Design consultancies in the mobile telecommunications sector must create more attractive, Internet-enabled mobile phone packages if they are to appeal to the rapidly expanding youth market, according to a report out last week.
According to research group Mintel, only a third of young adults intend to purchase a mobile phone with Internet connection in the next 12 months, despite the fact that nearly 75 per cent of 15to 19-year-olds own a standard mobile phone. Mintel predicts the boom in Internet-enabled mobiles will come only when they offer attractive entertainment to rival personal stereos and Game Boys.
“It appears that many young people potentially interested in WAP phones are waiting for superior technology before committing,” says Mintel retail consultant Richard Caines.
The research says the mobile sector is predominantly youth-driven and the telecommunications industry as a whole, including fixed-line telephony, is set to exceed £1bn for the first time in 2000. “The rate of growth is possibly the fastest for any retail sector,” adds Caines.
Pre-paid mobile phone packages have accelerated market growth, with 61 per cent of adults finding pay-as-you-go schemes easier to manage than a contract. Around four out of five sales are now for pre-pay handsets.
Mobile phones account for 80 per cent of the market, compared with 20 per cent for fixed-line telephony, and Mintel says that the sector must constantly innovate to appeal to consumers.
This includes improving cordless phone technology, phones with e-mail capabilities and other convergent devices such as phones, faxes and copiers for home office use.
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