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Four out of five mobile phone users ignore multimedia: Report

A new report claims that 45 percent of U.S. mobile phone users prefer to use their handsets to make calls and not for other available multimedia features.

The report, from NPD Group Inc., claims that only 20 percent of mobile phone users like to use their handsets as an all-in-one multimedia device for music, videos, Web surfing and other non-voice activities.

"Certainly, reductions in price have been driving sales of the advanced features," said Ross Rubin, NPD director of industry analysis and the report's author. "But if consumers aren't taking interest in the advanced features, in the long run it'll be difficult to sustain interest."

NPD's "Mobile Phone Usage Report" claims that Verizon Wireless customers among all the other carriers were the least likely to use their phone as an all-in-one multimedia device.

"It's driven more by demographics," Mr. Rubin said.

"That said, with the iPhone, AT&T has had an opportunity to promote many of the data applications of smartphones," he said.

Most U.S. consumers are aware of text messaging and the ability to switch ringtones, NPD said.

However, 34 percent of mobile phone users did not know whether their current phone's memory could be expanded and 28 percent did not know if they could watch videos.

In addition, 12 percent of those responding said they did not know if they could access the Internet through Wi-Fi.

Also, 23 percent of the respondents were not sure if their phone had GPS, while 21 percent were unsure if their handsets played music.

Mr. Rubin puts down that disparity to demographic differences.

"Most of the non-voice features are embraced by younger consumers, those who aren't married, have more time and have an on-the-go lifestyle versus older consumers who are married, who don't have the time to rely on their [mobile] phone as the primary means of communication," he said.

Lacking awareness
Still, it is quite obvious from the results of this report that consumers are unaware of the potential of their smartphones.

Per NPD's monthly Mobile Phone Track service, 71 percent of all handsets sold nationwide could play video and 60 percent had expanded memory.

Also, 55 percent of the handsets sold had GPS capability.

The Mobile Phone Usage Report was based on an NPD online survey to pre-identified U.S. mobile phone owners ages 13 and up. It was fielded in August.

NPD's Mobile Phone Track information service compiles and analyzes mobile sales data based on 150,000-plus completed online consumer research surveys monthly. The results are extrapolated for the national population.

Based on the results of both, it seems that education is the need of the moment.

Wireless carriers and mobile device retailers have to inform their customers about the potential of their mobile phones if they have to realize higher revenue growth.

"It's going to be difficult to change behavior for many older consumers," Mr. Rubin said.

"Some of these lapses will be self-correcting over time," he said. "But there's clearly an opportunity for carriers to have customers come in after the sale to have more training.

"There's also an opportunity for manufacturers to improve the discoverability of the data features on their handsets."