SOURCE: M:Metrics

February 14, 2007 05:31 ET

3G Does Matter: M:Metrics Finds Higher Speed Mobile Networks Drive Content Consumption

At 3GSM, Measurement Firm Reports That As 3G Penetration Climbs, So Does Consumption of Data Usage

SEATTLE, WA and LONDON -- (MARKET WIRE) -- February 14, 2007 -- 3GSM -- As the mobile industry gathers for the world's largest wireless trade event, M:Metrics, the mobile market authority, reports that there is good cause for the industry to celebrate at 3GSM: growing adoption of 3G handsets has spurred the adoption of mobile data services. The measurement firm's latest monthly Benchmark Survey shows that 3G subscribers are twice more likely to consume mobile content such as games, news and information, photo messaging and search.

"3G has been a significant driver of mobile data consumption," said Paul Goode, vice president and senior analyst, M:Metrics. "The 52 million 3G subscribers in France, Germany, Italy, Spain, the United Kingdom and the United States are making a substantial contribution to mobile operators' top lines, as by driving monthly data services ARPU."

                    Non-3G Subscribers     3G Subscribers
                                %                      %
                    Projected  Seg- Bench- Projected  Seg- Bench-
Activity              Subs     ment -mark    Subs     ment mark
                    ========== ==== ====== ========== ==== ======

Number of games
 downloaded in
 period
One                  5,374,638  1.5     80  2,345,061  4.5    239
Two                  2,632,228  0.7     81  1,066,835  2.1    227
Three                1,134,151  0.3     81    469,485  0.9    231
Four                   346,187  0.1     68    233,454  0.5    318
Five                   240,613  0.1     81    100,602  0.2    232
More than five         425,874  0.1     72    255,705  0.5    296
                    ---------- ---- ------ ---------- ---- ------
Any                 10,153,691  2.9     80  4,471,142  8.7    241

Accessed news and
 information
Almost every day    10,359,795  2.9     83  3,976,415  7.7    219
At least once each
 week               11,641,490  3.3     83  4,442,180  8.6    218
Once to three times
 throughout the
 month              21,182,640  6.0     87  6,701,860 13.0    189
                    ---------- ---- ------ ---------- ---- ------
Ever in month       43,183,926 12.1     85 15,120,454 29.3    204

Accessed web search
Almost every day     2,203,012  0.6     80    970,215  1.9    241
At least once each
 week                3,698,051  1.0     82  1,489,184  2.9    226
Once to three times
 throughout the
 month               9,336,798  2.6     84  3,461,733  6.7    213
                    ---------- ---- ------ ---------- ---- ------
Ever in month       15,237,861  4.3     82  5,921,132 11.5    221

Used network
 services for
 photos/videos
Almost every day     6,961,192  2.0     80  3,026,611  5.9    239
At least once each
 week               19,095,517  5.4     81  7,931,105 15.3    231
Once to three times
 throughout the
 month              34,630,674  9.7     84 12,372,851 23.9    208
                    ---------- ---- ------ ---------- ---- ------
Ever in month       60,687,384 17.1     83 23,330,566 45.1    219

Used major instant
 messaging service
Almost every day     5,864,478  1.6     89  1,712,898  3.3    178
At least once each
 week                5,391,015  1.5     90  1,502,014  2.9    172
Once to three times
 throughout the
 month               5,949,563  1.7     90  1,590,800  3.1    166
                    ---------- ---- ------ ---------- ---- ------
Ever in month       17,205,055  4.8     90  4,805,711  9.3    172

Used email (work or
 personal)

Almost every day     9,852,426  2.8     86  3,205,448  6.2    194
At least once each
 week                8,406,244  2.4     90  2,292,057  4.4    169
Once to three times
 throughout the
 month               9,610,378  2.7     88  2,875,869  5.6    182
                    ---------- ---- ------ ---------- ---- ------
Ever in month       27,869,047  7.8     88  8,373,374 16.2    182
With more than 26.4 percent of subscribers using a 3G handset, Italy is the leading market for 3G services among the geographies M:Metrics measures. The UK placed second with 15.2 percent of British mobile subscribers owning a 3G handset, followed by Spain with 13.8 percent penetration, Germany at 10.4 percent, France at 9.8 percent and the United States at 9.6 percent. Across all geographies, males aged 18-24 have the highest incidence of 3G network usage.

"A key finding from this data is that 3G is transforming the mobile experience by providing a lift for all types of mobile services beyond those that demand high bandwidth," observed Goode. "It's important to note, however, that even with steady growth, which was at 150 percent in the UK over the past year, the numbers are relatively small. 3G is delivering on its promise -- by increasing consumption of mobile multimedia by a factor of ten -- but prudence is warranted."

M:Metrics applies trusted media measurement methodologies to assess the audience for mobile content and applications. As the world's most authoritative mobile market measurement firm, M:Metrics delivers the most accurate mobile market metrics through the world's largest monthly survey of mobile subscribers as well as automated data collection methodologies. Below are the findings of its December Benchmark Survey.

M:Metrics French Benchmark Survey: December 2006

                                Subscribers   Percent     Change
Sent Text Message                31,530,422      72.5%    +2.9%
Used Photo Messaging              9,123,723      21.0%    +1.2%
Retrieved News/Info               3,306,900       7.6%   (-7.3%)
Personal Email                    2,727,057       6.3%   (-0.1%)
Downloaded Ringtone               2,247,901       5.2%   (-4.2%)
Used Instant Messaging            1,353,573       3.1%   (-0.8%)
Downloaded Graphics                 924,800       2.1%   (-8.2%)
Used Work Email                     916,542       2.1%   (-4.0%)
Downloaded Game                     585,554       1.3%    +1.4%
Source: M:Metrics. Survey of French mobile subscribers for the
three month period ending December 31, 2006. n=12,642

M:Metrics German Benchmark Survey: December 2006

                               Subscribers   Percent     Change
Sent Text Message               36,868,805      81.0%    +0.9%
Used Photo Messaging             9,429,014      20.7%    +0.8%
Personal Email                   2,666,751       5.9%   (-3.7%)
Downloaded Ringtone              2,208,292       4.9%    +3.3%
Retrieved News/Info              1,473,669       3.2%   (-3.4%)
Used Instant Messaging           1,457,212       3.2%    +6.0%
Used Work Email                  1,337,195       2.9%    +5.5%
Downloaded Game                  1,139,925       2.5%   (-3.2%)
Downloaded Graphics                968,880       2.1%    +5.3%
Source: M:Metrics. Survey of German mobile subscribers for the
three-month average ending December 31, 2006. n=15,025

M:Metrics Italian Benchmark Survey: December 2006

Italy                          Subscribers   Percent     Change
Sent Text Message               37,545,033      86.3%      +0.0%
Used Photo Messaging            13,685,783      31.5%      +0.0%
Personal Email                   4,062,762       9.3%      +0.0%
Retrieved News/Info              3,030,095       7.0%      +0.0%
Used Instant Messaging           2,628,157       6.0%      +0.0%
Downloaded Ringtone              2,549,165       5.9%      +0.0%
Used Work Email                  2,039,565       4.7%      +0.0%
Downloaded Game                  1,552,087       3.6%      +0.0%
Downloaded Graphics              1,365,025       3.1%      +0.0%
Source: M:Metrics. Survey of Italian mobile subscribers for
the three-month average ending December 31, 2006. n=12,288

M:Metrics Spanish Benchmark Survey: December 2006

Spain                          Subscribers   Percent     Change
Sent Text Message               26,601,431      85.8%    +1.6%
Used Photo Messaging             8,947,859      28.9%    +2.0%
Personal Email                   2,770,808       8.9%   (-4.8%)
Downloaded Ringtone              2,342,487       7.6%   (-9.8%)
Used Instant Messaging           2,211,019       7.1%   (-3.3%)
Retrieved News/Info              1,986,825       6.4%   (-7.0%)
Downloaded Game                  1,731,528       5.6%    +8.4%
Used Work Email                  1,674,716       5.4%   (-3.3%)
Downloaded Graphics                893,123       2.9%  (-13.1%)
Source: M:Metrics. Survey of Spanish mobile subscribers for the
three-month average ending December 31, 2006. n=15,025

M:Metrics UK Benchmark Survey: December 2006

                               Subscribers   Percent     Change
Sent Text Message               37,960,650      86.3%    +0.0%
Used Photo Messaging            13,336,137      30.3%    +1.0%
Retrieved News/Info              6,385,278      14.5%    +0.7%
Personal Email                   3,166,705       7.2%    +3.1%
Received Text Alert              2,398,730       5.5%   (-0.3%)
Downloaded Game                  2,160,369       4.9%    +4.8%
Downloaded Ringtone              2,109,192       4.8%   (-6.2%)
Used Instant Messaging           1,859,570       4.2%    +0.9%
Used Work Email                  1,698,273       3.9%    +3.9%
Downloaded Graphics                902,186       2.1%   (-2.5%)
Source: M:Metrics. Survey of UK mobile subscribers for the
three-month average ending December 31, 2006. n=14,972

M:Metrics U.S. Benchmark Survey: December 2006

                               Subscribers   Percent     Change
Sent Text Message               76,442,732      38.2%   (-0.5%)
Used Photo Messaging            29,483,197      14.7%   (-1.1%)
Retrieved News/Info             20,179,589      10.1%   (-5.3%)
Downloaded Ringtone             19,072,134       9.5%    +7.2%
Personal Email                  16,934,780       8.5%    +1.2%
Used Instant Messaging          12,495,519       6.2%   (-2.2%)
Received Text Alert             10,468,214       5.2%   (-0.4%)
Used Work Email                 10,123,023       0.5%    +1.3%
Downloaded Game                  7,449,654       3.7%    +1.4%
Downloaded Graphics              6,617,436       0.3%   +11.9%
Source: M:Metrics. Survey of U.S. mobile subscribers for the
three-month average ending December 31, 2006. n=31,455
About M:Metrics

M:Metrics is the mobile market measurement authority. As the only research firm to measure the audience for mobile media, M:Metrics provides the most accurate metrics on actual mobile content consumption by applying trusted media measurement methodologies to the mobile market. M:Metrics' monthly syndicated data service gives clients the critical insights and intelligence required to inform smart business strategies and the competitive benchmarks needed to evaluate the performance of competitors and partners. M:Metrics is a private, venture-funded corporation headquartered in Seattle, with offices in San Francisco and London.

About M:Metrics Data

Based on continually refreshed samples of nationally representative mobile phone consumers, M:Metrics reports summarise market size, device reach, and key demographic and mobile phone usage characteristics.

The data presented here is drawn from an extensive survey questionnaire that collects specific device model and carrier subscription information from each month's sample of mobile phone subscribers, and also drills down into specific details related to current and past usage of various mobile phone applications and content. Data collected from each sample are statistically balanced and projected to the total national population of mobile phone subscribers.

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