GartnerG2 Says Mobile Industry Obsessed By Third Generation (3G), and Has Forgotten The Consumer
Cannes, France 5 November 2002 — GartnerG2 today said that businesses developing strategies for how to reach their target audience, can for the first time interact with more people through their mobile phones than through web sites or emails in Europe. According to consumer research presented at the Gartner Symposium/ITxpo in Cannes, analysts said the mobile phone now offers more than twice the reach of the PC Internet in Europe, with more people using mobile text messaging (SMS) than email. While the mobile continues to be a success story, it has been overshadowed in 2002 by the debts, doubts and delays surrounding third generation (3G) mobile phones. GartnerG2 warned that the industry continues to be obsessed by 3G, and has forgotten the consumer.

According to GartnerG2 research, 62 percent of all adults across the major European countries now use a mobile phone. Today, 41 percent use SMS, compared to 30 percent that use the Internet. Last year, 28 percent used SMS compared to 29 percent who used the Internet. GartnerG2 said that SMS has therefore become a powerful marketing tool, which can be more important than the web for a range of activities. GartnerG2 said mobile operators must now actively encourage the responsible use of mobile marketing, because it will help evolve the mobile phone beyond person-to-person communications.

Most consumers don't know what 3G is
GartnerG2 warned the industry that consumers will not automatically upgrade to 3G phones arriving on the market next year. According to Adam Daum, VP and Chief Analyst at GartnerG2, "The industry has been too obsessed with 3G technology to the detriment of the needs of consumers. The vast majority of consumers don't know what their phones are capable of today, let alone what 3G is and why they should have it. It does not matter how good 3G is if nobody knows or understands what they can do with it."

The success of 3G depends on a vibrant market of mobile data services, but that will not happen on its own. According to Daum, "Today, the gap between where the industry wants to go and where it is today is too big. Having a vision for the future is different to having a strategy for how to get there."

Don't wait for 3G
GartnerG2 said operators and consumer-facing organisations need to evolve the consumer step by step. Mobile operators and service providers need a coherent strategy to develop and promote valuable services today.

It urged companies not to wait for 3G, but to start delivering value with existing technology now. "You need to identify a need for people to use a particular service, and then train consumers on how to use it," said Daum. "This will gradually evolve the consumer's relationship with their mobile phones and drive the need for phones with more capabilities so that when 3G is finally available, consumers are ready for it.

European SMS and Internet Use
Percentage of Users
Base: All adults, April 2002

The Gartner Symposium/ITxpo is a global event run in Australia, Japan, the US and Europe. It is the IT industry's largest and most strategic conference, providing business leaders with a look today at the future of IT. For more than 10,000 IT professionals from the world's leading enterprises, The Gartner Symposium/ITxpo are key components of their annual planning efforts, and a place to gain insights into how their organisations can use technology to address business challenges and improve operational efficiency.

GartnerG2 is a research and advisory service from Gartner that helps business leaders guide and grow their businesses. For more information on the report visit www.gartnerg2.com

About Gartner
Gartner, Inc. is a research and advisory firm that helps more than 10,500 clients understand technology and drive business growth. Gartner's businesses consist of Gartner Research, Gartner Consulting, Gartner Measurement and Gartner Events. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, and has 4,000 associates, including 1,200 research analysts and consultants, in more than 90 locations worldwide. Fiscal 2001 revenue totaled $963 million. For more information, visit www.gartner.com.

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Laurence Goasduff
Gartner
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laurence.goasduff@gartner.com
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