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More people are buying smartphones, but a substantial number aren’t getting data plans.

The installed base of smartphones is approaching 2 billion worldwide, but about one in five will never or rarely (less than once a week) connect to the Internet this year, Deloitte estimates. The usage of these approximately 400 million smartphones will resemble that of a feature phone without a data package—just voice calls and text messaging.

Why are so many people not using their smartphones for data? In some markets, people buy a smartphone (defined as a device with a full touch screen or a QWERTY keyboard) because feature phones are no longer available. They may simply use smartphones for making calls and sending messages. In other cases, teenagers with hand-me-down devices may not be able to afford a data plan. Instead, they connect to the Internet via WiFi or use the devices to play games or listen to music. And older users may be put off by data plans that are hard to interpret.

Given that so many smartphone owners aren’t using their devices for data, how can mobile operators adjust their strategies? Users’ reluctance may be overcome by offering data plans that are easier to understand and have predictable pricing. For people who just want a taste of data usage, high-priced and complicated plans may come across as an “all-you-can-eat” offering for which they simply don’t have the appetite.

Paul Lee, head of Deloitte Global TMT Research, and Duncan Stewart, director of TMT Research for Deloitte Canada, discuss smartphone use in this TMT 2013 Predictions video.