Feeds

Mobile users diss premium content

We'll have it - as long as it's free

Boost IT visibility and business value

Mobile users will use almost any kind of media content on their phones, but they won't pay a premium for it.

Operators should view mobile content as a way to reduce churn rather than as a new revenue stream, according to a worldwide survey from accountants KPMG. Forty per cent of those questioned said they would not pay a premium for mobile content.

Sean Collins, global head of KPMG's Communications practice, said: "Mobile service providers will need to stop thinking of converged services purely as a revenue booster...This is a generation of consumers raised in the internet era, where content is perceived as being free. Therefore, service providers need to follow the internet example themselves. Users told KPMG they would rather have one provider for all services and they also want to receive just one consolidated bill."

Ovum senior analyst Michelle Mackenzie said: "It is not surprising the survey reveals that 40 per cent are unwilling to pay a 'premium'. We will only pay a 'premium' for mobility if there is a clear value associated with it. The value of mobile access for many content services is not always so clear."

But, Mackenzie believes there is still demand for wireless services, predicting wireless service revenues will grow 13 per cent to $193bn by 2010, and data revenues growing by 78 per cent to $52bn - but 65 per cent of this will still be from messaging.

The research also revealed some global differences. Asian users were likely to have used various entertainment services on their phones - which KPMG puts down to long commute times on public transport. In contrast, users in Europe and North America are more likely to have used their phones for accessing email or the internet.

KPMG enlisted the help of Taylor Nelson Sofres to carry the the survey, which garnered the opinions of 3,500 mobile users in Asia Pacific, Europe and North America.

More details on KPMG's website here. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
Déjà vu: Virgin Media jacks up broadband prices
Screw copper phone lines, we're UNIQUE, bleats telco
UK fuzz want PINCODES on ALL mobile phones
Met Police calls for mandatory passwords on all new mobes
Netflix swallows yet another bitter pill, inks peering deal with TWC
Net neutrality crusader once again pays up for priority access
Fifteen zero days found in hacker router comp romp
Four routers rooted in SOHOpelessly Broken challenge
New Sprint CEO says he will lower axe on staff – but prices come first
'Very disruptive' new rates to be revealed next week
US TV stations bowl sueball directly at FCC's spectrum mega-sale
Broadcasters upset about coverage and cost as they shift up and down the dials
UK mobile coverage is BETTER than EVER, networks tell Ofcom
Regulator swallows this line and parrots it back out at us. What are they playing at?
What's the nature of your emergency, Vodafone?
Oh, you've dialled the wrong number for ad fibs, rules ASA
EE network whacked by 'PDP authentication failure' blunder
Carrier is 'aware' of cockup, working on a fix NOW
ROAD TRIP! An FCC road trip – Leahy demands net neutrality debate across US
You crashed watchdog's site, now time to crash its ears
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.