Yankee Group says that family plans are a driving growth factor in the North American mobile market. In the United States, family plans continue to have appeal, with 54% of adult postpaid users on a family plan, up from 49% in 2005. Comparatively, 81% of all teens (13 to 17 years of age) are on a family plan, up from 75% in 2004. Family plans are beginning to gain traction in Canada, with 31% of all postpaid users on a family plan.
However, according to data from the Yankee Group US Mobile User Survey, US Mobile User Teen Survey and Canadian Mobile User Survey--annual surveys of the North American mobile consumer market--prepaid plans will drive growth, particularly in the US market.
North American mobile consumers are not overly impressed by carriers' efforts to improve customer satisfaction. In Canada, mobile consumers are frustrated with overall customer experience due to high service prices, a lack of nationwide calling and long contract terms. Yankee Group's surveys also indicate that the adoption of select and more mature mobile data services and content has started to stagnate. Further, the reach of emerging multimedia services such as mobile video/TV and mobile music continues to be limited.
"The Yankee Group Mobile User Surveys highlight the importance of delivering value, improving the overall mobile data experience and evaluating pricing/packaging and new business models, including mobile advertising," said Linda Barrabee, Yankee Group Wireless/Mobile United States program manager. "As users--including the younger demographics--become savvier regarding their device and service capabilities, a greater market opportunity exists for companies that can deliver on both the quality of experience and the breadth of targeted services and features for each consumer group."
US and Canadian consumers consistently consider the dominating factors of service price and network coverage when selecting a wireless service provider. Family and peer groups also exert influence on the service provider selection process, along with the providers' quality of customer service.
"The Canadian mobile market has experienced slower growth compared to the US market, primarily influenced by the frustration consumers have with their service providers," said Marina Amoroso, Yankee Group Wireless/Mobile United States analyst. "Only when customers perceive an improvement in wireless service prices, contract lengths, nationwide coverage and overall customer service will adoption of mobile services really take off in Canada."
Posted to the site on 13th June 2006
Posted to: www.cellular-news.com/story/17772.php