Wireless Data Increasingly Important 

January 23, 2002

Wireless data has not yet captured the interest of either consumers or enterprises, but it still will become important factors for wireless operators, the Yankee Group said Wednesday.

The market research firm said that voice still accounts for more than 95 percent of the revenues for wireless operators. But those operators must realize how strategically important wireless data is, the research firm said.

Specifically, wireless data is the operators' best shot at deriving additional revenue from existing customers and as a tool to reduce churn. Churn refers to the practice of customers of switching from one carrier to another.

In addition, wireless data provides customer information to the carriers, which can then be used to provide better service, the Yankee Group noted.

"Wireless data presents new challenges and opportunities for the wireless carriers," said Knox Bricken, Wireless/Mobile Services analyst at the Yankee Group. He noted, though, that a number of issues had to come together before the carriers will be successful selling data services.

"Networks must be upgraded, handsets must be distributed, appealing content needs to be available, and the customers must be taught how to effectively use the data services," Bricken said. "Wireless carriers must bear the burden of ensuring that all of these criteria are met, which is a major challenge."

 

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