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Weekly UpdatesThe next generation of data services has the potential to provide needed benefits for wireless carriers, including increasing customer stickiness, reducing churn, driving additional revenue from the existing subscriber base and attracting new subscribers with more compelling offerings. This is a nascent market, however. A new Yankee Group Report, "2002 Mobile Users Survey Results Part 1: Will Next-Generation Data Services Close the `Value-Gap,'" emphasizes the obstacles faced by the carriers. Most of the nation's "Big Six" carriers have made advances in assembling the necessary pieces of their next-generation wireless data strategies, upgrading networks, seeding the market with new handsets and creating/partnering for better content. Nonetheless, the survey shows that 63% of mobile phone users cited "value-related" issues, "don't want/need," "service too expensive" and "doesn't have information needed" as reasons they do not have wireless/data Internet services.
"As carriers extend coverage on next-generation networks and introduce richer data services, they must provide compelling and differentiated wireless data offerings, and put more effort into their segmentation strategies," observed Linda Barrabee, Wireless/Mobile Services senior analyst. The carriers must also educate the different customer segments on how to use the new services effectively. In addressing the "value problem," the inevitable questions arise: Can the carriers bridge the value-added services gap and are their next-generation offerings on the right path?
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