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Only 1 out of 5 urban mobile users likely to go for 3G: Study

india Updated: Nov 24, 2010 19:20 IST
The Nielsen Company

Only one out of five urban mobile subscribers in India is expected to opt for 3G services initially, despite its high popularity among people, research firm The Nielsen Company on Wednesday said.

Despite high degree of awareness about 3G mobile services and its capability to deliver high speed internet, it may take as long as 8-10 years before a majority of mobile users are on a 3G plan, said a study by the company.

According to the study, nearly 70% of the urban mobile respondents said they are aware of 3G services.

"While service providers have succeeded in popularising the concept of 3G and articulating its promises clearly, consumers seem tentative about their disposition to embrace the technology," The Nielsen Company Director (Client Solutions - India) Arjun Urs said at the Nielsen Consumer 360 conference.

While 19% of the respondents said they would definitely adopt 3G, 43% said they may or may not adopt the service. Another 5% said they will not adopt the new technology.

Urs added that working professionals and internet-savvy youngsters would most likely adopt the technology first, he added.

The study also revealed that reducing the price to drive 3G adoption may not necessarily grow the business of service providers.

"Simply making 3G services affordable will not offer an easy answer to accelerating adoption as we move into an era of more unpredictable handset replacement cycles. It will come down to the user experience and relevance of services," Urs said.

According to Urs, a compelling user experience, a strong brand association along with bundling of handsets will drive 3G service adoption in the country.