Mobile phone users are not showing interest in advanced features such as accessing the Internet or downloading and watching TV programmes on their handset, according to new findings from Continental Research, which has been tracking the mobile market for the past 15 years.
Data from the Continental Research 2007 Mobile Phone Report, to be released next month, show that the percentage of mobile users using advanced features has decreased in eight out of 11 activities tracked within the past 12 months. Only the percentage of people sending photo messages and downloading games has increased.
For some time now, mobile networks have aggressively promoted various advanced mobile services, but this approach seems to be falling on deaf ears says report Author James Myring. The numbers performing these activities remains relatively low, and consequently the Average Revenue Per User (ARPU) remains stubbornly staticWhilst technical issues are part of the explanation, much of the problem is that many mobile users are simply not interested. Mobile networks trying to push these advanced features in many cases are simply knocking against a locked door.
The report shows that the number of people who have accessed the Internet on their phone has fallen from 15% in 2005, to 12% in 2007. The number who have watched TV on their phone has fallen from 2% in 2006 to 1% in 2007, and the number who have downloaded video clips to their handset has fallen form 6% in 2005 to 4% in 2007.
As part of the research, mobile users were asked whether they agreed or disagreed with a number of statements about mobile phones. A large majority (68%) of mobile users agreed with the statement: I would prefer a more basic mobile phone that was simple to use and affordable.
Clearly a majority of mobile users are not particularly interested in the latest in mobile design and technology, and are more attracted by simplicity and economy says Myring.
The report concludes that the mobile market is two tier, with a majority of mainly older mobile users who have limited or no interest in the latest mobile developments and a lucrative minority, almost all of whom are young, who are prepared to pay more for the latest in mobile style and technology. 
Attracting and retaining this group of mobile users is imperative for the mobile networks, says Myring.