Foote – Blog Assignment 4-10-08

1. Consumers will eventually shift to more complex and costly cell phone applications in the near future, according to a recent study. A survey released by Harris Interactive says that about 40% of U.S. adults with cell phones that use non-voice applications pay extra for them. The study also found that although the charges usually only amounted to 10% of a user’s bill, these users tend to have higher than average bills.
Andrew Roscoe, partner with ForceNine Consulting, said that “non-voice services are in their early, high-growth stage, they are already having an important impact on ARPU [average revenue per user] growth.”
While most mobile content provided in the United States currently is related to ringtones, wallpapers, and other personalization items, as technology develops more complex applications will arise.
2. More people will be paying for more than just ringtones in the near future, according to a recent study. A survey released by Harris Interactive shows that 40% of adult cell phone users pay extra for non-voice applications, and that these users also have higher than average phone bills.

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