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Far from dying out, the cell craze continues around the world. Six in 10 people around the world now use a cell phone, according to a recent United National report. The report says by the end of 2008 “there were an estimated 4.1 billion subscriptions globally, compared with about 1 billion in 2002, the International Telecommunication Union said. Fixed line subscriptions increased at a much slower pace to 1.27 billion from about 1 billion over the same period.”
So what can we read into the statistics showing that the demand for cell phones continues to grow? As a global phenomenon, wireless cell phones provide the consumer with the following three benefits which continues to fuel the cell craze:
- 1. Convenience for growing economies
As lives are getting busier and communication more crucial in growing economies, cell phones are becoming vital necessities in the development of commerce around the world. Cell phone infrastructures are less costly and easier to implement than fixed line structures which fits in line with the information hungry appetite of developing economies.
- 2. Ready access despite remoteness
Cell phones can work in remote places with new wireless technologies also expanding the wireless range. Nearly a quarter of the world’s population still resides in rural or semi-rural areas. The ability to have cell phone access despite remoteness is fueling the incredible growth of cell phone use
- 3. Cost effective
Cell phone infrastructure costs are comparably low to other major infrastructure projects and added to economies of scale obtained from a huge base of consumers everywhere, cell phone service is considerably cheaper than other communication options. Handsets are manufactured daily in the millions and are cheap and readily available. This makes it the clear choice as the world’s favorite social communication device.
1Gulf News, “ World’s poor drive mobile phone use”, March 06 2009, http://www.gulfnews.com/business/Technology/10292158.html
In the more advance economies like the US, the growth trend of cell phone use is just as impressive. The U.S. Bureau of Labor Statistics in 2007 showed that “54.8 percent of consumer spending went to mobile phone services versus 43.4 percent to residential landlines. In 2001, those numbers were 23 percent and 75 percent, respectively” . This is huge fundamental shift of resources from one industry to the other.
While consumers from the more advance communities derive the same benefits from cell phone use as listed above, there are other factors driving the cell phone craze along at a rate way beyond that of fixed line phones. These factors can be grouped into three categories
- 1. Marketing driven
Mobile phone manufacturers and suppliers continue to make good money from selling mobile phones. To keep the profits coming in, new products, new service plans and cross promotion deals (software, games, music, credit, freebies) continue to be rolled out. Marketing segment more accurately targeted: the business professionals; fashion addicts; the young consumer; the older generation; it seems everyone is been told that they need a certain type of cell phone and not getting it means not fulfilling their life ambitions!
- 2. Consumer driven
Another side of the coin is that consumers continue to drive the demand for cell phones. Smaller, lighter, more features, longer lasting batteries, accessories – the consumer definitely is playing a part in the evolutions and on going revolution of cell phones.
- 3. Cultural influences
The cell phone now has a cultural phenomenon of its own. Professionals are expected to have PDA on their phones and upgrade it every 12 months. Fashion dictates that you must have a matching phone bag will you cell or it won’t work! It now accepted to break up over the cell phone with a partner rather than face to face!! The growth of cell phones have changed the way we interact socially and as this cultural trend settles and evolves, we will continue to need and use cell phones.
The craze for cell phones around the world and here in the US is definitely not dying out!! In developing economies, the craze is as strong as ever. In developed countries, cell phone use continues to grow as technologies and features evolve. It will remain so in the foreseeable future.
Winkler, T., “Landline phone use plummets”, Marc 6th 2009, The Daily Pennsylvanian http://media.www.dailypennsylvanian.com/media/storage/paper882/news/2009/03/06/News/Landline.Phone.Use.Plummets-3662635.shtml
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