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September 23, 2011

Mobile Web Will be Bigger than Desktop Internet by 2015.

In a 87-page report, Morgan Stanley analysts have charted the most important online trends and predicted the future of the Internet. In addition to forecasting more online shopping and showing the geographical distribution of Internet users, the study also shows a dramatic shift toward mobile web use.

In Japan, 96% of mobile subscribers already have 3G coverage. In Western Europe, the penetration is around 54%, just slightly above 46% in the U.S. Morgan Stanley identifies 3G access as a key point in the success of the mobile web.

Finally, mobile e-commerce according to Morgan Stanely ,is ramping up faster than online e-commerce, now making up 4% of total retail sales. In certain categories, such as computers, consumer electronics, music, movies, tickets, video games and books, online sales account for between 45% and 20% of the total retail market. Japan’s Rakuten shows how the mobile share of e-commerce is growing as well, from 10% of e-commerce in 2006 to nearly 20% now

 Reason For The Mobile Web proliferation  according to Morgan Stanley are

* Easy-to-Use/Secure Payment Systems — embedded systems like carrier billing and iTunes allow real-time payment
* Small Price Tags -– most content and subscriptions carry sub-$5 price tags
* Walled Gardens Reduce Piracy -– content exists in proprietary environments, difficult to get pirated content onto mobile devices
* Established Store Fronts -– carrier decks and iTunes store allow easy discovery and purchase
* Personalization -– more important on mobiles than desktops