Latest A.T. Kearney/Cambridge Mobinet Study Finds 3G Capabilities
Achieving Broad User Awareness
September 5, 2002
While 61 percent of mobile phone users in 15 countries are aware
of the service capabilities associated with 3G mobile technology,
only 29% say they plan to upgrade, according to the latest Mobinet
study of mobile phone users.
The research indicates education campaigns about 3G are creating
awareness, but the cost/benefit trade-off between current technology
and 3G mobile wireless services remains a mystery to most consumers.
The study of 6,000 mobile phone users is conducted twice annually
by global management consulting firm A.T. Kearney, a subsidiary
of global services leader EDS, and The Judge Institute, Cambridge
University's Business School.
"Users clearly want to experience increased value and faster Internet
access capabilities with existing information and data services
before upgrading," said L. C. ("Mitch") Mitchell, A.T. Kearney vice
president and leader of the firm's communications practice in the
Americas. "Seventy percent of Mobinet respondents have yet to access
the Internet over their phones mainly because they don't yet understand
the total 'user experience' -- the pricing structure and the content
isn't yet compelling enough. If users are not adequately enticed
to try the service offerings of the mobile Internet with current
technology, they won't be compelled to move up to the enriched service
offerings delivered using next generation (3G) technology."
Early experience in markets such as Japan, where 82 percent of
respondents have access to the Internet via their mobile phones,
highlight the potential market opportunities for consumer-oriented
offerings, according to the study.
However, the business or enterprise markets -- where wireless capabilities
can provide competitive advantage through faster customer response
times and improved productivity -- remain largely untapped worldwide.
"Since we launched Mobinet in 2000 our results have consistently
pointed to an uphill struggle to persuade consumers that Internet-enabled
telephony is a must-have," said Paul Collins, the A.T. Kearney principal
who led the Mobinet research. "However, awareness of new technology
is high and creating the right content and service, at the right
price, could boost demand significantly."
In the six months since the previous Mobinet study was completed,
mobile phone users have become increasingly cost-conscious regarding
future and existing wireless services. More than one-third (36 percent)
cited cost as the most important factor preventing them from upgrading
to 3G. Another 36 percent said they either didn't need or didn't
understand what the technology could do for them.
Among users who currently access the Internet via their mobile
phones using pre-3G technology, the number of respondents citing
cost as the reason they don't use the Internet more often jumped
by 80 percent from the January 2002 Mobinet study. It is the first
time since Mobinet began in 2000 that cost was named as the primary
reason for not using mobile phones to access the Internet more often.
Concerns about slow access also jumped significantly in the last
six months. The number of mobile Internet users citing slow access
as their reason for not using the Internet more often rose by 66
percent from the January 2002 Mobinet study.
When given a choice of three possible benefits of 3G functionality,
nearly half the respondents (45 percent) cited faster Internet access
for current information and data services as the one most attractive
to them. More advanced services such as sending/receiving pictures
and video or downloading music were named most attractive by 34
percent and 21 percent, respectively.
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