US Networks Ignoring Market Sector - Report

U.S. wireless telecommunications carriers and related companies are virtually ignoring the Central and Eastern European-Americans who make up a US$1.3 billion market, according to two studies conducted by Global Advertising Strategies (Global). The results of the two studies, indicate that despite the huge revenue potential, major wireless providers and handset manufacturers dedicate almost no marketing resources against this ethnic group and are only addressing it as an unintended consequence of mainstream marketing efforts.

Global's research was conducted between November 2003 and February 2004 and involved surveying nearly 1500 Central and Eastern European-American consumers via phone, Internet and print questionnaires as well as personal interviews. The research found that no single wireless carrier or handset manufacturer has a dominant share in this market and that wireless carriers appear to be comfortable addressing these customers as a minor market reached indirectly through dealers.

"Our studies indicate that the major wireless carriers' marketing and advertising efforts have failed to secure a solid market share for any one of them," said Givi Topchishvili, Global Advertising Strategies' CEO. "We believe this situation is due to the fact that wireless carriers don't realize the size of the Central and Eastern European-American wireless market, and they market to it indirectly by allocating budgets to dealers rather than speaking directly to the consumers."

Global's research found Central and Eastern European-Americans are a diverse enough group that if one carrier were to embark on an effort to become a market leader, it would have to target at least three key demographics within that market.

For example, according to the studies, Russian-Americans favor T-Mobile because it has the cheapest plan with few to no hidden charges, even though its connectivity quality is claimed to be poor; while a majority of Ukrainian-Americans choose AT&T Wireless for its customer service, and Polish-Americans choose Sprint PCS because they consider it good value for the money.

Global also found that because wireless carriers don't address the Central and Eastern European-American market at the calling plan feature level, they may be losing out on a potential revenue stream because the majority of Central and Eastern European-Americans tends to place international calls over mobile handsets using calling cards or alternative long distance carriers.

"By improving their understanding of this market and then implementing specific marketing messages and tactics that respond to the needs and desires of Central and Eastern European-Americans, one carrier and one equipment vendor could easily dominate this valuable market," Topchishvili said."

Posted to the site on 15th April 2004