U.S. Closes Gap on Europe
- by Tom Dibble - Aug. 3, 2003
Every day I am literally amazed at the
evidence of progress presented to me between all involved in
the mobile data value chain. The estimated gap between the U.S.
with its segmented interoperability and the holy union of GSM-based
Euro operators was about two years behind in terms of delivering
next-generation applications and user experiences. However,
month by month, this gap appears to be closing at a decent rate
of speed.
Many wireless pundits question data applications
that seem inspired by technology or handset companies that do
not have hard consumer market research to back claims or justifications.
Hard line is, this is the evolutionary process that all technologies
cycle through. Sometimes you win, sometimes you lose. Picture
messaging rolled out from one side of the globe to the other.
There are some interesting observations to be had there on different
approaches to what exactly it should be used for.
The drive home in the U.S. is accelerating rapidly
with promotional incentives from MNOs. A global trend is that
the cellphone is fast becoming a tool of daily life. The average
U.S. mobile subscriber burns 490 minutes per month. This surpassed
residential landline use during Q4 2002 according to The Yankee
Group. TYG estimates average household landline voice usage
of 1,250 minutes per month (equivalent to 480 minutes per person
each month, based on the U.S. Census estimate of an average
of 2.6 people per household).
So as the cellphone becomes more integral to daily
activity, it is the duty of technology and those who deliver
it to make our lives easier and more entertaining, while providing
revenue streams, of course. Market segmentation is obviously
critical for operators in determining which services will likely
be adopted more quickly than others.
IDC has identified new categories of mobile consumers
starting to come to fruition based on their application choices.
An online survey of 2,776 U.S. wireless users identified and
profiled five distinct cluster groups based on application awareness,
patterns of use, and demographics:
1. Wireless Innovators (5.6%): Earliest adopters
of data services and content
2. Productivity Pioneers (7%): Early adopters who focus on personal
communications that increase productivity
3. SMS Users (15.9%): "txters"
4. Entertainment Junkies (10.5%)
5. Mobile Resisters (61%): Those who express little interest
in wireless voice and data services
Gaming, ringtones, and SMS remain the most popular
wireless data applications according to the poll, although a
vast majority of consumers (87%) claim that quality of service,
including reception, coverage area, and phone service, is the
top priority.
The survey results provide evidence that a large
proportion of wireless customers has not been drawn to data
applications, remembering the sample size mind you. However,
the innovators are likely to play a key role in changing attitudes.
These innovators are generally younger, willing to try new things,
more tech savvy, and more affluent for the most part.
The market conditions are ripe, and with a host
of recent and new features seeping into the market - such as
polyphonic ringtones and sound; enabling customers to record
and send short multimedia clips; RealNetworks' multimedia streaming
audio and video with content providers; Nokia's introduction
of the 3300, a portable MPD player, stereo FM radio, digital
recorder, and mobile games device; and lots more coming in the
following months - will close the gap between the U.S. and Europe.
Yet the critical evidence will be whether consumer willingness
to pay for the services in the short term will be enough to
impact the bottom line for MNOs.
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