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Wireless users wary of upgrading to 3G

PLANO, Texas-The latest Mobinet study found that while 61 percent of mobile-phone users in 15 countries are aware of the service capabilities associated with third-generation mobile technology, only 29 percent plan to upgrade.

The study of 6,000 mobile-phone users is conducted twice annually by global management consulting firm A.T. Kearney, a subsidiary of EDS, and The Judge Institute, Cambridge University’s business school.

The research indicates education campaigns about 3G are creating awareness, but the cost/benefit trade-off between current technology and 3G wireless services remains a mystery to most consumers.

“Users clearly want to experience increased value and faster Internet access capabilities with existing information and data services before upgrading,” said L. C. Mitchell, A.T. Kearney vice president and leader of the firm’s communications practice in the Americas. “Seventy percent of Mobinet respondents have yet to access the Internet over their phones mainly because they don’t yet understand the total ‘user experience’-the pricing structure and the content isn’t yet compelling enough. If users are not adequately enticed to try the service offerings of the mobile Internet with current technology, they won’t be compelled to move up to the enriched service offerings delivered using 3G technology.”

The business or enterprise markets, where wireless capabilities can provide competitive advantage through faster customer response times and improved productivity, remain largely untapped worldwide, the study said.

The study also found that in the six months since the previous Mobinet study was completed, mobile-phone users have become increasingly cost-conscious regarding future and existing wireless services. More than one-third cited cost as the most important factor preventing them from upgrading to 3G. An additional 36 percent said they either didn’t need or didn’t understand what the technology could do for them.

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