skip to main content

E-Business: Mobile users show no operator loyalty

by Aoidin Scully

Almost 90 percent of Irish mobile phone users would switch operator if necessary to subscribe to the UMTS services of their choice. The figures were published in a survey carried out by Siemens Ireland, which finds that being first to launch is vital for operators as customers do not show loyalty to their existing operator. Market forecasts show that by 2005, almost half a million Irish users will subscribe to UMTS (Universal Mobile Telecommunications System), and four UMTS licenses are due to be issued in Ireland next May.

The survey, of 1500 business and consumer users, was conducted in Ireland in October 2000. It found that business users are prepared to pay 46 percent on top of their existing mobile phone bill to avail of the new UMTS services, while consumer users are willing to pay up to 63 percent more. Two-thirds (66.6 percent) were prepared to accept advertising if usage of new services was cheaper. The most in-demand service by consumers (80.4 percent) was traffic information, with 77 percent choosing booking and reservations as their second choice. Remote monitoring of domestic devices, which allows the user to access devices in the home via their handset, was selected by 76.2 percent, while 75.4 percent selected the option of accessing the Internet via their mobile (assuming the new mobile device has a large enough screen).

On the business side, the strongest interest (78 percent) was in the Geographical Information System when travelling. Interest in the availability of a personal organiser was indicated by 72 per cent, while 70.5 percent said they would find a customised news service useful. Though the survey predicts that Irish mobile market will have 2.3 million subscribers by the end of 2000, representing a mobile penetration of 61 percent, latest figures for Eircell and Esat Digifone put current penetration at 65 percent. This is largely due to the up-surge in phones being purchased over the Christmas period, with an estimated 400,000 phones sold in December alone.

"The fact that mobile phone usage is growing beyond all expectation proves that people are really taking up the mobile revolution. As far as we're concerned, it's a very positive thing, as the more mobile users there are, the more call there will be for other mobile services," said a spokesperson for Siemens. Siemens said it expects UMTS services to be available to Irish users by 2002.