Consumers are keen on mobile data – just give them no choice

Consumers will pay for mobile content, according to new research – but only when they've got no choice.

Handset manufacturer Nokia has been investigating how keen consumers really are on paying for mobile content and exactly what data they want on their phones – and have turned up a mixed bag of results.

The research commissioned by Nokia and carried out by NOP World across nine countries found that consumers would pay up to 28 per cent more for mobile content but the medium is still more important than the message.

It seems that downloading songs and video reviews was received lukewarmly – 'why download when out doing your shopping when you can do it at home?' was the thinking – but browsing film and entertainment listings got the thumbs up with consumers who want to use the services when on the move.

The total cost that users are prepared to pay for their mobile content averages out at around €7.4 but depends largely on the age bracket – young men between 16 and 21 are the most ready with the cash to lavish on mobile content, like sport and games.

While the idea paying for content doesn't seem to faze consumers, exactly what they pay for could prove to be a sticking point. The favoured option, chosen by 31 per cent of those questioned, was paying a subscription for unlimited use.

Most mobile operators, however, prefer a pay-per-Kb data model, which only a measly nine per cent of consumers liked.

Janne Laiho, head of end user research at Nokia, said the subscription model had obvious advantages for users. "It's a risk-free proposition for the consumer – they always know how much they will pay," he said.

While data currently makes up a relatively small proportion of operator earnings – usually around the mid-teens as an overall percentage of revenue – Nokia is confident it will grow, especially in niche markets.

Esa Harju, Nokia's director of marketing for networks, said: "The end user desire to use the service is there," but added that technology and service offering issues have to be overcome.

Operators may be put off by the research, which advises few applications will reach more than 20 per cent penetration – even big hitting services like football results got the thumbs up from 42 per cent of people.

That's not the message from the mighty Finn, though. Laiho said that data consumers are "not the average consumers. With services like gaming and sport, low interest doesn't mean lower revenue potential necessarily."

Nokia predicts the data market will be worth €70bn by 2008.