CTIA Report Shows Wireless Gets High Marks for Value; Customers Look Forward to Wireless E-Mail and Internet Access

Cellular Telecommunications Industry Association (Ctia)ton D.C.-based <%=company%> released new research that shows that wireless phone use has moved from a niche market into the mainstream, based largely on lower costs for consumers, and that consumers rate wireless highest for value among various telecommunications sectors.

The study, conducted by Peter D. Hart Research Associates Inc. for CTIA, was conducted in February 2000. Long-time wireless phone users (three years or more) are more likely to use their service for business purposes, to be men between the ages of 35 and 59, and have annual incomes of more than $75,000. Wireless customers who have had service for less than one year are more likely to be women, aged 18 to 34, and have annual incomes of less than $50,000. The Hart study also shows that new users tend to use their phones less frequently and spend less for wireless service than do longtime users.

A core segment of 17% of wireless phone users are so reliant on their phones that they say it would be a real hardship to give it up for three months. This most devoted group includes people who spend more than $50 each month for service, and is heavily skewed to business users, upper-income households and men.

The Hart research also shows that most wireless customers are value shoppers, looking for the best combination of features at a reasonable price. Sixty percent of those asked said the most important factor in selecting service is value, compared to price, with 25% and features, with 13%.

Importantly, the Hart survey shows that the wireless industry stacks up well against other telecommunications sectors, earning high scores for value. 47% of respondents say wireless companies provide a good or above average buy, the same as on-line service providers. By comparison, long-distance services received a 46% good/above average score, local telephone companies hit 40% and local cable companies rated just 18%.

While the market for wireless data services is still in its infancy, there is notable interest for these services among current subscribers. New subscribers are slightly more likely than long-time users to want additional data services. Among subscribers who have strong interest in new data services, the most preferred new services would be to send and receive e-mail (79%); send and receive text messages (66%); access Internet sites (66%); and access office network and business applications (62%).