1.5 Billion Mobile Internet Users

Friday, July 11th, 2008

Market Intelligence and research firm IDC released some data from their Digital Marketplace Model and Forecast which should put a smile on everyone’s face who is in the mobile content space.

From the release:

Nearly a quarter of the world’s population - roughly 1.4 billion people - will use the Internet on a regular basis in 2008. This number is expected to surpass 1.9 billion unique users, or 30% of the world’s population, in 2012, according to IDC’s Digital Marketplace Model and Forecast.

“The Internet will have added its second billion users over a span of about eight years, a testament to both its universal appeal and its availability,” said John Gantz, chief research officer at IDC. “In this time, the Internet has also become more deeply integrated into the fabric of many users’ personal and professional lives, enabling them to work, play, and socialize anytime from anywhere. These trends will accelerate as the number of mobile users continues to soar and the Internet becomes truly ubiquitous.”

While the PC is currently the dominant means of gaining access to the Internet, IDC expects the number of mobile devices accessing the Internet will surpass the number of online PCs by 2012.

Additional highlights from IDC’s Digital Marketplace Model and Forecast include the following:

* Users will access the Internet through more than 1.5 billion devices worldwide in 2008, including PCs, mobile phones, and online videogame consoles. By 2012, the number of devices accessing the Internet will double to more than 3 billion, half of which will be mobile devices.

* Roughly 40% of all Internet users worldwide currently have mobile Internet access. The number of mobile Internet users will reach 546 million in 2008, nearly twice as many as in 2006, and is forecast to surpass 1.5 billion worldwide in 2012.

* The most popular online activities today are searching the Web, finding information for personal use, using Internet email, accessing news and sports information, and accessing financial or credit information. In addition to these activities, more than 50% of online users worldwide are using instant messaging and playing online games.

In case you need any help with the math,

1.5B people connecting to the Internet from their mobile phones.
50% play games online.

That sounds like at least 750M mobile gamers worldwide. My research shows the current number of mobile gamers worldwide at 165M.

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Virgin Mobile USA Acquires Helio

Friday, July 11th, 2008

Virgin Mobile USA (NYSE: VM) officially confirmed it will acquire rival MVNO Helio from SK Telecom and EarthLink.

The acquisition will cost Virgin Mobile $39 million, paid in limited partnership units equivalent to 13 million of its shares, currently valued at $2.99. Parent firm Virgin Group and SK Telecom will also invest $25 million each of equity capital in the post-merger Virgin Mobile USA.

Dan Schulman, Chief Executive Officer, Virgin Mobile USA, said, “We believe that the acquisition of Helio and the related strategic investments by SK Telecom and Virgin Group are of enormous benefit to our business, both financially and strategically. The reduction of our long-term debt and the increase to our revolver will realign our capital structure, providing us with greater liquidity and increased flexibility to grow our business. At the same time, we will acquire an asset which will add to our scale, allowing us to reduce our network costs and assure that Helio’s customers are immediately profitable when brought on to our cost structure. We expect the combined elements of this deal will drive increased Adjusted EBITDA and free cash flow.”

$39M for Helio is laughable when you consider both Earthlink (NSDQ: ELNK) and SK Telecom have invested around $600 million in this venture over the last three years.

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AT&T Launches First Mobile Content Portfolio For The Military

Friday, July 11th, 2008

AT&T Inc. (NYSE:T) announced last week a program with 2ThumbZ Entertainment, Inc. to launch the wireless industry’s first comprehensive portfolio of mobile content tailored to the United States Military. The selection of content consists of ringtones, Answer Tones, 3D graphics and animations, and videos tailored to members of the U.S. Army, Navy, Marines, Air Force and Coast Guard.

AT&T customers, including Armed Services personnel and their family members can now show their patriotic spirit and support with elite military division insignia featuring exclusive designs from 2ThumbZ. The collection includes special photos that highlight the skill and precision of the military’s premier air demonstration squadron, the USAF Thunderbirds. A portion of each Thunderbird photo sale will be contributed by 2ThumbZ to military charities supporting active duty personnel and veterans of all service branches.

“We are proud to offer exclusive content through our partnership with 2ThumbZ that conveys the honor, strength and spirit of these elite military units,” said Mark Collins, vice president of consumer products for AT&T’s wireless unit.

“This is the very first wireless military portfolio that includes divisional insignia for many top units including the 82nd Airborne division, 1st Infantry division, Marine 2nd division, Army Rangers and the USAF Thunderbirds,” said Mark Baric, chairman, 2ThumbZ. “We are truly privileged to work closely with all branches of the U.S. Armed Services and AT&T to build this portfolio that salutes America’s bravest.”

“The publication of the US Military content by AT&T allows their customers to express support of U.S. troops”, stated, Gen. H. Hugh Shelton, USA (Ret.) 14th Chairman Joint Chiefs of Staff. “Downloading this content sends a clear expression of gratitude and support for our soldiers across all military branches, which will resonate not only with them, but with their family and friends as well.”

For more information on the “America and USA Military” AT&T portfolio, text USA to 386 from any AT&T wireless device.

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Wamu Introduces Mobile Banking

Friday, July 11th, 2008

Washington Mutual, Inc. (NYSE:WM), following in the footsteps of other banks, announced today that it has launched mobile banking capabilities, delivering account information — anytime, anywhere wireless service is available, providing customers the ability to view real-time account balances, view and search real-time transaction history and locate a nearby branch/ATM.

“We have been working very hard to deliver to our customers a simpler and more enjoyable banking experience, and we believe these added mobile banking features deliver on that brand promise,” said Steve Rotella, WaMu’s President and Chief Operating Officer.

According to a study conducted earlier this year by Opinion Research, 21% of consumers ages 18-34 use their cellphones for banking transactions, compared with about 10% of the general population. These numbers, particularly for younger consumers, are expected to grow significantly.

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Camera Phone Usage On the Rise

Friday, July 11th, 2008

Almost two-thirds of the adults in the 18-to-30 age group use their cell phones at least once a week for taking pictures, according to a survey conducted of more than 2,000 adults in May and June by online cellular retailer Wirefly.com.

“Camera phones are taking over, and it’s being driven by young adults” said Scott Ableman, Wirefly’s senior VP of marketing. “High-quality cell phone cameras haven’t been around that long, yet nearly one in five cellphone buyers tell us that their cellphone is their primary camera.”

“Sharing and social media are the drivers” of cameraphone use by young adults, he continued. “Fifty-eight percent of adults age 18-30 tell us they use their camera phones to document nightlife, and one in five say they’ve published cameraphone pictures to a social Website or blog. It’s a more spontaneous kind of photography that’s perfectly suited for the cellphone, and as more low-priced and free phones come with quality cameras and high-speed internet connections, all barriers have been removed.”

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