SPECIAL REPORT: Mobile World Congress Overview - Dan Hodges

Part One: The Mobile Industry on the Move

More than 67,000 visitors from 205 countries attended the Mobile World Congress (MWC) this year. MWC attracted executives from the worlds largest and most influential mobile operators, software companies, equipment providers, Internet companies and media and entertainment organizations, as well as government delegations from across the globe. More than 50 percent of this year's MWC attendees hold C-level positions, including 3,500 CEOs. The race is on to transform the global economy, connect people and fundamentally change the ways we interact in business and in society. This is one of three parts that reviews the highlights and trends highlighted from Mobile World Congress.

A) Key Industry Facts Include(Source: Nielsen & GSMA 2012)

· There are currently 6.6 billion mobile subscribers and 1.3 billion broadband subscribers.

· 12% of smartphones globally consume 80% of total bandwidth, which is equivalent to 150 MB per month. Carriers will start raising rates to slow down consumption and improve network efficiency.

· Shopping apps are the fastest growing category of apps, according to Nielsen (2012).

· The millennial consumer will drive the mobile marketplace.

· 73% of smartphone owners use their phone while shopping according to Nielsen (2012).

· Smartphone users download 60 apps, but only regularly use six.

· 40% of consumers upload videos on their iPhones.

· Investment in broadband and spectrum is critical for growth.

· Acceleration of mCommerce and NFC offers security from proximity servers.

· By 2016, 1.5 billion NFC handsets will be generating $50 billion in commerce.

· $800 billion in telecom investment will generate $2.7 trillion of new revenue.

· An ARPU decline in Europe from 26 euros to 20 euros is forcing operators to find new revenue streams.

· Voice is contributing less and SMS and Data are contributing more.

· Shopper marketing is the fastest growing segment of the advertising business.

· 40% of brands have their sites optimized for mobile.

· 14% of brands have their sites optimized for buying.

· 40% of tablet consumers use their tablets while watching TV.

· 90% of the world is now covered by mobile. 75% of the world's population is now connected via mobile

· In 2011, there were 8 trillion text messages sent or an average of 1,100 text messages per person.

· There is projected to be a 18X increase in data traffic as measured from 2010 to 2015.

· 1.2 billion apps were downloaded in the last week of 2011.

· 88% of all phones sold by Sprint are smartphones.

· Successful mobile communication effort will center around engagement and relevance.

· Machine to machine connections will increase:

o 2016: 10 billion connections

o 2020: 2.3 billion machine to machine connection

· The top ten connected application for 2020 are listed below:

· Facebook: 250,000,000 pictures are uploaded to Facebook every day

· YouTube delivers 600 million mobile video streams a day.

· A survey from Vodafone asked, "What would you give up for a week for a smartphone?"

o 70% alcohol

o 63% chocolate

o 55% coffee

o 54% exercise

o 33% sex

o 22% toothbrush

B) Mobile Market Overview 2012

The telecommunications industry is one of the five drivers of the world economy. It is now a member of the trillion-dollar club of global industries. (Source: Sprint 2012)

The Five Trillion Dollar Global Industries

· Automotive

· Military

· Food

· Tourism

· Telecommunications

Key Mobile Business Opportunities 2012- 2017(Source: Juniper Networks)

· Video streaming

· Digital TV

· CDN

· Cloud services

· Mobile advertising

· Location based advertising

· Mobile broadband

· Consumer understanding and insights

C) The Next Wave of Innovation is here!

· The next wave of premium devices will be custom configured smartphones where the user will decide what feature they want for their smartphone. The price of general market smartphones will decrease more rapidly than is projected due to intense competition for market share.

· The next way of innovation will be in the "machine to machine" segment, which will grow to $1.2 trillion by 2020. The revenue is to be generated by transport fees (25%) and yet to be developed services (75%).

· An SMS app store will be developed and used as a protocol for new goods and services.

· Local apps and services with give consumers access to local goods and services.

· Consumer segmentation based on mobile phone usage (the carriers are exploring a new type of customer segmentation called "life graphics" which plots consumer behavior based on the user mobile phone usage).

D) Mobile Self Service Is A Cost Saver and Improves Customer Satisfaction (Based on an O2 Case Study)

1) 20% reduction in inbound calls to call centers

2) 20,000 -30,000 new customers purchasing additional products/features

3) Self-serve services improve customer satisfaction

Read Part Two: Mobile Is Transforming Retail & Money
Read Part Three: The Connected Car & Eight More Mobile Trends

Dan Hodges is Chief Revenue Officer of Verve Wireless, Dan works directly with agencies and brands providing solutions and partnerships across Verve’s national footprint of premium local media properties. Dan can be reached at daniel@vervewireless.com.

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