Sunday, July 24, 2005

Cell Phones Too Complex?

The Chicago Tribune reports that cell phones are getting too complex for many users. According to research by Forrester, many people don't realize and/or can't figure out the various capabilities of their phone.

Forrester analyst Charles Golvin says "This means that either consumers have no desire to use some of these basic features, or the user interface and instructions are so poor that even if they should wish to use them, they can't figure them out."

In addition, the survey found that "less than 10 percent considered a camera to be important when buying a new phone," and "fewer than 20 percent named wireless data services as a critical feature."

Since the network operators have the most say in which features go into new handsets, capabilities that can drive data traffic and additional revenue per user (ARPU) get highest priority, such as a camera for photo messaging and Internet access.

Golvin rightfully points out that "There's so much ongoing price pressure on the cost per minute of voice, that were they left to only compete for voice services, they'd see rapidly declining revenues from subscribers."

On the subject of complexity, the network operators and handset manufacturers need to do a better job of making phones and the data network more user friendly. As long as it doesn't add much extra to material/customer acquisition costs, carriers, manufacturers and even retailers can bundle with each new handset purchase a CD or memory card (disclosure: one of my clients is a semiconductor company) that offers a tutorial on how to use the phone as well as explore the data network to find content and services. The cd/memory card can also include ringtones, wallpaper, music, video, game demos, etc that users can sample and then access the network to purchase and download.

In theory everyone wins. Customers have more knowledge of phone features and network services, which in turns leads to a better user experience, and more revenue for carriers...

via Chicago Tribune