• by September 1, 2000

By David Cotriss

Allied Business Intelligence, an Oyster Bay, NY-based technology research think tank, has released a new study entitled "Mobile Wireless Voice and Data Use 2000" that shows an extensive education process may be required for the much-hyped wireless Internet to be successful. Apparently, many people are not aware of their cell phone's wireless Internet capabilities.

Less than 5% of the sample of 1,200 U.S. residents (modeled after census data), both users and non-users, stated that the cell phone would be a good Internet access tool, while 40% thought that it would not be. Many are still unsure of the cell phone's capabilities. When it comes to Internet access, 49% of the users and non-users had no opinion on the subject.

"Despite the fact that the industry has started touting wireless 'net access, most users still aren't familiar with the concept," says Larry Swasey, Senior VP of Communications Research at ABI. "In addition, most ads for wireless 'net access are misleading today. When true access is available and when more sites have truncated versions that work on cell phones, the challenge to the wireless community is education. The next great leap of faith is that the cell phone is great for data access and net access."

When it comes to wireless data use, of those with a price in mind, most are willing to pay an additional $10 to $20 per month for unlimited access to data, the study showed. While 26% said they would pay the extra $10 to $20 per month for data, only 2% said $20 to $30 was acceptable and almost 1% thought only $1 to $2 was acceptable. Most were unsure of how much they would pay; with 62% answering no opinion, showing that many are not familiar enough with wireless data offerings to form an opinion.

Swasey says all the major carriers will offer wireless Internet access by the end of 2001, and that most cities will have high speed phone Internet access by the end of 2002 / early 2003. He says that even laptop computers, which often have wireless modems, are still viewed as needing a phone jack. There are 101 million cell phone users in the U.S., and service providers face the task of educating consumers. Without a high initial demand, the industry could be hurt.

"Most wireless advertising will be location-based, such as seeing an ad for a motel when you're on the road, and many of the usual companies that advertise in other media will show up on phones," Swasey says. "Users may be inundated with ads on their phones that may not be very compelling to look at. Wireless advertising could be successful, but companies need to be smart about it. People are paying for wireless, much like cable TV. There's the threat of overkill."

Scott Ferber, CEO of Advertising.com, which has been involved with wireless advertising the longest, says "if you remove advertising, it will be tough to support users. Even with subscription models, as in print magazines, it's still not enough revenue. You need advert