In 2016 and beyond the proportion of data exclusive As children progress to their first smartphone, they may 18-24 year-old users may rise further still, given that not be provided with a voice and data package in order upcoming members of this cohort are likely very to control costs, and they may use this device exclusively accustomed to messaging. Their first communications over WiFi, with only occasional use of OTT voice device as young children may have been a touch-screen technology. By the time a teen has the funds to pay MP3 player or a WiFi tablet, which can readily be for a regular mobile phone package that includes voice used for messaging, apps and other types of data calls, he or she may regard messaging as the default functionality, but lacks a cellular modem, and therefore mode of communication and they may instinctively has no capability to make traditional voice calls. avoid making voice calls. Bottom line The original premise of the smartphone was that it would enable voice and data communications via the one device. In the last decade the data capabilities of smartphones have steadily ratcheted up, in the form of bigger screens, faster connectivity, more powerful processors, superior cameras and improved graphics capabilities. The most obvious implication for carriers is that offering monthly plans with very large or unlimited voice minutes may not be equally attractive for all customers. If 20 percent are talking fewer than 100 minutes per month, they will likely respond only to other inducements, perhaps ‘all you can app’ messaging plans or simply better data networks. Depending on the alternative to cellular voice, increased use of messaging, especially with pictures or video, may help drive consumers to bigger data plans, enhancing average revenue per user (ARPU). A decline in voice call traffic could also enable carriers to reduce the quantity of spectrum assigned to voice, and make this available for data. Smartphone vendors should consider whether a decline in voice usage may encourage a rise in sales of large smartphones (also known as phablets). One of the barriers to large smartphone adoption had been the obtrusiveness of the device when making calls, but if fewer calls are being made, larger screens are arguably preferable for messaging applications. Any entity communicating with the public should consider how best to adapt to these trends. Government should determine whether to focus on app-based communications rather than call centers; fast food purveyors might want to focus on improving app-based or web-based ordering, on the assumption that customers would rather type than talk when placing orders. 56

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