3G's early adopters aren't the loyal type, report says

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By: Wise Marketer Staff |

Posted on July 26, 2004

'Technophiles' and 'Business Pragmatists' generate some US$88 billion in cellular service revenues in the US and Western Europe, even though these early adopters' allegiances are firmly placed with the devices, not the service, according to new research from Strategy Analytics.

According to the report, 'Operators Trail Handset Vendors in Mindshare & Loyalty', mobile phone operators will ultimately be able to extract greater lifetime value from mass-market customers and late adopters of new mobile technologies.

The research, taken from the Strategy Analytics Wireless Network Strategies service, examines seven segments with distinct behavioural traits and motivations in the cellular market, emphasising the challenge that operators face in building a strong 3G business with loyal customers. The two early adopter segments identified account for 24% of users in both regions examined, and 23% of lifetime value to operators, but a much higher 38% of handset market retail value.