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2010 SIGNALS END OF RECESSION FOR MOBILE MARKET

December 17th, 2009

TNS Study reveals surge in sales; 53% of Americans plan to buy new mobile phone in the next six months

New York, NY - December 17, 2009 - TNS, the world's largest custom research company, today released results of its annual Global Telecoms and Insight Study. The study was comprised of over 24,000 consumers in 35 markets. GTI 2010 is designed to offer a strategic framework that informs brand strategy, product development and channel planning throughout the mobile technology industry.

The study shows strong promise for the mobile phone market in 2010 with  53% of Americans (55% Canada) planning to buy a mobile phone in the next six months, up from just 24% (19% Canada) this time last year. Touchscreen phones are set to be the big winners, with 29% of consumers (28% Canada) looking to buy one as their next phone.  Mobiles with Qwerty keyboards are also rising in popularity, with 23% (19% Canada) planning to purchase one as their next device.

According to Tom Buehrer, Senior Vice President of TNS, "Increased consumer confidence, pent-up demand and a raft of new smartphones have created conditions akin to a 'perfect storm' for 2010, and the industry stands to make out handsomely.  Purchase intent is at unprecedented levels and has risen dramatically since last year, which presents the industry with an opportunity to drive handset sales and simultaneously build incremental revenue through content and data plans."  

Another mobile device that stands to do well in 2010 is the Netbook.  Despite current penetration levels being relatively low, 19% of American consumers say they are likely to buy one in the next six months, compared to 19% for larger Notebooks and only 5% for desktop PC's. (Canada is 20% Netbook, 22% Notebook, 5% Desktop).

But while these trends point towards an upturn in the sector, there are also new forces at work which will restrict the potential for growth unless properly dealt with. TNS' research shows that consumers are faced with a plethora of new devices, and find it hard to distinguish one from the other. Also, 27% of Amercian consumers (Canada 29%) highlight ease of use problems as preventing them from using some of the new mobile services offered.

Buehrer mentioned: "There are potential barriers to growth. The sheer number of phones on the market means that network quality is deteriorating as operators struggle to cope with data overload.  Also, competing devices such as netbooks and data access cards have the potential to take a large chunk of mobile data's available bandwidth. If these challenges can be dealt with, the industry can look forward to what will be its most prosperous decade to date."

About the Global Telecoms Insights Study

GTI 2010 is a global study designed to provide an overview of the evolution of mobility and technology in consumer lives.  It is used by clients to help with brand, channel and product development strategies through understanding the needs, pain points and changing preferences of 27,000 consumers in 35 markets.  http://www.tnsglobal.com/market-research/technology-research/gti.aspx

About TNS

TNS, who recently merged with Research International, is the world's largest custom research agency delivering actionable insights and research-based business advice to its clients so they can make more effective business decisions.  TNS offers comprehensive industry knowledge within the Consumer, Technology, Finance, Automotive and Political & Social sectors, supported by a unique product offering that stretches across the entire range of marketing and business issues, specialising in product development & innovation, brand & communication, stakeholder management, retail & shopper, and qualitative research. Delivering best-in-class service across more than 75 countries, TNS is part of Kantar, the world's largest research, insight and consultancy network. Please visit www.tnsglobal.com for more information.

The Kantar Group

The Kantar Group is one of the world's largest research, insight and consultancy networks. By uniting the diverse talents of more than 20 specialist companies - including the recently-acquired TNS - the group aims to become the pre-eminent provider of compelling and actionable insights for the global business community. Its 26,500 employees work across 80 countries and across the whole spectrum of research and consultancy disciplines, enabling the group to offer clients business insights at each and every point of the consumer cycle. The group's services are employed by over half of the Fortune Top 500 companies.  The Kantar Group is a wholly-owned subsidiary of WPP Group plc. For further information, please visit www.kantargrouptns.com