Consumers Lack 4G Understanding
Wireless carriers may need to do a better job explaining the high-speed 4G technology to smartphone users, according to a recent study, especially as companies bank on 4G as a significant part of their mobile and financial strategy going into the future.
Gadget review and shopping site Retrevo recently found less than a quarter of people they surveyed planned to buy a 4G-capable phone this year. Thirty percent said they wouldn’t go 4G because they think the accompanying data plan costs too much, 22 percent said they felt 4G performance didn’t justify the cost, and 19 percent said they just don’t know enough about 4G to make the switch.
The findings indicate a major gap for carriers to overcome as they beef up 4G networks in anticipation for increased data demands fueled by increasingly robust devices. With subscriber rates maturing, carriers look to data and sophisticated smartphones as the next area of growth, justifying prices with potential access to high-speed technology. But this requires consumers that understand the value of high-speed networks and decide to invest in the powerful new phones to take advantage of the technology.
But potential customers may not be at that level of awareness quite yet, with many believing they mistakenly have 4G capabilities already. Thirty-four percent of iPhone users and 24 percent of BlackBerry users reported they already had a 4G version of the phone, when in fact one doesn’t yet exist.
Apple’s iPhone 5, and Research In Motion’s Bold 9900, both debuting later this year, are slated to use the 4G network.
For carriers spending money and devoting resources to deploying their 4G network, the news should be a wake-up call. Combined with general skepticism and uncertainty about many carriers’ new tiered data plans, the fact that most consumers don’t understand the advantages of the 4G network might fuel consumer confusion and backlash when prices possibly rise to accommodate higher speeds.
As all the major carriers gear up to expand their 4G coverage this year and champion the technology in their advertising, their efforts may come to naught if consumers are unclear on 4G’s advantages and benefits. This may require carriers and phone makers retooling their advertising and outreach to customers, who ultimately must buy the phones and sign the contracts to take advantage of the faster networks.
Consumers Lack 4G Understanding originally appeared at Mobiledia on Thu Jul 14, 2011 12:52 pm.

