They’ve been called the last untapped demographic for mobile phones, but some seniors say the industry itself may be to blame for the lack of elderly mobile users.
Wireless devices are ubiquitous among nearly every age group in the nation except the elderly. According to the Yankee Group, about 80 percent of Americans aged 19 to 65 own cell phones, and nearly half of children between 10 and 18 carry phones.
Meanwhile, only 39 percent of people 65 and older are mobile subscribers-and it appears many of them hardly use their phones at all.
“It’s definitely an attractive and under-penetrated market for carriers,” said Adam Guy, director of wireless practice for Compete Inc. “Carriers are definitely missing out on market share.”
Seniors say there are plenty of problems with wireless. Confusing cell-phone bills, locked-in service contracts and vague coverage maps are just a few of the reasons they’re not happy about going mobile.
“The No. 1 most-requested issue AARP members want more help with is cell-phone service,” said Chris Baker, senior policy analyst of AARP’s Public Policy Institute. “It’s clear there’s some confusion out there, and people want help.”
The 35-million-member lobbying group, formerly known as the American Association of Retired Persons, has become involved, publicly taking wireless trade association CTIA to task for not addressing seniors’ complaints. Earlier this year, AARP battled with CTIA over an effort to establish a telecom consumers’ bill of rights in California, and the group has prompted the introduction of similar legislation in New York.
AARP’s own for-profit division, AARP Services Inc., has even begun offering service through Wirefly Wireless, an online reseller of U.S. carriers. AARP members can receive benefits by signing through Wirefly with carriers such as Cingular Wireless L.L.C., Sprint PCS and Verizon Wireless.
As talks continue to progress between the two groups-CTIA and AARP have met a few times in recent months to hash out their differences-seniors slowly may be taking up mobile communications anyway. A study by the Pew Research Center released in June found that half of those between ages 70 and 79 reported using cell phones, nearly double the number who used mobile handsets four years prior.
The study also found that whereas growth in mobile use among those under 30 had leveled off, the strongest increase in growth was in people ages 70 or older. AARP itself seemed to support that study earlier this year, when its Wyoming division reported that half its members were considering cutting their landlines and going exclusively wireless.
Such an evolution is to be expected, said John Walls, vice president of public affairs for CTIA.
“We’ve seen a growth in that segment over the past five to 10 years as (seniors) become more comfortable with the technology,” Walls said. “And as baby boomers get older, we’re going to feel a lot more comfortable with the technology and will feel more comfortable embracing it.”
That could be one reason why the industry may not be rushing to meet the needs of the elderly, according to Compete’s Guy.
“I think what’s happened is that the wireless market has decided it’s not really worth investing dollars to attract new senior-citizen customers,” said Guy. Instead, the market could be focusing on the baby-boom generation, which is just reaching retirement age and has been using wireless phones for years.
“A lot of these people already have cell phones; I think it’s safe to assume they’re not going to throw them in the trash,” Guy said.
And as carriers begin to look to wireless data to shore up declining margins for voice service, they’re not looking toward elderly users.
Many seniors are on fixed incomes and have neither the disposable incomes nor the inclinations to become consistent mobile users. While reduced-rate and prepaid plans may appeal to low-level mobile consumers, they’re not a substantial source of revenue for most operators.
As the two groups struggle to find common ground, both agree that wireless communication has become more a necessity than a luxury, particularly for an aging generation.
“More seniors are recognizing the benefit to wireless communications,” said Walls. “I feel a lot better knowing my senior-age parents have cell phones if they need me.”
