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Telephia Report: Entertainment Applications Likely to Help Drive European Mobile Device Replacement

Almost Half of Teen Subscribers Want Camera and MP3 on Next Device

SAN FRANCISCO--(BUSINESS WIRE)--June 16, 2004--Camera phones are likely to continue to drive upgrades in the European mobile device market in the next year, according to a new study by Telephia, the leading provider of marketing and service quality intelligence to the global mobile industry. There also appears to be substantial customer demand for several additional emerging entertainment applications, including music/MP3, the capability to view/download video, and integrated TV.
The Telephia European Device Report, based on a survey of 27,000 mobile device users in six major Western European countries, reveals that currently 11 percent of European subscribers regularly use the camera feature on their phone, with another 27 percent interested in having it on their next device. Teenage subscribers (ages 15-17) lead the marketplace in camera adoption and interest, with 16 percent using camera and 47 percent desiring it on their next phone.

Teen subscribers also exhibit considerable interest in several up-and-coming mobile entertainment applications. Almost half of teen users want the music/MP3 feature on their next phone (45 percent). That is more than double the percentage of all Europeans (19 percent). Teen subscribers were also enthusiastic about video viewing/downloading (3 percent use; 28 percent desire) and integrated TV (1 percent use; 27 percent desire).

"The success of camera phones in Europe has generated desire for more sophisticated entertainment applications and produced an important inflection point, at which entertainment has joined messaging as a key utility of mobile devices," said Mick Mullagh, president and chief executive officer of Telephia. "The challenge for device manufacturers is to extend demand beyond the current youth base and build awareness in new segments and geographies."

Telephia observed sizeable differences in demand across the six countries surveyed. Spain had the greatest percentage of subscribers who don't currently use camera but desire it on their next phone (34 percent). Spain also exhibited the most untapped interest in music/MP3 (27 percent). Italy had the highest level of interest in integrated TV (17 percent).



Note: Results are based on surveys performed in France, Germany,
Italy, Spain, Sweden and the U.K.

The Telephia European Device Report focuses on consumer attitudes and behavior surrounding mobile devices and services. Produced twice annually, the report offers top-level country-by-country comparisons as well as analysis by manufacturer, segment, device type and operator. Telephia offers a Pan-European report as well as separate reports for France, Germany, Italy, Spain, Sweden and the U.K.

About Telephia

Telephia is the leading source of performance information and insight for the global mobile and wireless industry. Telephia's portfolio of marketing and service quality information products helps clients make better business decisions. Based in San Francisco, Telephia is a privately held company. For further information, visit www.telephia.com or call 415-395-0500.

Contacts


Telephia, Inc.
Alex von Krogh, 415-395-0500, Ext. 1441
avonkrogh@telephia.com

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