Mobile multiplies Global Mobile Consumer Survey

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Mobile multiplies
Global Mobile Consumer Survey
Infographics, Southeast Asia edition

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Contents

3    Introduction

4    The ubiquitous device

6    4G: The new normal

8    Instant Messaging and Short Message Service (SMS):
     Complements or competitors

10   Mobile 'money' apps: A mixed outlook

12   Contact us
Introduction

For four years now, Deloitte’s Global Technology, Media and Telecommunications (TMT) practice has commissioned
an annual online survey of consumers across more than 20 countries, titled the Global Mobile Consumer Survey
(GMCS). This survey is fielded by an independent research firm, and focuses on consumer behaviours, trends and
opinions with regards to a broad range of wireless and mobile products, technologies and services.

In July 2014, Deloitte conducted the fourth iteration of our Global Mobile Consumer Survey to provide unique
insights into mobile consumer behaviour with data gathered from 37,000 respondents across 22 locations, including
the Southeast Asia (SEA) countries of Indonesia (Base: All respondents: 1,000), the Philippines (Base: All respondents:
1,000), Singapore (Base: All respondents: 2,000) and Thailand (Base: All respondents: 1,000).

This year’s survey offers intriguing insights. Some were expected, but others were less anticipated. The key themes
for SEA have been extracted and analysed in this report to offer Deloitte’s perspectives on the SEA mobile consumer
market to telecommunications companies in the region.

                                                                                                       Mobile multiplies Global Mobile Consumer Survey   3
The ubiquitous device

                  Smartphones are becoming ubiquitous.
         Figure 1: Smartphone penetration in Singapore
         Question: Which, if any, of the following devices do you own or have ready access to?

                                                                                                   In Singa
                                                                                                            pore,
                                                                                                   almost 9
                                                                                                   out of 10
                                                                                                  responde
                                                                                                           nts
                                                                                                 have acce
                                                                                                           ss to
                                                                                                 a smartp
                                                                                                          hone,
                                                                                                the highe
                                                                                                          st
                                                                                                globally.

                  With the exception of Singapore, social networks are more commonly
                  used than email. Singapore users top in the use of voice calls, SMS and
                  Instant Messaging.
         Figure 2: Smartphone usage patterns for social networking and email
         Question: In the last seven days, for which, if any, of the following activities have you used your phone for?

                                             Social
                                             networks                   Email

                     Indonesia              53%                        28%

                     Philippines            52%                        32%

                     Singapore                  54%                58%
                     Thailand               62%                        27%

         Source: Deloitte Global Mobile Consumer Survey, SEA edition, July 2014

4
Playing games is the most popular activity among smartphone users in SEA.
Figure 3: Smartphone usage patterns for gaming
Question: In the last seven days, for which, if any, of the following activities have you used your phone for?

                                                                         73%
                                                   Indonesia

                                                                         60%
                                                   Philippines

                                                                         55%
                                                   Singapore

                                                                         75%
                                                    Thailand

         As Internet access becomes more essential, consumers’ priorities for
         connectivity change. ‘Reliability of data network’ emerged as one of
         the top possible reasons for changing providers.
Figure 4: Respondents who cited "Reliability of data network" as a reason for changing operators
Question: If you were to change your operator in the future, which, if any, of the following would be the reasons
for changing it?

                                                        Indonesia
                                                                          55%
                                                       Philippines
                                                                          26%
                                                        Singapore
                                                                          32%
                                                          Thailand
                                                                          45%
Source: Deloitte Global Mobile Consumer Survey, SEA edition, July 2014

   Implications for telecommunications companies
   • High connectivity as well as wide access to social networks and mobile gaming are well-poised to
     continue to drive smartphone penetration in SEA.
   • Future networks will require both Wi-Fi and 4G to ensure network reliability and foster sufficient
     Quality of Service (QoS) and higher adoption of large screen smartphones and tablets. Monetisation
     and single sign-on capabilities are still emerging and need to be proactively pushed.
   • Data experience is key for network differentiation, resulting in a need to review the current network
     design and configuration.

                                                                                                        Mobile multiplies Global Mobile Consumer Survey   5
4G: The new normal

                 Consumers in emerging SEA countries are not satisfied with
                 2G/3G…
        Figure 5: 2G/3G respondents who are not                                     Figure 6: 2G/3G respondents who are not
        satisfied with speed                                                        satisfied with quota or price
        Question: How do you feel about the Internet speed                          Question: How do you feel about the Internet
        you currently get on your phone from your operator?                         subscription or tariff you currently get on your phone
                                                                                    from your operator?

                               51%
                                                                                                                         56%Indone
                                                                                                                                      sia

               41%                            64%
                             Philippines
        Indonesia                                   Thailand                                                               69%hilippines
                                                                                                                                 P

                                                                                                                             64%
                                                                                                                                     Thailand

        Note: As of July 2014, Thailand has not had a commercial launch of 4G.

                 ... And those that have tried 4G want to continue using it.

        Figure 7: 4G respondents who wish to continue subscribing to 4G/Long-Term Evolution (LTE)
        Question: Are you likely to subscribe to 4G/LTE in the next 12 months?

                                                                                    93%
                                                                     81%
                                                       63%
                                                                      Philippines

                                                                                       Indonesia
                                                          Thailand

        Source: Deloitte Global Mobile Consumer Survey, SEA edition, July 2014

6
But in Singapore...

Figure 8: Perception of 4G services in Singapore
Question: How would you rate the 4G/LTE service you subscribe to compared to the speeds you were previously
getting when using your mobile network?

                                           The number of people finding 4G
      How would
                                           to be faster than 3G dropped
      you rate                             by almost 30% in one year
      the 4G/LTE
       service you
       subscribe                           The number of people who
        to?
                                           believe there is no difference
                                           in speed rose by almost four
                                           times

Question: Do you pay a premium for 4G/LTE service relative to what you were paying for Internet via your mobile
network provider before you subscribed to 4G/LTE?

       Do you pay
                                              4G is being offered as a
       a premium
       for 4G/LTE                             free upgrade more
        service?                              often today

Source: Deloitte Global Mobile Consumer Survey, SEA edition, July 2014

   Implications for telecommunications companies
   • 4G adoption is inevitable and take-up rates can be further enhanced by different factors:
     –– Improved mobile network reliability (including Wi-Fi).
     –– Increased user engagement in data centric activities such as gaming, social networking, Instant
        Messaging, and music and video streaming.
     –– Increased penetration of phablets and other large screen smartphones to enable better TV or video-
        watching and gaming experience.
   • 4G networks need to be seen as an extension of the 3G experience and require targeted commercial
     roll-out whilst balancing capital expenditure constraints and QoS requirements.
   • 4G should be leveraged on to gain market share, with value-added services (VAS) or data centric
     applications as add-ons to foster greater consumer spending.

                                                                                                   Mobile multiplies Global Mobile Consumer Survey   7
Instant Messaging and Short Message Service
(SMS): Complements or competitors

                  Price is not the primary driver for usage of Instant Messaging in SEA
                  – but what is, differs from country to country.
         Figure 9: Primary drivers for Instant Messaging usage by country
         Question: You told us that compared to 12 months ago, you use Instant Messaging more frequently. Which,
         if any, of the following describe why?

                          Group chat                                                     Convenient to
                          communications –                                               communicate with
                          especially with                                                friends abroad
                          friends and family

                                                                                  Philippines
                                                  Thailand

                                    All my friends                                                   In Singap
                                                                                                               ore,
                                    and family are                                                  weekly S
                                                                                                              MS
                                    already using it                                                usage ha
                                                                                                             s
                                                                                                   declined
                                                                 Singapore                         from last
                                                                                                                 8%
                                                                                                             year,
                                                                                                   while In
                                                                                                            sta
                                         Easier to send
                                                                  Indonesia                       Messaginnt
                                                                                                  usage ha
                                                                                                                g
                                         photos and                                                        s
                                         videos                                                  increased
                                                                                                 9%.

         Source: Deloitte Global Mobile Consumer Survey, SEA edition, July 2014

8
Females are more active Instant Messaging users, but no single age
         group dominates across the region.
Figure 10: Instant Messaging usage by gender and age
Question: In the last seven days, in which of the following ways did you use your phone to communicate
with others?

                                     Gender                              Age

                                                               16–24     25–34   35–44

         Indonesia          57%              48%               47%       54%     56%
         Philippines        47%              29%               36%       41%     36%

         Singapore          79%              73%               86%       87%     78%

         Thailand           52%              49%             52%         49%     51%

Source: Deloitte Global Mobile Consumer Survey, SEA edition, July 2014

  Implications for telecommunications companies
  • Data is the new normal with voice as an application on top. This will lead to significant changes in the
    margin structure, network design and management as well as commercial offerings (data yield).
  • SMS will continue to decline and bottom-out at a country level and repricing will be required.
  • Increasing data speed and quality will also fuel over-the-top content’s threat from Instant Messaging
    expansion to voice calls, where apps are competing for revenues with operators. The race of Voice
    over LTE (VoLTE) and Rich Communication Services (RCS) are expected to bring operators back into the
    ring.

                                                                                                  Mobile multiplies Global Mobile Consumer Survey   9
Mobile ‘money’ apps: A mixed outlook

                 Checking bank balances and making online purchases are the most
                 common mobile payment activities.
        Figure 11: Respondents who used mobile 'money' apps to check bank balances and make on-
        line purchases
        Question: Have you ever used your phone for any of the following?

                             Indonesia
        56%                                                                   Indonesia
                                                                                               30%
                             Philippines                                     Philippines
        30%                                                                                    21%
                             Singapore                                       Singapore
        52%                                                                                    38%
                             Thailand                                             Thailand
        36%                                                                                    22%

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                      Check bank balances                              Make online purchases

        Figure 12: Popular purchases made over the phone
        Question: In the last month, which of the following did you purchase on your phone?

                       Games and applications are the most
                       popular purchases made over mobile.

        Figure 13: Money transfer or remittance preferences
        Question: Who would you prefer to process your transactions to transfer money to friends or family?

                       Financial institutions and banks
                       are often preferred for money transfer,
                       except for the Philippines, which prefers
                       money transfer services.

         Source: Deloitte Global Mobile Consumer Survey, SEA edition, July 2014

10
Across the region, consumers are particularly welcoming towards
         mobile based in-store payment solutions.
Figure 14: Willingness to use mobile based in-store payment solutions
Question: If a solution whereby you would be able to pay in shops by using your mobile phone would become
available, would you use it?

                                                 76%
                                                                59% 57%                     57%
                                                                  Philippines

                                                                                Singapore
                                                    Indonesia

                                                                                            Thailand

Source: Deloitte Global Mobile Consumer Survey, SEA edition, July 2014

  Implications for telecommunications companies
  • Screen size matters for functional needs such as mobile banking.
  • Checking bank accounts, making online purchases and money transfer are relatively popular activities
    among mobile users in the region. But only the latter two activities may have potential to be directly
    monetised by operators.
  • In SEA, consumers are showing a significant willingness to utilise mobile solutions to perform in-store
    payments for micro payment.
  • Compared to developed countries such as the UK, SEA countries with more developed
    telecommunications markets show a significant mobile spending propensity in terms of mobile
    games and apps.
  • Money transfer services are also popular in the region with peaks of 39% in the Philippines. This
    pattern should be taken in consideration by operators, since their technology may be adapted and
    leveraged on to come up with a direct technological solution.

                                                                                                       Mobile multiplies Global Mobile Consumer Survey   11
Contact us

For more information, please contact

John Goeres                                                      Jan Wuppermann
Executive Director, Consulting                                   Director, Consulting
Technology, Media & Telecommunications                           Technology, Media & Telecommunications
+65 6232 7118                                                    +65 6535 0220
jgoeres@deloitte.com                                             jwuppermann@deloitte.com

Southeast Asia TMT Practice
Southeast Asia
John Goeres
+65 6232 7118
jgoeres@deloitte.com

Brunei                                                           Philippines
Pengiran Moksin                                                  Luisito Amper
+67 3222 2421                                                    +63 2581 9028
pmoksin@deloitte.com                                             lamper@deloitte.com

Guam                                                             Singapore
Daniel Fitzgerald                                                Shariq Barmaky
+1 671 646 3884 ext.229                                          +65 6530 5508
dafitzgerald@deloitte.com                                        shbarmaky@deloitte.com

Indonesia                                                        Thailand
Parlindungan Siahaan                                             Parichart Jiravachara
+62 21 2992 3100 ext.31555                                       +66 2676 5700 ext.11913
psiahaan@deloitte.com                                            pjiravachara@deloitte.com

Malaysia                                                         Vietnam
Jimmy Lai                                                        Nguyen Trung
+60 3 7610 8838                                                  +84 8 3910 0751 ext.6004
jimmylai@deloitte.com                                            trungnguyen@deloitte.com

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About Deloitte Southeast Asia
Deloitte Southeast Asia Ltd – a member firm of Deloitte Touche Tohmatsu Limited comprising Deloitte practices operating in Brunei, Cambodia,
Guam, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam – was established to deliver measurable value to
the particular demands of increasingly intra-regional and fast growing companies and enterprises.
Comprising over 270 partners and 6,300 professionals in 24 office locations, the subsidiaries and affiliates of Deloitte Southeast Asia Ltd
combine their technical expertise and deep industry knowledge to deliver consistent high quality services to companies in the region.
All services are provided through the individual country practices, their subsidiaries and affiliates which are separate and independent legal
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