Providing market intelligence for more than 35 years

In The News

Smartphone buyers nix paying more than $50 a month for data

A full two-thirds are unwilling to shell out more than $50 a month for a mobile data plan, according to the new report from Parks Associates. Further, a lot of people are in the dark as to just how much data they gobble up.

Half of current smartphone users questioned said they have no idea how much data they use each month.

These findings tell analysts at Parks that carriers face risks as they try to force more subscribers from unlimited plans to tiered, or usage-based, plans.

"U.S. consumers are accustomed to unlimited data use for one fixed price," Harry Wang, director of mobile research at Parks, said in a statement. "They are reluctantly embracing the capped data plan tiers, but they have high price sensitivity and will rebel against byte-tracking."

Mobile customers are gobbling up plenty of data. More than 90 percent of the smartphone owners surveyed by Parks have downloaded an average of two apps per month since buying their phones. Across the world, consumers are expected to spend $14 billion on app downloads this year.

"Now that 4G networks are rolling out across the globe, operators have to do three things right," Wang said. "Find new revenue sources for their faster and more efficient networks, fend off over-the-top competitors, and manage their networks efficiently, including modifying data plan pricing to align revenue with network cost. None will be easy, but they have to roll up their sleeves and get them done."

From the article, "Smartphone buyers nix paying more than $50 a month for data" by Lance Whitney.

Previously In The News

Uber homes in on safety initiatives amid concerns

While Uber is forging ahead with its initiatives, tangible safety improvements may take time, said Parks Associates research analyst Tejas Mehta. "Uber's new safety initiatives are an acknowled...

Amazon and GameFly get their streaming game on

For Amazon, the introduction of the exclusive service could help it gain more attention in the crowded market of streaming-media players, where it remains a second-tier player. Rival Roku is the le...

Home Networking Gaining Mass Acceptance

A growing retail presence among companies manufacturing end-user home networking products indicates that the home networking industry is beginning to make headway in the mass market. The effect i...

Microsoft Entices Holiday Shoppers With 250 Vista-Ready Product,

"There's no precedent in my mind," Harry Wang, research analyst for Parks Associates said. The closest comparison would be the TV industry, Harry Wang said. Manufacturers selling analog sets toda...