A recent survey by mobile component manufacturer Wacom Components has some news for telcos – most customers are finding it too difficult to use the new services such as games, ringtones and information services which the telcos hope will drive up their average revenue per user. The most telling paragraph of the article is this one:
The research revealed that although 78 percent of consumers now own handsets through which they can access data centric mobile services such as games, ring tones and information services only a third of consumers are using them. 76 percent of respondents were not using them as they were too complex to access and operate, with only 10 percent citing cost factors for lack of use and only 6 percent lack of interest in the type of mobile services that are currently on offer.
So the bad news for telcos is that even if people buy the new handsets they won’t necessarily use the new services. The good news is that a redesign of the interface to make it easier to use could see uptake of the services increase dramatically. Pricing is also a signficant factor, which telcos need to consider carefully, with a third of respondants saying they would use more of the new services if they were cheaper. If telcos drop the price to receive half as much profit per sale but increase sale three fold, they’ll come out ahead. So the question comes down to how much a drop in price would increase sales, which will take some time to answer.
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