Many Cell Phone Users Unwilling to Pay for 3G Multimedia Services

6:40 am on April 18, 2006 | Category: Mobile Devices, Wireless Technology

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The number of multimedia-equipped mobile phones on the market is expected to double in the next two years, but customer enthusiasm for advanced mobile technology is growing at a much slower rate.

A recent study by In-Stat found that most consumers don’t mind spending an extra $20 for a multimedia handset, but when it comes to actually using wireless music and television services, those same consumers are hesitant to shell out $15 a month in subscription fees.

When it comes down to it, many users are interested in the idea of 3G wireless functionality, but few are actually willing to pay a monthly fee for it.

In order to break down this difficult price barrier, wireless providers will need to either lower their prices or increase service quality. Both are likely to gradually happen over time.

According to In-Stat analyst, Bill Hughes, offering free sample versions of mobile music and video offerings might make some customers more inclined to buy. “Wider adoption of multimedia could come from giving users a taste of the service,” he commented.

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    1. As the user become more knowledgeble and the VoIP technology keeps breaking bounderies. the future of 3G networks will be very short. You can get more services thrue a IP wireless provider that what you get out off a regular Wireless Phone service provider. with increasing development in Wimax IP Services provider will be serving VoIP over Wireless.

      Comment by Juan Noboa — April 28, 2006 #

    2. Good point. VoIP is as much a threat to 3G wireless networks as any other trational cellular technology.

      And IP-based content services do have the potential to break the cost barrier for the vast majority of users.

      Comment by Jeremy — April 29, 2006 #

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