Handset brand, quality gain over cost: Study

HELSINKI, Finland: A study, comissioned by Nokia found that brand, handset quality, and network service quality are strong market drivers in new gowth markets that sometimes outweigh the cost factors that industry watchers typically expect.

Countries in Latin America, South East Asia, Africa, the Middle East, and Central and Eastern Europe are among the fastest growing new markets for mobile services, said the press release.

Walid Moneimne, Senior Vice President, Networks, Nokia said, "The research reveals that from early adoption, new growth markets take off very quickly to become more sophisticated about their expectations about handsets and services than some people might immediately think. Price and cost are issues but they are influencing consumers in subtler ways next to equally powerful factors like network reception strength, handset brand value, design, and quality. These are among the driving forces in new national markets that are contributing to such a rapid pace of growth that we see the world passing its three billionth mobile user by 2010."

In the survey, over 8000 urban mobile phone users and non-users were surveyed in Ukraine, Russia, India, Indonesia and Argentina. The research was done by independent market researcher Synovate between September and November 2004.

Among current mobile users in these markets, the research reveals how local operators are building strong businesses based on high levels of customer satisfaction, with an average of 86 percent of surveyed users satisfied with their service. In some markets like India and Indonesia, satisfaction rates are even higher at 90 and 91 percent, respectively.

The factors that are driving consumers to choose one operator over another are not simply the availability of low priced tariff plans, but banks heavily on reception quality.

The study revealed a degree of sophistication in phone usage that points to the potential for offering more advanced services and products. Handset brand is the main factor in phone choice among 46 percent of the respondents. Among the 16-24 age group it is even higher at 52 percent. In India it is 64 percent. Brand is closely followed by the phone's quality and durability, then its cost and its design as leading choice factors.

The research also reveals how data content services are beginning to take off, with one in five of the mobile user respondents saying they have used a content service during the last month.