Interactive TV and Mobile Devices

According to Ovum and Verdict Research 28% of the UK adult population had internet access on their mobile in 2009 but just 2.1% used this access to shop online.  Verdict estimates that in 2009, internet shopping sales via mobiles was worth just £122.9m, 0.6% of total £21.2bn online retail spending. At present, rather than shop, it is clear that consumers are using their mobiles to enhance the shopping experience by comparing prices, researching products and interacting with retailers. Indeed, the findings of Verdict's consumer research reveal that 11.5% of all UK shoppers are using their mobiles to research before shopping, while 3.8% use them to research, engage and interact with retailers while out shopping.

By 2013, internet sales via mobiles are predicted to have doubled to £275 million, driven by a 119% rise in the m-commerce population, improvements in mobile technology, better interoperability and greater take-up of smartphones and Android devices.  Verdict and Ovum believe that though m-commerce will still not have become a significant channel by 2013, its effectiveness as a marketing tool and way of interacting with customers will have increased substantially, providing a massive boost to sales growth across all channels.

(Datamonitor, June 2010)

London mayor Boris Johnson has given his support to plans to install Wi-Fi hotspots and mobile phone base stations in London Underground stations. In his address to the annual State of London debate, Johnson said he was willing to consider any ideas that would help London become one of the most technologically advanced cities in the world, as long as they are financially viable.

But efforts to make progress since then have stalled, mainly because of costs. A six-month trial of on-platform web and phone services was due to commence in 2008, but a suitable partner could not be found.

Johnson has made no secret of his desire to give all of London wireless internet access, and last month told a Google conference that he had approached Europe's largest broadband provider The Cloud, which already covers the City of London, to extend the coverage across the capital in time for the 2012 Olympics. Plans would include installing wireless hotspots in street lights and bus stops.

As recently as last year, mobile access on the tube was mooted, as part of the Digital Britain report.

(ITPro, June 2010)

The Cloud has come in as the front runner to provide blanket Wi-Fi coverage of London in time for the Olympic Games in 2012.  The company, which is the largest provider of Wi-Fi across Europe, has been asked by London Mayor Boris Johnson to draw up plans of how to get the Olympic site at Stratford connected, according to the Financial Times.

It will not be the only provider involved however. A statement from The Cloud's chief executive, Steve Nicholson, claimed other mobile operators (such as O2, Vodafone and Virgin Mobile) have been included in a series of meetings to work out the logistics of getting the site fit for connectivity purposes. (ITPRO FIT FOR BUSINESS, May 2010)

Consumers are increasingly media multi-tasking with more than 8 out of 10 mobile media users (84%) simultaneously interacting with their TVs or PCs, according to a mobile focused research commissioned by Yahoo! among 2,004 UK mobile media users aged between 16 and 65.

The study conducted over the last five months showed that almost a quarter of respondents (22%) regularly use their mobiles, TVs and PCs to access content simultaneously, with 17% using PC and mobile at the same time, 29% using TV and mobile at the same time, and a massive 77% watching TV and using their PC simultaneously. The findings mean brands need to consider all platforms if their marketing campaigns are to drive consumer awareness and ward off negative consumer perception, according to Yahoo.

The findings also included a warning for brands that they must get their mobile offerings right, with many consumers opting to switch brands because of a bad brand experience.

The research showed that 1 in 10 mobile media users make mobile purchases, with this figure rising to 4 in 10 for iPhone users (including purchasing apps from the App Store). (eyefortravel, April 2010)

22% of all mobile consumers aged 15-50 in the UK regularly used their mobile to access the internet, according to a report published in February 2010 by Ipsos MediaCT, Moving Mobile Internet into the Mainstream.

The findings show that over half of all mobile consumers have still never used their mobile to access the web. For this group, functional barriers hold them back with nearly half stating that the internet is better on a PC/laptop, 36% state mobile web is too expensive and 20% that the screen size is too small. Importantly, the barriers are not that they do not want to access web content via a mobile. It is no longer apathy holding them back, which is a significant step forward.

Mobile internet usage is going through a transformation. The significant driver of this change has been the iPhone. At 7% ownership in the UK, the iPhone has opened up the market and together with the wider smartphone base, has shifted what consumers see as possible on a mobile, breaking down many lingering preconceptions about mobile internet.

Research from Ipsos MediaCT shows that 88% of iPhone owners regularly access mobile internet, sot hey are certainly much more active. iPhone users do, however, use a similar range of services on the fixed internet to typical mobile owners, suggesting the underlying motivations for using the web are similar.

The big difference is how iPhone owners are using the mobile internet. Their mobile web usage habits are now almost level with fixed internet usage, highlighting the extent to which the fixed experience has been transferred to the mobile for iPhone owners. IN the case of location based services (such as accessing maps or looking up places of interest) penetration of usage via the iPhone is beyond fixed levels. One of the few exceptions is shopping, remaining largely a fixed internet based experience - going forward, mobile commerce clearly offers a big growth opportunity on the iPhone.

Internet usage amongst iPhone owners, November 2009 (services accessed in the past 3 months) :
- Webmail: 76% (mobile web) / 81% (fixed web)
- Browse news: 75% (79%)
- Maps/Directions: 73% (68%)
- Facebook: 71% (77%)
- Download/listen music: 67% (67%)
- Location: 60% (46%)
- Travel info: 57% (62%)
- YouTube: 57% (68%)
- Twitter: 19% (28%)
- Shopping: 17% (71%)
- Catch-up TV: 15% (58%)

For the typical mobile owner, the web is still very much a fixed internet experience. The research from MediaCT showed that across a broad range of online activities the gap in current usage between fixed and mobile access is significant.

Interest in future usage uniformly rises across all activities when the three main functional barriers are removed (i.e. using handset with a large colour screen, fast mobile internet and web browsing is inclusive in the tariff). Interest increases to such an extent that it nearly mirrors today's iPhone user. The main activities on the fixed web (social networking, webmail, browsing news/entertainment sites and accessing music) all show the highest levels of interest for mobile web usage.

Internet usage amongst all mobile consumers:
- Facebook: 24% (mobile web) / 71% (fixed web)
- Webmail: 20% / 84%
- Download/listen music: 19% / 58%
- Browse news: 16% / 73%
- Maps/directions: 13% / 67%
- Location: 11% / 47%
- Travel info: 11% / 57%
- YouTube: 7% / 64%
- Twitter: 0% / 17%
- Shopping: 0% / 65%
- Catch-up TV: 0% / 55%

(IPSOS MORI, February 2010)

Reports suggest that mobile giant Orange will start selling the iPhone in the UK from 10^th November 2009. The mobile giant has yet to respond to IT PRO's request for clarification on the situation, but has declined to comment on a number of other reports that claim the iPhone's Orange UK debut is mere weeks away.

In September, Orange, which already supports the iPhone in 28 countries around the world, announced that the iconic device would be hitting UK shores before Christmas. Vodafone quickly followed saying the iPhone would be available on its network early next year.

Since it emerged that O2's exclusive hold over the iPhone is coming to an end, users have crossed their fingers, hoping for a price war. However, both operators are remaining tight-lipped on exact delivery dates, leaving users playing a waiting game and wondering which one to go with to get the best deal. (ITPro, October 2009)

Around a third of young adults (those under 36) in the UK regularly access sites such as Facebook and Twitter from their mobile phones, according to a survey among more than 1,000 adults between 16 and 35 years old in the UK by CCS Insight. The research company noted that the 16 to 24 year-olds are often cited as the most vibrant segment of the market, but when it comes to buying mobile content, it's those over 24 who are doing the spending.

CCS Insight concluded that because the phenomenal growth in mobile phones and internet usage have collided with spectacular results, networks are going to have to think carefully about how they charge for mobile internet access.

Those under 36 love social networking via the mobile and expect to pay for it, however, younger adults expect mobile content (especially music and videos) to be free. Moreover, a third of the survey respondents said they'd like the bandwidth-hungry BBC iPlayer on their mobile phones.

This leaves operators in a predicament. The challenge operators face is balancing demand for these services with the bandwidth they consume, particularly as applications such as YouTube, BBC iPlayer and Skype become more popular.

Coincidentally, UK mobile operator O2 said that it has forged an agreement with Twitter allowing users to receive free SMS alerts from Twitter. The deal follows up existing agreements from Facebook and Bebo and takes effect from August 2009. As part of the deal, Twitter will be heavily promoted on O2's Active portal and will likely be expanded to Telefonica's other operations. O2 said that over a million customers per month now access social networking sites such as Twitter and Facebook using O2 Active, bolstered by hundreds of thousands of iPhone users who have downloaded social networking applications. O2 believe that mobile will soon become the most popular way of accessing social networking sites, giving real time access to tweets and status updates wherever you are. (Telecoms.com, July 2009)

BT willturn cash machines into Wi-Fi hotspots, in a five-year deal with ATM provider Cashbox. The BT Openzone wireless broadband service will initially be available in 10 locations, including sites in London, Manchester and Glasgow.

However Cashbox is looking to expand its connectivity to more of its 2,500 ATM sites. BT broadband customers with inclusive Wi-Fi minutes as well as O2 iPhone users will be able to use the service. (ITPRO, June 2009)

Taking and sending photographs were the two most popular non-core mobile services among UK users in 2008, according to data supplied exclusively to telecoms.com from market research specialist TNS.

24% of UK mobile users have browse the internet with their handsets, a year on year increase of 33%.

Top ten most popular mobile services in the UK 2008:
- Taking pictures: 66% (+33% compared to the previous year)
- Sending pictures: 44% (+63%)
- Using Bluetooth: 36%
- Playing games: 35% (+59%)
- Listening to music: 31% (+72%)
- Making videos: 31% (+24%)
- Connected phone to computer: 25%
- Internet browsing: 24% (+33%)
- FM radio: 22% (+57%)
- Sending videos: 14% (+75%)

The 12-18 year old age group was the most voracious user of all services, apart from internet browsing, which proved more popular with both the 19-24 year old and 25-34 year old demographics. While the oldest group, 55 and above was unsurprisingly the lowest using of all demographics, penetration of some services was reasonable. 44% of users in this age range had taken photos with their handsets and 25% had sent them.

Audience of UK mobile users browsing the internet by age:
Total: 23.5%
- 12-18: 33%
- 19-24: 61%
- 25-34: 39%
- 35-44: 26%
- 45-54: 15%
- 55+: 6%

Penetration among male and female users was very close for some services, with females marginally more likely to take and send photographs and to make videos. Male users were slightly more inclined to use Bluetooth, play games and listen to music. The popularity of internet browsing and email was markedly higher among males than females.

The data come from TNS' ComTech research project, which sees 170,000 users in the UK, Spain, Germany, Italy and France interviewed about their usage of mobile and fixed telephony, broadband and TV. The UK-the first market for which TNS has published results-has the largest sample user base, with 15,000 customers aged 12 and above interviewed during 2008. (Telecoms, April 2009)

The lack of user-friendly handsets contributed to a slow take-up of mobile Web services in the UK. But things may be changing. The launch of the 3G iPhone in the summer of 2008 gave the market a big boost, according to eMarketer. Nifty, practical iPhone applications such as maps, GPS services, games, news and social networking have caught consumers' attention and are starting to build momentum.

Estimates of UK mobile internet users still range between just 7.2 million and 17.4 million, however.

Comparative estimates: UK mobile internet users, 2008:
- Mobile Data Association (MDA), February 2009: 17.4 million
- comScore M:Metrix, December 2008: 12.9 million
- Nielsen Online, November 2008: 7.2 million

According to the UK Office for National Statistics (ONS), more mobile users in the UK are accessing the internet via computer than by handset.

UK adults who have accessed the internet via selected mobile devices, 2008 (as a % of respondents):
- Portable computer (laptop) via wireless connection: 23% (up from 18% in 2007)
- Mobile phone via GPRS: 15% (15%)
- Hanheld computer (PDA): 4% (4%)
- Mobile phone via UMTS (3G mobile): 4% (3%)

A majority of internet users not yet connected via phone would like Web access on their mobile, according to eMarketer. But compelling content and services are needed to attract more converts.

In fact, iPhones are not for everyone. In the short term, there is a lack of proven, affordable internet-ready handset alternatives that meet a range of consumer and professional needs.

The financial crisis has overtaken content providers and mobile developers too, slowing the migration of prime content to the mobile Internet. But the mobile Web is gaining ground in the UK, and soon the audience will be large and broad enough to interest mainstream advertisers. (eMarketer, March 2009)

93% of iPhone owners in the UK accessed mobile media in January 2009, according to comScore.  Mobile e-mail is used by 75% of British iPhone owners, making it the most popular type of mobile content consumed on the device. 

The penetration of e-mail usage on the iPhone is more than double that of the smartphone category as a whole. Over the past several quarters, the UK smartphone market has been dominated by the N95, which lacks a QWERTY keyboard. As a result, comScore see smartphone users favour using their device for music and photo messaging, two activities for which these Nokia devices are particularly well-suited, more than e-mail.

Top activities among iPhone users/all smartphone users/all mobile phone users, 3-month average ending January 2009 (Total UK, age 13+, smartphone owners):
- Accessed news/info via browser: 79.7% (iPhone users) / 48.0% (Smartphone users) / 19.8% (All mobile phone users)
- Accessed e-mail: 75.4% / 35.4% / 13.1%
- Listened to mobile music: 65.6% / 40.5% / 22.6%
- Accessed news or info via downloaded application: 55.6% / 22.1% / 6.3%
- Accessed social networking site: 54.8% / 29.6% / 12.7%
- Accessed weather: 55.5% / 26.1% / 9.2%
- Used web search: 55.1% / 31.9% / 12.3%

comScore data show that nearly 80% of UK iPhone owners accessed news and other information via a browser, four times the rate for all mobile phone users. The App Store is also extremely popular among iPhone owners, with 55.6% accessing news and information via a downloaded application, compared with 22.1% of smartphone owners, and 6.3% of all mobile phone users. The iPhone has also provided a boost to the mobile games sector, with 37% of iPhone owners downloading a game and 18.6% purchasing one.  Only 5.6% of smartphone owners and 2.7% of mobile phone users purchased a game in January.

comScore also revealed the demographics of iPhone owners, and found that 75% are males, mostly between the ages of 18-44. Smartphone ownership also typically skews male in the UK, with males comprising 65% of the audience.

The iPhone is indeed an early adopter phenomenon in the United Kingdom, according to comScore. While the device's ease of use is certainly contributing to the lift we see in mobile media consumption, the fact that the device requires a subscription package that includes an unlimited data plan is also a contributing factor. However, it is also important to note that while nearly all iPhone owners are consuming mobile media, the device is in the hands of only two percent of mobile phone users in the UK.

comScore data also shows that 55% of mobile media consumers are male, and 65% are between the ages of 18-44. 23% of mobile media users own a smartphone; and 3.5%, an iPhone. (comScore, March 2009)