58% of Mobile Phone Users Want Free Email Services

Thursday, 29 May 2008 09:00

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Survey shows that ad-sponsored services could drive adoption

DUBLIN, Ireland - May 29, 2008 -- Critical Path, a leading provider of messaging software and services, has today published research revealing that 79% of mobile phone users in the UK, Germany, Italy, Spain and the US would accept advertisements attached to email messages if the mobile email service was free. 62% of those surveyed said they are interested in using mobile email services, even though they do not currently take advantage of these services. The research was carried out by an independent agency, Vanson Bourne, on behalf of Critical Path.

The research, which shows consumers' interest in next generation services and a tolerance of advertising models, should make interesting reading to mobile phone operators looking to drive adoption. 58% of consumers said they would try a new data service if it was free. In contrast, only 5% said they would be encouraged to try a service if a friend recommended it, suggesting that referral programmes may not be the best route for driving adoption. The survey also pointed out that 98% of consumers cited cost as a reason for not trying or using new mobile data services in the past.

"We are seeing an increased interest in mobile email from the mass market consumer segment but there are still some barriers to adoption, not the least of which is cost," said Nikki Gore, Vice President, Marketing, Critical Path. "An introduction of an ad-funded or ad-subsidized go-to-market model by service providers, essentially gives consumers the service they want at minimal or no cost. The service provider generates all or a portion of its revenue through advertising and at the same time can drive adoption and improve customer satisfaction."

Critical Path delivers consumer mobile email, multimedia content and assurance solutions for service providers with its comprehensive Memova Mobile portfolio.

About Critical Path, Inc.
Critical Path is about Messages that Matter(R). For consumers, this means messaging services that deliver a better email experience, rich multimedia sharing capabilities and on-the-go access to the messages that matter most. For service providers, this means mass-market solutions that have a significant impact on the bottom line - value-added messaging services that attract new subscribers, drive revenue and improve customer loyalty. Founded in 1997, Critical Path has deep messaging experience and a strong track record of success. With offices around the globe, Critical Path's solutions have been deployed by more than 200 service providers throughout the world, including Vodafone, Telecom Italia, O2, Telefonica Moviles, Tiscali, SFR, Indosat, WIND and ONO.

Forward-Looking Statements:

This press release contains forward-looking statements by Critical Path and its executives regarding the performance of our product and service offerings, the availability of our customer's products and services which include our offerings, industry trends, the ability of our products and services to meet the business needs of our customers, and the market for products and services like ours. The words and expressions "look forward to," "will," "expect," "plan," "believe," "seek," "strive for," "anticipate," "hope," "estimate" and similar expressions are intended to identify the Company's forward-looking statements. These forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. These risks include, but are not limited to, the emerging and changing nature of the market for our products and services, and the ability of our technology to address customer demands. The Company makes no commitment to revise or update any forward-looking statements in order to reflect events or circumstances after the date any such statement is made.

Note to Editors: Critical Path, the Critical Path logo, Memova and the Memova logo are the trademarks of Critical Path, Inc., registered in various jurisdictions. All other trademarks are the property of their respective holders.