Operators Losing Out to Web Brands on the Mobile Internet

A survey from CCS Insight reveals that while a significant proportion of young Europeans now access the Internet from their mobile phones on a frequent, often daily, basis, most of them ignore the services offered by mobile phone companies in favour of more-familiar names from the web. While the research suggests ways for network operators and handset-makers to maximise uptake of the mobile Internet, results indicate many of these opportunities are being overlooked.
Key findings of the report, Mobile Internet Usage in Europe, 2009, include:

  • Up to a quarter of young people now access the mobile Internet every day
  • Mobile operator portals and services such as Nokia's Ovi are losing out to familiar web brands like Facebook, Amazon and Twitter
  • The success of local-language networking sites shows there is life beyond Facebook. Around half of mobile social network users in Germany access StudiVZ on their mobile phone, while 62% in Spain access Tuenti
  • About two-thirds of Italian and Spanish women under 36 have never accessed the Internet on their mobile phones, partly because mobile operators are failing to deliver services that appeal to this untapped market
  • Increasing use of phones to access social networks, coupled with demand for mobile gaming, creates an opportunity for a new mobile social gaming phenomenon
  • As multiple e-book readers descend on Europe, mobile phones still have a role as the preferred way to access e-publications

Our survey reveals the true picture of mobile Internet usage among young consumers in Europe's top five markets. It shows that as Smartphones become more affordable, people are using them to access the sites they know and love on their PCs, says Martin Garner, Director of Mobile Internet at CCS Insight and one of the report's authors. Mobile network operators and handset manufacturers are losing the battle to define the mobile Internet experience, despite the huge sums they're pouring into sites that compete with the familiar web names.” On the eve of the industrys biggest gathering in Barcelona for Mobile World Congress, CCS Insight's report highlights some key lessons still to be learned.
While the survey shows that over 60% of mobile Internet users in Europe's five largest markets prefer to ignore operator portals, it also reveals that mobiles have a role to play in other current consumer trends. For example, in Italy, over 40% of young people who expressed an interest in e-newspapers said they would only read them on their phone. This finding, coupled with data from other countries in the survey, suggests that despite excitement around the launch of several e-book readers, the mobile phone is still the device of choice for many consumers accessing multimedia content.
The report also found that although many young people are reluctant to pay for music or video downloads on mobile phones, 39% do pay for mobile games, and a further 19% of respondents would be willing to. Combined with the popularity of social networking sites for mobile Internet users, this suggests a big opportunity to drive mobile Internet traffic through popular social gaming applications, CCS Insight says.
In contrast to the general reluctance to access networks' mobile Internet portals, over half of all mobile Internet users surveyed said they access Facebook on their phone, while 10% access Twitter. The most popular mobile Internet application is email, with 61% of young mobile Internet users in Europe's top five markets accessing email on the move.
Despite the warnings for the mobile industry, the opportunities are there, says
Paolo Pescatore, Director of Operator Strategy at CCS Insight and co-author of the report. Network operators, phone-makers and media companies need to focus less on what they want to sell and more on what consumers want to access on their mobile phones. The alternative will be to sit back and watch the large web brands continue to define the future of the mobile Internet.
Theres more information about the report here.