In-Stat profiles consumer demand for wireless data and Internet services; suggests how service providers can increase consumer subscription rates.

by ISP-Planet Staff [March 28, 2001]

In mobile wireless news this week high-tech research firm Cahners In-Stat Group warned U.S. Wireless providers that they are making a mistake by casting wide marketing nets hoping to lure consumers into using their data and Internet services.

According to an In-Stat study, the research firm suggests that mobile and fixed wireless carriers should target-market user niches with tailored applications and marketing. Mobile wireless providers like Sprint PCS, AT&T Wireless Group, and Cingular Wireless might want to heed its advice.

Becky Diercks, In-Stat director of wireless service, said that business users have been first to adopt wireless data and Internet services, just as they were the first to adopt cellular voice services in the 1980s. But that the consumer market has barely been penetrated.

In-Stat currently estimates that, in the United States, there are over 109 million wireless phone service subscribers and over 60 million households with Internet access.

"These numbers indicate demand for wireless Internet should be significant, however, there are only slightly more than 600,000 consumer wireless data users in the United States today, representing just one-half of one percent of all U.S. Wireless subscribers," according to Diercks.

To boost that percentage, providers must promote simple-to-use applications that users find valuable in addition to offering flat rate pricing.

In-Stat has also found that:

• Initially instant messaging, location-based services, news and alerts, banking and financial applications will be the primary draws for consumers. Successful marketing of these services will not come from service providers alone, but also through service provider/content provider partnerships.
• Provided all of the necessary ingredients are in place, consumer wireless data subscribers as a percent of total U.S. Wireless data subscribers will increase from only 14 percent in 2000 to a very substantial 37 percent by 2005.
• Carriers must focus on four key areas: customer equipment, applications, services, and market integrity. If they are able to do this, In-Stat expects the market to grow to more than 36 million residential subscribers by year-end 2005.

In its report, Show Me the Customers: The Growing U.S. Consumer Market For Wireless Data Services In-Stat profiles consumer demand for wireless data and Internet services and suggests means by which wireless data service providers can increase consumer subscription rates.

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