Hard Data on Mobile Usage

Nielsen Mobile put out new data today based on a global survey of 1 million mobile subscribers' use of the web on their phones, and the numbers continue to point to a growth narrative that is one of the strongest in the American economy.

Monthly Usage & Upside

Nielsen's data demonstrates that 40 million Americans access the Internet via their cell phones as of May 2008, which is 15.6% of the mobile subscribers in the US. This data is very consistent with what the Pew Center found that we discussed here. However, even more exciting is the fact that fully 95 million Americans have access to the mobile web through their cell phone service provider either by directly paying for it, or bundled with their other services. That number is up 28% from Q1 2007, but still accounts for just 37% of the 254 million mobile phone subscribers in the US.

These numbers are very exciting for Mpayy demonstrating that the installed untapped base is already 55 million strong. Further, continued growth of the mobile web subscribers to even 50% will more than triple the number of users today. Mobile data packages account for $1.7 billion in annual sales, and the average subscriber is spending $11 on monthly data plans.

Specific Uses

Nielsen's data contradicts what we discuss yesterday, demonstrating that the iPhone is #2 in the device list with 4% penetration, still a ways behind the 10% occupied by the Motorola Razor.


As far as the specific browsing habits, Nielsen reveals that 40% of mobile Internet users find their favorite sites through search engines, and 22% type in the exact URL. Just 17% of users find their sites through carrier portals, a number that is likely to continue to decline as iPhone, SmartPhones and imitators continue penetration.

Further, 5 million users in the US are accessing mobile banking websites that mostly just allow them to view their account balances and make a few payments. This number shows massive potential for breakout for Mpayy's Personal accounts that allow electronic payments to friends and family as well as roving salespeople that use Mpayy's secure Mobile Merchant account. As you can see from the left, email, weather and sports continue to lead mobile web usage, but watch out for Mpayy!

SmartPhone & iPhone Penetration Continue

This blog has covered mobile web usage growth as reliable numbers come out. A couple of interesting data points have been released lately that point to a high probability for the continuation of this trend.

SmartPhone Numbers

Nielsen Mobile put out numbers on SmartPhone penetration last week. The numbers are consistent with the Pew Research numbers we discussed here. Fully 63.9% of SmartPhone users are below 45, with 35.9% below the age of 35.

Further, focusing on this market exposes companies to some of the highest paid Americans with 35.1% having incomes over $100,000, according to Nielsen's data. These users are spending over $200 for their device and over $100 on their monthly plans, and 52% of those users are paying for the plans themselves as opposed to their companies remitting these fees.

Many Apples a Day

The Apple 3G iPhone launches on Friday, and though it is still 4th in the SmartPhone race, this year promises to be a barnburner. Apple expects to sell 5.1 million iPhones in Q3 2008 and another 6.5 million iPhones in the 4th quarter, according to numbers quoted by Silicon Alley Insider. Some analysts are estimating that Apple will sell 45 million iPhones in 2009.

SmartPhones and the iPhone are driving the move of functionality from the internet to the mobile web. As more and more of these phones come online, more people will begin to use Mpayy for free person-to-person money transfers, and independent salespeople and small businesses can use these phones as mobile Points of Sale. Check out our mobile website with advanced account management features.

New Mobile Web Usage Data

The Pew Center for Internet Research is one of the best sources for unbiased data you can find. The non-profit conducts survey and publishes them openly on their websites, and unlike a number of other sources, it's a safe bet no companies have funded the research that can have a deleterious impact on data integrity.

The center conducted a survey of 2,054 people in December and published the results on their website.

At Least 17 Million Daily Mobile Web Users

One of the most difficult numbers to find for us has consistently been the number of mobile web users, as distinct from those who use text messaging. A number of sources, though, point to the total number of Mobile Web users to be around 46 million, confirmed by this research that indicates 19% of the 240 million mobile phone users to have accessed the mobile web. 7%, or 17 million people, access the mobile web on a daily basis.



Note, I am looking only at the line item for accessing the internet for news, sports, or weather information. Another 27% have played a game, though the survey does not distinguish between web-based and locally. 19% used it for email, 14% for map information and 10% to watch a video. The email users probably includes BlackBerry users, and map information could be web-based such as Gmaps or MapQuest, or it could be built into the OS like Google Maps on the iPhone. Videos are becoming more ubiquitous with YouTube, Treemo, and others, as well as being served up through ads.

The moral of the story is that the number of mobile web users may be much higher.

The Internet and Mobile Web are certainly perceived as a young person's game, but here is some data:



96% of mobile phone users under 30 have participated in one of these activities. That is pretty incredible. I do have to give my folks credit for bumping up the 50-64 category.

The study also has some ethnographic data, but I'm not sure what meaning to impute from that.

I'll leave you with the fact that more young people would rather give up the "Interwebs" than their cell phone. Where do you rank in this category?

On the Future of Mobile Web

The New York Times reports today that Google's Android seeks to "turn cellphones into the principal portal to a mobile Web." The story goes on to explain that it is unclear whether or not this will be a boon or a threat to Nokia's business, which has seen its "market share, 28 percent five years ago" drop to "barely 10 percent".

Nokia is moving forward with its mobile web efforts through sealing content deals with Universal Music Group as reported by the Wall Street Journal (Subscription required). Nokia has Apple and the iPhone clearly in its sites through these efforts, and hopes that the Universal deal will improve its Ovi (Finnish for "door") web surfing service by providing users with simple one-touch access to videos and music through the mobile web. The Wall Street Journal notes that Nokia's estimates are that the "total market for Internet services to reach €100 billion ($147 billion) by 2010"

Verizon Wireless' recent announcement that it will make its network open to any device adds further texture to the evolving mobile web situation.


The company plans to meet with device and software makers this summer to review its new open service according to the New York Times.

The Times notes:

"Consumers are already able to add software and make purchases online with many cellphones, but often the carriers do not make this easy, preferring instead to highlight their own offerings on phone screens.

The carriers have also been at odds with Silicon Valley companies like Google that want people to be able to use phones in much the same way that they can use any PC for access to the Internet. "

Open Access at Mpayy

These shifting trends in the wireless market only serve to benefit Mpayy and its mobile payment options. The best estimates are that up to 70% of cell phones sold in the US have mobile web usage enabled, even if the users do not take advantage of the service. As the device makers and networks work to make these services more usable and friendly, Mpayy will be there enabling ALL users on ALL networks with wireless web enabled cell phones to make purchases through their mobile phones. More to come...