META Group (Nasdaq: METG) research indicates that 80%-90% of corporate users that purchased WAP (Wireless Application Protocol)-enabled phones have abandoned the data capabilities of these phones and are using them for voice communications only. Disillusioned users generally indicated a wholly unsatisfactory experience -- with the level of effort required to obtain information exceeding the threshold for perceived value.
The value-added services that come with WAP-enabled devices such as financial transactions and travel services are difficult to access and not always reliable, leading to a high rate of abandonment. According to META Group, limited content, slow networks, high latency times, and generally poor user ergonomics have not met the high user expectations and hype that accompanied WAP-enabled devices when they were first introduced. META Group does not expect a significant uptake in Internet-connected smart phone utilization until these ergonomic issues are fixed.
"Enterprise users of WAP-enabled cellular phones in North America are abandoning the data and Internet-enabled connectivity of the phones," said Jack Gold, a vice president of Web & Collaboration Strategies at META Group. He added, "These phones are currently used by corporations mainly for the standard voice features." Even though Europe and Asia have not quite reached this level yet, up to 65%-75% of their corporate users have stopped using the Internet connectivity of their wireless phones.
META Group expects the future market to move beyond current WAP-enabled phones to encompass various wireless devices that meet enterprise user needs. Users that are communication-centric will choose one of the next-generation smart phones (e.g., Kyocera, Samsung, Ericsson) that offer personal digital assistant (PDA)-like functionality built into the phone. Meanwhile, users that are primarily data-centric will choose somewhat larger and more costly devices for their data processing capabilities, with add-on wireless communications as a secondary benefit. According to META Group, a one-size-fits-all model (also called device convergence) based on a telephone is not expected to meet the needs of all users. Rather, with the emergence of Bluetooth personal-area network technologies, users will choose components (e.g., a Palm and a small form-factor cell phone) that intercommunicate, using the phone as a wireless modem for the data device, and using the PDA to process and interact with complex data sets.
"With new technologies on the horizon, we should see data access from mobile phones pick up again during the next two to three years --but only if the ergonomics are substantially improved," said Gold. "We have a catch-22, because most cell phone users want their devices to stay small -- and are demanding the highest levels of portability. Yet the small size prohibits them from being ergonomically correct and data-intensive. That's why a cell phone will never replace a PDA, and a PDA will never replace a phone."
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