Two-thirds of Americans unwilling to spend over $50 a month on mobile data, says Parks Associates
In a recent report titled Mobile Data and Applications, research outfit Parks Associates found that a large chunk of Stateside consumers aren't willing to pay more than $50 per month for a mobile data plan. What's also interesting here -- but not surprising -- is the study shows nearly 50 percent of smartphone users are completely oblivious to the amount of data they're consuming every month. Parks Associates says this highlights the "risk" networks like AT&T, Verizon and T-Mobile are taking by making the transition from all-you-can-have to those tiered data plans we're so fond of. The firm's Mobile Research Director, Harry Wang, sees this as a necessity for carriers, though, expressing that "moving mobile users to usage-based plans will be difficult and painful, but changes are necessary for operators to maintain revenues." So, are you part of the two-thirds keeping bits under 50 bucks? Let your voice be heard in the comments below.
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Parks Associates: Two-thirds of U.S. Mobile Consumers Won't Pay more than $50/Month for Mobile Data
DALLAS, April 25, 2012 /PRNewswire/ -- Parks Associates research finds two-thirds of U.S. consumers planning to purchase a smartphone are unwilling to pay more than $50 per month for mobile data plans while almost 50% of smartphone users do not know how much mobile data they use each month. The firm's analysts say these findings, from the report Mobile Data and Applications: Market Update, highlight the risks to mobile operators as they try to shift from unlimited to usage-based mobile data plans.
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"Operators need to create new value propositions for their data services," said Harry Wang, Director, Mobile Research, Parks Associates. "U.S. consumers are accustomed to unlimited data use for one fixed price. They are reluctantly embracing the capped data plan tiers, but they have high price sensitivity and will rebel against byte-tracking. Operators need to shift consumers' perception away from raw data to the experience created by their data services."
Parks Associates finds over 90% of U.S. smartphone owners have downloaded apps since product purchase, at an average of two apps per month. Worldwide, consumers will spend over $14 billion on smartphone app downloads in 2012. To maximize their revenues, operators need to tie their offerings to popular apps and services, including TV, music, books, newspapers, games, location-based services, and social activities, rather than charging consumers per megabyte.
"Moving mobile users to usage-based plans will be difficult and painful, but changes are necessary for operators to maintain revenues," Wang said. "Operators would benefit by recasting mobile data services as experience-driven in order to reduce price sensitivity, fend off competition, and keep their mobile data revenue engine humming."
Parks Associates will discuss operator strategies to monetize mobile data and redefine consumers' 4G experience at CONNECTIONS™: The Digital Living Conference and Showcase, June 5-7, co-located with TIA 2012 in Dallas, Texas.
About Parks Associates
Parks Associates is an internationally recognized market research and consulting company specializing in emerging consumer technology products and services. Founded in 1986, Parks Associates creates research capital for companies ranging from Fortune 500 to small start-ups through market reports, primary studies, consumer research, custom research, workshops, executive conferences, and annual service subscriptions. http://www.parksassociates.com
