Fourth Generation Wireless Should Have Solid Initial Appeal to Consumers
2007 is expected to be an exciting year for new technology. With this in mind, Harris Interactive seized an opportunity to explore these critical questions through an online survey of more than 1,200 U.S. adult consumers between November 17 and 24, 2006. The company recently presented the results of this effort through its latest Webinar, which offered a sneak peak at consumer reaction and set some expectations for service providers.
It was worth noting that Harris Interactive did not define what they mean by 4G, but as they expect it to be available next year, we can be sure it is not an evolution of 3G cellular services, but more akin to WiMAX and WiFi services branded as 4G.
The results.
In this survey, consumers were shown a description of 4G services and asked for their initial reactions. Early indications show that 4G could be a winner, with half of adults (49%) finding 4G "appealing" and about one-third (34%) saying they would likely subscribe to 4G service. Interestingly, about seven percent of likely subscribers say they would buy "at launch."
So is that early adopter rate a good number or a poor one? The survey also asked a few benchmarking questions concerning consumers' early adoption rate for ANY new technology. Nine percent (9%) of adults say they are willing to pay a premium for "new" technology and three percent purchase such products "at launch." This is a highly prized segment for technology companies to identify and lure with their products. As the 4G early adoption rate exceeded the benchmark, early returns look good for 4G service providers.
Initial review indicates that consumers will most likely have a big appetite for 4G services. So, who are their preferred 4G service providers? The survey results show Internet providers to be in first place (20%). Surprisingly, second place could be held by any major technology company, such as Google or Microsoft among others (16%), which illustrates how wide open this market is and how brand acceptant consumers are. Closely following are cable companies and traditional phone companies (15% each) and wireless service providers (14%) - which, in the end, could spell trouble for this group and leaves the door wide open for new players to take the lead.
Seventy-seven percent (77%) of likely subscribers made it clear that offering the service without a binding contract would accelerate their buying 4G services and 70 percent want a switch-back guarantee without charge. Both most likely indicate consumers want a safety net to catch them in the event 4G does not deliver on the service as promised. Placing all your eggs in one service provider's basket is scary for many. Additionally, service providers must address concerns that a single provider can offer the complete bundled package at a competitive price and mitigate any concerns that wireless delivery quality could suffer at the hands of inclement weather or other terrain issues.
Conclusion
In general, 4G looks like it is well positioned for a solid market introduction! Joseph Porus, Vice President and Chief Architect for Harris Interactive's Technology Research Practice, views the overall results of the survey positively. "4G has the early hallmarks of a winner. It offers everything 3G was supposed to and more. Since consumers are wide open to consider 4G service providers, look for a wild ride as 4G hits Main Street!"
Posted to the site on 22nd December 2006