BOSTON-Accessibility and improvements in efficiency will drive adoption of mobile data services, according to a new report by independent research and consulting company Ovum titled, “Data over Cellular: The Road to Third Generation.”
Investment in new technologies, changes in traditional market models and an increase in user adoption and personalized services are key to the mobile data services market, which Ovum said could reach $548 billion.
The first step, according to the report, is a shift to packet-switched networks, which will allow operators to offer affordable prices for services at acceptable speeds.
“Users want higher speeds at lower prices,” said Robin Hearn, senior analyst at Ovum and co-author of the report. “They are growing tired of waiting and watching as access speeds over fixed networks increase, leaving the wireless world looking pedestrian by comparison.
“This will release the undoubted pent-up demand amongst wireless users today and will attract those who are currently priced out of the market,” continued Hearn.
Internet access is a high priority for users. Ovum said 77 percent of end users view Internet access as their main usage growth area.
“Messaging and Internet access are already the most widely used applications,” said Hearn. “It is crucial for operators to move forward with Internet-based applications by defining their content strategies now and building relationships with third-party providers.”
Ovum said carriers must be careful when developing pricing models because users want to pay the same or less than voice services and prefer to be billed in a method they understand. That translates into charging in time increments and not in measures of volume.
Ovum also stressed carriers must market wireless Internet services clearly up front in order to avoid end-user disappointment later on.
On the handset side, nearly 40 percent of business users said they prefer separate voice and data terminals, but users increasingly expect the devices to integrate seamlessly. Smart phones and combined voice and data terminals are not well received in the corporate sector, although there is a higher demand for such devices in the consumer environment, said the report.
Customers tend to use wireless data services in similar ways, although there are regional market differences, including usage levels, customer satisfaction and the relative importance of individual components of data services. Market segmentation is likely to be difficult with data services, especially with consumer applications, said Ovum.
“It is clear from the regional differences that mobile data is attractive globally, but must be marketed locally,” said Hearn.
