Mobile Users Turned-Off by Advanced Features

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Note -- this news article is more than a year old.

Only the percentage of people sending photo messages and downloading games has increased.

Report author James Myring said: "For some time now mobile networks have aggressively promoted various advanced mobile services but this approach seems to be falling on deaf ears. The numbers performing these activities remains relatively low and consequently the Average Revenue Per User remains stubbornly static.

Activities done on phone in last 12 months

"Whilst technical issues are part of the explanation, much of the problem is that many mobile users are simply not interested. Mobile networks trying to push these advanced features in many cases are simply knocking against a locked door.

"We asked mobile users whether they agreed or disagreed with a number of statements about mobile phones. A large majority (68%) of mobile users agreed with the statement I would prefer a more basic mobile phone that was simple to use and affordable.

"Clearly a majority of mobile users are not particularly interested in the latest in mobile design and technology, and are more attracted by simplicity and economy. Only a minority are prepared to pay more to be at the cutting edge. Looking first at the importance of style, only 25% of mobile users agreed I am prepared to pay more for a mobile phone that looks stylish. Similarly only 25% of mobile users agreed that I am prepared to pay more for a mobile phone that has the latest in mobile technology.

"The mobile market is two tier, with a majority of mainly older mobile users who have limited or no interest in the latest mobile developments and a lucrative minority (almost all of whom are young) who are prepared to pay more for the latest in mobile style and technology. Attracting and retaining this group of mobile users is imperative for the mobile networks."

O2 the best at attracting the most lucrative mobile customers

"O2 seems particularly good at attracting and retaining the most valuable mobile customers. Their share of customers who are prepared to pay more for the latest technology is some distance ahead of the other major networks. This will make O2 particularly attractive for companies wanting to work in partnership with a mobile network to provide mobile users with the latest in mobile technology.

% agreeing with statements by network used

StatementO2T-MobileOrangeVodafone
I would prefer a more basic mobile phone that was simple to use and affordable60%66%77%65%
I am prepared to pay more for a mobile phone that looks stylish33%29%20%24%
I am prepared to pay more for a mobile phone that has the latest in mobile technology37%26%21%23%

"Some credit for this must surely go down to the innovative advertising and marketing for O2 which has involved sponsorship of a wide range of music events and of course the former Millennium Dome, although it should also be noted that customer satisfaction with O2 is also the highest amongst the mobile networks. O2 seems to be doing well both in promoting itself and also in providing good customer service.

"Looking at the percentage of customers who are very satisfied with customer service, O2 has been the market leader in each of the last 3 years â€" a very considerable achievement in a competitive market. The investment in customer service seems to have paid off, as O2 now has a higher share of customers prepared to pay more for mobile style and technology."

Satisfaction with mobile network operator 2005 to 2007

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