Gartner Survey Shows Business Users Not Willing to Spend Much More for 3G Services.

Business & Technology Editors

STAMFORD, Conn.--(BUSINESS WIRE)--June 13, 2001

There is much anticipation in the wireless industry for 3G services, but a recent survey by Gartner, Inc. (NYSE:IT and ITB) shows business users on average are not willing to spend a whole lot more for next-generation wireless data services.

In a survey of nearly 200 corporate users at Gartner's Mobile and Wireless conference, which was held in San Diego in March 2001, 54 percent of those surveyed said they are only willing to spend up to 10 percent to 20 percent more for next-generation wireless data services, on top of existing voice services (see Table 1).

Gartner analysts said this spending increase would equate to approximately $15 to $30 a month more revenue per user, if the business subscriber spends an average of $150 per month for voice services. Many carriers are hoping to increase fees by as much as 50 percent, but only 9 percent of those surveyed said they were willing to spend 30 percent to 50 percent more for services.

"With all the questions of next-generation services and 3G, one of the most important is how much will users pay for these new features," said Phillip Redman, research director for Gartner's networking group. "This survey shows that wireless service providers need to envision and provide far more value for next-generation services than they have been able to express so far. Third-generation services are not a foregone conclusion. It's time to start asking users what they want it for, rather than trying to force expensive applications that won't be adopted."

Table 1
 How Much More Business Users are Willing to Pay for Next-Generation
      Wireless Services on Top of Existing Voice Costs (Percent)
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Category                                       Percent
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10-20 Percent More                                54
Less than 10 Percent More                         21
20-30 Percent More                                15
30-50 Percent More                                 9
Greater than 50 Percent More                       1
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Source: Gartner, Inc. (March 2001)

Additional information on the wireless industry will be presented during Gartner's briefing, "Emerging Trends in Telecommunications and the Wireless Revolution," which will be held June 27 at the Sheraton Premiere Center in Vienna, Virginia. Presentation topics include: Emerging Trends in Telecommunications, Mobile Data Lives in the Enterprise, Wireless Data and the Next-Generation Networks, and an executive roundtable on the state of the telecommunications industry. For more information about this briefing, please contact Raye Croghan at 914-561-4732 or raye.croghan@gartner.com.

About Gartner, Inc.

Gartner, Inc. is a research and advisory firm that helps more than 10,000 clients understand technology and drive business growth. Gartner's divisions consist of Gartner Research, Gartner Consulting, Gartner Measurement and Gartner Events. Founded in 1979, Gartner, Inc. is headquartered in Stamford, Connecticut and consists of 4,600 associates, including 1,400 research analysts and consultants, in more than 80 locations worldwide. The company achieved fiscal 2000 revenues of $859 million. For more information, visit www.gartner.com.