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TABLE OF CONTENTS

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MOBILE TRENDS

23% 27%

1.Mobile Internet

2.Mobile Social Media

3.Mobile Applications

4.Mobile Advertising

5.Mobile Video

6.Mobile Payments

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KEY SUMMARY

48%

The number of people who access social networks via mobile devices is approximately 370 million worldwide- 10% of total mobile subscribers. By 2012, this figure will be more than double.

The mobile applications market (gaming, music, entertainment, utilities) is growing at an incredibly fast rate . Android is quickly catching up to Apple in terms of applications added per month.

Mobile advertising is expected to grow almost 10% in the next 6 years and will soon be one of the most important communications channels .

Mobile payments are becoming increasingly popular now with multiple industries looking into integrating it into their business payment systems for consumers.

***Data and statistics may vary slightly from each other in report depending on sources used for topic. This is to give you an overview only.

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1. MOBILE INTERNET

More than half a billion people accessed the mobile internet worldwide in 2009. Usage will double within next 5 years as mobile overtakes the PC as most popular way to connect to the Web.

3G is key to success of Mobile Internet and will have a 44% global penetration rate by 2013 (Japan, Western Europe, USA already > 30%)

Source: Morgan Stanley, MobiThinking

By 2012, Smartphones are expected to out-ship the global PC market (notebook+netbook+desktop)

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For the first time, there will

be over 1 billion mobile

devices accessing the

Internet by end of 2010,

gaining quickly on the 1.3

billion PCs accessing the

Internet (the former

growing 2.5x rate of latter)

Mobile Subscribers vs. Mobile Internet Users Worldwide

Source: Mobile Social Networks, Trendsspotting

1. MOBILE INTERNET

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Source: Morgan Stanley

There are more mobile internet users in China than any other countryin the world.

Source: Morgan Stanley, MobiThinking

UBUITIY OF MOBILE IN FUTURE

In developed nations, mobile data

will become the norm for all users

For emerging nations, everyone

will be online with their mobile

phones before they go on PCs.

Source: Mobile Trends 2020

1. MOBILE INTERNET

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Source: Morgan Stanley

Although China has a low 3G penetration rate, there will be more mobile internet users in China than any other country in the world

By end-2009, more than half of total internet users in China will be accessed by mobile devices

There are more mobile internet users in China than any other countryin the world.

Source: Morgan Stanley, MobiThinking

1. MOBILE INTERNET

8

23% 27%

Around 60% of the time spent on the mobile internet is spent on social networking sites and apps in the US.

* Week ending April 4 2010, n=3.05 million US mobile subscribers

Social Networking ranks as fastest-growing mobile content category

Source: ABI Research, Ground Truth

2. MOBILE SOCIAL

9

23% 27%

Global Phenomenon: with Facebook as clear leader, but also other regional strongholds

Global Social Networking Web Sites*830MM Unique Users,+20% Y/Y, 188MM Total Minutes,+25% Y/Y,10/09

Facebook430MM users

+137% Y/Y

MySpace 110MM users

-14% since 10/08

Twitter 58MM users+1238% Y/Y

Hi547MM users

-18% Y/Y

Orkut54MM users

+20% Y/Y

Skyrock21MM users

+10% Y/Y

Vkontakte23MM users

+22% Y/Y

Baidu Space63MM users

+33% Y/Y

Kaixin00125MM users+325% Y/Y

Friendster18MM users

- 47% Y/Y

QQ (Alumni+Mini)- Tencent

68MM users+138% Y/Y

CyWorld21MM users

+4% Y/Y

Mixi14MM users

+4% Y/Y

Source: Morgan Stanley

* Members on Social Networking sites

2. MOBILE SOCIAL

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SOCIAL MEDIA is a natural sweet spot for mobile since users connect with their circle of friends using phone, SMS, email by social networking sites via mobile browser.

Mill

ions

Mobile Social Network Users Worldwide

800 million mobile social network users by 2012

Source: Mobile Social Networks

2. MOBILE SOCIAL

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Social network on mobile device…….

Unified Communications + Multimedia Creation/Repository with you anywhere, anytime!

65 million users actively using Facebook Mobile Application

Source: Facebook Mobile: 100 Million and Growing, how-to-travel-the-world.com

VOIP Calls

Play games

Share music/videos/photos/storiesStatus Updates

Chat

Messages

Wall posts

2. MOBILE SOCIAL

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Mobile Location-Based Services (MLBS)

Source: Juniper

Location will become the core technology to mobile devices. It will become more ubiquitous

on the device than any other feature, nearly every user interaction with mobile devices will

become location.

Location based advertising will explode. Most application and mobile web will be location

aware, and most mobile advertising will be informed and targeted by action.

2. MOBILE SOCIAL

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Mobile Location-Based Services (MLBS)

•Advertising will likely form an increasing

a share of MLBS-related revenues over the

next five years

•Revenues will come from sales of apps

through application stores and other

channels, but also from mobile advertising

tied to those apps

•Greatest revenues will be coming from

a Western Europe, but usage highest in East

China

Source: Juniper

2. THEY ARE ENGAGING WITH….MOBILE SOCIAL

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23% 27%

iPad’s Flipbook: New category of media consumption

Source: Juniper

•Flipboard is a social magazine that brings to life the stories, photos, news, and updates

shared across multiple social media platforms such as Facebook

and Twitter

•Users can personalize the content on Flipboard, create

their own sections around particular topics, and

quickly flip through the latest material posted by

Friends on social networks by using the iPad

touchscreen

“With over one billion messages posted everyday, social networks are quickly becoming the primary way people discover and share content on the Web” - Flipboard co-founder McCue

Source: The New Zealand Herald

2. MOBILE SOCIAL

15

23% 27%

Source: Juniper

1. Augmented Reality: placing digital content literally

in physical context

2. Indoor Smartness: indoor position, smart

environments

3. Vendor Relationship Management: customers in

control, people sent out RFQ’s, includes barcode

scanning, couponing etc.

4. Contextual Information Provision: provision of

information based on LIVE information gathered

through sensory input from all elements in your

context

5. Personal Area Networks: many hardware mutants

and spinoffs

Source: Mobile Trends 2020, The Augmented Reality Industry in 15 mins.

AUGUMENTED REALITY (AR): Created for the 4th Screen

2. MOBILE SOCIAL

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23% 27%

1. Source: Mobile Trends 2020

Growing use of Augmented Reality..…

As well as major marketing/advertising channels…..

“Augmented and virtual reality will become an increasingly standard new method for search, discovery, gaming, eyesight, healthcare, retail, entertainment and most other experiences in life. Location and other contextual functions will grow so our 2D mobile experiences become 3D and ‘real”. To such an extent that the prefixes ‘augmented’ and virtual will eventually become redundant.”- Jonathan Macdonald, Founder JME

2. MOBILE SOCIAL

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3. MOBILE APPLICATIONS

1. The most popular categories for mobile applications according to the top mobile app stores are Games, Entertainment, Utilities, Personalization, and Music

2. For Apple and Blackberry- top mobile application categories are Games

Source: Distimo

58% Games18% Entertainment

40% Personalization15% Music

29% Games18% Utilities

MOST POPULAR CATEGORIES FOR MOBILE APPS

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23% 27%

1. Apple is still leading in terms of number of new applications per month2. However, Android is growing rapidly fast adding 15% new applications over the last month

Source: Distimo

3. MOBILE APPLICATIONS

Android is growing rapidly fast!

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23% 27%

Source: Vision Mobile 2010

1. Though iPhone and Android have the lowest number of device installed base, they account for the most number of total applications available (and with over 3 billion downloads from Apple already!)

2. Since 2008, the number of applications for the younger iPhone and Android platforms drastically increased compared

to Symbian and JAVA ME platforms

3. MOBILE APPLICATIONS

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23% 27%

1. Nokia has the most paid applications at 85%, followed by Windows, Blackberry and Apple2. Android has the largest share of free applications at 57% followed by Palm

Source: Distimo

3. MOBILE APPLICATIONS

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23% 27%

2010 may be the year when advertisers start seeing mobile less as an experiment and more as a serious part of their overall marketing campaignSource: 2010 Mobile Influencers

4. MOBILE ADVERTISING

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23% 27%

2010 may be the year when advertisers start seeing mobile less as an experiment and more as a serious part of their overall marketing campaign

* Mobile Advertising is defined by placing an advert within a variety of mobile media formats including mobile Internet, games/applications, mobile video, mobile TV, streaming music, text and media alerts.

1. It is estimated that global expenditure on mobile advertising will grow 9.5% in the next 6 years- from 3.6 billion in 2009 to 38 billion in 2015

Source: Strategy Analtyics, Trendspotting, Internet Advertising Bureau

Bill

ion

s

9.5%

Millions of consumers are already using their mobile to search for information on products and services and search volumes are growing faster than online

4. MOBILE ADVERTISING

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23% 27%

Source: Internet Advertising Bureau

Brands will be able to measure ROI and use analytics to better deliver mobile campaigns and understand their consumers

Mobile provides the ability to target by site, phone model, demographics and location, all of which can be useful to advertisers.

Mobile phones allow the consumers to react immediately with advertising. After seeing advert, they can text, call or download content instantly. It helps maximize effectiveness of other media i.e.. a short code is great example of this.

1. Mobile ads mature beyond banner ads and SMS spams, become more ‘engaging’, will not replace older media like TV, print, and internet, as each will adjust to the newest medium.

4. MOBILE ADVERTISING

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23% 27%

Source: Internet Advertising Bureau

5. MOBILE VIDEO

Major trends driving interest and growth in mobile video:

1)Increasing availability and screen size of advanced handsets improve viewing experience of hi-res video

2)Growing deployment of high-speed 3.0-3.5G networks supports video services high-bandwidth requirements

3)Expanding offering of video content services provides more rich-media possibilities to more mobile users

4) Need for mobility- users want access to video content “on the go”

Source: Mobile Video Services

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23% 27%

An increasing number of mobile subscribers will access video content through their mobile internet

By 2010, some subscribers may begin to access local TV content on their phones

Source: Ernest & Young

5. MOBILE VIDEO

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23% 27%

An increasing number of mobile subscribers will access video content through their mobile internet

By end-2009, some subscribers may begin to access local TV content on their phones

5. MOBILE VIDEO

There are many sites that offer

mobile video content downloads

for free. Most popular downloads

are, music videos, short clips,

commercials, and sports clips.

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23% 27%

An increasing number of mobile subscribers will access video content through their mobile internet

By end-2009, some subscribers may begin to access local TV content on their phones

Source: Internet Advertising Bureau

5. MOBILE VIDEO

Skype is already exploring the mobile video space with Skype Mobile Video for the Nokia N900, which enables Skype video calls to other N900 devices or to PCs.

It is predicted that video call volume will grow from 600 million calls in 2008 to almost 30 billion calls by 2015.

Source: Telecom Asia

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Number of people using mobile to make payments worldwide: (in-app payments, mobile ticketing, mobile coupons etc.)

2009: 82 million2014: 490 million- 8% of mobile subscribers

Number of mobile financial users (mobile banking, moneytransfers), especially in emerging countries in Asia:

2010: 110 million2015: 900 million

Volume of mobile payments (how much people spend)

2010: 170 billion US2014: 600 billion US- 27% increase

6. MOBILE PAYMENTS

Source: mobiThinking

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Strongest growth are in emergingmarkets like Asia, Eastern Europe, the Middle East and Africa for mobile payment

Substantial base of people on a low income spread across vast distances who own mobile phones require banking services uses mobile payments

Almost half of global mobile subscribers in developed and emerging nations will pay by mobile for physical and digital goods and services by 2014

6. MOBILE PAYMENTS

Source: Mobile Marketing Watch, Telecom Asia, Mobile Trends 2020

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6. MOBILE PAYMENTS

Other sectors that are starting to explore opportunities in mobile payments other than banks (m-banking):

Transportation companies are offering ‘touch and pay’

access to ticket barriers where a stored-value card is

either attached to the handset,

or embedded

in the SIM

Retailers are offering loyalty cards, using

similar means of payment, as they seek

to reduce the amount of cash they have to

handle and carry

Source: KPMG Mobile Payments in Asia

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6. MOBILE PAYMENTS

Other sectors that are starting to explore opportunities in mobile payments other than banks (m-banking):

- Credit card companies see mobile handsets

as a means to widen their catchments of

commercial transactions

- Advertisers are building web-links into

posters in train and buses and on buildings

which can be activated by 3G+ phones from

a short distance leading to more website

visits and more purchases by mobile phone

- Content providers, including music and information sites, auction sites and rapidly

growing Web 2.0 community sites such as YouTube become globally accessible to

paying customers

Source: KPMG Mobile Payments in Asia

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HONG KONG MARKET

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KEY SUMMARY

48%

Hong Kong youngsters owns the most mobile phones across Asia. One-third of them would like to receive more ads on the mobile even with no incentives involved.

Content and applications is the second most important factor when purchasing a new mobile phone in HK (next to look and feel of device).

More than 30% of Hong Kong mobile users engage in social networking on their mobile devices; Facebook, Yahoo, and Google are the most top visited sites.

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HONG KONG- MOBILE ADVERTISING

23% 27%

Hong Kong youngsters have the highest mobile phone ownership at 87%, followed by Singapore and Korea by 85%, and regional average at 65%

24% indicated they would like to receive more ads on their mobile even with no incentives involved, showing their willingness to receive more information through this medium.

Source: Synovate

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HONG KONG- MOBILE USAGE

Not all Smartphones are 3G enabled. Smartphones are the latest generation of mobile phones that have more functions than simple calls/SMS (i.e. run multiple applications, GPS etc). 3G is a network standard for mobile phones which allows people to access data on their phones at high speeds.

Source: TNS Global, ComputerWorld

1. Smartphone will continue to be the most vital computing/communication device people carry in 20102. Almost half of all mobile phone owners have a Smartphone in Hong Kong at 48% in 2010

More than double global rate

23% 27%

48%

Up from 40% in 2009

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HONG KONG- FACTORS IN PURCHASING MOBILE PHONE

27%

Content and Applications is the next most important factor when purchasing a new mobile phone in HK vs. global at 14%

“Today’s consumers can access a

wider range of mobile services than

ever before through Smartphones,

so in choosing a mobile device

consumers care more and more

about which content and

applications they will be able to

access. Companies MUST consider

the new dynamic in their go-to-

market strategies and leverage the

equity generated by these new

mobile brands to drive sales” - TNS

Per

cen

tag

e

Source: TNS Global

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HONG KONG- MOBILE SOCIAL

27%

Hong Kong Global

Facebook- 17% Google – 13%

Yahoo- 14% Microsoft Windows- 11%

Google- 14% Yahoo- 11%

Mobile Social Networking Top visited sites

Social networking services high in demand with Hong Kong users…..

Hong Kong: 30% of all mobile users

Global: 12% of all mobile users

“Youth in Asia are looking to receive the latest information to wow their peers, so

reaching them through mobile is the most immediate way to gain their attention.“

- Synovate

Source: Synovate