James Myring, associate director at Continental Research, said: "For some time now mobile networks have aggressively promoted various advanced mobile services but this approach seems to be falling on deaf ears. The numbers performing these activities remains relatively low and consequently the Average Revenue Per User remains stubbornly static."
"We asked mobile users whether they agreed or disagreed with a number of statements about mobile phones. A large majority (68%) of mobile users agreed with the statement I would prefer a more basic mobile phone that was simple to use and affordable."
The mobile market is two tier, with a majority of mainly older mobile users who have limited or no interest in the latest mobile developments and a lucrative minority (almost all of whom are young) who are prepared to pay more for the latest in mobile style and technology. Attracting and retaining this group of mobile users is imperative for the mobile networks.
"O2 seems particularly good at attracting and retaining the most valuable mobile customers. Their share of customers who are prepared to pay more for the latest technology is some distance ahead of the other major networks."
This has been credited to the advertising and marketing O2 have been doing lately, sponsorship of a wide range of music events and buying out the Millennium Dome.