New research from analysts at RBC Capital Markets contends that subscription pricing, versus sexy new features like wireless video and music, remains the greatest driver behind end user adoption of mobile services.
While cool new applications such as mobile video and music on the handheld are drawing much of the attention from those people following maturation of the wireless communications market, new research contends that subscription pricing remains the biggest factor linked to industry growth.
According to a report released by financial analysts at RBC Capital Markets, the evolution of mobile devices from providing mere voice communications into handhelds that allow for advanced multimedia and business applications is well under way, but common issues such as subscription pricing and confusion over a glut of available products and services stand as some of the larger obstacles blocking wider adoption of wireless technologies.
RBC Markets said that roughly 200 million U.S. residents currently subscribe to wireless plans, representing roughly 70 percent market penetration, with 2005 standing as a record year of growth for sales of both pre-paid and subscription-based services.
In a survey of roughly 1,000 U.S. wireless subscribers conducted by RBC during the third week of February 2006, the company said it found that most people remain more concerned about paying less for their minutes than playing with the latest gadgets or services.
According to the study, those people polled by RBC indicated that plan pricing remains their top determining factor in selecting a wireless plan, followed closely by device compatibility.
Device-oriented concerns also ranked among respondents' top issues when choosing their respective devices and providers, as some 45 percent of those polled said that having too many product choices prevented them from actually deciding on a plan.
User education also factored into the device selection process, with 42 percent of Americans boasting a high school education or less found to be "significantly more hesitant" to buy new technologies because of their complexity, compared to 33 percent of their peers with post-secondary education.
Read the rest of this eWEEK story: "Report: Pricing, Not Multimedia, Drives Wireless Uptake"
