Service Providers May Be Overpricing Mobile Broadband

Carl Weinschenk

This Adotas story should raise red flags for service providers. It reports on a Media-Screen Netpop/Pocket survey, which says that more than 60 percent of people have devices that can access the mobile Web -- but that only 5 percent use them.

 

The story says business customers are charged a high fee for mobile broadband connectivity, and there is no consumer-oriented pricing to match. Survey results say that prices -- along with poor connectivity -- are retarding mobile broadband adoption by consumers. The prices quoted for such services -- an extra $39.99 by Sprint PCS and $59.99 by Verizon Wireless -- validate that point. The question is how far those prices have to come down and how much better connectivity has to get in order to drive mobile broadband to critical mass.

 

The reality is that consumer and business telecommunications services rise and fall together since they are, at the end of the day, largely synonymous. If a salesperson is taught to use mobile CRM, for instance, he or she will be more likely to use their smartphone after work to check e-mail or search for a restaurant. Service providers are frittering away opportunities by not pricing their services so that consumers use them at night and on weekends -- and demand them in the work place. They also may be passing on folks who have used such services at work and would subscribe at home if prices were lower.



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