Britons are more concerned about the cost of using mobile phones than is widely acknowledged and this could scupper the 3G aspirations of UK operators, according to a new report from The Work Foundation
The iSociety Research product,
MobileUK: Mobile Phones and Everyday Life found that mobiles are now an integral part of modern society with 75% of adults and 90% of young people owning one.
With penetration approaching saturation levels, operators are pinning their hopes on 3G technology and Hutchison Wampoa recently became the first UK firm to offer a UMTS-compliant handset (see Hutchison Brings 3G To The UK). However, running costs for 3G phones could reach over £600 a year, twice as much as the average phone user currently spends and well beyond the reach of most Britons.
Max Nathan, who co-wrote the report commented: “There is a myth that talk is cheap. In fact, for most people, talk remains an expensive worry that needs to kept under control. Our research suggests that the mobile industry must remember how important cost is to most people who buy and use mobile phones. The industry is aware of this but it doesn’t change the fact that until 3G becomes better value most consumers will find it an expensive worry too far.”
The study also found that mobile owners considered their phones to be expensive and addictive, and are all too aware of the cost of conversation. Indeed, three-quarters of mobile phone users remain on pay-as-you-go contracts in order to control their spending and do not trust themselves to take out a full contract.
The Work Foundation findings are backed up by another survey by supplier Dial-A-Phone in which 63% of respondents said they would consider buying a 3G handset but only if the price of the gadgets was lower.
