BOSTON-Wireless operators are losing a multibillion-dollar battle for customer loyalty to handset manufacturers, Massachusetts-based Strategy Analytics said.
Research from the company’s Wireless Network Strategies service indicates handsets account for the largest percentage of “early adopter segments” among wireless users in the United States and Western Europe. The study detailed profiles of seven segments with distinct behavioral traits and motivations in the cellular market, emphasizing the challenges that operators face in building strong 3G businesses.
“Tech-savvy early adopters just don’t have the customer loyalty profiles on which operators can build long-term 3G business models,” said David Kerr, vice president of Strategy Analytics’ Global Wireless Practice. “Technophiles and business pragmatists will be the first to adopt 3G services, however, operators will need to lean heavily on handset partners to keep these segments happy and offer frequent subsidies to meet their vicious handset replacement cycles.”
