Infinite potential in mobile technology
According to the Oracle report, 54 percent of
mobile phone users expect their phones to replace their GPS systems and
iPod or MP3 player within five years. Phones are likely to supersede
digital cameras according to 52 percent of respondents, 27 percent want
to use them as their PC and video recorder, 22 percent as an e-reader
and 16 percent as a television.
Ashsen Javed
Managing Director,
Oracle Pakistan and South Asia Growth Economies
Although innovative applications will continue to drive the mobile
phone market over the next five years, consumers still value reliability
and price.
In 2010, the number of mobile phone subscriptions is expected to
reach five billion globally. The outlook for telecommunications
providers is dynamic, but far from certain.
Growing competition from non-traditional providers, rapidly rising
demand for network bandwidth and consumer expectations for new
technologies have emerged as key issues that will shape the future of
the sector.
Against this backdrop, Oracle has released the findings of its
Opportunity Calling: The Future of Mobile Communications report.
More than 3,000 mobile phone users around the world were surveyed on
their use and perceptions of mobile phones, interest in new
technologies, and expectations for the next generation of mobile
communication.
Consumers still value reliability and price over
technological innovation |
Twenty per cent were from the Asia Pacific.
The Asia Pacific market contains unrealised potential for
telecommunications providers. For example, whereas 41 percent of
consumers globally use more than one mobile handset, just 26 percent in
the Asia Pacific do so.
This article summarises the findings of the survey and concludes with
some recommendations on how telecommunication companies can use them to
plan ahead for growth and generate new revenue opportunities.
Key Findings
Reliability and price
Despite the smartphone revolution, this Oracle study shows that
consumers everywhere still value reliability and price over
technological innovation. Less than half the respondents said they look
for state-of-the-art handsets.
By comparison, 85 percent rated reliability and 81 percent rated
price as top priorities.
Notably, however, 77 percent said price would be their main motivator
to change service providers. Further, although 82 percent of customers
said their provider was currently doing a good job, more (83 percent)
said they might consider switching to non-traditional providers such as
Google, Sony, Apple or Facebook if these offered similar pricing and
service quality.
By comparison, consumers in the Asia Pacific market seem slightly
more conservative. Fewer (73 percent compared to 77 percent) said they
would switch to another provider because of better pricing and less (78
percent compared to 83 percent) would consider a non-telecom company as
their provider.
Globally, consumers are keen to cut the overall cost of their
communications. Less than a third (26 percent) of those interviewed
currently bundle their mobile phone bill with other communications
services, but an overwhelming 88 percent said they might do so if buying
more saved them in the long run. In contrast, 42 percent of Asia Pacific
consumers already bundle two or more of their communications services.
New mobile technologies and applications
Of course, the mobile market is not just about costs and reliability.
Within five years, more users are likely to connect to the internet
using their handsets than from desktop PCs, a trend that is driving
demand for more innovative features. This should, in turn, mean new
revenue opportunities for providers.
According to the Oracle report, 54 percent of mobile phone users
expect their phones to replace their GPS systems and iPod or MP3 player
within five years. Phones are likely to supersede digital cameras
according to 52 percent of respondents, 27 percent want to use them as
their PC and video recorder, 22 percent as an e-reader and 16 percent as
a television.
Predictably, the younger demographic-those aged 18-33 years are three
times as likely to use their phone as an entertainment device and twice
as likely to use their phone as a personal computer than those aged
46-64 years.
In terms of general usage, 94 percent of Asia Pacific customers use
their phone as a communications device and 29 percent as a mini
computer. Notably, 38 percent use it for entertainment, which is well
ahead of uptake in the United States (20 percent), Europe (33 percent)
and the Middle East (32 percent). In the Asia Pacific, 81 percent of
consumers have used their phone to send a text message, 47 percent to
read or send email, and 18 percent to update their status on a social
media site.
Respondents to the Oracle survey anticipated that by 2015, their
phones would incorporate a raft of practical new applications and
features that would enable them to do everything from starting a car to
being used as a credit card.
Although the majority (58 percent) indicated that they would like to
use their phones-instead of cash or cards-for purchases, there is still
some caution about the prospect.
Thirty-nine per cent said they were not comfortable with the idea,
but this was offset by the fact that 61 percent were.
Citizens in the Generation Y category (respondents born between 1977
and 1992), were more at home with the concept of using their phones to
make purchases, while slightly more than half (52 percent) of Baby
Boomers (respondents born between 1946 and 1964) were comfortable with
the concept. In both generation groups, males were more comfortable with
the idea than females.
Consumers have a number of new or upcoming features on their mobile
phone wish list. These include the ability to chat via video and scan
barcodes to access online content. However, the survey reveals that
while most want these features, only 17 percent and 10 percent
respectively would be prepared to pay for them. Of greatest interest was
the ability to monitor and manage home electricity use. Sixty-seven per
cent of respondents said they wanted this feature and 22 percent would
be willing to pay for it.
Five years from now, 49 percent of Asia Pacific consumers expect
their phone to replace their digital camera, 34 percent their credit
card and 30 percent their PC. Notably, they are also more likely than
their global counterparts to have used their mobile phone to purchase an
item online (14 percent compared to 7 percent) and to have the ability
to chat via video on their phones (11 percent compared to 6 percent).
Advertising revenue
Advertising direct to mobiles is a potential revenue generator. In
the survey, 68 percent of respondents said they would be happy to
receive advertising on their mobile phones in exchange for price
discounts or added services.
Most interest came from younger users, with the average customer
willing to receive up to six 15-second advertisements each month if they
were given extra calling minutes, texts or free downloads.
This was particularly evident in the Asia Pacific market, where 13
percent of survey respondents said they would be interested in receiving
free downloads in exchange for listening to or watching advertisements
on their handsets, compared to just 7 percent globally.
Worldwide, there is real reluctance to receive localised commercial
content based on user location. Only 33 percent expressed any interest
in the idea, citing privacy and security concerns. Forty-four per cent
were emphatically opposed to being tracked by their mobile provider,
meaning telcos have a lot of work to do if location-based advertisements
are going to gain traction.
Recommendations for telcos
The Oracle report confirms that while technical innovation is
essential to meeting the future demands of consumers, it will be
critical to first ensure that the ‘brass tacks’ of service activation,
delivery and billing are seamless, accurate and fast.
According to the report, telcos need to build and analyse customer
data to ensure customer needs are met quickly. To fully capitalise on
potential revenue streams they need to learn more about customers’
privacy concerns and take measures to resolve them.
Finally, telcos need to plan for the future by working with their
technology providers to ensure network and back-end systems are
scalable, securely open to developers, and integrated across services. |