in 2007 in the USA and Western EU** 1000 18.8% 20% Mobile social communities and networks are among 800 13.3% 15% the most popular mobile applications: 40% of the 950 600 9.5% entire mobile internet traffic worldwide goes to social 10% 6.6% networks*** 400 In million users In million 4.3% 2.7% 5% subscribers Leading mobile social networks (worldwide): MySpace 200

In % of phone mobile Mobile, Facebook, airG, Mocospace, myGamma, 20 0 0% itsmy.com 2007 2008e 2009e 2010e 2011e 2012e Source: Pyramid Research 2008, eMarketer 2008 e=estimation German-speaking networks High market potential in Germany! Boom Network Mobile? Language (mobile version) of new mobile social networks such as StudiVZ/SchülerVZ/MeinVZ no ‐ Aka-Aki (launched in March 2008), Qeep, Wer‐Kennt‐Wen no ‐ Gofresh (itymy.com), Rock-it-mobile, etc. Lokalisten yes German SchülerCC/SchülerRegister no ‐ * Worldwide forecast by Informa/ PERREY „Mobile Social Networking“ 2008, Kwick! partly German **Source: M:Metrics June 2007, ***Source: Opera „State of the Mobile Web“ 2008 Jappy yes German XING yes German Conclusion MySpace/ Facebook yes English Mobile social networks could be an Orkut yes German Twitter yes English opportunity to drive mobile internet Friendster yes English

Source: www.mehrblog.net, 28.07.2008 usage to a level comparable with online Bebo partly English Netlog yes German (+20 other languages) internet usage!

Supported by 22 5.1 Mobile music Further growth due to flat rate business models?

Paid music downloads in Germany 2004-2007 Conclusion The German music Total music downloads Share of mobile music downloads 50 13% 15% download market is 11% 40 10% limited due to illegal 40 10% 30 download services. 29 20 Nevertheless, there is a 21 5%

10 1% Share of mobile constant (but limited)

Downloads in millions Downloads 9 0 0% musicdownloads in % growth in download and 2004 2005 2006 2007 revenue figures.

Source: Bitkom/GfK Panel Services/Goldmedia 2007 Share of mobile downloads is about 10% Mobile music revenues in Germany 2004-2007 of the total downloads. Music download revenues Mobile Music download revenues Share of mobile music revenue in relation to 80 68 total music download 60 54 revenue is about 10 % as 39 40 well.

20 15 Further growth in mobile Revenues in Euros Revenues 5.1 8.0 0.1 3.4 music revenue is possible 0 2004 2005 2006 2007 - induced by flat fees. Source: Bitkom/GfK Panel Services/Goldmedia 2007

Supported by 23 5.1 Mobile music Ringtones – Decline after the hype?

Ringtone usage in UK/DE/US 2006 Ringtone downloads in DE 2006-07 …by mobile phone subscribers in %, US/UK/DE 2006 …in million units 02040 12% 10.0% US UK DE 10% 8.9% 7.3% 2006 29.8 8% 6.8% 5.1% 6% 4.7% 4%

2% 2007 23.2

0% Jan Mar May Jul Sept Nov Source: M:Metrics 2007. Survey of mobile subscribers. Data based on three-month moving average for period ending 30 November, 2006, n=14,612 (DE),14,907 (UK) and 33,736 (US) Source: BITKOM 2008 Reasons and consequences Realisation: Ringtones are high priced goods! Opportunity of user-created ringtones rises (usage of music files for ring tones)! Results: Interest in purchasing ringtones wanes! Shrinkage of 6.6m units within only one year! Declining profitability of ringtone aggregators such as Jamba/Jamster, Musiwave & Co. Uptrend of personalised entertainment service which allows subscribers to replace a standard ringback tone with a melody or voice message. Consequence: Many players expand their core businesses into music, video, information services, games or magic tricks!

Supported by 24 5.1 Mobile music Sideloading could menace new business models! Rise of new business models: music flatrates for mobiles Nokia‘s “Comes with music“ service launched in cooperation with Universal Music, Sony BMG and Warner Music in UK in Oct. 2008. Rest of Europe and Asia will follow in 2009. Business model: purchase of a mobile device together with a 1-year music flatrate; for another 1-year flatrate the customer needs to purchase a new mobile handset. Estimated willingness to pay lies between 125 and 376 Euros per year. Sideloads vs. downloads Conclusions Definition: Sideloading allows users Sideloading music is by far the most popular way to to transfer music via data cable, consume music over mobile phones so far. WiFi or Bluetooth bypassing the Sideloading music via PC instead of downloading it carrier-sanctioned mobile download. directly on mobile phones is responsible for about 90 per Source of mobile music consumption as cent of the mobile music consumption. percentage of active listeners, DE Nov. 2007 Subscription models highly attractive for music industry. No paid services are existing today: If major operators and Transferred from PC 88.7% device manufacturers introduce mobile paid music services Transferred from 8.8% esp. by flat fees, high customer demand can be expected. friends/family Downloaded from Mobile music market development and potentials can be 7.6% music service estimated when first lessons are learned with new mobile Others 2.9% music business models. Source: M:Metrics 2008

Supported by 25 Goldmedia-Report “Mobile Life 2012“ Content 1. Executive Summary “Mobile Life 2012“ 2. Overview: “Mobile Life“ 3. Framework Conditions for “Mobile Life“ 3.1 Technical Conditions: Digital Laws of Information Technology 3.2 Economic Parameters: Mobile Market in Germany 3.3 Market Developments: End-User Devices 4. Customer Research and Customer Perspective - Usage Habits in Germany 5. Services and Markets for “Mobile Life“ 5.1 Mobile Entertainment 5.2 Mobile Internet 5.3 Mobile Advertising & Marketing 5.4 Mobile Commerce, Payment and Ticketing 5.5 Mobile Navigation and Location Based Services 6. Benchmark: Experiences in Japan, South Korea and Italy 7. Forecasts for ”Mobile Life“ 8. Outlook and Theses

Supported by 26 5.2 Mobile internet Number of 3G phones grows, but Germany sluggish!

Mobile internet usage Mobile subscribers in Germany 2007 …worldwide 2007, penetration in % …in million users 100 97.2 0% 5% 10% 15% 20% 75

US 15.6% 50 25 26.0 10.4 3.4 UK 12.9% 0 Subscribers internet- UMTS internet usage* IT 11.9% phones* subscribers Source: Goldmedia, BITKOM 2008, *Mobile Web Watch 2008 - internet usage figures RU 11.2% are equivalent to a 13% usage penetration of 26m users equipped with internet capable mobiles

ES 10.8% Summary Leading countries for mobile internet pene- TH 10.0% tration: USA, UK and Italy. Delay in Germany: FR 9.6% Only 7.4% of all mobile phone owners use mobile internet. DE 7.4% 26m Germans own an internet-ready mobile CN 6.8% phone! But only 13% of them use it!* Diffusion of 3G handsets began late. BR 2.6% Reasons for reluctance to adopt mobile internet IN 1.8% in Germany: price models of M(V)NOs,

NZ 1.6% inadequate equipment, slow site load time, lack of user friendliness, poor site navigation Source: “Critical Mass ‐ The Worldwide State of the MobileWeb”, Nielsen Mobile 2008, n=1m *Source: Mobile Web Watch 2008

Supported by 27 5.2 Mobile internet E-mails, news and mobile search (navigation) are popular!

Survey: Favourite online contents Preferred contents …for mobile usage, Germans 14+ years 2007 “Which traditional internet contents do you use on your mobile?“ (DE 2008) 0% 20% 40% 0% 20% 40% 60%

Directions/navigation 36% E-mail 54%

News 44% Traffic jam alert 31%

Weather 32% News 26% Travel/Traffic 30% Time tables 26% Online Auction 25%

Weather information 24% Price comparison 15% Source: “Going Mobile” 2008 (Microsoft Avertising/M:Metrics),

Sport results 16% Conclusions Auctions/shopping 9% Top 10 mobile websites Different reports – different results: Are e-mails or (DE June 2008)*: navigation services the most wanted mobile internet Google, Yahoo!, Wikipedia, Podcasts/videos 6% Sport1, studivz.net, contents? spiegel.de, ebay.de, Opera‘s Top 10 list shows: Mobile search, e-mails and Online-Communities 6% youtube.com, wetter.com, web.de social communities are the favourite mobile contents! *Source: Opera Report “State of the Lottery results 5% Mobile Web, June 2008”, based on a Mobile social networks and mobile search should review of the Top 100 sites ranked *Source: BITKOM/Forsa/ZAW 2007 accord. to page views prove to be the drivers of mobile internet

Supported by 28 5.2 Mobile Internet: Mobile search Mobile search will grow with 3G penetration.

Variety of mobile search services Market shares of mobile search providers …worldwide in Q1/2008 Search engines such as Google, Others Yahoo!, taptu, Nokia mobile 16% search, etc. MSN 5% Google 61%

Yahoo! 18% Source: Nielsen Mobile 2008, n=1m Directory enquiry services Conclusions As of Sep. 2008, the largest part of mobile search revenue is generated by provider fees for data Q&A services (e.g. Question transmission! Target: Increase in advertising revenue! Mania, AskMeNow, which is based on semantic web Google Search dominates almost 2/3 of the technology, etc.) worldwide mobile search market. Mobile search will become a growth market: 1.3bn users and 8bn US$ estimated by 2013 (worldwide).* Mobile *Source: Juniper Research 2Mobile Search & Discovery 2008-2013“ navigation services With increasing penetration of internet- ready 3G phones, mobile search will be used more and more!

Supported by 29 Goldmedia-Report “Mobile Life 2012“ Content 1. Executive Summary “Mobile Life 2012“ 2. Overview: “Mobile Life“ 3. Framework Conditions for “Mobile Life“ 3.1 Technical Conditions: Digital Laws of Information Technology 3.2 Economic Parameters: Mobile Market in Germany 3.3 Market Developments: End-User Devices 4. Customer Research and Customer Perspective - Usage Habits in Germany 5. Services and Markets for “Mobile Life“ 5.1 Mobile Entertainment 5.2 Mobile Internet 5.3 Mobile Advertising & Marketing 5.4 Mobile Commerce, Payment and Ticketing 5.5 Mobile Navigation and Location Based Services 6. Benchmark: Experiences in Japan, South Korea and Italy 7. Forecasts for ”Mobile Life“ 8. Outlook and Theses

Supported by 30 5.3 Mobile advertising & marketing Global ad market should grow to 14bn US$ by 2011. Types of mobile marketing Growing global market

Types: banner ads on online Mobile Mobile internet Estimated volume for Pull portals, target-word marketing, advertising advertising mobile TV & radio, games, etc. mobile advertising in 2011: over 14bn US$! Mobile Mailing of advertising permission messages provided that Types: mobile couponing, Display and mobile search Push marketing the user declared their SMS/MMS, voice cards, etc. advertising are estimated to (MPM) approval make up the largest part of Initiated by the mobile advertising revenues within phone user whose Mobile direct attention is caught by a Types: SMS/MMS, voice cards, the next years! response Pull classic advertising newsletter, mobile couponing, marketing medium such as a etc. (MDRM) poster, magazine, TV- spot, etc. Source: Goldmedia/Mobile Research Guide 2008 Forecast: Worldwide volume of the mobile ad market in bn US$ per ad type 0246810121416

2011e 14.4

2010e 10.9 Mobile TV & VoD (commercials) 2009e 7.6 Mobile search advertising In-game / application advertising 2008e 4.2 Direct marketing (SMS/MMS) Display/Web advertising 2007 1.5 Source (pictures): Homepage Arvato Mobile, Source: Strategy Analytics “Global Mobile Advertising Updates” 2007 e=estimation www.impactlab.com

Supported by 31 5.3 Mobile advertising & marketing Mobile advertising as a financial basis of Mobile Life. Mobile marketing spending in DE Recognition …in billion Euros per category, Forecast: 2005-2010 “Have you ever noticed mobile advertising?“

1.6 MDRM No, I never Yes, but I didn´t MPM 1.2 mentioned ads pay further Mobile ads before attention 0.8 36% 33% 0.4 0.2 0.1

2005 2006 2007 2008e 2009e 2010e Source: Mobile Research Guide 2008, e=estimation Mobile ad market volume in DE Yes, I clicked on a banner ad …per category in million Euros (gross), Forecast: 2007-2011 Source: Thirdscreen Online-Survey 2008, DE, n=258 31% 0 200 400 600 800 Conclusions 640 2011e 414 Due to the close ties between users and their 2010e 514 Affiliate marketing mobile phones there is a high potential for mobile Mobile search advertising advertising as part of the marketing mix! 2009e 393 In-game advertising Mobile ads could be used for effective CRM! 2008e 232 Direct marketing (SMS/MMS) Mobile advertising is the financial basis 2007 119 Display advertising of a lot of other mobile life services

Source: TOMORROW FOCUS “Analyse zur Zukunft von Mobile Media”2007, e=estimation based on the mobile internet.

Supported by 32 Goldmedia-Report “Mobile Life 2012“ Content 1. Executive Summary “Mobile Life 2012“ 2. Overview: “Mobile Life“ 3. Framework Conditions for “Mobile Life“ 3.1 Technical Conditions: Digital Laws of Information Technology 3.2 Economic Parameters: Mobile Market in Germany 3.3 Market Developments: End-User Devices 4. Customer Research and Customer Perspective - Usage Habits in Germany 5. Services and Markets for “Mobile Life“ 5.1 Mobile Entertainment 5.2 Mobile Internet 5.3 Mobile Advertising & Marketing 5.4 Mobile Commerce, Payment and Ticketing 5.5 Mobile Navigation and Location Based Services 6. Benchmark: Experiences in Japan, South Korea and Italy 7. Forecasts for ”Mobile Life“ 8. Outlook and Theses

Supported by 33 5.4 Mobile commerce, payment & ticketing Mobile ticketing as top 1 mobile commerce service. Preferred product categories in DE 2008 “Which products or services would you buy with your mobile phone?“ 0% 20% 40% 60% 80%

Tickets (transport e.g. train, aeroplane) 76%

Tickets (e.g. theater, cinema, events) 68%

Books 61%

DVDs/CDs 60%

Flowers 44%

Clothing 37%

Food 33%

Source: Lightspeed Research ”Wählen Sie S für Shopping“ 2008 Conclusions The most popular mobile commerce service is mobile ticketing! 3 of 4 people are willing to order their tickets for public transport, flights or cultural events via mobile phone. Juniper Research estimation: over 2.6bn mobile tickets will be delivered to over 208m mobile phone users by 2011.

Supported by 34 5.4 Mobile commerce, payment & ticketing 75% of Germans are not interested in m-commerce! Consumer acceptance in DE 2008 Usage of mobile payment in DE 2008 “Would you buy products or services with your “How often do you pay bills via your mobile phone?” mobile phone?“ Daily yes no 3% 0% 20% 40% 60% 80% 100% At least once a In total 25% 75% week 13% Male 33% 67%

Female 16% 84% Never 68% 18-24… 33% 67% Al least once a 25-34… 33% 67% month 11% 35-44… 28% 72%

45-54… 23% 77% Rarely 55+ years 16% 84% 4%

Source: Lightspeed Research ”Wählen Sie S für Shopping“ 2008 Source: Goldmedia Online Survey / Aug.2008, DE, n=296 Conclusions Most open-minded target groups are men and the age group between 18-34 years! 33% of them would buy products via mobile devices. Only every 6th woman is interested in m-commerce. Problem: There is no service available yet. If it is possible to pay by phone, a higher acceptance of mobile payment will probably occur.

Supported by 35 Goldmedia-Report “Mobile Life 2012“ Content 1. Executive Summary “Mobile Life 2012“ 2. Overview: “Mobile Life“ 3. Framework Conditions for “Mobile Life“ 3.1 Technical Conditions: Digital Laws of Information Technology 3.2 Economic Parameters: Mobile Market in Germany 3.3 Market Developments: End-User Devices 4. Customer Research and Customer Perspective - Usage Habits in Germany 5. Services and Markets for “Mobile Life“ 5.1 Mobile Entertainment 5.2 Mobile Internet 5.3 Mobile Advertising & Marketing 5.4 Mobile Commerce, Payment and Ticketing 5.5 Mobile Navigation and Location Based Services 6. Benchmark: Experiences in Japan, South Korea and Italy 7. Forecasts for ”Mobile Life“ 8. Outlook and Theses

Supported by 36 5.5 Mobile navigation & location-based services Fierce competition between manufacturers!

GPS-equipped mobile handsets Market situation …in millions, 2004-2011 (worldwide forecast) Fierce competition between classic navigation 500 device manufacturers such as TomTom, Garmin, etc. and mobile phone manufacturers. 444

400 vs.

300 Garmin‘s nüviphone Nokia‘s 6110 Navigator

Market characterised by mergers and acquisitions. In millions o 200 N 1 mobile device manufacturer Nokia boosts its navigation services: In October 2007 Nokia 100 bought the US map service Navteq for 5.7bn US$.

25 Navteq offers digital maps for navigation devices for 0 69 countries on six 2004 2005 2006 2007e 2008e 2009e 2010e 2011e Source: Forecast iSupply Corp. 2007 e=estimation continents.

Supported by 37 Goldmedia-Report “Mobile Life 2012“ Content 1. Executive Summary “Mobile Life 2012“ 2. Overview: “Mobile Life“ 3. Framework Conditions for “Mobile Life“ 3.1 Technical Conditions: Digital Laws of Information Technology 3.2 Economic Parameters: Mobile Market in Germany 3.3 Market Developments: End-User Devices 4. Customer Research and Customer Perspective - Usage Habits in Germany 5. Services and Markets for “Mobile Life“ 5.1 Mobile Entertainment 5.2 Mobile Internet 5.3 Mobile Advertising & Marketing 5.4 Mobile Commerce, Payment and Ticketing 5.5 Mobile Navigation and Location Based Services 6. Benchmark: Experiences in Japan, South Korea and Italy 7. Forecasts for ”Mobile Life“ 8. Outlook and Theses

Supported by 38 6. Benchmark Keichu (“addiction”) and Otaku (“life in a virtual world“) Mobile Life in Japan – Extension to all aspects and areas of life

41% of The number-one Japanese use bathtub appli- their mobile cation: e-mail, devices even in followed by music the bathtub! and gaming!

Source: Sega Survey 2008, n=16,250

Supported by 39 6. Benchmark Japan: the world‘s leading mobile music & games market! Mobile music market in Japan 2007 Mobile games market in Japan Japanese people prefer downloading music tracks Mobile games average downloads/month (all mobile directly to their mobile phones (Comparison: internet users) Japan 2006 >5/month German users prefer to sideload music!) 2% 1-4/month never Mobile music Music digital downloads by 36% 29% medium, Japan 2007 downloads make up Internet more than 93% of 7% Over 70% download mobile all music downloads games regularly at least once a month! 44% of the active (90% of all digital Mobile 93% <1/month gamers prefer short games* music sales!) 33% Source: Famitsu, July 2007 Source: Impress R&D 2006 Source: RIAJ 2008 Music digital sales by type, Fastest growing Summary Japan 2007 sub-category: Music video Lively “Mobile Life” market in Japan: High Single tracks 3% single track 51% Other mobile popularity and usage of mobile downloaded 1% downloads (51% music and games! Ringback (=320m US$) of Evident displacement of leisure activities such tunes total mobile 9% as listening to music, playing games, reading, Ringtones music sales) Source: RIAJ 2008 37% etc. into the “Mobile life” 2G phones are not shipped anymore by 2008 Service model of LISMO! (KDDI): Cross- Reasons: rapid diffusion of 3G, availability of platform (mobile & PC), 2.50 US$/track, adjusted mobile devices & attractive business downloads can be used as ringtones models – plus very low data prices!

Supported by 40 6. Benchmark South Korea: Success of DMB mobile TV & radio services Development of mob. TV users in KR S-DMB use in Korea in 2006

2005-2007 …in minutes 4.0 Ø 58.9 min ≈ 1 h/day! 2,2 70 3.1m in 2.0 T-DMB Oct. 2007 S-DMB (encoded) 1,0 35 1.3m in 59 63 64 62 59

Use in minutes 56 Nov. 2007 49

In million subscribtions 0

May 05 Dec05 May 06 Dec06 May07 Dec07 0 (2006)/SK TelekomMedia Corp. TU Source: Source: TU Media Corp. (2005)/SK Telecom/MIC Mon Tue Wed Thu Fri Sat Sun

Preferred contents for mobile TV Conclusions First mover worldwide, high penetration Drama with end-user devices Games Commercial S-DMB services (Pay TV) started CH.Blue in May 2005, the commercialization of T- Music DMB (Free TV) followed in Dec. 2005. Movies Number of clients using free of charge Sport Preferred content: drama! T-DMB offers are increasing faster, but News estimation of 21m mobile TV users by Source: SK Telecom 2006 2012 seems not to be realistic.

Supported by 41 6. Benchmark 3 Italia’s Mobile TV started with Pay-TV+switched to Free TV! Development of mobile TV users in IT DVB-H coverage in IT 2008 1,0 June 2006 – June 2008 85% coverage for mobile 0,8 0.85 0.80 TV services due to 3 Italia‘s 0,6 0.77 own outdoor DVB-H net 0.60 0,4 MNO possesses content 0.40 and infrastructure! 0,2 0.25 0.15 In million subscriptions 0.11 0,0 3 Italia offers end- Jun 06 Jul 06 Aug 06 Jan 07 Mar 07 Jul 07 Oct 07 Feb 08 Jun 08 to-end services = “Market maker“ Source: 3 Italia 2008

Service of 3 Italia in Q3/2008 Conclusions Programming: 12 channels (public channels, four Mediaset channels, 3 own 3 Italia channels) 3Italia began services in Italy in 2000, in June 2008 they had 8.2m 3G subscribers. Launch of mobile TV services: June 2006 Since June 2008 3 Italia implemented a new Different business models: Pay TV, Free-to- cross-media strategy: the company offers Air, Pay-per-view (daily, weekly or monthly) selected DVB-H channels (RAI 1, RAI 2, packages, with or without other services Mediaset, Sky Meteo 24, Current TV and La3) included, e.g. mobile TV at 4€/day, 9€/week, and internet for free! 19€/month or 29€ for 3 months

Supported by 42 6. Benchmark – Summary Technologic & cultural factors lead to different use habits! 3G users in 2008 Digital music: online vs. mobile revenues …by country in millions Example: Music revenues in %, (Basis: >200m 3G users worldwide,2008) Comparison JP, IT, KR, USA, DE and UK 2007 online mobile Japan 0% 20% 40% 60% 80% 100% 87

Japan 9% 91% Italy 1 Italy Others 44% 56% 104 Germany South Korea 63% 37% 9 In Japan there is almost no market for mobile USA 67% 33% devices without UMTS: Last 2G phone Germany 69% 31% shipped in Dec. 2007! 75% of phones shipped in 2008 are mobile TV-ready! UK 71% 29% Source: International Source: International Phonographic2008 theIndustry Federation (IFPI), of Source: BITKOM , UMTS Forum 2008 Results Conclusions The Japanese use their mobile phones as a ”persona- Spread of 3G differs! Technolo- lised medium“ with internet access. 91% of all music gical progress and cultural revenues generated by mobile (IT: 56%, DE: 31%). differences determine mobile NTT DoCoMo was the world‘s first 3G operator in life! 2001! Mobile use dominates in JP due to the fast diffu- Further reason for high sion of 3G and adjusted devices! SoftBank holds exclu- popularity of data services in JP: sive right on iPhone 3G’s marketing: since 2007 Soft- it is NOT considered polite to talk Bank has recorded enormous increase in customers. by phone in public space (in contrast to Germany or Italy)!

Supported by 43 Goldmedia-Report “Mobile Life 2012“ Content 1. Executive Summary “Mobile Life 2012“ 2. Overview: “Mobile Life“ 3. Framework Conditions for “Mobile Life“ 3.1 Technical Conditions: Digital Laws of Information Technology 3.2 Economic Parameters: Mobile Market in Germany 3.3 Market Developments: End-User Devices 4. Customer Research and Customer Perspective - Usage Habits in Germany 5. Services and Markets for “Mobile Life“ 5.1 Mobile Entertainment 5.2 Mobile Internet 5.3 Mobile Advertising & Marketing 5.4 Mobile Commerce, Payment and Ticketing 5.5 Mobile Navigation and Location Based Services 6. Benchmark: Experiences in Japan, South Korea and Italy 7. Forecasts for ”Mobile Life“ 8. Outlook and Theses

Supported by 44 7. Forecasts 3G penetration will exceed 60% in 2012 in Germany!

Data service revenue* in DE 2002-2012 3G penetration in Germany

……in billion Euros in Germany, …in % of mobile subscribers * Retail revenues from data services on wireless communication networks 70% (including data access and content, without SMS, MMS ) as billed by the mobile 61% service operator. Interconnection revenues are not included in this segment. 60% 6 50% 5.7 50% 5.4 39% 40% 5 4.8 30% 23% 20% 15% 11% 4 10% 3% 8%

0% 3.2 2005 2006 2007 2008 2009 2010 2011 2012 3 Forecast Goldmedia 2.3 Source: Goldmedia 2008 …in billion Euros 2 Conclusions 1.6 3G penetration will reach more than 60% 1 of the German subscribers by 2012! Data service revenue should increase to © Goldmedia 2008 0 almost 6bn Euro by 2012! 2007 2008 2009 2010 2011 2012 Declining costs will make 3G attractive for the mass-market and push Forecast Goldmedia Source: Goldmedia 2008 services related to mobile internet.

Supported by 45 7. Forecasts Mobile advertising still in its infancy in Germany! Mobile net advertising revenue* in DE Conclusions

…in million Euros, Annual growth in % New 3G technology enables delivery of

Mobile net advertising revenue richer contents such as mobile TV, 350 60% video and games. Annual growth

51% 295 But: there is a limit to how many 300 50% additional charges, subscriptions, fees, 45% etc. users are willing to pay!

250 231 40%

Annual growth in % Annual growth in Sponsored or advertising-funded

200 180 contents will become more and 30% more accepted! 140 150 28% 28% 28% In Germany ~300m Euros mobile net advertising revenue expected 97 20% by 2012! 100 64 Challenges: 10% business models 50 and revenue

2007 2008 2009 2010 2011 2012 frequency of Forecast Goldmedia ads, consumer (* including affiliate marketing, mobile search advt., in-game advert., direct marketing, display advert.) attitudes Source: Goldmedia 2008

Supported by 46 7. Forecasts M-entertainment revenue grow to ~750m Euros by 2012! M-entertainment revenue in DE in million Euros* Results *including mobile music, games, video, net advertising revenues* German mobile 1000 entertainment market 900 Mobile advertising (net) will grow by ~500m Mobile video Euros by 2012. 800 Mobile games 740 Mobile music (downloads & ringtones) 700 619 600 295

500 483 231 Mobile net advertising 400 360 180 will make up the largest 180 part of revenues, follo- 151 300 259 140 wed by mobile video, 99

Revenue in million Euros 194 97 105 games and music! 200 53 96 64 28 85 13 71 Conclusions 100 57 60 142 161 96 118 60 74 ©Goldmedia 2008 By 2012: Substan- 0 2007 2008 2009 2010 2011 2012 tial growth to Forecast Goldmedia ~750m Euros in m-entertainment Source: Goldmedia 2008 *Mobile Entertainment includes net mobile advertising (affiliate marketing, mobile search advertising, in-game advertising, direct marketing, display advertising), mobile videos, mobile games and mobile music revenue expected.

Supported by 47 Goldmedia-Report “Mobile Life 2012“ Content 1. Executive Summary “Mobile Life 2012“ 2. Overview: “Mobile Life“ 3. Framework Conditions for “Mobile Life“ 3.1 Technical Conditions: Digital Laws of Information Technology 3.2 Economic Parameters: Mobile Market in Germany 3.3 Market Developments: End-User Devices 4. Customer Research and Customer Perspective - Usage Habits in Germany 5. Services and Markets for “Mobile Life“ 5.1 Mobile Entertainment 5.2 Mobile Internet 5.3 Mobile Advertising 5.4 Mobile Commerce, Payment and Ticketing 5.5 Mobile Navigation and Location Based Services 6. Benchmark: Experiences in Japan, South Korea and Italy 7. Forecasts for ”Mobile Life“ 8. Outlook and Theses

Supported by 48 8. Outlook & Theses

Coming soon…

Mobile phone with laser projectors and DLP-chips: Different players such as 3M, Texas Instruments or Microvision have developed compact mini projectors for high resolution screenings. The projector could be integrated or be connected to the mobile device

Mobile phones with human qualities Source: www.computerwoche.de/nachrichtenarchiv/1851864 Japanese could talk with their handsets soon! Phone Braver, a Softbank Mobile development, is able to communicate with its owner and react with facial “Perfumed” mobiles: expressions. In addition, arms and legs The companies Isi und Convisual developed a can be attached. The device possesses patent-registered “perfumy mobile“ which is enough artificial intelligence to be able to able to receive odours via SMS. The handset have simple conversations and to learn its could – for example – send SMS greetings for owner’s habits mother‘s day with the smell of flowers

Source: www.focus.de/digital/handy/japan_aid_263164.html Source: www.inside-handy.de/news/11777.html

Supported by 49 8. Outlook & Theses

1 A life without mobile handsets is no longer imaginable for under 30s!

Spread of users and target groups: People 40+ prefer linear media and 2 use their mobile mostly for traditional services such as voice telephony. People under 20 years who have grown up with digital media, use the entire range of services and applications of mobile devices.

The demographic change will lead to a high usage of mobile phones by 3 elder people. Devices should be adjusted for these users who will account for the majority within the next decades! To reach the today´s generation 50+ there must be offered adjusted handsets & services, too.

Mobile devices are the No 1 tool for organising and structuring the entire 4 interpersonal private and business communication. Their importance will increase even more.

Being “always on” and using mobile devices at any time and place will 5 become more and more normal. Many users do not know that the switch- off button can give access to autonomy and freedom.

Supported by 8. Outlook & Theses

The internet makes entertainment and information available 6 at any time and any place! Mobile internet will make mobile phones more and more indispensable!

7 The way to consume music has changed radically. Nowadays everyone have access to all ever produced music.

Due to lifestyle changes (higher mobility, flexibility) mobile phones meet 8 the demand for mobile entertainment. There is no device which is able to adjust to new usage situations and periods better than mobile phones.

The mobile phone increasingly replace functions of other devices. It will 9 become people`s most important constant companion. Mobile phones are the showpieces for convergence (one device incl. telephone, camera, MP3- player, calender, internet access, etc).

The consumer benefits from more and more attractive data pricing: 10 Mobile Internet becomes a mass market in Germany

Supported by Strategies for E-Merging Media..

Goldmedia GmbH Media Consulting & Research

Dr. Klaus Goldhammer, Dr. André Wiegand, Daniela Becker, Michael Schmid Oranienburger Str. 27, 10117 Berlin, Germany Tel. +49 30-246 266-0, Fax +49 30-246 266-66 Klaus.Goldhammer[at]Goldmedia.de Andre.Wiegand[at]Goldmedia.de Daniela.Becker[at]Goldmedia.de Michael.Schmid[at]Goldmedia.de