2002

Business mobile data - what the industry really thinks. A PA survey carried out at the 3GSM World Congress survey 19-22nd February 2002 - 12 March 2002

Findings from a survey on business mobile data, conducted by PA Consulting Group at the recent 3GSM World Congress, indicate that mobile business data is going to be more successful than vendors or operators currently think and in PA's view, this vital aspect of mobile communications should be higher up their list of priorities.

From the research, PA concludes that the corporate market for tailored mobile data services will be a key source of revenue for the telecoms industry yet surprisingly the industry does not seem to be fully focused on this large and potentially profitable segment.

Tim Devine, mobile communications expert commented: "Operators appear to have delayed their service investment - perhaps this is due to the inherent complexity of the systems infrastructure of corporates". For these reasons, PA believes that the role of systems integrators will become more important in facilitating the critical linkages between airtime providers and service delivery.

Key findings of the survey:

• Business users will dominate future revenue base: Over half of our respondents (58%) expect 'all', 'significant' or 'some' proportion of their future revenues to come from business mobile data services.

• Service development curve: 45% indicated that they were already running a full business mobile data services or were at launch stage, a perplexing result. 29% were further behind on the development curve, and 22% had not started. However, 45% of all respondents do not currently use any form of mobile business data services in their own companies, compared to 50% who do or plan to.

• Segmentation is key for business take-up: Tailoring the service package to meet corporate need was ranked the most important driver of business services take-up by 50%, compared to attractive mobile data tariffs (43%), specialised mobile devices (34%), or improved network performance (26%).

• Segment mismatch: The survey revealed that 56% of the sample believed that the greatest percentage take-up of mobile services in the business segments would be in the corporate market and yet existing offerings are focused on the SME and SOHO markets.

• Service factors for customer attraction and retention: Respondents identified the inherent differences in the main market segments; SME market was more likely to value messaging & personal information management (27%) and Intranet access (27%), compared to the corporate where the value was perceived to lie in access to an Intranet (25%), back office systems (23%), and vertical applications (18%).

• Role of systems integrators: Following from the previous point, this market needs systems integrators to enable this access to multiple layers or information. While own sales teams and traditional channel partners still predominate as key routes to market, systems integrators were cited by 31% of respondents as important in taking a service offering to market.

PA surveyed a cross-section of the industry value chain present at the leading mobile annual congress. We surveyed 102 respondents comprising; 8% operators or MVNOs, 13% service/content providers; 27% network or hardware vendors; and 31% software vendors.
A short questionnaire was asked of a selection of attendees at the congress - at both the exhibition halls and congress, between 19-21 February 2002. Our team of researchers recorded responses directly on a Compaq IPAQ, which were then relayed back to a central file for daily analysis.

Future PA Making 3G happen surveys will focus on the user perspective of the rate of take up, and value of mobile data services and applications.

Through its wireless expertise, PA Consulting Group is the leading supplier of end-to-end solutions to the wireless industry. PA's technology-led consultancy solutions for 3G operators range from strategy development and business planning through to services creation, network design and rollout management. PA supports vendors directly through the provision of contract design of infrastructure and handset products, marketing and bidding support and infrastructure element design.

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For more information, please contact:

Linda Pearse PA Consulting Group Cambridge Technology Centre Melbourn Royston SG8 6DP Tel: +44 1763 267137 Fax: +44 20 7333 5050 E-mail: linda.pearse@paconsulting.com

Notes to editors
PA Consulting Group is a leading management, systems and technology consulting firm, with a unique combination of these capabilities. Established almost 60 years ago, and operating world-wide from over 40 offices in more than 20 countries, PA draws on the knowledge and experience of around 4,000 people, whose skills span the initial generation of ideas and insights all the way through to detailed implementation.

PA builds strategies for the creation and capture of shareholder and customer value, and helps clients accelerate business growth through innovation and the application of technology. PA works with clients to improve performance, mobilize human resources and deliver change effectively, including managing major projects, and designing and implementing enterprise-wide systems and full e-business solutions.

PA focuses on creating benefits for clients rather than merely proposing them, and this focus is supported by an outstanding implementation track record in every major industry and for governments around the world. PA also develops leading-edge technology both for its clients and within its own portfolio of venture companies in areas ranging from software to wireless technology to life sciences.

PA distinguishes itself from its competitors through the range and quality of its people, the depth of its industry insight, its development and use of technology, and also its independence and culture of respect, collaboration and flexibility in working with clients.

We are proud that our clients say "PA makes it happen".

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