Oct. 26, 2006

Consumers worldwide have been slow to purchase 3G phones and slower to avail themselves of the technological edge that 3G makes possible.

Market analyst firm TNS says in a new report that Americans, despite a reputation as slow to adopt advanced services, seem focused on handset features that lend themselves to 3G improvements.

However, TNS was quick to point out that the overall cost of those advanced services, namely mobile commerce and mobile entertainment, appear to be a barrier to adoption.

In the U.S., 16 percent of mobile phone users have purchased 3G-enabled handsets, but only 10 percent of people use their phones’ 3G functionality.

That’s slightly better than Americans’ global counterparts; 20 percent of handset owners worldwide have 3G handsets, but only 9 percent of those use 3G functionality.

TNS said the situation presents an “opportunity” for network operators to educate consumers on the benefits of 3G. Less than 5 percent of American mobile users are using mobile commerce services or mobile TV, according to the report.

According to Don Ryan, vice president for technology and media at TNS, the slow uptake of 3G services is akin to the evolution from dial-up Internet access to cable modems or DSL, in that it took time for consumers to appreciate the advantages of greater data speeds.

Source: RCR News