Half of Europeans not interested in 3G
March 24, 2004
European mobile users have dealt a massive blow to the prospects
of early mass 3G adoption just months ahead of the widespread launch
of 3G services across Europe.
Yet there are signs that by following a few simple lessons, the
3G industry can put itself back on track for success.
These are the findings from the latest HI Europe Poll of attitudes
towards 3G, conducted online in six key European markets (Great
Britain, France, Germany, Spain, Italy, Belgium) among almost 10,000
mobile users.
The survey results among mobile users showed an apparent lack of
interest in 3G:
- 49% agree that 3G is of no interest and that current mobile phone
technology completely satisfies their needs (20% disagree)
One of the reasons for this could be that many mobile users want
no more than a good voice service while 3G's key advances relate
to mobile data:
- 44% agree that, looking ahead, they can't see themselves using
mobile phones for much more than making voice calls (35% disagree)
Recently, though, some operators have started to manage the early
hype over 3G by acknowledging the continued importance of mobile
voice to future growth.
Another reason for the low interest could be a lack of clarity
over 3G's benefits:
- 52% agree that the mobile industry has completely failed to explain
what 3G is all about and why it is worth having (11% disagree)
- 49% agree that mobile phone retailer staff are poor at explaining
new technology (14% disagree)
While retailers are unlikely to be responsible for this perceived
lack of clarity in communications, given their involvement later
on in the lifecycle (i.e., once products come to market), these
findings suggest that retailers represent a potential bottleneck
in the process.
On the issue of pricing, there is widespread cynicism, deserved
or not, that the industry will overcharge for 3G:
- 55% agree that 3G operators will overprice 3G to help recoup
the huge investment costs on licenses and infrastructure (10% disagree)
All of this evidence underlines the uphill struggle the industry
faces in making 3G a success. With billions of Euros invested, mobile
operators are under severe pressure to deliver the goods.
Particularly in the light of previous industry failures, such as
the WAP launch that resulted in disillusioned consumers, the HI
Europe survey gauged consumer reactions related to premature launches:
- 51% agree that operators who promote 3G services while the service
is unreliable will severely damage their reputation (10% disagree)
- 51% agree that operators who promote 3G services without being
able to meet handset demand will severely damage their reputation
(9% disagree)
Lessons for the industry
Surinder Siama, associate director within HI Europe's technology
practice and author of the study, believes that the findings lead
to four important lessons for the 3G industry, particularly for
mobile operators but also relevant to handset manufacturers, retailers
and content/applications providers:
- A targeted approach, such as offering 3G data cards to road warriors,
is more likely to bear fruit than the scattergun approach of operator
3 which has, ironically, had to rely on traditional mobile drivers
such as price rather than 3G features such as video telephony, to
attract many of its punters.
- Don't forget voice: The industry has bought into the self-fulfilling
prophecy that mobile data is the future and mobile voice passé.
But data still represents a small part of mobile spend and the emerging
success of Wi-Fi limits the appeal of 3G mobile data. Continued
investment in innovative voice solutions, such as Nextel's highly
successful Push to Talk product, which will soon launch in Europe
through Orange, makes sense.
- Communicate benefits, not just features: Steer clear of communicating
3G as a technology revolution (the mistake made with WAP), and instead
focus on services and applications that offer genuine quality, productivity
or lifestyle improvements.
- Get it right: There is nothing worse than buying into a heavily
promoted service only to find it unreliable. Yet anecdotal evidence
suggests that 3G coverage is patchy and, as our study shows, the
market is unlikely to be sympathetic to premature launches.
Market Differences
There are some notable attitudinal differences among mobile users
by country:
- Great Britain is the most anti-3G, somewhat surprising given
it is home to arguably the world's greatest 3G proponent (Vodafone).
- The French (57%) are more likely than others to criticise mobile
retailer staff for poorly explaining new technology.
- At the other extreme is Belgium, notably less critical of 3G.
Despite this, Belgians are no more interested in 3G than average-a
full 52% say "3G is of no interest to me, current mobile phone technology
provides everything I want."
- The Germans are the most open to mobile data since fewer (32%)
agree that "looking ahead, I can't see myself using mobile phones
for much more than making voice calls."
- Spaniards (71%) are much more likely to believe that the industry
has failed to clearly explain 3G.
Summary of Findings
|
% agreeing with statement
|
Total
|
Great
Britain
|
France
|
Germany
|
Spain
|
Italy
|
Belgium
|
|
3G will be expensive because the operators want to recoup
their huge investment as soon as possible
|
55%
|
57%
|
56%
|
58%
|
56%
|
49%
|
45%
|
|
The mobile phone industry has completely failed to explain
what 3G is all about and why it is worth having
|
52%
|
58%
|
39%
|
49%
|
71%
|
49%
|
28%
|
|
Operators who promote 3G services while the service is
unreliable will severely damage their reputation
|
51%
|
58%
|
52%
|
58%
|
51%
|
40%
|
38%
|
|
Operators who promote 3G services without being able to
meet handset demand will severely damage their reputation
|
51%
|
56%
|
49%
|
55%
|
51%
|
47%
|
36%
|
|
3G is of no interest to me, current mobile phone technology
provides everything I want
|
49%
|
60%
|
51%
|
41%
|
50%
|
46%
|
52%
|
|
I find that mobile phone retailer staff are poor at explaining
new technology
|
49%
|
43%
|
57%
|
54%
|
51%
|
42%
|
46%
|
|
Looking ahead, I can't see myself using mobile phones for
much more than making voice calls
|
44%
|
54%
|
45%
|
32%
|
44%
|
45%
|
49%
|
|
