Young Americans sending more mobile messages

SAN FRANCISCO -- The current marketing of new next-generation mobile handsets in the United States is likely to drive increased adoption and usage of mobile messaging services, such as SMS, according to a new study by Telephia, a leading provider of marketing and service quality intelligence to the mobile industry. Young American subscribers, who have doubled their text messaging usage in the past year, are positioned to lead the way in handset upgrades and will continue to drive usage in an area that is becoming a crucial new revenue source for the industry.

The Q4 2002 Telephia Attitude and Behavior Survey was conducted jointly with Harris Interactive, a global market research and consulting firm.

"We have seen a tangible shift in subscriber behavior over the last year, particularly among younger users, toward SMS and other text messaging services," said Mick Mullagh, president and chief executive officer of Telephia. "By continuing to drive adoption through promotional campaigns, inter-carrier messaging capabilities and handsets upgrades, operators and handset manufacturers are tapping a valuable new revenue stream that can give a vital boost to ARPU."

Key indicators

Several key indicators signify that messaging is gaining notable traction among U.S. subscribers. Compared to this time last year, interest in SMS and other two-way messaging services has remained strong at approximately half of the user population. At the same time, usage has increased substantially from 12 percent to 20 percent in the last year. That trend is accentuated among young adult users (ages 18 to 24), whose usage doubled from 22 percent to 45 percent over that period.

In one sign that messaging is becoming an integral part of the mobile lifestyle, more than one in four (28 percent) subscribers that utilize messaging services are frequent users (send/receive at least one message daily), and a full 38 percent of young adults report frequent use.

Based on reported intent to upgrade their handset, replacement sales among young users this holiday season and into next year can also support continued adoption of text messaging applications. A sizeable share of young adults (41 percent, or 32 percent of all subscribers) plans to upgrade their handset in the coming year. An increased focus by operators and handset manufacturers to promote messaging services among young users and the wide availability of handsets with enhanced messaging capabilities will help continue the positive usage trends exhibited today.

Mobile consumers

The Telephia Attitude and Behavior Survey is a study of the behavior, attitudes and usage of mobile consumers. The report analyzes key industry issues by network operator and key segment. Offered quarterly, it is based an online study of more than 40,000 mobile subscribers and non-subscribers in the 35 largest U.S. markets. Telephia and Harris Interactive conducted the most recent wave of the study in November 2002.

Harris Interactive is a global market research and consulting firm best known for The Harris Poll, and for pioneering the Internet method to conduct scientifically accurate market research. Headquartered in Rochester, New York, Harris Interactive combines proprietary methodologies and technology with expertise in predictive, custom and strategic research. The company conducts international research through wholly owned subsidiaries: London-based HI Europe and Tokyo-based Harris Interactive Japan.

Telephia serves all major U.S. network operators as well as leading handset manufactures, infrastructure companies and enterprises and is expanding its business to select international markets. Headquartered in San Francisco, Telephia is a privately held company with leading investors that include AEA Investors, Centennial Ventures, Oak Hill Venture Partners, The Megunticook Fund and Cedar Grove Investments.