Join KPMG as the review the fourth iteration of the Consumers and Convergence study in the past five years. Gain a better understating of consumer trends related to mobile technology including: technology used, security and payment, mobile payments, mobile banking and cloud computing.

1. Consumers & Convergence IV November 2010 KPMG INTERNATIONAL

3. Objective: To gain a better understanding of consumer trends related to mobile technology, including:

4. Technology used

5. Security and privacy

6. Mobile payments

7. Mobile banking

9. Americas: U.S., Canada, Brazil

10. ASPAC: China, India, Japan, South Korea, Australia

12. Canadian analysis based on 300 respondents

13. All respondents had to own either a mobile phone or PDA/smartphone

16. Privacy continues to be an important issue

17. Consumers are willing to give up information in return for something of value

18. Canadians continue to seek free content and are relatively advertising adverse

19. Consumers are redefining trust, value, privacy and security

20. While ahead of global and US respondents, Canadian consumers appear less aware of cloud services and its potential for business usageKey FindingsOverview

25. The percent of consumers who say they’ve used an online retailer’s site from a mobile phone nearly tripled to 28% from 10% in 2008

26. In ASPAC, 40% say they’ve made purchases over their mobile device

27. In Canada, consumers slower to make retail purchases using mobile sites

29. Half of online consumers* and 4 in 10 mobile device users say they’ll accept ads in exchange for free or bargain pricing of services and content* Online consumers: consumers who access online content/ services with their personal computer

30. Key Findings:Canadians continue to seek free content 11 If an online or mobile content site you frequently visit begins charging for access to content, would you be willing to pay to gain access to the content? device? 11 11

32. Willing to exchange PII for cheaper/free content

33. Comfortable doing banking on a mobile device

34. Comfortable accessing personal medical info on their mobile device

36. More likely to come from China or India; less likely to come from North America

37. More likely to be employed full time

38. More willing to accept tailored ads on mobile devices

39. More willing to receive ads in exchange for free or cheaper services or content

40. More comfortable using a mobile device to browse the Web

41. More likely to buy goods via their mobile device

46. Canadians are avid users of cloud services (72%)

47. Spain (89%) and India (88%) have greatest cloud penetration

48. Just 51% of U.S. consumers use cloud computing services

50. Few are ready to put their medical or financial information on the cloudMain reasons for not using Cloud Services

51. PossibleImplications

53. Consumers demand a choice of service offerings, particularly from mobile operators

54. Unlimited voice and data plans are not an unqualified success with either consumers or, it seems, providers

55. Quality of service and price are the main reasons consumers consider changing providers

57. Not all content is equal in the minds of consumers, and those that will pay for content prefer to pay for parts of a site, not the whole thing.

58. Generic news and information are considered commodities

59. There is value in targeted information and content, but consumers may be more likely to provide PII rather than money.

60. Entertainment content, such as games, video, and music have perceived premium allure.

62. Most consumers are not yet ready to put medical or financial data on the cloud

63. Users see personal benefits from these services

65. While more consumers are comfortable using their mobile phones for banking or retail purchases, the majority still are not, and efforts need to be made to reach these consumers

66. Security and privacy remain strong forces, but they’re not immovable

67. Regional and age demographic preferences need to be considered

69. Consumers generally prefer targeted PII-based ads

70. Anxiety over privacy means consumers demand transparency; lose their trust and you risk their business

71. Users are willing to exchange lower cost or free services and content for advertising

74. They continue to embrace a broad range of mobile and cloud-computing applications, BUT …

75. are reluctant to store sensitive personal information on the cloud

76. They are ready to use their mobile phones for financial transactions and to purchase goods and services, BUT….

77. are increasingly concerned about privacy and security when using their mobile phones

79. Consumers & Convergence IV November 2010 KPMGiNTERNATIONAL