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Monday, July 11, 2005

Cell phone customers put new technologies on hold

This is a report from Europe, thus, it might be a different picture in Asia altogether, especially since we have signs in Asia that even older users look for different services aside from SMS and voice.

Still, it is clear, after all, that to sell something aside of SMS and voice is more difficult than thought, even so mobile companies push and push and push.

Across Europe, "mobile operators are hoping new data services will bolster sales in markets where almost everyone already has a cell phone and where fierce competition is pushing down calling charges. So far, however, most customers refuse to do anything except talk and send text messages with their phones."

So while additional services might be growing, it will take a long educational process to get users used to it - especially, if there are charges imposed on the usage of such services. "Mobile content revenue in Western Europe will rise sixfold to US$25.09 billion by 2010. Even then, mobile content will contribute less than 11 percent to US$231.52 billion in total mobile revenue that year."

Small contribution, isn't it - and even the best phones won't change that fact that fast!

(By Asia Business Consulting)