Users fail to see benefits of 3G

Only a third of mobile phone users plan to upgrade to third-generation (3G) technology because they haven't been tempted to try internet access through existing mobile services, according to a new report.

The latest Mobinet study found that more than 61 per cent of mobile phone users in 15 countries are aware of 3G, but only a third are interested in the technology, which may suggest that more education is needed.

The study of 6,000 mobile phone users is conducted twice annually by global management consulting firm AT Kearney and the Judge Institute at Cambridge University's Business School.

Around 70 per cent of Mobinet respondents have yet to access the internet over their phones mainly because the pricing structure and the content isn't compelling enough.

Mitch Mitchell, AT Kearney's vice president, said: "If users are not adequately enticed to try the service offerings of the mobile internet with current technology, they won't be compelled to move up to the enriched service offerings delivered using 3G technology.

"Users clearly want to experience increased value and faster internet access capabilities with existing information and data services before upgrading."

Paul Collins, the AT Kearney principal who led the Mobinet research, added: "3G sellers have an uphill struggle to persuade consumers that internet-enabled telephony is a must-have.

"[But] awareness of new technology is high and creating the right content and service, at the right price, could boost demand significantly."

Some 36 per cent of respondents cited cost as the most important factor in dissuading them from upgrading to 3G. Another 36 per cent said that they either didn't need or didn't understand what the technology could do for them.

Concerns about slow access also jumped significantly in the last six months.

The number of mobile internet users citing slow access as their reason for not using the internet more often rose by 66 per cent from the January 2002 Mobinet study.