2 Greetings, The global mobile industry has made phenomenal strides in the past 15 years yet best is still to come. The mobile ecosystem has become much more dynamic, lightening fast paced, and breathtakingly unpredictable. The evolution of mobile services is impacted by several key forces of change. These include technology innovation and diffusion, consumer behavior, globalization, and easing of the regulations to promote trade and commerce. This is leading to the emergence of new players and new ecosystem dynamics, as well as the creation of open architectures. In 1991, Mark Weiser, in his seminal article, The Computer of the Twenty First Century, described computing as a world in which humans and computers were seamlessly united. The article opened with The most profound technologies are those that disappear. They weave themselves into the fabric of everyday life until they are indistinguishable from it. If we look forward to the next 10 years of evolution in the mobile industry, two things are certain. First, over this decade, mobile will become so ingrained and embedded in our daily lives that, as Weiser suggested, it will be indistinguishable from the mundane. Second, the very definition of a mobile device and mobility will undergo a drastic transformation over the next decade. Instead of just mobile phones having cellular radios and connectivity, there will be hundreds and thousands of different devices, each a unique appliance, which will have wireless connectivity to the network. There will be sensors in the buildings we live in, the clothes we wear, the roadways we commute on, and the vehicles we drive in. Almost everything of substance will have connectivity. With the evolution in networking technologies, middleware architectures, and mobile devices, we are entering a new era of always-on, real-time access mobile experiences. We are putting together an exciting Executive Summit - Mobile Future Forward to bring together thought leaders who are some of the most influential minds in the mobile industry and are shaping the ecosystem evolution. These experts and visionaries from around the globe will discuss the mobile industry 5 years forward, envision what the user experience and the use case scenarios look like, discuss and debate the challenges and opportunities in the journey to that vision. This paper describes various themes for the conference through a series of pictures that try to capture the essence, the complexity, the opportunity, and the debate within each of the micro trends. At the Mobile Future Forward conference, these will be the topic areas of our conversation with some of the best minds in the industry. We would love to hear your feedback on what matters to you the most and your suggestions on how we can make the program better. We look forward to seeing you at the event. Thanks Chetan Sharma Chief Curator - Mobile Future Forward 2 The Last 10 years Copyright 2010, All Rights Reserved.
3 Revenue in Billions Subscriptions in Millions Chetan Sharma Consulting, 2010 Revenue in Billions Subscriptiosns in Millions MOBILE FUTURE FORWARD Sept 8, 2010 The Last 10 years $1,000 $900 $800 $700 $600 $500 $400 $300 $200 $100 $- imode > 5M subs JP DARPU > $10 FI, DE, JP DARPU > 10% US > 100M subs 12% global penetration imode launches First Commercial MVNO by Virgin UK Bluetooth devices Global Mobile Industry: The Last Decade imode > 30M subs China > 100M subs First camera/bluetooth phone from JPhone/Sharp Japan 3G launch RIM Blackberry China > 200M subs SE T68i (MMS support) Mobile > Fixed Windows Mobile 2B Appstore dwld iphone, Ovi China > 700M subs 5000 China > 400M subs India > 500M subs India > 100M subs Data revenues > 4500 $200B Vodafone leaves Japan > 90% 3G Japan > 50% 3G 4000 Japan TeliaSonera LTE launch US >200M subs DoCoMo > $10B Global DARPU > 20% Western Europe 3500 in data revenues DoCoMo DARPU ~ 50% > 100% penetration Nokia N95 5 operators > $10B 100M 3G subs India crosses US 3000 GLobal Subs > 3B in data revenues 2B GSM subs as #2 market iphone launch Nortel bankruptcy 2500 China Mobile Mobile becomes Huawei wins LTE becomes the most atrillion$ industry contracts in Europe 2000 valued operator Vodafone re-enters68% global penetration DoCoMo > $10B in Indian market 1500 Razr data revenues US crosses JP in Telefonica-O2 merger data revenues 1000 Nokia 6300 Android launch UK > 100% penetration Nokia ships 100M 500 SE W800i (walkman) units/qtr % Data Revenue Revenue Subscriptions Global Handset Marketshare Over the Last Decade Chetan SharmaConsulting, % 20% 10% 0% $160 $140 $120 $100 $80 $60 $40 $20 $- ATT/DoCoMo JV VZ #1 Operator Data Rev < $0.5B Voicestream acquired by DT becomes TMO US Mobilestar bankruptcy acquired by Voicestream Metricom bankruptcy ipod Nokia Samsung LG SonyEricsson Motorola Blackberry Apple iphone Others US Mobile Industry: The Last Decade Windows Mobile American Idol DARPU < 1% TMO launches Hotspot business RIM Blackberry Razr storms the handset world US Service Rev/ qtr > $100B > $1B/qtr MS Origami Cingular buys ATT becomes #1 Sprint buys Nextel Data ARPU > $5 Netadds peak at 7M 300 iphone 3GS Pre, Droid Google buys 3G networks start 250 launching Admob Smartphone % rises Cisco buys Starent Data traffic > 1 EB $1MMobile Ad First $10B quarter campaign starts 200 Verizon Data Rev Facebook > 100M subs on mobile 700 MHz DARPU > 30% Spectrum Auction Industry weathers 150 iphone launches, Appstore wreaksrecession the world changes havoc Google Phone US > 250M TMO /Android 100 Everyone chantsvz buys Alltel Open Mantra becomes #1 Spectacular rise ATT buys Wayport and fall of MVNOs > Trillion TXTs 50 3G ~ 25% CinBell's first UMA launch, Storm Kindle Data Revenue Revenue Subscriptions Chetan Sharma Consulting, The Last 10 years Copyright 2010, All Rights Reserved.
4 The Next 10 years: Trends that matter 1. Mobile ecosystem is getting complex 2. Network evolution: more capacity, more bandwidth, tremendous usage 1 1 Source: Adapted from T-Mobile USA 4 The Next 10 years: Trends that matter Copyright 2010, All Rights Reserved.
5 3. New sources of revenue: mobile advertising, commerce, and services 4. Evolution of content, media, entertainment, and commerce 2 2 Source: Microsoft Home, Perceptive Pixel, Intel 5 The Next 10 years: Trends that matter Copyright 2010, All Rights Reserved.
6 5. Evolution of communication?? Twitter? Carrier is typically only a transport provider Facebook? Text IM Text IM Text/MMS VoIP IM Text/MMS Video VoIP? Facebook/Twitter Text/MMS/Video RCS /IM Data Revenues Chetan Sharma Consulting, 2010 Voice Voice Voice Voice Voice Voice/VoIP Voice Revenues < Always on Real-Time Access - mobile cloud computing & instant access to anything 6 The Next 10 years: Trends that matter Copyright 2010, All Rights Reserved.
7 7. Internet of things: mobile device as a remote of our lives HOME NETWORK Intercarrier Handoff Self-forming, Selfhealing, Best Available Smarter and Flexible Devices MESH 5/6G WLAN News and Alerts Entertainment Superdistribution and Communication Field Service Automation 3G/4G Intertech Handoff WPAN Telematics mhealth Semantic Web Frequency and network Mobile Commerce Productivity Apps agnostic Mobile Enterprise Emergency Response Teleworking mgovernance OFFICE NETWORK Firewall Real-Time Information Access magriculture Life s New Remote Control Education OUTDOOR NETWORK Mobile Payments Remittances Security Tracking and Navigation Social Networking Shared Experiences Simultaneous video, audio, talk, IM, internet access Context and Ambient Awareness Security and Privacy Pervasive Chetan Sharma Consulting, 2010 IN-VEHICLE NETWORK 8. The world is flat - globalization and competition 7 The Next 10 years: Trends that matter Copyright 2010, All Rights Reserved.
8 9. Mobile as a platform - let a thousand industries bloom Social Networking Doctor Counseling Live Class Transmission Field Force Automation Complaint Filing Disaster Alert Celebrity Alert Health Monitoring Real-Time Collaboration Sales Force Automation Accessing Govt Programs Evacuation Guidance Live TV Appointment Reminder Peer Networking M2M Registering to Vote Relief Notification Music Download Service Pay the Doctor Virtual Field Trips Video Conferencing Homeland Security Social Organization APPLICATION MODULES Entertainment mhealth meducation Enterprise Applications mgovernance Public Safety NETWORK CRM, Payments, Banking Location, Presence, Awareness Performance, Policy Management Billing CAPABILITY Personalization, Identity Messaging, Browsing Video, Music Security, Authentication Advertising ACCESS WCDMA/LTE EV-DO WiMAX Cable FTTH OPERATOR NTT DoCoMo China Mobile Vodafone ATT Telefonica Integrated Mservices Platform Chetan Sharma Consulting, New Experiences - display, interaction and commerce 3 3 Source: Fjord, Microvision 8 The Next 10 years: Trends that matter Copyright 2010, All Rights Reserved.
9 11. Reallocation of revenues - winners and losers are decided in reallocation 12. Battle for the analytical mind - data, context and intelligence drives everything Demographics/Explicit Profile Sensor data Interests/Implicit Profile Browsing, Watching, Previewing, Flipping Purchasing, Payments User Intent Location Communications Presence Search (Local, Online, Media) Physiological parameters Calendar Knowledge (about User) DRIVES Transactions (from User) User Experience Address Book Social Community Intellectual Community M2M Preferences Devices in the vicinity Gifting Advertising Pricing Security/Authorization Chetan Sharma Consulting, rd Party Sources 9 The Next 10 years: Trends that matter Copyright 2010, All Rights Reserved.
10 13. Shifts in ecosystem - the ups and downs, and shifts of revenue sand dunes 14. Nurturing ecosystems - aggregating the developers and partners # of APPS % of PROFITS Acquisitions LOWEST HIGHEST Chetan Sharma Consulting, 2010 Admob Tool Providers Flurry Millennial Media HIGHER Digital Choclate Amazon Glu Mobile LOWER Content & IP SUN Paypal Microsoft Google Real TiVO The Weather Channel Direct TV Facebook NY Times OEMS RIM Motorola Apple Operators Verizon ATT Sprint Samsung LG Nokia Microsoft HIGHEST LOWEST or NEGLIGIBLE Orange T-Mobile China Mobile Google 10 The Next 10 years: Trends that matter Copyright 2010, All Rights Reserved.
11 15. Managing the network - what doesn t kill you makes you stronger 11 The Next 10 years: Trends that matter Copyright 2010, All Rights Reserved.
12 Partial List of Thought Leaders attending the Summit Glenn Lurie, President, AT&T Stephen David, Former CIO, Proctor & Gamble Subba Rao, CEO, TataDoCoMo Anand Chandrasekhar, SVP & GM, Intel Christopher Dean, Chief Strategy Officer, Skype Hank Skorny, SVP, Media Mobile Cloud Computing, Real Networks Louis Gump, VP Mobile, CNN, Paul Palmieri, Founder and CEO, Millennial Media Dr. Sailesh Chutani, CEO, Mobisante Abhi Ingle, VP, AT&T Ken Denman, CEO, Openwave Mike Sievert, Chief Commercial Officer, Clearwire Amir Mashkoori, CEO, Kovio Dr. Genevieve Bell, Intel Fellow & Director, User Experience, Intel Jon Stross, VP & GM - Babycenter, Johnson & Johnson Dr. Suzanne Clough, Chief Medical Officer, WellDoc Dr. Boris Nikolic, Sr. Program Officer, Global Health & Discovery, Bill & Melinda Gates Foundation Dr. Greg Brandenberg, CEO, Columbia Basin Health Association Krishna Vedati, SVP & GM - Mobile, AT&T Interactive Takayuki Hoshuyama, COO D2 Communications Neville Ray, SVP, T-Mobile David Weiden, General Partner, Khosla Ventures Russ McGuire, VP, Sprint Nextel Wim Sweldens, President, Alcatel-Lucent Rob Glaser, Chairman, Real Networks Jack Kennedy, EVP, News Corp 12 Partial List of Thought Leaders attending the Summit Copyright 2010, All Rights Reserved.
13 About Mobile Future Forward Conference Mobile Future Forward is produced by Chetan Sharma Consulting. About Chetan Sharma Consulting Chetan Sharma Consulting is one of the leading management consulting and strategic advisory firm in the mobile industry. We are focused on evolving trends, emerging challenges and opportunities, new business models and technology advances that will take our mobile communications industry to the next level. Our expertise is in developing innovation-driven product and IP strategy. Our clients range from small startups with disruptive ideas to multinational conglomerates looking for an edge. We assist major brands formulate winning, profitable, and sustainable strategies. Please visit us at 13 About Mobile Future Forward Conference Copyright 2010, All Rights Reserved.
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