Most Wireless Subscribers Unlikely To Pay For Information Services - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.


Most Wireless Subscribers Unlikely To Pay For Information Services

Just 1 in 5 consumers are willing to pay for directory service on their cellular phones and only 7% would pay for local search

Mobile-phone subscribers may one-day use local search and other information services; just don't ask them to pay for it.

Just 1 in 5 consumers are willing to pay for directory service on their cellular phones and only 7 percent would pay for local search, JupiterResearch said Tuesday.

While more than 8 in 10 online consumers carry out local searches on their computers through search engines like Google Inc., Yahoo Inc. and Microsoft Corp.'s MSN, few wireless subscribers have used their cellular phones for similar searches.

All the major search engines offer mobile search at no charge, but carriers often charge for delivering the data to the phone. In addition, vendors, such as software maker Vindigo Inc. and carrier Verizon, offer search applications that can be downloaded.

"The adoption of these data services and technologies on the phone isn't that high yet, and usage isn't that intense," JupiterResearch analyst Julie Ask said. As a result, "it's just going to be hard to make money over the next few years."

JupiterResearch believes ad-supported information services will have the best chance for success, although there may be a smaller market for premium data.

In the meantime, a number of factors need to come together in order for the market to grow, Ask said. Phones will need to have user interfaces that make accessing information easy and fast, cellular networks will need more bandwidth and wireless carriers will have to spend more on marketing their services.

With revenues for many carriers flattening, they're depending on data services to drive growth in a saturated market for voice service, Ask said. However, it's unclear whether wireless subscribers will be able to afford to spend more than they already do.

"That's the million-dollar question," Ask said. "They're hoping data will fill the gap, but it hasn't yet."

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
The State of Cloud Computing - Fall 2020
The State of Cloud Computing - Fall 2020
Download this report to compare how cloud usage and spending patterns have changed in 2020, and how respondents think they'll evolve over the next two years.
Top 10 Data and Analytics Trends for 2021
Jessica Davis, Senior Editor, Enterprise Apps,  11/13/2020
Where Cloud Spending Might Grow in 2021 and Post-Pandemic
Joao-Pierre S. Ruth, Senior Writer,  11/19/2020
The Ever-Expanding List of C-Level Technology Positions
Cynthia Harvey, Freelance Journalist, InformationWeek,  11/10/2020
Register for InformationWeek Newsletters
Current Issue
Why Chatbots Are So Popular Right Now
In this IT Trend Report, you will learn more about why chatbots are gaining traction within businesses, particularly while a pandemic is impacting the world.
White Papers
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll