Mobile broadband booming - but subscriber loyalty low, claim study

Mobile broadband is on the very edge of wide-scale consumer adoption, according to market research conducted by Logica. However, the firm warns that mobile operators are continuing to struggle with subscriber loyalty and failing to grasp the revenue opportunities presented.

Of the 1,000 UK consumers interviewed, Logica found operators failed to target nearly half of the users with the right marketing and advertising messages. However, the study also established that:

  • Forty per cent of consumers admitted to heavy usage of mobile Internet;
  • Forty two per cent said mobile advertising was relevant to no-one;
  • An astounding 77 per cent would switch operator if needs are not met; and,
  • The demand for consumer hubs was soaring.

When asked whether the recession would reduce the time spent using the Internet via mobile, over 50 per cent of consumers stated that their mobile usage patterns would not change, clearly pointing, according to Logica, to a business opportunity relevant in today's climate.

Commenting on the research, Elaine Doherty, a business consultant at Logica, said the mobile Internet market stood at the tipping point of consumer usage, but it lacked the maturity and unity necessary to capitalise on the available revenue opportunity. "We are seeing consumers who are highly jaded towards traditional advertising, becoming more receptive to new ways of receiving information and content, and willing to switch service providers on a whim if not targeted correctly. All of this points towards an obvious business proposition for the majority of mobile operators, even in a recession where mobile Internet usage remains relatively unscathed."

Doherty added, "just as Web 2.0 had grown ferociously in the past two years, the mobile internet was right at the cusp of major consumer adoption."

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