U.S. Mobile Industry is Behind the Times and Other Lies My Mother Told Me
As a resident of the United States, I’ve longed for the latest mobile phones from Japan, Korea, and other more “tech-fortunate” countries throughout APAC and Europe. I live in arguably the most powerful industrialized nation on the planet, and yet I still can’t video chat from mobile to mobile like they do in Japan. My free-phone-with-a-two-year-commitment doesn’t come with a QR Code™ reader pre-installed. And, let’s be honest, most entry level phones in the States don’t even include Bluetooth or a 1.3 megapixel camera. Until recently, I was convinced that the U.S. mobile market is behind the times.
So what gives?
Very recently, a number of studies have surfaced leading me to think that maybe, just maybe, things aren’t so bad on this side of the pond. For example, according to the CTIA in Wireless Wave Fall 2007 – A Continental Idea:
[..] earlier this year Merrill Lynch reported that Europeans still pay an average of 19¢ per minute for an average of 153 minutes a month, compared to 5¢ per minute for 834 minutes a month for customers in the U.S. The U.S. is the leader in offering bucket plans, driven by competitive market forces to offer more minutes at a lower effective rate.
3G penetration stats are looking up, too. According to industry analyst Chetan Sharma, President of Chetan Sharma Consulting, “Because of the heavy penetration of the Internet over the desktop, as well as the late advent of 3G in the market, there was not a big driver for mobile Internet until the last one or two years. As 3G penetration has been increasing[,] now we’re up to 15 to 16 percent penetration (in the U.S.).”
M:Metrics — which conducts an on-going survey of thousands of wireless customers in France, Germany, Italy, Spain, the UK, and the U.S. — recently found that a slightly higher percentage of U.S. consumers browse wirelessly for news and information than their European counterparts.
The study also shows that the U.S. is at the top in average number of minutes used per month at 832 (Canada, the number two country, averages 429 minutes). The country with the lowest average revenue per minute — a measure of the effective price per voice minute — is again the U.S. at $0.04 USD (South Korea and Mexico are tied for the number two spot at $0.11 USD). And finally, the number of wireless carriers with over one million subscribers is the largest in the U.S. at 10 companies. The country with the next highest number is the England.
My conclusion? Maybe it’s true that the grass is always greener on the other side.
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