Mobile data growing, content concerns remain

About 56% of users of multimedia mobile phones use their devices to access the Internet or check e-mail at least once per month, but a growing number of users also remain unimpressed with their content choices, according to the most recent Mobinet study from consulting firm A.T. Kearney and the Judge Business School at Cambridge University.

The study, conducted eight times since 2000, surveyed 4000 mobile phone users is 21 countries. Among other results, the study found that more than half of mobile phone handsets are less than one year old and have robust multimedia capabilities that are increasingly understood by their users. Nearly two-thirds of users said new services and functions were easy to understand and enjoyable to use. Even among older mobile phone users, less than half complained that new functions were difficult to use.

Still, concerns about mobile content and prices remain. About 35% of consumers cited poor content as the reason they don’t access multimedia services, a considerable increase from just 8% in 2004. Also, one-third of mobile phone users are concerned about the cost of mobile data, and about half say they are not willing to pay more than $5 per month for it.

“This is unsettling for operators that have been investing heavily in proprietary portals and content,” said Simon Bell, a professor at the Judge Business School, Cambridge University. “Perhaps it suggests they seek more partnerships with established online portal brands and media companies.”

On a more positive note, mobile phone users continue to send more pictures, photos and video clips through the use of multimedia messaging services (MMS). One third of multimedia phone owners now use MMS at least monthly, and MMS is used regularly by nearly half of all 19- to 24-year-olds. The study concludes MMS has significant room to grow when compared with traditional text messaging, or SMS, which today is used by nearly 90% of mobile phone users regularly.

“The growing penetration of new multimedia phones is the catalyst for mobile data adoption,” said Mark Page, A.T. Kearney vice president and leader of the Mobinet study. “There is a clear relationship between the average revenue per user and the age of the phone the customer uses. People who have recently replaced their handsets are more likely to be heavier users of data services.”

The study recommends operators shift their marketing focus to encourage repeat use and service loyalty, using pricing along with improved content and customer interfaces. To win over new customers, A.T. Kearney stated that it expects operators to perform more extensive market testing, implement easier-to-use content-rich services and offer low price alternative packages. Indeed, 70% of mobile phone users in the study said price remains the primary factor in choosing an operator.