FOR IMMEDIATE RELEASE
Feb. 11, 2010

Mobile carriers must act now to meet demand for "smart" mobile services, says survey

Carriers’ role in the mobile value chain at risk from third–party providers

Naperville, Ill. – A global survey of 15,000 consumers across 15 countries highlights a huge demand for smart, personalized mobile Internet services. However, mobile carriers are risking their place in the mobile value chain by not responding to these demands quickly enough. Survey respondents suggest that over the next six months, media organizations such as the BBC, application developers such as Facebook and service providers such as Google, will be viewed as the most appropriate providers instead of mobile carriers.

The survey, undertaken by Nielsen Research and commissioned by Tellabs, reveals a strong user demand for a smart, personalized mobile Internet experience. Almost two-thirds of users (63%) say they would use these services – tailored to personal preferences, location, time of day and social setting – within the next six months.

Despite this high demand, the research delivered a stern warning to carriers. In 11 out of 14 areas¹, users expect a range of third-party providers to deliver new services such as music, mobile e-mail and location-based services within six months. In contrast, mobile carriers were only deemed “most appropriate” to provide basic voice, SMS and MMS services.

The survey also revealed some positive news for mobile carriers. Users know that today, carriers provide these new services in eight out of 11 areas². The survey also shows that globally, users’ trust in carriers is high, second only to banks.

“Clearly consumers are clamoring for smart, personalized mobile Internet services. But consumers have brought expectations from the fixed-line Internet to the mobile Internet,” said Rob Pullen, chief executive officer and president of Tellabs. “If carriers want to stay in the game and avoid becoming ‘dumb pipes,’ they need to use the valuable assets they already have, such as location-awareness, and to make networks smarter for personalization. They need to act now – and act fast.”

“This research provides some clear insights into users’ attitudes towards their mobile operators and the services they offer. It shows that the mobile telecoms world is undergoing immense change as users discover and adopt new applications and services,” said Edward Kershaw, Vice President, EMEA, Nielsen. “While users are positive about their mobile future, it’s becoming clear that operators must remain flexible and responsive to consumer demands in order to maintain their customers' loyalty.”

The research shows that users now more readily identify with third-party brands such as Google than with their mobile carriers. But it also shows that carriers have an opportunity to make the most of today’s positive position. By making networks smarter to deliver new, personalized mobile Internet services, carriers can build powerful relationships with users. They can continue to play a leading role in the mobile Internet and its value chain in order to secure valuable revenue streams.

Tellabs® Mobile Solutions add intelligence to mobile networks, empowering them to deliver location- and context-aware smart applications and services. The acquisition of Silicon Valley start-up WiChorus in 2009 gives Tellabs important mobile packet core and Internet offload capabilities through its Tellabs® 9000 SmartCoreTM platform. With up to 16 times more throughput than competitive products, Tellabs 9000 SmartCoreTM platform can offload up to 70% of Internet traffic before it reaches the core. This technology, coupled with Tellabs’ mobile backhaul expertise, means Tellabs can dramatically “raise the IQ” of carriers’ mobile networks.

The full survey conducted by Nielsen is available on request. Visit www.tellabs.com to learn more about the Tellabs® 9000 SmartCore™ platform.

About Tellabs — Tellabs helps customers succeed through innovation. That’s why 43 of the top 50 global telecom service providers choose our mobile, optical and business solutions. We help telecom service providers, independent operating companies, MSO/cable TV companies, enterprises and government agencies get ahead by adding revenue, reducing expenses and optimizing networks. With wireless and wireline networks in more than 90 countries, we enrich people’s lives by innovating the way the world connects™. Tellabs (Nasdaq: TLAB) is part of the NASDAQ Global Select Market, Ocean Tomo 300™ Patent Index, the S&P 500 and several corporate responsibility indexes including Maplecroft Climate Innovation Index, FTSE4Good and eight FTSE KLD indexes. http://www.tellabs.com

About The Nielsen Company — The Nielsen Company is a global information and media company with leading market positions in marketing and consumer information, television and other media measurement, online intelligence, mobile measurement, trade shows and business publications. The privately held company is active in approximately 100 countries, with headquarters in New York, USA. For more information, visit www.nielsen.com, or blog.nielsen.com/nielsenwire/

¹The 14 service areas are: short messaging services (SMS); voice calls; multimedia messaging services (MMS); applications; games; music; Internet: browsing /searching excluding news, weather and sports sites; e-mail; Internet: browsing news, weather and sports sites; Internet: social networking; location / navigation services; Internet: purchasing goods / services; control devices / appliances at home; mobile payment.
²Users say carriers currently provide the following services: SMS; voice calls; MMS; music; Internet: browsing /searching excluding news, weather and sports sites; e-mail; Internet: browsing news, weather and sports sites; location / navigation services.
 

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