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More Consumers Turning Away From 3G Tablets, Study Says

Thursday, December 15, 20110 comments





More and more tablet users are foregoing the high cost of a cellular data plan for tablets and opting instead for "good-enough" Wi-Fi.
That's the conclusion of a year-long study by NPD, whose Connected Intelligence arm found that the percentage of Wi-Fi users grew from 60 percent in April to 65 percent in October.
A graph provided by NPD also showed a trend away from 3G-only connections for notebook users. There, the number of people who used both a cellular and Wi-Fi connection slightly increased over the same time period, while the percentage of users with 3G-only shrank slightly.
"There is a relatively low mobile connection rate for tablet users today in light of the fact that these were early adopters, and therefore less price conscious than the mainstream," said Eddie Hold, vice president of Connected Intelligence, in a statement. "If there is not an ongoing need for these early adopters to be always-on, then the carriers clearly face challenges with the larger consumer audience moving forward."


The reasons for consumers moving away from 3G connectivity for tablets were relatively obvious, Connected Intelligence said. Cellular connections require an additional data plan, although companies like Verizon have said they plan to move to account-based pricing, which would allow customers to bundle more than one connection within a single account. Other recent tablet introductions, such as the Kindle Fire, lack 3G connectivity at all, in order to reduce the price and make the tablet more attractive to cost-conscious consumers.
And with the prevalence of Wi-Fi in cafes, restaurants, and airports, there is less of a need for 3G. Those who do need it can connect a tablet to a smartphone via that same Wi-Fi connection.
"There are multiple reasons for greater Wi-Fi reliance," Hold added. "Concern over the high cost of cellular data plans is certainly an issue, but more consumers are finding that Wi-Fi is available in the majority of locations where they use their tablets, providing them 'good enough' connectivity. In addition, the vast majority of tablet users already own a smartphone, which fulfills the 'must have' connectivity need."


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