Analyst Angle: Seniors, cellphones and prescription drugs

Editor’s Note: Welcome to our weekly feature, Analyst Angle. We’ve collected a group of the industry’s leading analysts to give their outlook on the hot topics in the wireless industry. In the coming weeks look for columns from Current Analysis’ Avi Greengart, Jupiter Research’s Julie Ask and more.
Many column inches over the past few years have been dedicated to the increasing use of mobile devices by younger subscribers. And it seems that each new story points out the fact that more kids are using handset at younger ages (it is true, they are!). We have done a considerable amount of research on the tween and teen markets in the last couple of years. But we are also recently completed a study looking at opportunities at the other end of the age spectrum-those aged 65 years and older. Given all the press about the spending power of the aging baby boomers, it was an interesting study covering mobile services, devices, applications and mobile medical applications and services.
As luck would have it, my mother-in-law turned 70 (or the “new 50” as I keep telling her) this past weekend. The usual problem of what to buy as a gift presented itself-what do you buy for someone who has had that many birthdays, has no interest in technology, and reads about five books a week? A cellphone of course! Cancelled flights to New York City recently and the resulting travel disruptions showed that my in-laws needed a cellphone. So we bought an inexpensive, basic prepaid handset, activated it, added some minutes to the account and sent it to Arkansas in time for the big day.
My mother-in-law was surprisingly accepting of the phone. I then spent about 30 minutes on the phone explaining how to turn the handset on and off, how to charge it, how to make a call and how to receive a call. That was it-no text messaging, games, ringtones or changes to the settings on the handset. Comparing the findings of the seniors study with the experience of my M-i-L was enlightening and confirmed many of the findings and recommendations. This is true of my mother-in-law only-my 75-year-old father-in-law is another matter entirely!
With the exception of Verizon Wireless and a couple of MVNOs, no service providers or device makers offer services targeted specifically at the seniors segment. This will clearly change-this is a growing segment and they have disposable income.
But there are greater opportunities to offer medical services and applications to this segment, rather than simply selling basic cellular voice services. Consider that four-fifths of the seniors surveyed said they are taking prescription medications on a regular basis, and nearly half said they have a medical condition that requires monitoring. Given these statistics, it is not surprising that interest in medical applications that provide the senior access to a live medical professional (nurse, doctor or emergency services) or the ability to schedule a doctor’s appointment via their mobile handset is relatively high. The majority of interested seniors were also willing to pay an additional monthly fee for these types of services, in addition to their monthly cellular service charges.
When asked if they would be more interested in these applications if the cost were covered in whole or in part by the subscriber’s insurance company, Medicare or an employer, interest strengthens among those already interested.
And a significant number of seniors who currently use a cellphone were interested in medical information on high blood pressure, high cholesterol and prescription drug information delivered directly to the handset.
One point that does stand out in the study is it is relatively easy to fall into the trap of offering a service and handset that simplify the wireless experience to a degree that many younger seniors find insulting and less than valuable. Senior handsets should not be so simple as to be featureless, but rather should include advanced features that are easy to use-the development of medical solutions is a good example. This is a challenge for the handset OEMs and service providers alike, and one that should not be overlooked. Just as the handset makers have addressed the needs of younger cellphone users, the same can be done with older users.
The wireless and mobile industry must understand that the senior segment battleground is starting to shift and that competition is likely to intensify considerably in the next two years. Those who realize that the shift has begun and start the development of new products now will likely reap the largest benefits.
Questions or comments about this column? Please e-mail Iain at iain@igr-inc.com or RCR Wireless News at rcrwebhelp@crain.com.