Mobile internet will be bigger than most think.

Once in a while, some broker reports come to us with no cost for the company. In most of the cases the quality of these reports is low. However, there are some cases where it’s right the opposite and the reports add a significant and real value for free. This is today’s case. Surfing around I managed to get an in-advanced Xmas gift: the Morgan Stanley’s Global Mobile Internet report that has been gently published in Scribd. The summary of the report is as follows:

For years, countless American technology experts trotted around Japan and sheepishly tucked their relatively crippled cell phones into their pockets as they watched – in awe – the functionality (and speed) available on wireless devices from the likes of NTT docomo and Nintendo. All the while, Steve Jobs and his Apple compatriots were drafting plans to become a global consumer electronics leader. They opened retail stores, rolled out the iPod + iTunes digital download store, improved the Macintosh PC line, introduced Apple TV, debuted the iPhone, launched the iTouch, unveiled the iTunes app store, and just kept improving the already easy-to-use products.

In 2007, Apple introduced its iPhone and iTouch handheld wireless devices. Both were a hit, and Apple knew it was onto something. For the mobile Internet, the iPhone launch served as the spark that lit the fire (for consumers), or the crack that broke the dam (for wireless carrier “walled garden” decks). Apple’s iTouch leveraged expanding Wi-Fi networks, while the iPhone worked on AT&T’s cellular network.

That the iPhone also worked on Wi-Fi has been crucial for many US metro consumers challenged by insufficient capacity on AT&T’s cellular network. And Apple keeps extending the whole line – with panache – in new, but related, directions. Many (of the tech-savvy sort) have Apple’s forthcoming Tablet product on their “must buy” lists, despite the fact that they don’t know the features, the price, or the launch date. They just know they love Apple products, and with Steve Jobs all over it, they believe it will be a transformative product they simply must have. And we think the odds are that they are right – sometime in 2010, Apple likely will launch another record- setting, transformative wireless device.

Make no mistake, Apple (and others) are not just trying to upset the cell phone market. They are aiming to transform how communications works, how entertainment and news are distributed, how goods and services are purchased… and how we control all this stuff from the ever-expanding, rechargeable remote controls we carry in our hands. To date, Apple’s products and timing have been impeccable. The wireless infrastructure – 3G + Wi-Fi networks – has hit critical mass in most developed markets. Most high-end technology consumers and software developers (outside Japan) had grown weary of the constraints most wireless carriers imposed on the development and user experience of wireless devices – on both the network and handset sides.

Please find next the complete broker report. If you, as me, work in the TMT industry you’ll find it interesting.

Best regards, CVA

View this document on Scribd

P.S. If you just want the slides, click here:

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