U.S. carriers must adopt new business models to zero in on the youth and young adult markets, especially as subscriber growth is expected to dwindle during the next five years, according to research from IDC. The research firm believes subscriber growth will decrease from 7.6 percent in 2003 to 0.3 percent in 2007.
“The quest for the youth market is like chasing a storm-the rewards are gratifying and the pursuit is challenging, but the whole proposition can be risky business if not executed well,” said Dana Thorat, senior research analyst of wireless and mobile communications at IDC. “While the prospects for increased wireless adoption from both these segments is favorable, the youth market shows the most potential for growth over the next five years.”
IDC estimates 28 percent of U.S. consumers between the ages of 10 and 19 currently own wireless devices. IDC believes attracting this market requires “avant-garde” approaches, like those from Virgin Mobile and Boost Mobile, which demonstrate “new business models, differentiated services, strong youth brands, clever marketing and some rather risky approaches” that appeal to the youth market mentality, which requires fun, impulsiveness, brand affiliations, communications, and community membership and interactivity.
Meanwhile, research from market intelligence group mobileYouth shows mobile phones are quickly penetrating the youth market in the United Kingdom. The study of the 5- to 24-year-old market shows 400,000 children in the United Kingdom under the age of 10 now own a mobile phone, up from 80,000 in 2000.
