STRATEGY ANALYTICS: VERIZON WIRELESS'S NATIONAL EV-DO BLUEPRINT WILL APPEAL TO 37M CONNECTED WORKERS & TECHNO-PLAYERS
Boston, MA, USA - January 10, 2004 /The Wi-Fi Technology Forum/- Verizon Wireless's plans to nationally expand its CDMA2000 1xEV-DO footprint to a number of US cities in 2004 is a welcome indicator that the glacially slow commercialization of broadband cellular data is starting to thaw. Yet in a marketplace where an insatiable appetite for bandwidth is coupled with high degrees of both tariff and device price elasticity, mobile data pioneers like Verizon must walk a tightrope to assure profitable service introduction while maintaining a long-term outlook on market expansion.
Success for Verizon will be closely linked to:
- Carefully productizing EV-DO's capabilities and associated pricing to meet the needs of discrete customer segments.
- Progressively rolling out EV-DO service only when and where it makes sense.
The latest in SA's groundbreaking wireless survey and segmentation work has, through latent-class analysis and advanced decision-variable modeling, isolated the specific price sensitivities of two key business-related segments interested in EV-DO enabled offerings. While these "Connected Workers" and "Techno-Players" together represent a total addressable market of 37 million users (24% of all cellular users), their main purchase criterion is vastly different.
"Attaining even 10% penetration within either of these segments requires a detailed appreciation of the user's 'purchase pain points'. We find that utilitarian Connected Workers - not interested in or allowed to indulge in news/entertainment - are highly sensitized to monthly commitments. On the other hand, personal productivity/infotainment oriented Techno-Players tend to be most put off by exorbitant device costs - reinforcing the criticality of liberal subsidies for this segment." said Cliff Raskind, Director, Wireless Enterprise Strategies.
Please contact Strategy Analytics using the details below for additional detail regarding our latest segmentation study.
"Despite some skepticism that Verizon Wireless has been alternately applying their foot to the gas and brakes when it comes to EV-DO, it is now clear that the carrier is committed to the technology." said David Kerr, Vice President, Global Wireless Practice. "As with Verizon's initial CDMA2000 deployment in 2002, the carrier can effectively maintain a data lead over its major competitors by prudently rolling out EV-DO in a metered fashion that best suits customer and stakeholder interests alike," Kerr adds.
About Strategy Analytics
Strategy Analytics, Inc., a global research and consulting firm, provides timely insights and strategic business solutions to companies operating at the convergence of information, communications and entertainment technologies.
For more information, see
http://www.strategyanalytics.com
US Contacts:
Cliff Raskind, +1 617 614 0707, craskind@strategyanalytics.com
David Kerr, +1 617 614 0720, dkerr@strategyanalytics.com
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