Cell phone ownership highest among rural youths, survey shows

The National Telecommunications Cooperative Association and the Foundation for Rural Service revealed the results of the 2002-2003 Rural Youth Survey on Telecom Services, during a June 2 press briefing.

The survey examined the buying patterns and usage trends of 538 rural youth, ages 18-20. Additional topics measured include: wireless displacement of wireline services, text messaging and Internet access methods.

In many instances, the telecom preferences of young rural users are no different from youth all across the nation.

Prepaid vs. post-paid plans

Despite the efforts of large and small carriers alike, wireless service providers in the United States have been unable to achieve the level of success with prepaid subscriber accounts that overseas markets are enjoying. Nationally, prepaid subscriber accounts make up less than 10 percent of the wireless market. Mirroring the national trend, the survey found that:

93 percent of teens with cellular telephones are under contract with a traditional postpaid plan; and

only 7 percent are under prepaid plans.

The survey also discovered several striking differences between the national average for cellular phone usage and the average among the rural youth surveyed.

Wireless penetration

An overwhelming 78 percent of survey respondents said they had their own wireless phone far above the national average, which most experts estimate is somewhere between 30 percent and 40 percent.

Researchers forecast that wireless penetration of the American youth market, as a whole, will not reach 75 percent until 2006.

Text messaging

Despite the high number of mobile users, when it comes to text messaging, and more specifically, frequency of use, rural teens are way behind their urban counterparts.

Nationally focused teen polls have indicated that, on average, 28 percent send or receive a text message at least once a day. In contrast, the majority of rural teens said they "never" or "rarely" use the text-messaging feature on their cellular phones, with response rates of 63 percent and 19 percent, respectively.

"The data collected in this survey will be vital in assisting rural telcos with planning their product and service offerings," said NTCA CEO Michael E. Brunner. "Telecom research firms are predicting an explosion in the demand for telecommunications services among youth, and we want to ensure that our members are prepared to meet this demand.

"Hopefully, the results of this survey will allow our members to develop more effective product portfolios and maximize their youth-focused sales and marketing efforts," Brunner said.