Have Aussie Telcos Overlooked A Massive Phone Market?

Businessman using mobile phone wearing carton box on head

Despite smartphones being shat out like pellets every way you turn, there are still a heap people who adhere to the less-than-smart mobile phone.

Emma Mackenzie
Posted by Emma Mackenzie

Research from research company Roy Morgan says telcos are forgetting about those more traditional mobile-phone users, those who have little interest in data, touch screens, extra sparkles and doodads.

“In such a competitive space, mobile service providers naturally need to focus their marketing strategies and energies on customers who will need, want and eventually spend more,” says Roy Morgan general manager of media, Tim Martin.

“But as providers create offerings and deals that appeal only to consumers hankering for the iPhone 6, HTC One M9 or Samsung Galaxy S6 on a 4G network with big data allowance, there’s $1.7 billion up for grabs in 2015 from Australians who just want to use their current phone as a phone.”

According to the research, non-smartphone users represent one in four mobile consumers, and while telcos are targeting the more affluent market, those who adore all the shiny bits and pieces, they’re missing out on this market.

Those not wielding the palm-sized pieces of tech spend around $26 a month on pre or post-paid plans, which is only $8 less than the average pre-paid smartphone user, says Roy Morgan.

“Overall, non-smart mobile owners in the six months to December 2014 reported their yearly expenditure as $686 million on pre-paid services and $1036 million on post-paid,” the release says.