Fifty-one percent of all U.S. households have at least one mobile phone and 40% of U.S. adults use their mobile phones regularly, according to a recent survey by Dataquest Inc., a unit of Gartner
Group, Inc. This is a significant increase from the 33% of adults reported as regular users in 1999. Gartner Dataquest defines a regular user as one who uses a mobile phone for more than just
emergency purposes. The Generation X (ages 25-34) and Baby Boomer (ages 35-54) segments exhibit the highest regular user rates at 48% and 47%, respectively. Fewer than one in five seniors (ages 65
and over) are regular mobile users. Overall, the average age of regular mobile users is 41, but the Generation Y (ages 18-24) segment is coming on strong with a 40% regular user rate. “Generation Y
should be a significant target market for mobile telephony service providers given the propensity of this age group to quickly adopt the more technologically sophisticated, high-margin services,” said
Margaret Schoener, senior analyst for Gartner Dataquest's worldwide telecommunications group. “They already have the mobile habit, and development of earning power will complete the profile.” One
factor that affects mobile usage is the ability to pay. Fifty percent of adults are employed full time and 21% have at least half of their monthly mobile charges paid by their employer. The low
employment and reimbursement incidences of the senior segment contributes to the only 19% regular mobile use performance of this group. The need for and habit of mobile communications is another
factor in mobile usage. The stronger the need and the more embedded the mobile access habit among individuals, the greater the likelihood they will move up the mobile spending curve. The
needs-and-habits factor contributes strongly to the mobile usage patterns of the Generation Y segment, which exhibits a mobile communication and technological interest at about the same levels as the
Generation X and Baby Boomers segments with a greater ability to pay. Gartner Dataquest analysts believe mobile service providers should not overlook any age group in their search for additional
value-added customers, but they can not ignore that the Generation Y segment is the highest monthly spending age group. “As a greater portion of this age segment engages in full-time employment they
will not only move up the mobile penetration curve, but will also expect their wireline Internet services be transferable to a mobile environment,” said Amanda Sabia, industry analyst for Gartner
Dataquest's worldwide telecommunications group. “Generation Y members should be the early adopters of advances of mobile Internet service.” Consolidation among cable system operators and the
increasing availability of new services, such as digital basic, video- on-demand, and interactive TV, will push the number of U.S. households subscribing to digital cable service to 27 million by
2005, according to a new report from the Yankee Group
