GSMA Research Reveals Addressable Market of 70 Million PC Buyers Interested in Notebooks With Built-In Mobile Broadband

GSMA Research Reveals Addressable Market of 70 Million PC Buyers Interested in Notebooks With Built-In Mobile Broadband

November 13, 2007

- GSMA Announces Competition for Mid-Tier Mobile Broadband
Enabled Notebook PCs


    MACAU, China, Nov. 13 /Xinhua-PRNewswire/ -- The global
trade association for the mobile industry, the GSM
Association (GSMA), and Microsoft Corp. today published the
results of the first-ever consumer study into mobile
broadband computing that shows that there is a tremendous
addressable - but currently untapped - market. The study
highlights a 70 million unit opportunity, worth some $50
billion in 2008, for notebook PCs in the high growth, mass
market $500 -$1000 (USD) price range with built-in mobile
broadband.

    The research reveals a gap of potentially 46.5 million
units between recent industry analyst forecasts and the new
analysis, suggesting that PC manufacturers have yet to
deliver the right mobile broadband PCs - bundled with
pre-configured mobile connectivity - to appeal to mass
market PC buyers. The extensive market research study,
undertaken by Pyramid Research, involved more than 12,000
consumer interviews across 13 countries, with input from
notebook manufacturers, component companies and chip set
suppliers as well as more than 200 field trials.

    "With the right form factor, price and
`out-of-the-box' connectivity, the research has unearthed
substantial demand for mobile broadband embedded notebooks
that is not yet being met," said Rob Conway, CEO of
the GSMA. "Now that we understand the market potential
and consumers' requirements, we are pleased to communicate
the findings to the broader industry eco-system."

    "Microsoft is pleased to be working with the GSMA
to accelerate the adoption of PCs with built-in mobile
broadband", said Will Poole, corporate vice president
of the Unlimited Potential Group at Microsoft. "By
quantifying and characterizing PC market demand, it is our
hope that mobile operators and OEMs will collaborate to
introduce compelling and affordable notebooks with
innovative new services. We believe that people everywhere,
in both developed and emerging segments, could benefit from
access to the Internet through mobile broadband on a wider
range of notebook PCs."

    Leading PC manufacturers, including Asus, Dell, Fujitsu
Siemens, Lenovo, Twinhead and Vestel have welcomed the
research report and expressed interest in working with
mobile operators and the GSMA to fulfill this market
demand.

    As mobile operators examine how best to reach potential
subscribers, the GSMA and many of its largest operator
members are launching a competition to identify devices and
manufacturers able to serve the untapped market. Notebook
manufacturers and OEMs (Original Equipment Manufacturers)
will be asked to propose new designs that can meet this
currently unmet need for mass-market priced mobile
broadband notebooks.

    The winner of the new PC design will be showcased to
decision makers within mobile operators that are interested
in serving the unmet needs for broadband services on PCs.
The winner will be announced at the wireless industry's
largest global gathering - the Mobile World Congress in
Barcelona, Spain, in February 2008.

    In their responses, manufacturers will be asked to
provide a detailed specification, time to market
information, recommended retail price-points, support
services and information on how they would work with
operators to promote activation, configuration and ease of
use. The winning PC will be chosen by a panel of product
experts from leading operators, all planning to promote
mobile broadband in their own markets, who will select the
device which most closely meets consumer needs.

    "We are announcing this competition as a challenge
to the world's manufacturers to help us meet this untapped
mobile broadband demand," added Rob Conway. "And
we are delighted to see Asus, Dell, Fujitsu Siemens,
Lenovo, Twinhead and Vestel gearing up to anticipate the
needs of this market."

    Twelve mobile operators supported and participated in
the GSMA/Microsoft market research programme, including:
DTAC, Maxis, MTN, Orange, Smart Communications, Telecom
Italia, Telefonica O2, TeliaSonera, Turkcell, Vimplecom,
Vodafone and Wind.

    Supporting quotes:

    "People all over the world want to access the
information that they need, when they need it, wherever
they are," said Ron Garriques, President Global
Consumer Group for Dell. "That is why Dell has taken
an industry leading position with more built-in mobile
broadband notebooks in our portfolio than any other PC
manufacturer. We support the efforts of the GSMA and look
forward to lending our expertise in built-in mobile
broadband to help drive connectivity for more people around
the world."

    "Fujitsu Siemens Computers currently has the
broadest portfolio of integrated UMTS notebooks in EMEA,
and is market leader according to analyst sources,"
said Andreas Thimmel, Senior Vice President Volume Business
Fujitsu Siemens Computers. "We look forward to working
with mobile operators and the GSMA to further consolidate
that position and bring the experience of mobile broadband
to even more businesses and consumers."

    "For mobile PC users, we believe that the
widespread deployment of wireless high-speed broadband
service represents one of the most exciting developments in
recent memory," said Philippe Davy, vice president of
marketing, Lenovo. "For the first time, notebook PC
mobility will intersect with cost-effective wireless
service and bandwidth that provides an experience similar
to what people get with wired broadband support at home.
Lenovo was the first notebook PC company to embrace
integrated 3G service, has set the standard for wireless
innovation, and we will continue to drive additional value
in wireless technology for our customers."

    "The potential size of market opportunity here
cannot be ignored both now and especially the future"
said Sigve Brekke, CEO of Total Access Communication
(DTAC). "Customers' strong preference for mobility
both on the phone and the PC Notebook gives us the
opportunity to meet their needs with attractive bundled
offers attracting new users with the strength of DTAC's
extensive EDGE network, and by strengthening our channels
through closer partnership."

    "Uptake of mobile broadband services is beginning
to surge in many countries, as consumers and business users
see the benefit of having a high-speed connection available
to them at all times," said Dr. Nikolai Dobberstein,
Head of Products & New Businesses at Maxis, Malaysia.
"We are witnessing the creation of a virtuous circle
in which mobile broadband will drive economies of scale,
bringing down the cost of HSPA equipment and enabling more
and more people to enjoy easy access to mobile Internet
services."

    "Mobile broadband has fabulous potential and
promises to transform the communications landscape
world-wide," said Dave Williams, CTO of Telefonica O2
Europe and GSM Association Board Member. "This new
survey confirms that there is a very real hunger for next
generation wireless technologies not only from the
industry, but also from businesses and consumers who
clearly can't wait to embrace mobile broadband and the
benefits it will bring."

    "Telstra's new Next G(TM) (3GSM 850 MHz) service
is the world's largest nationwide wireless broadband
network with download speeds as fast as any in the
world," said Sol Trujillo, Chief Executive Officer of
Telstra Corporation Ltd. " Almost 400,000 Australians
or seven per cent of Telstra mobile subscribers have
realised the benefits of mobile computing with high-speed
data cards in the past year alone. This tells us our
customers want real-time, easy data access and this GSMA
initiative will further enhance the offerings to this
market."

    Notes to Editors:

    Mobile broadband PC competition:

    Companies looking to participate in the competition can
download the specification - which is based on the research,
as well as field trials with operators and input from the PC
industry - together with the competition rules from the
GSMA's website http://www.gsmworld.com. The closing date
for entries is December 30, 2007.

    Key research findings:

    The comprehensive study was commissioned by the GSMA
and Microsoft and implemented by Pyramid Research. It
involved more than 12,000 consumer interviews, as well as
extensive input manufacturers, component suppliers, chipset
producers and over 200 field trials with mobile operators.

    The key findings include:

    - In 2008, the survey estimates total demand of 79.5
million notebooks in the high growth, mass market $500 -
$1,000 price range

    - The survey indicates 88% of consumers planning to buy
a notebook in this price-range would prefer mobile-broadband
built-in to notebooks to their original choice

    - In 2008, OEMs are planning to ship some 33 million
notebooks in this price range, only a fraction of which
will be mobile-broadband ready

    Other research highlights:

    - While most usage is in the home, the majority (78%)
of respondents citied at least two other locations where
they regularly used their notebooks

    - The majority of potential buyers prefer the
simplicity of a notebook with embedded mobile broadband.
Separate `plug in' solutions found favour with just 15 per
cent of respondents

    - 75% of consumers plan to buy notebooks in 9" to
15" range - very small or very large form factors are
not driving purchasing influences

    - 60% of consumers now want to buy a voice and data
package from an operator with a mobile broadband notebook

    - 57% of the demand comes from emerging Asia Pacific
geographies, 15% from North America and 11% from Western
Europe

    The full study is available at:
http://www.gsmworld.com

    About the GSMA:

    The GSMA (The GSM Association) is the global trade
association representing more than 700 GSM mobile phone
operators across 218 countries and territories of the
world. In addition, more than 200 manufacturers and
suppliers support the Association's initiatives as key
partners.

    For more information about the GSM Association see:
http://www.gsmworld.com 


    For more information, please contact:

     Mark Smith
     Tel:   [phone]

     David Pringle
     Tel:   [phone]

     Email: [e-mail]