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Gartner Dataquest Reports 40 Percent of U.S. Adults are Regular Users of Mobile Telephony Services
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Report Advises Mobile Telephony Service Providers to Focus on Generation Y Segment
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San Jose, Calif., December 12, 2000 - Fifty-one percent of all U.S. households have at least one mobile phone and 40 percent of U.S. adults use their mobile phones regularly, according to a recent survey by Dataquest Inc., a unit of Gartner Group, Inc. (NYSE: IT and ITB). This is a significant increase from the 33 percent of adults reported as regular users in 1999. Gartner Dataquest defines a regular user as one who uses a mobile phone for more than just emergency purposes.
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The Generation X (ages 25-34) and Baby Boomer (ages 35-54) segments exhibit the highest regular user rates at 48 percent and 47 percent, respectively. Fewer than one in five seniors (ages 65 and over) are regular mobile users. Overall, the average age of regular mobile users is 41, but the Generation Y (ages 18-24) segment is coming on strong with a 40 percent regular user rate.
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"Generation Y should be a significant target market for mobile telephony service providers given the propensity of this age group to quickly adopt the more technologically sophisticated, high-margin services," said Margaret Schoener, senior analyst for Gartner Dataquest's worldwide telecommunications group. "They already have the mobile habit, and development of earning power will complete the profile."
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One factor that affects mobile usage is the ability to pay. Fifty percent of adults are employed full time and 21 percent have at least half of their monthly mobile charges paid by their employer. The low employment and reimbursement incidences of the senior segment contributes to the only 19 percent regular mobile use performance of this group.
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The need for and habit of mobile communications is another factor in mobile usage. The stronger the need and the more embedded the mobile access habit among individuals, the greater the likelihood they will move up the mobile spending curve. The needs-and-habits factor contributes strongly to the mobile usage patterns of the Generation Y segment, which exhibits a mobile communication and technological interest at about the same levels as the Generation X and Baby Boomers segments with a greater ability to pay.
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Gartner Dataquest analysts believe mobile service providers should not overlook any age group in their search for additional value-added customers, but they can not ignore that the Generation Y segment is the highest monthly spending age group.
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"As a greater portion of this age segment engages in full-time employment they will not only move up the mobile penetration curve, but will also expect their wireline Internet services be transferable to a mobile environment," said Amanda Sabia, industry analyst for Gartner Dataquest's worldwide telecommunications group. "Generation Y members should be the early adopters of advances of mobile Internet service."
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Additional analysis is available in the Gartner Dataquest Market Analysis, "What Mobile Telephony Consumer Segments Will Predominantly Drive Future Mobile Revenue?" This document explores the demographics of the current mobile telephony market, what segments of the adult population are underpenetrated and which are the most likely to provide tomorrow's revenue stream.
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This research is published by Gartner's worldwide Telecommunications and Networking group. This group provides analysis for the full spectrum of telecom and networking issues. To keep up to date on the latest telecommunication issues, please visit Gartner's Telecom Marketplace Resource Center at www.gartner.com/public/static/telecom/telecom.html.
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To purchase the report or subscribe to Gartner Dataquest programs, please call 800-419-DATA, or 408-468-8009. More information about Gartner Dataquest's programs, descriptions of recent research reports and full text of press releases can be found on the Internet at www.dataquest.com. Gartner Dataquest is the recognized leader in providing the high-technology and financial communities with market intelligence for the semiconductor, computer systems and peripherals, communications, document management, software and services sectors of the global information technology industry.
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