the state of mobile communications

Mobile Information – Using Mobile Devices to Connect

with Your Consumers

© i2SMS – April 12th, 2010

Giff Gfroerer, Director i2SMS North Americawww.i2SMS.com [email protected]

*Presentational Copy Only – Sources Have Been Removed to Protect Proprietary Information– For Informational Purposes Only to Attendees of AGA Conference 2010.

The Future IS Mobile

5 Billion Mobile Subscribers 4 Billion Active Users of SMS (Text Messaging) 4.6 Billion Unique Users of Cell Phones Half the Planet Will Have a Camera Phone2 Billion Will Receive an Ad on Their Cell Phone1 Billion Will Vote by Cell Phone for TV Shows 400+ Million of the World's Internet Users Will Access the Web Solely Via Mobile Connection

© i2SMS, LLC. 404.944.1351 www.i2sms.com

By Year End 2010 on Earth:


1.8 Billion Nokia Phones in UseReaching 27% of the Total Population on Earth More Nokia Branded Phones in Use Than:

Nike SneakersLevis JeansMcDonald’s Burgers EatersCoca Cola Drinkers


WORLDWIDE Nokia Will Have:


Mobile Industry Will Ship its 10 Billionth PhoneBlackberry Will Pass 100 Millionth SmartPhone Apple Will Pass 50 Millionth SmartPhone Apple Will Pass 100 Millionth OS Including:

iPhoneiTouchiPodiPad


By Year End 2010 on Earth:

2.2 Billion Unique Holders of Bank Accounts

1.7 Billion Credit Card Holders

1.7 Billion PC Internet Users

1.6 Billion Television Sets

1.15 Billion Landline Phones

1.2 Billion Personal Computers

480 Million Total Circulation of Daily Newspapers Worldwide

Putting the Mobile Phone Into Global Context

Current World Population is 6.8 Billion

Cell Phone Subscribers: 4.6 Billion Almost 3 times the number of Internet Users

More than twice the number of credit card holders

3.4 Billion are unique users


Cell Phones in the United States

Current US Population: 306 Million

Cell Phone Subscribers: 285 Million

241 Million are Unique Users

80% of the US Population

Three times the number of iPods Worldwide

Cell Phones in the United States


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How Do Consumers Want to Be Communicated With?

Technologies Consumers Believe They Need Most

20021)Landline Phone2)Television3)Internet4)Cell Phone5)Email

2007 - 20091)Cell Phone2)Internet3)Television4)Landline Phone5)Email


Cell Only Homes

An additional 14.5 percent of U.S. households have landlines but get all or nearly all calls on their cells, the survey showed. Taken together, that means well Over One Third of all US Households are essentially reachable only on their wireless phones.

24% of U.S. homes, or 1/4, are now cell only.


Technology Follows our Youth


U.S. Kids Spend Close to an Hour a Day Consuming Mobile Media

66% of Young People ages 8 to 18 now own mobile handsets

56% of Children between the ages of 10 & 14 already have their own cell phones

Young People in the US now spend 49 minutes each day listening to music, playing games and watching video content on their mobile phones

Teens in grades 7 to 12 now spend an average of 95 minutes per day sending or receiving text messages

Mobile Internet Access

Mobile phones will overtake PCs as the dominant web access device worldwide by 2013

The total number of PCs in use should top 1.78 billion units in 2013 versus the combined installed base of smart phones and browser-equipped enhanced phones will exceed 1.82 billion units


Forecasts Mobile Web Access Will Surpass PCs by 2013

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http://links.mkt1985.com/ctt?kn=182&m=2843084&r=MTg5NDA4MjQ1NzQS1&b=0&j=ODIyMTAxNzQS1&mt=1&rt=0

Mobile Internet Access


CRM and Mobile Access

“Although email has been the first mover among mobile applications, it is not viewed as the most strategic application for mobility. Survey respondents indicate that CRM and service-and-support applications, as well as mobile access to productivity suites, are seen as more strategically important to their businesses.” -

33% of Email Addresses Change on a Yearly Basis – Significant Contact Information is Incorrect

* Blackberry Worldwide User Base = 58.5 Million / 1.3%•iPhone Worldwide User Base = 43 Million / 0.93%


65% of Americans Text Message

4 Billion People Worldwide have embraced Texting out of 4.6 Billion


Mobile Messaging Rev's worldwide will grow to $233 billion by 2014, up from $150 billion in 2009. SMS traffic exceeded 5 Trillion messages in 2009

SMS (Short Message Service)

Over the Past two years text messages sent and received have increased by a staggering 650%.


The Mobile Experience Is:

96% of Americans Take Their Cell Phones Everywhere They Go

44% of Americans Take Their Cell Phones to Bed With Them

94% of Messages Are Read

SMS Messages Are Read


Messages are Read Within 5 Minutes and Responded to Within 15 minutes on Average

SMS Is Imbued With a Sense of Immediacy

SMS Responded to Within 15 Minutes

SMS Opened Within 5 Minutes

Time To Open Emails and

Respond to in minutes


Mobile Messaging is Huge

Mobile Messaging Revenues Are Larger Than:

All of HollywoodThe Radio Industry All Videogaming & The Worldwide Music Industries

…..COMBINED!


Mobile messaging revenues 2009 = $153 billion

Mobile CRM

A 2008 Aberdeen study found that 80% of best-in-class call centers are leveraging text messaging, and also concluded that there is a marked difference in adoption in non-best-in-class organizations which are not taking advantage of an opportunity to add cost effective touch point between a given company’s expert resources and their customers through the use of text messaging.


Channel Cost & Risk Dynamics for Customer Care

High

Low

Rel

ativ

e C

ost

Per

Tra

nsa

ctio

n

Effectiveness of ChannelHigh

Low Risk

High Risk


How Does SMS Work?


SMS 2-Way Notifications


Web Sign-Up For SMS Services


Proactive Outage or Emergency SMS Alerts


Bill Presentments


Notification of Bill DueIn 5 Days


Notification That A Payment Was Received


Mobile Advertising?

60% of Non-Mobile Marketers are Planning to Employ Some Form of Mobile Advertising in 2010 with 31% spending between $100k-$250k


Smart Phones

In 2009 only 175m of 1.13b phones shipped were smart phones. By 2014 800 million of 1.6 billion phones shipped will be smart phones, or one half of the market!


Mobile Applications Just Do


Stats on Mobile Apps:Over 100 million iPhone/iTouch applications, 20 million Android applications and 400,000 Blackberry applications are downloaded each month

Approaching 4 Billion Apple Application Downloads

70% of Fortune 100 companies are actively piloting or deploying iPhones, and 50% of the FTSE 100

How Do Consumers Want to Be Communicated With?

Why We Hear About Apple All The Time


Mobile applications work…


Why Should You Have a Mobile Application or Web Site?

80% of US-based mobile sites receive traffic from three of the seven major regions of the world — North America, South America, Europe, Asia, Africa, the Middle East and Oceania — with 72% of US-based mobile apps reaching an audience in four or more regions.

Tablets and the Future


What Will Tablets Bring?

YouTube Sports Illustrated Tablet Demo

Virtual Shopping made easy

MS WinMo 7 and the Enterprise!

Steve Jobs - iPad

Steve Ballmer - Vision

What is FTEU?(Free To The End User)


Free To The End User:Allows a utility to send text messages to a customer’s mobile devices without having the message be charged to the customer’s phone bill or data plan

Cell Phone Companies like AT&T and TMobile charge the SENDER for the message, not the receiver, at an increased fee to the Sender

Complies with the Public Utility Commission’s guidelines for not charging customers for interaction

1)Customer Receives Disconnect Warning Letter or Message on Statement

2)Customer Receives Predictive Dialer Message About Past Due Balance

3)Customer Receives Text Message Notification of Disconnect

4)Customer Receives Door Hanger Notification

5)Power Is Disconnected for Non-Payment

Disconnect Notification Process


The Steps to Disconnect

Messages Sent to Delinquent Customers Where Disconnection is Imminent if Payment Not Received

Messages Sent after Predictive Dialer Message Left About Past Due Balance and One Day Before Door Hanger Notification is Placed

Customer Must Have Valid Cell Phone Number, Carrier Must Allow FTEU, Note Added to Customer’s Account For CSR agents

Why Use FTEU? Ask!

Low Cost – High Response

Pilot:


52,608 Successful Text Messages Sent Between 9/12/2008 and 2/1/2009

Prevented 12,618 Truck Rolls to Disconnect Power as Customers Called Within One Day to pay. Only 861 asked not to be contacted this way out of 52,608 msgs.

Customer Must Have Valid Cell Phone Number, Carrier Must Allow FTEU, Note Added to Customer’s Account

24% Response Rate

Why Use FTEU?

Low Cost – High R.O.I.

Results:


10 months times $1000 per month = $10,000

101,521 Messages Sent times $0.12/msg. = $12,183

Total Cost for 10 months = $22,183

25,180 Payments Received Within One Day of Messages Sent; Cost Savings by NOT Having to Send Truck To Perform Physical Disconnect: 25,180 x $42.22* Avg. Disconnect= $1,063,100

Total Savings: $1,063,100 - $22,183 =

$1,040,917.00

Potential/Real Cost Savings

Low Cost – High R.O.I.


2008 - Mobile is going to be the next big Internet phenomenon. It holds the key to greater access for everyone - with all the benefits that entails.

2010 - Local Services are "hugely important" to the future of the mobile user experience…

What Does Google Think?


-Eric Schmidt, CEO of Google

What We Do Well!: Mobile Consulting Mobile Messaging Mobile Applications Mobile Web Sites Mobile CRM Mobile Bill Payments

i2SMS – Mobile Since 2001


Customers Include: Entergy, Philadelphia Electric Co., Equifax, Toyota, Nokia, Kaiser Permanente, & The USDA