Hampshire UK, Wednesday 25th June 2008 – The number of subscribers using mobile Internet services will rise from 577 million currently, to top 1.7bn by 2013, spurred by demand for collaborative applications known collectively as ‘web 2.0’, and greater 2.5/3G penetration.

Established mobile players face increasing competition from web-based brands and will have to adapt their commercial strategies to accommodate greater collaboration with other members of the value chain, if future revenue growth in the mobile web 2.0 space is to be achieved.

An Open Mobile Internet
According to a new report from Juniper Research, the emergence of applications such as: Social networking; User Generated Content (UGC); Instant Messaging (IM); Location Based Services (LBS); Search calls for delivery of the mobile Internet as it was originally conceived – i.e. an open environment in which users are able to share, collaborate and exploit content/information without any one party controlling the value chain.

This marks a fundamental shift for the industry towards the D2C (direct-to consumer) model and places growing pressure on mobile network operators (MNOs) and handset manufacturers in particular, to relinquish some of their control over the value chain, by opening up their networks/devices to third-parties.

New Business Models
“Major web players have already crossed the Rubicon and established themselves in the mobile domain, placing the onus on MNOs and other members of the value chain to form innovative relationships and grab a share of the new revenue streams being created,”

- comments Ian Chard, Juniper Research Analyst and author of the report ‘Mobile Web 2.0: Leveraging ‘Location, IM, Social Web & Search 2008-2013’.

“The mobile web 2.0 market is still nascent and business models remain in a state of flux, so there is still time for players to establish fruitful partnerships that build on their strengths and are reciprocally beneficial. The window of opportunity, however, is closing.”

Other findings from the report

• The Far East & China region will be the largest market for mobile web, reaching almost 416 million users by 2013, up from a year-end figure of 190 million users in 2008

• The greatest untapped potential for mobile web lies in South America, while growth will be more measured in markets such as Eastern and Western Europe – where fixed broadband penetration is relatively high

• As with the fixed Internet, many mobile web 2.0 applications will need to be provided at base cost/flat-data rates (or even free of charge), forcing industry players to seek new revenue streams

Juniper Research assesses the current and future status of the Mobile Web 2.0 market based on interviews, case studies and analysis from representatives of some of the organisations leading this growing market.

Whitepapers and further details of the study ‘Mobile Web 2.0: Leveraging ‘Location, IM, Social Web & Search 2008-2013’ can be freely downloaded from www.juniperresearch.com Alternatively, please contact John Levett at john.levett@juniperresearch.com, telephone +44(0)1256 830002.

Juniper Research provides research and analytical services to the global hi-tech communications sector, providing consultancy, analyst reports and industry commentary.

11th June 2008, London, UK: Usage of mobile data services, which enable people to access the Internet, email and other multimedia on the move, is growing rapidly in the European Union as mobile broadband networks proliferate and prices fall.
The EU's mobile data market* grew by 40% to 7 billion euros in 2007 as operators invested more than 20 billion euros in enhancing their mobile networks and services, according to research by Wireless Intelligence and consultancy AT Kearney for the GSMA, the global body for the mobile industry. In the year to April 2008, the number of 3G users in the EU doubled to 112 million. Europe has adopted 3G faster than any other region of the world**.
The cost of 3G services, 3G handsets, 3G-enabled laptops and dongles that enable laptops to connect to mobile broadband networks is falling steadily. In some European markets, mobile broadband services are now priced lower than comparable fixed-line broadband services. For example, mobile data services are available in the U.K. for as little as 10 pounds (13 euros) a month and in Austria for 10 euros a month.

Moreover, AT Kearney estimates*** that the average retail price of data roaming, which enable travellers to access multimedia services using a mobile phone or laptop, fell by 25 per cent in the year to April 2008 in the EU and that EU data roaming traffic grew 75% over the same period. AT Kearney also estimates that the average price of text messaging roaming services fell 18 per cent in the year to April 2008.

Many mobile operators now offer data services in large bundles for a flat fee and are introducing new measures to inform customers of their usage and the price of the service, giving customers better control over their spending and reducing the likelihood of unexpectedly high bills. Some operators, for example, send customers who reach the limit of their bundle a message warning them that they have exceeded their limit. Customers are then disconnected if they do not respond. One operator group even plans to cap monthly bills irrespective of usage.
"Competition, including from Wi-Fi, is delivering dramatic reductions in the retail price of data services, which give mobile users the convenience of being able to access email, the Internet and other multimedia services wherever they travel within Europe," said Tom Phillips, Chief Government & Regulatory Affairs Officer of the GSMA. "We expect prices to continue to fall as operators further innovate around tariffs and more and more Europeans use these services as a part of their everyday lives.”

The popularity of mobile email services with regular travellers is a good example of how the market is delivering highly successful data roaming services at attractive prices. Services that enable travellers to send and receive emails within Europe, via a Blackberry or similar device, are available for as little as 15 euros a month.

Year-on-year volume growth of 2%
Income before taxes at higher end of forecast
R&D investment continues to expand portfolio and addressable market
New sub-brand XPERIA(TM) added to portfolio

Units shipped in the quarter were 22.3 million, a 2% increase compared to the same period last year and in line with our March 19, 2008 interim announcement of 22 million units. Sales for the quarter were Euro 2,702 million, a decrease of 8% on a year ago due to slowing market growth in mid-to-high end phones in markets where Sony Ericsson has a strong presence. Gross margin was one percentage point lower than Q1 2007, reflecting a less favourable product mix. Income before taxes for the quarter was Euro 193 million, which was at the higher end of the range (Euro 150-200 million) we announced on March 19, 2008. This represented a decrease of 47% compared with a year ago, due to higher R&D investments as a percentage of sales, and reflecting that Q1 2007 was a particularly strong first quarter for the company. Net income for the quarter was 48% lower, at Euro 133 million.

"Sony Ericsson continues to invest in expanding its product portfolio to appeal to a wider variety of consumers in both new and existing markets," said Dick Komiyama, President, Sony Ericsson. "Our product announcements during the first quarter have been well received by the industry, and we expect to see a positive effect from these announcements during the second half of 2008."

During the quarter, Sony Ericsson added a new sub-brand to its product portfolio with the announcement of the XPERIA(TM) X1, a high-end multi-media convergence phone based on Windows Mobile®, which will launch in the second half of the year. In addition, the company announced a number of new phones during the quarter to increase the appeal of its brand to a broader audience. These included new high-end Walkman® and HSDPA web phones, such as the W980, W760, Z770 models and also added to its cutting-edge Cyber-shot(TM) range with models such as the C702 and C902.

Average selling price (ASP) decreased both sequentially and year-on-year due to the impact of softer sales of high-to-mid end models in key markets. Market share for the quarter is estimated to be around 8%, down one percentage point sequentially.

Sony Ericsson made a dividend payment of Euro 470 million during the quarter to the parent companies. A second dividend payment will be made this year.

Sony Ericsson forecasts that the global handset market for 2008 will grow at a rate of around 10% from more than 1.1 billion units in 2007. The majority of this growth is expected to be in emerging markets.

Nokia net sales of EUR 12.7 billion, up 28% year on year (up 35% at constant currency).
Nokia diluted EPS of EUR 0.38, growing 46% from Q1 2007, excluding special items.
Nokia operating margin of 14.7%, up year on year from 13.6% in Q1 2007, down sequentially from 15.9% in Q4 2007, excluding special items.
Nokia Devices & Services operating margin of 21.2%, up year on year from 16.0%, down sequentially from 22.8% in Q4 2007, excluding special items.
Nokia operating cash flow of EUR 0.8 billion.
Nokia device volumes of 115.5 million units, up 27% year on year and down 13% sequentially.
Estimated industry device volumes of 295 million units, up 17% year on year and down 12% sequentially.
Nokia estimated device market share of 39%, up from 36% in Q1 2007 and down from 40% in Q4 2007.
Nokia device ASP of EUR 79, down from EUR 83 in Q4 2007. (Device ASP excludes net sales from Services & Software)
Nokia Siemens Networks operating margin was -1.1%, excluding special items, and was a positive 2.4%, excluding special items and purchase price accounting related items arising from the formation of Nokia Siemens Networks.

Western Europe Saw Decline for the First Time Since Gartner Tracking Began in 2001

(pressebox) Egham, UK, 28.05.2008 - Worldwide sales of mobile phones reached 294.3 million units in the first quarter of 2008, a 13.6 per cent increase over the first quarter of 2007, according to Gartner, Inc. Sales of mobile phones in Western Europe decreased 16.4 per cent from the first quarter of 2007, the first decline in this region since Gartner began tracking the mobile devices market in 2001.

"While sales in emerging markets continued to be driven by strong net new subscribers' growth, mature markets felt the pressure of an uncertain economic environment," said Carolina Milanesi, research director for mobile devices at Gartner, based in Egham, UK. "Sales of high-end devices in particular were lower as consumers turned to mid-tier devices when looking to upgrade their old phones. Phone manufacturers should strengthen their mid-tier offerings in order to cater to those users that might be reticent to invest too much money in replacing their old phones when the economic environment remains challenging."

Nokia sold 115.2 million mobile phones in the first quarter of 2008, as its market share slipped slightly to 39.1 per cent (see Table 1). Nokia was able to maintain market leadership thanks to the richness of its portfolio, which appeals to users in both emerging and mature markets. Sales in the ultra-low-cost segment remained strong due to Nokia's distribution strategy, economies of scale and brand power. However, competition in this segment and at the high end is increasing. To stay ahead, Nokia will have to continue to integrate new technologies in its handsets and improve usability and design.

Samsung maintained its momentum in the first quarter of 2008 with sales reaching 42.4 million units. The South Korean vendor not only held on to its No. 2 position worldwide, but it also widened the gap from third-placed Motorola as its market share grew to 14.4 per cent. Samsung is reacting quickly to the focus on touch-screen devices. "Samsung's choice to be a quick follower has paid off so far, but it needs to focus on diversifying its designs and strengthening its lower-end portfolio to increase sales in emerging markets," said Ms Milanesi.

Motorola carried the problems it had in 2007 through to the first quarter of 2008 and sales fell to 29.9 million units. The US manufacturer continues to struggle in finding the successor to its popular Razr. Although it introduced new models, its portfolio is simply not competitive enough. Ms Milanesi said: "Motorola is unlikely to introduce many products in the second half of 2008, a time when most competitors will bring new additions to the market, so it stands little chance of winning back its No. 2 position. It may even have to watch out for a threat from current No. 4 player LG."

LG had an excellent start to 2008 with sales reaching 23.6 million units and a market share of 8 per cent. As a result, LG overtook Sony Ericsson to become the No. 4 vendor worldwide. With a strengthened portfolio, LG capitalised on the attention the market has given to touch-screen devices since the launch of the Apple iPhone. Although the LG Prada, Shine and KF600 models have proved popular, LG must remember that touch-screen phones do not appeal to everyone. The South Korean vendor needs to build a stronger smartphone portfolio, as consumers and operators have started to place more emphasis on this market segment.

Sony Ericsson was another vendor that had a difficult start to 2008. Its sales reached 22.1 million units, but this was not enough to hold on to the No. 4 spot. Sony Ericsson attributed these weak results to the difficult conditions in the Western European market, which experienced some softness in the high-end segment. With new products for the second half of 2008 and with a stronger mid-tier portfolio, Sony Ericsson is in a good position to win back its fourth place in the market share rankings.

Regional Analysis
In the first quarter of 2008, 114.4 million mobile devices were sold in Asia/Pacific. This represented a 26.6 per cent increase over the first quarter of 2007. India remained a high-growth market, and South Korea became a high growth market as well during the quarter, as consumers upgraded their handsets before the new extended contracts are put in place by operators in the second quarter of 2008. "Growth in Asia/Pacific was driven by a high number of new subscribers, lower-priced phones based on wideband code division multiple access (WCDMA) technology, as well as low-cost global system for mobile communications (GSM) phones and ultra-low-cost CDMA devices," said Anshul Gupta, principal research analyst for mobile terminals at Gartner, based in Mumbai, India.

Sales in the Eastern Europe, the Middle East and Africa region reached 56.4 million units, which represented a 25.8 per cent increase year-on-year. "Sales in the Baltics remained slow in response to the strong slowdown in new additions that began in 2007 as operators focused more about shifting users to contracts than not acquiring more prepay users," said Annette Zimmermann, senior research analyst for mobile devices at Gartner, based in Munich, Germany. Several countries experienced good growth in net new additions.

In Japan, sales to end users numbered 13.2 million units in the first quarter of 2008, a decrease of 10.1 per cent year-on-year. "There were no new phone features in the first quarter of 2008 that were strong enough to drive growth, unlike the first quarter of 2007 when having a music player function and an embedded integrated services digital broadcasting - terrestrial (ISDB-T) tuner persuaded users to replace their devices," said Nahoko Mitsuyama, principal analyst for mobile communications research at Gartner, based in Tokyo.. "The proportion of WCDMA devices sold in Japan decreased from 63.2 per cent in the first quarter of 2007 to less than 30 per cent in the first quarter of 2008. Conversely, the proportion of high-speed downlink packet access (HSDPA) devices rose sharply from 1.9 per cent to more than 35 per cent in the same period."

Sales of mobile handsets in the Latin America region increased by nearly 28.4 per cent compared with the first quarter of 2007, to reach nearly 32.5 million units in the first quarter of 2008. "There was some buildup of inventory in Latin America - specifically in Brazil - as operators prepared for Valentine's and Mother's Day promotions," said Tuong Nguyen, analyst for mobile terminals at Gartner, based in Arlington, Virginia.

In North America, sales to end users totalled 41.9 million units in the first quarter of 2008, a 2.4 per cent increase from the first quarter of 2007. "AT&T and Verizon Wireless had solid quarters, while Sprint Nextel continued to have problems," said Hughes De La Vergne, principal analyst for mobile terminals research at Gartner, based in Dallas, Texas. "New subscriber levels were low, implying that the weak economy may be having a negative effect on the wireless handset market. Approximately 90 per cent of sales came from the replacement market."

Sales of mobile phones in Western Europe totalled 35.9 million units in the first quarter of 2008, a decrease of 16.4 per cent from the first quarter of 2007. "Operators in this region have been driving sales of higher-end devices by offering higher subsidies but with longer contract periods, which is having a negative impact on replacement cycles," Ms Milanesi said. "Sales of high-end devices were also adversely affected by the economic slowdown that many countries are experiencing. Consumers pressured by a higher cost of living continued to replace their phones but chose devices from the mid-tier, which tends to be offered for free and with shorter and less expensive service contracts."

Ms Milanesi concluded: "We remain confident that 2008 will be a growth year for the mobile phone industry. Sales, driven in particular by emerging markets, will continue to rise in the range of 10-15 per cent. However, the value of the market will be lower than we stated in our forecast update published in December 2007. This is because the current economic slowdown and higher fuel costs will force consumers to defer phone purchases in mature markets, while higher food prices will lead to longer replacement cycles in emerging ones."

More information is available in the Gartner report "Dataquest Insight: Market Share for Mobile Devices, 1Q08", available on gartner.com.

DUBLIN, Calif., May 06, 2008 (BUSINESS WIRE) ----Driven by the excellent opportunity provided by mobile banking to enhance existing customer services, nearly a third of the world's largest financial organizations are planning to launch mobile banking services in the next 12 to 24 months, according to a recent survey commissioned by Sybase 365, a subsidiary of Sybase, Inc. (NYSE:SY), the global leader in mobile messaging services.
The survey, which was conducted by independent research company Loudhouse, pooled the views of 92 of the world's top financial institutions (32 European banks, 30 banks in the United States and 30 banks from the Asia-Pacific region).
Results revealed that 66 percent of banks consider mobile banking an excellent opportunity to enhance existing customer service. While provision of such services is considerably advanced in European and Asia-Pacific regions compared to the U.S., growth is projected to be strongest in the U.S. with 53 percent of U.S. banks surveyed expecting to launch mobile banking services within the next 24 months.
"Key factors for financial institutions offering mobile banking are not solely commercial, such as reducing costs or generating revenue," said Matthew Talbot, vice president, mCommerce for Sybase 365. "Mobile banking provides unique opportunities for customer interaction and retention."
This broadening momentum should be encouraging for the consumer respondents to Sybase 365's 2007 mobile banking survey, 33 percent of whom expressed a desire to deal with finances on the move. A key element in increasing adoption, which is mirrored in the 2007 consumer study, is the level of awareness that customers have of mobile banking services. It appears that banks are responding to the lack of awareness felt by consumers, with 65 percent of the banks who currently offer mobile services stating that marketing budgets and activities to raise awareness are part of their strategic plan for 2008.
The most common mobile banking services currently available to customers include balance on demand (offered by 87 percent of banks with mobile banking services), transaction alerts (77 percent), money transfers (74 percent) and balance alerts (71 percent). Of those banks that offer such services, the top reasons for doing so are to improve the customer experience (87 percent), to extend internet banking (81 percent) and to achieve competitive advantage (71 percent).

Source: GSMA

Taiwanese handset-vendor HTC has launched a new touchscreen device that industry commentators believe could become a serious rival to Apple’s iPhone. Unlike the current generation iPhone, HTC's Touch Diamond - which was launched in London yesterday – is HSPA-enabled and claims to offer download speeds of up to 7.2Mb/s. Orange has already pledged to support the device. The handset will launch in Europe next month and North America and Latin America later in the year. This schedule could see the device compete directly with the new 3G version of the iPhone, which is also reportedly scheduled to rollout from next month.
HTC has traditionally sold devices to operators which have then rebranded them as their own, but last year made a concerted effort to become known as a consumer brand with the launch of its first touchscreen phone. HTC joins a series of other handset vendors that have recently developed touchscreen devices that mimic the iPhone. Nokia, the world’s largest handset vendor, demonstrated a new touchscreen device codenamed 'Tube' last month, while pictures also emerged this week showing what appears to be a new touchscreen device developed by Philips called the Xenium X800 e2e.

Source: GSMA

Orange parent company France Telecom has made its strongest hint yet that it is planning to acquire some of its rival European operators – but insists that it has still not opened talks with TeliaSonera, the Nordic operator it was linked to last month. "All the necessary conditions are in place for the group to take part in the consolidation of the European sector," CEO Didier Lombard said in a statement announcing the group’s first-quarter results. However, in a conference call CFO Gervais Pellissier played down suggestions that an acquisition of TeliaSonera was imminent. The French group has also been linked to the Norwegian-based operator Telenor.
France Telecom’s first-quarter revenues increased 1.4 percent to €13 billion from €12.8 billion a year earlier, recording growth across all business segments. Its gross operating margin (deemed a similar measurement to EBITDA) grew 2.8 percent to €4.79 billion from €4.65 billion a year earlier. Pellissier also confirmed that the company is in talks with Apple regarding the launch of the iPhone in other territories where France Telecom operates, which could include Spain and Poland. Orange has sold 100,000 iPhones to date in France - where it is the exclusive distributor of the device - and Pellissier predicted another boost in sales when the 3G version of the device is released, expected later this year.

Source: GSMA

BT, the UK's fixed-line incumbent operator, today unveiled a plan to give away smartphones to its broadband customers in a bid to capture a portion of the UK's mobile market. The two new 'BT ToGo' handsets on offer - the HTC S620 and S710 - will operate over BT's home wireless networks and public Wi-Fi, and handover to a mobile network when Wi-Fi is unavailable. The handsets are bundled into a new BT broadband offering called 'Broadband Anywhere.' Prices range from between £23.99 and £53.99 per month, though only the HTC S620 is given away free with the cheaper tariffs. A standard BT home broadband package is included in the price and users also get access to the BT FON and Openzone Wi-Fi hotspot networks.
The move is the latest attempt by BT to re-enter the mobile market it exited when it sold-off its mobile arm, BT Cellnet, in 2001. BT Cellnet subsequently morphed into O2 UK, now the UK's largest mobile operator by subscribers, and one of the many UK mobile operators that is now threatening BT's fixed-line revenues by building-out its own fixed-line infrastructure. BT is also considered under threat by the recent trend for UK mobile operators to launch 'dongles' that allow laptops to access the Internet using high-speed 3G networks. BT's last attempt to break into the mobile market with 'BT Fusion' - a converged fixed-mobile device - is regarded by analysts as a failure, reportedly attracting fewer than 50,000 customers since its launch in 2005.

Source: GSMA