The Mobile Internet Report Key Themes*

USA Likely to Remain Most Dynamic 3G Market
for Next 1-2 Years
3G penetration is still relatively low - at 37% of total USA wireless subscribers in CQ2:09,
up nicely from 21% in C2007, providing ample room for upside.
USA is largest market (at 45% of units sold in CQ2:09) for hottest device in high-end
wireless market - Apple's iPhone - and momentum should likely stay in place, in part, as
Apple rolls out improved devices every 12 months or so.
Carrier competition (AT&T with iPhone vs. Verizon with BlackBerries / Android phones and
LTE upgrade vs. T-Mobile with Google Android vs. Sprint with Palm Pre...) creating a bevy
of compelling consumer opportunities.
Software / application innovation – Focused on bringing best of Internet (video / social
networks / apps…) + more (location / push notification…) to mobile devices – occurring at
feverish pace, likely ensuring consumers will increasingly find high-end 3G-enabled devices
to be useful / fun / economical. Best of Silicon Valley is back to what to what they do well…
USA shares essential market characteristics for 3G success with Japan – High postpaid
subscriber ratio + low smartphone price through carrier subsidy + flat-rate data plans. USA
surpassed Japan as world’s largest 3G nation in CQ1:09, and will likely support more than
2x Japan’s 3G+ subscribers when USA 3G+ penetration reaches 71% in 2013E.
W. Europe could lag USA in mobile development – Fragmented market + relatively low
(~40%) post-paid ratio + smaller developer community likely to slow down mobile Internet
development in W. Europe vs. USA.
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