• HSBC

Undesirable content blamed for lack of 3G uptake

  • Tuesday, October 17 - 2006 at 09:46

Despite mobile phone providers' endeavours to recruit 3G customers, third generation technology remains a low priority for mobile users across the globe.

The annual Global Technology Insight (GTI) study by TNS has identified little increase in 3G technology usage amongst consumers who see mobile TV and surfing the net as costly and unnecessary.

At a global level, almost a quarter of people cite cost as the main obstacle to them using 3G (23 per cent). A fifth of people (21 per cent) are not downloading songs to their mobile primarily because of the expense, and 23 per cent choose not to surf the internet on their phone because it costs too much to do so.

Amongst mobile users in the Middle East (UAE and Saudi Arabia), however, it is mainly lack of interest and lack of need rather than cost that are most frequently cited as reasons why people are not downloading music, surfing the internet or watching real time television broadcasts on their handsets. Additionally, mobile users in North Africa report lack of either network or handset support for these services.

broadcast and download

reasons for stopping download

The study revealed, in fact, fewer people globally today aspire to have these facilities than they did a year ago. According to the TNS study 7 per cent of those surveyed in 2005 listed 3G as a priority feature to have on future mobile phones, compared with just 4 per cent in 2006. And across the Middle East and N. Africa, where the vast majority of those not already using their handset to surf or download expressed little or no interest in starting in the next 12 months, it would appear that significant change to either content or pricing is needed if 3G is ever going to achieve widespread usage.

Deepak Kudkilwar, TNS Group Account Director in Dubai said, "Clearly there is need to build interest in these services and support 3G through application content that will motivate customers to try and regularly use 3G services".

James Fergusson, Regional Director, TNS Technology, comments; "Given that cost is a key obstacle to the adoption of more advanced mobile services globally, providing affordable pricing regimes that are fixed for unlimited use is a necessary first step if service providers are to at least stimulate user interest. However, if content continues to be uninteresting or surplus to requirements, providers' only hope is that pricing can sustain adoption long enough that the association between core 3G applications and more traditional media diminishes, at which point mobile surfing and TV viewing become normalised."
 
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Copyright© 2006 TNS All Rights Reserved
For more information please contact:
Deepak Kudkilwar
t +971 4 2822688 x. 210
f +971 4 2822711
e Deepak.Kudkilwar@tns-global.com

About the Global Technology Insight study

GTI 2006 surveyed 16,000 consumers in 29 countries during August 2006 to provide key insights into mobile content and applications, future technologies, brand power, co-branding and convergence.

About TNS:

TNS is a market information group:

• The world's largest provider of custom research and analysis
• A leader in political and social polling
• A major supplier of consumer panel, media intelligence and TV and radio audience measurement services.

TNS operates across a global network in over 70 countries, allowing us to provide internationally consistent, up-to-the-minute and high quality information and analysis.

The group's employees deliver innovative thinking and excellent service to local and multi-national clients worldwide. In the custom business, they combine in-depth sector knowledge with expertise in the areas of new product development, positioning and segmentation research, brand and advertising research and stakeholder management.

TNS' strategic goal is to be recognised as the global leader in delivering value added information and insights that help our clients to make more effective decisions.

TNS is the sixth sense of business.

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