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Nationwide Survey Reveals Performance Outweighs Cost Savings and Privacy Issues for Smartphone Users When Offloaded to Wi-Fi

May 10, 2012
28 percent of mobile users struggle with smartphone hotspot costs or usability; CTIA attendees agree

CTIA, New Orleans, LA - May 10, 2012 - Ninety-five percent of smartphone users would leverage Wi-Fi if it enabled better mobile data performance; 88 percent would prefer to access Wi-Fi networks if it reduced their monthly phone bill. This is according to a new survey of more than 500 mobile consumers, conducted by uSamp and commissioned by wireless and mobility solutions provider Smith Micro Software, Inc. (NASDAQ:SMSI). Additionally, while 82 percent of respondents want to use their mobile device as a hotspot, almost one-third don't due to cost or usability issues. Onsite interviews of CTIA attendees this week indicated similar sentiments about smartphone hotspot usage.

Slow network speeds caused by mobile network congestion directly impact the average mobile consumer. This problem is evident in the uSamp / Smith Micro survey results, as 84 percent of respondents would allow a carrier to provide automatic Wi-Fi connections in exchange for better device performance or a lower phone bill. These survey results complement those found by a Wi-Fi Alliance study, released at CTIA 2012, which state that 72 percent of smartphone and tablet owners would be willing to pay carriers for access to Wi-Fi hotspots. In the uSamp / Smith Micro survey, when participants were asked about allowing carriers to install software that enabled automatic network transitions, only 2 percent of participants indicated that privacy would be a consideration.

Other survey results indicate that tablet users in particular desire Wi-Fi access in their devices. Ninety-six percent of Wi-Fi tablet users want access to the Mobile Internet using their smartphones, and 59 percent are willing to pay to use their phone in that capacity. This highlights the importance of making it easy for consumers to use their smartphones as mobile hotspots, especially when 9 out of 10 tablets sold in 2012 were Wi-Fi only and not 3G / 4G capable.

"We were surprised when we asked attendees at CTIA, a leading wireless industry event, about their mobile hotspot usage and many didn't know what a mobile hotspot was or how to access it on their phones," said Carla Fitzgerald, vice president of marketing at Smith Micro Software, Inc. "Our online survey results highlight consumer demand for easy access to the best network available, and yet with all of the wireless access points available, getting connected is still not as convenient as it should be."

As mobile data usage surges and network congestion increases, unauthorized tethering applications can exacerbate this problem, negatively impacting overall network performance. While 54 percent of users surveyed have used their mobile device's hotspot capabilities, over half do not pay their carrier for the capability, and instead opt for third-party free or paid tethering apps to connect. Subscription-based tethering plans may be driving consumers to these over-the-top options, and survey respondents indicated a desire for more flexible data service plans. For example, 37 percent of respondents indicated they would prefer a mobile data plan that offered a flat-fee per use based on the type of application used versus paying for Gigabytes used.

Smith Micro will be presenting these survey results during a webinar on Thursday, May 17 at 8am PST. The webinar, titled "Data Offload - Carrier Strategies and Consumer Perspectives," will compare the results of a survey of operators on their offload and traffic management strategies conducted by Ovum Research, with the user preferences highlighted in the consumer-focused Wi-Fi and hotspot survey conducted by uSamp / Smith Micro along with interviews of attendees from the CTIA show. To register, please visit: Smith Micro Webinar.

About Smith Micro Software, Inc.:

Smith Micro Software, Inc. provides software solutions that simplify, secure and enhance the mobile experience. Our portfolio of products and services spans Connectivity Management, Communications and Content Management solutions. Smith Micro's solutions include client and server software applications used by the world's leading wireless operators, device manufacturers and enterprises. For more information about Smith Micro Software (NASDAQ: SMSI), visit smithmicro.com.

Safe Harbor Statement:

This release contains forward-looking statements that involve risks and uncertainties, including without limitation, forward-looking statements relating to the company's financial prospects and other projections of its performance, the existence of new market opportunities and interest in the company's products and solutions, and the company's ability to increase its revenue and regain profitability by capitalizing on these new market opportunities and interest and introducing new products and solutions. Among the important factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements are changes in demand for the company's products from its customers and their end-users, new and changing technologies, customer acceptance and timing of deployment of those technologies, new and continuing adverse economic conditions, and the company's ability to compete effectively with other software companies. These and other factors discussed in the company's filings with the Securities and Exchange Commission, including its filings on Forms 10-K and 10-Q, could cause actual results to differ materially from those expressed or implied in any forward-looking statements. The forward-looking statements contained in this release are made on the basis of the views and assumptions of management regarding future events and business performance as of the date of this release, and the company does not undertake any obligation to update these statements to reflect events or circumstances occurring after the date of this release.

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