Nationwide Survey Reveals Increase in Smartphone Hotspot Adoption Despite Concerns

  Nationwide Survey Reveals Increase in Smartphone Hotspot Adoption Despite

  62 percent of consumers tap smartphone hotspot capabilities; worry around
                  cost, usability and plan options persists

Business Wire

ALISO VIEJO, Calif. -- February 7, 2013

Sixty-two percent of smartphone users leverage their devices’ hotspot
capabilities, an increase of nine percent since May 2012, according to a new
survey of more than 700 mobile consumers in the U.S. Despite the increase in
adoption, many consumers are still concerned with the cost, usability and lack
of plan options available with smartphone hotspots, and carriers are missing
key opportunities to monetize personal hotspots. This survey was conducted by
uSamp and commissioned by wireless and mobility solutions provider  Smith
Micro Software, Inc. (NASDAQ:SMSI).

The Survey Reveals:

  *71 percent of respondents have used a dedicated hotspot device, a
    smartphone hotspot, or both to connect Wi-Fi devices to the mobile

       *almost half are not frequent users
       *more than 25 percent do not pay their carrier for hotspot service,
         but instead use over-the-top applications to access this feature on
         their smartphones.

  *The majority of hotspot users are heavy data users, yet over two-thirds of
    light and moderate data users would tap personal hotspot services if their
    carrier offered a pay-as-you-go pricing model, presenting a revenue
    opportunity for carriers.
  *For nearly one-third of respondents who do not use any form of personal
    hotspot, privacy concerns (27 percent) and the desire to avoid another
    wireless contract (21 percent were major contributors to non-usage.

“Over 90 percent of tablets sold in the U.S. are Wi-Fi only, so leveraging a
smartphone’s hotspot feature to monetize these devices is a great opportunity
for carriers,” said Sunil Marolia, VP, Product Management, Smith Micro. “Our
survey results highlight some concerns preventing broader adoption, and
significant revenue leakage associated with hotspot service. By making mobile
hotspots easier to use, with more flexible business models behind them,
operators can better capitalize on the revenue potential of these devices.”

Usability of Personal Hotspots

Usability and features were examined for Frequent and Occasional hotspot
users. Both groups listed expense, battery life and limited plan options as
their top concerns, but infrequent hotspot users also cited preferences in
these areas:

  *54 percent want easier, one-step access to connect a device to a personal
  *49 percent want self-care diagnostics to help debug connectivity issues
  *43 percent prefer ad-sponsored hotspot service, even if usage limits were

Professional versus Recreational Use

Other results from the survey reveal hotspot concerns varied significantly
between professional users (devices and hotspot service paid by employer)
versus recreational users. For example, 59 percent of professional users are
concerned with hotspot performance, whereas only 16 percent of recreational
users cited performance as a concern. However, since two-thirds of
professional users also use their hotspots for recreational purposes, the
importance of enhanced management and control features to prevent security
breaches and skyrocketing mobile data bills should be considered not only by
hotspot users but by employers.

For access to key findings from the survey, please visit findings.

Smith Micro Hosting Hotspot Webinar

Smith Micro will host a webinar with details from the survey, featuring a
guest speaker from T-Mobile USA, on February 14, 2013, at 8:30 am Pacific
time. Registration is available here: Hotspot Webinar.

About Smith Micro Software, Inc.:

Smith Micro Software provides solutions that simplify, secure and enhance the
mobile experience. Our product and services portfolio spans Connectivity,
Policy Management, Network Control, Communications and Hosting solutions. With
30 years of experience developing world-class client and server software
applications, Smith Micro helps the leading mobile network operators, device
manufacturers and enterprises increase efficiency and develop high-value
relationships with their customers. For more information, visit

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Smith Micro Software, Inc.
Suzanne Runald, +1-949-362-5800
LEWIS PR for Smith Micro
Lauren Grassetti, +1-619-677-2700
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