Mobile Market Ripe for Competition, says Oracle

Oracle has published the results of its Opportunity Calling: The Future of Mobile Communications report, which surveyed more than 3,000 mobile phone consumers worldwide to examine their use and perceptions of mobile phones; their interest in new technologies, such as applications and mobile advertising; and their expectations for the next generation of mobile communication.

The report finds that while 82 per cent of mobile consumers are happy with their current service provider, the mobile market is ripe for competition. 77 per cent of consumers say they are willing to switch to a provider with better pricing, and 83 per cent would consider turning to non-traditional telecommunications providers, such as Sony or Facebook, as long as they provide similar pricing and service quality.

As more carriers switch to tiered data plans, mobile consumers still prefer unlimited data, and are willing to pay for it. 61 per cent are willing to increase their monthly bill by 7 per cent in order to maintain unlimited data, while 59 per cent are willing to increase their monthly bill by 5 per cent for unlimited text.

54 per cent of respondents believe that five years from now, they will use their phones as a GPS device, 31 per cent as a credit card, and 24 per cent to start their cars. Consumers also anticipate using their mobile phones to chat via video, view paid content on multiple screens, scan barcodes to access relevant online information and monitor home electricity usage.

64 per cent of consumers are willing to receive ads on their phone in exchange for price discounts or added services. Younger consumers provide much of the revenue potential.  Mobile users aged 18-33 are nearly three times as likely to use their phone as an entertainment device, and twice as likely to use their phone as a personal computer, compared to their counterparts aged 46 – 64.

Oracle notes, however, that providers must address privacy concerns. As mobile apps and content continue to emerge, consumers are apprehensive about taking full advantage of new offerings, due to privacy concerns. Only 33 per cent of respondents expressed interest in receiving location-based advertisements on their phones, while the majority were uninterested in the option, due to privacy issues.

“Communications service providers are always looking for the next technological breakthrough to gain a competitive advantage,” says Oracle senior vice president and general manager, Bhaskar Gorti. “(But) while mobile users are rapidly accepting new technological capabilities, price and reliability are still the driving factors in their decisions to select – and stay with – providers.  Staying on the cutting-edge by providing innovative new content and applications is critical, but providers must ensure that the ‘brass tacks’ – service activation, delivery, and billing – are seamless, accurate and fast,”

You can access the full report, which also addresses mobile phone use preferences, consumer purchasing habits, motivations for change, demand for bundled services and applications, as well as key differentiators between various global regions, here.