The state of wireless technology and devices is in good shape today, and should continue to stay healthy well into the future, as long as carriers understand the changing dynamics of wireless users, according to a study presented by the Personal Communications Industry Association.
Titled “The 1997 Wireless Market Monitor,” the study was conducted this summer by PCIA and InfoCom, a division of National Family Opinion Research Inc., a national poll service. Through mailed surveys and in-depth telephone interviews, the study found that the typical wireless family is college educated, earns about $56,000 a year, owns their home, has a computer and/or Internet access, lives in a city with more than 2 million other households and is married with at least one child. While the study found no real jaw-dropping revelations, the 41-percent wireless penetration was more than expected.
Life stage was found to be a dominant factor. Younger couples represent the highest penetration at 56 percent, while older singles represent the lowest at 8 percent. On average, a wireless phone user is 37, while a paging user is 28.
Regardless of demographic categorization, the study stated that the motivation to purchase wireless services in general may vary, from emergency (55 percent), to personal and business communications reasons (34 percent and 26 percent, respectively). However, the motivation to buy a wireless phone in particular was easier to define. The study reported that 98 percent of all current wireless phone subscribers cited safety reasons while traveling as an extremely or somewhat important reason they obtained service, and 96 percent said the same of having a clear, static-free conversation.
Even though emergency use was cited as the primary reason to sign up for service, talk time on wireless phones has increased-25 percent of respondents said they use their phone more now than they did a year ago.
Sixty-one percent of wireless households said they use their wireless telephone for personal reasons more than business reasons. The opposite was found among paging users. The study reported that 56 percent of respondents cited business uses as the reason for initially signing up for paging service, while only 24 percent said they signed up for personal reasons. Ongoing usage patterns show that 56 percent still use paging services primarily for business, and 27 percent continue to use paging for personal reasons.
While these figures may help define the current wireless user, the study predicts that as more households adopt wireless products and services, a typical wireless household will become increasingly more difficult to profile.
Looking into the future, wireless telephony represents the most positive predictions. Paging has a positive outlook as well. “The pager is entering the American household for personal use in greater and greater numbers. This development presents an opportunity for paging companies to introduce their cost-effective service to more households. Additionally, value-added services and more innovative paging products show some promise of being able to attract more personal users.”
PCS players can expect to see subscribers from both ends, the high-end cellular user and the new but lower-end users, the study said. It determined that PCS providers must increase awareness and understanding of PCS for the market to achieve its full potential.
“PCS companies must find a way to re-brand the technology to differentiate it in the minds of consumers.”
Looking even further into the future, Brenda Maxfield, director of communications at PCIA, said the demographic life stage numbers give a heads-up to industry marketers preparing their strategy for the future. She predicts that as baby boomers age, the age 60+ market could rise from the current 20 percent share to 60 percent by 2010.
“Companies should use these statistics to form their game-plan down the road,” she said.
Also, because wireless households are 55 percent more likely use the Internet and online services than other households, Maxfield predicts a gradual rise in wireless Internet services as that industry continues to grow.
“That’s going to be a significant, significant penetration,” she said.
