Tuesday, September 22, 2009

What Changes Have Mobile Users Made Because of Recession?


It isn't clear whether users actually followed through with their stated plans and inclinations, but an October 2008 survey by Getjar suggests users were planning significant changes in mobile consumption. So far, we can document the slowdown in replacement phone behavior. Users, at least in Europe, have slowed the pace at which they upgrade their handsets, as 78 percent of respondents to the survey suggested they might.

The suggested parsimony on the usage front remains a bit more difficult to quantify. About 76 percent of mobile phone users who partcipated in the survey suggested they planned to reduce the amount they spend on phone usage as well.

When asked whether they had reduced spending on mobile phones in the last 12 months, more than 50 percent of respondents had not reduced their spending at all, or by as little as 10 percent, during that period.

For those people who had reduced their spending, the economy was the reason given by just over one third of respondents, while 20 percent changed their usage habits to lower expenses, and a further 28 percent had switched to using free applications to avoid charges.

But the planned reductions could have taken any number of forms. Some 35 percent of respondents said SMS accounted for the greatest proportion of their mobile phone bill. So less texting is one possible user response. So is substituting texting for calling when the tariffs favor such choices.

About 18.5 percent said voice services was the biggest cost driver and about 17 percent identified data services as the top usage cost driver. Less calling and less use of data services are other possible responses.

Premium services accounted for the largest part of the monthly mobile spend for 12 percent of the survey participants. For many users, this should have proven the easiest way to reduce spending.

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