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July 22 04
According to new research from Strategy Analytics, Technophiles and Business
Pragmatists generate US$88 billion in cellular service revenues in the USA
and Western Europe, even though these early adopters have their allegiances
firmly in the device camp. According to the report, operators will
ultimately extract better lifetime value from mass-market and late adopters
of new mobile technologies.
This latest research from the Strategy Analytics Wireless Network
Strategies service provides a detailed profile of seven segments with
distinct behavioral traits and motivations in the cellular market,
emphasizing the challenge operators face in building a strong 3G business.
The two early adopter segments account for 24% of users in both regions, 23%
of lifetime value to operators, but 38% of handset market retail value.
"Tech-savvy early-adopters just don't have the customer loyalty profiles
on which operators can build long term 3G business models," comments David
Kerr, Vice President of the Global Wireless Practice at Strategy Analytics.
"Technophiles and Business Pragmatists will be the first to adopt 3G
services, however operators will need to lean heavily on handset partners to
keep these segments happy, and offer frequent subsidies to meet their
vicious handset replacement cycles."

"It is ultimately the mass market where greater operator value exists,"
adds Phil Kendall, Director, Wireless Network Strategies. "Digital Youth and
Messengers in Western Europe, and Voice Planners in the US, offer greater
lifetime value to operators than early adopters. Profitability will
ultimately be driven by meeting the more modest needs of these users for
location services, m-payments and photo messaging rather than chasing mobile
video applications."
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to introduce tougher Location laws |
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