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Primary Perspectives: Consumer Demand for Mobile Data Services

Parks Associates, Jan 2003


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Service providers are hoping to move up the value chain and begin offering more content and network applications to their subscribers.

The objective is to use advanced service offerings to increase both the number of subscribers and the average revenue per user (Arpu).

Whether this strategy succeeds will be largely determined by consumer demand for mobile data connectivity and the services that this platform makes possible.

The purpose of this report is to assess consumer interest in and demand for mobile data services.

At the end of 2002, there were more than one billion mobile telephone subscribers in the world, with anticipated year-end 2003 subscribers nearing 1.5 billion. And as consumer demand for mobile telephony continues to increase, connectivity becomes commoditized and prices are driven down to a point where the connection itself is essentially free. To survive in such an environment, service providers are hoping to move up the value chain and begin offering more content and network applications to their subscribers. The objective is to use advanced service offerings to increase both the number of subscribers and the average revenue per user (Arpu).
Whether this strategy succeeds will be largely determined by consumer demand for mobile data connectivity and the services that this platform makes possible. The purpose of this report is to assess consumer interest in and demand for mobile data services. Consumer Demand for Mobile Data Services attempts to: -
Identify and describe both current and future mobile data service (MDS) subscribers
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Determine which physical platforms are most appealing for interaction with advances mobile data services
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Discover which of the many new types of advanced mobile data services consumers are most interested in and
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Find out which service combinations, if any, are most attractive to these consumers.


'As consumer demand for mobile telephony continues to increase, connectivity becomes commoditized and prices are driven down to a point where the connection itself is essentially free,' said Michael Greeson, senior analyst and director of broadband research for Parks Associates.

'To survive in such an environment, service providers are hoping to move up the value chain and begin offering more content and network applications to their subscribers. The objective is to use advanced service offerings to increase both the number of subscribers and the average revenue per user (Arpu). Whether this strategy succeeds will be largely determined by consumer demand for mobile data connectivity and the services that this platform makes possible.'



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