Only 20 percent of mobile phone users prefer to use their phones as an all-in-one multimedia device for music, videos, Web surfing, and other activities beyond making phone calls. NPD’s “Mobile Phone Usage Report” also reveals that among top wireless carriers, Verizon Wireless customers are least likely to embrace their phone as an all-in-one multimedia device.

While most U.S. consumers are aware of text messaging and the ability to change ringtones, the “Mobile Phone Usage Report” revealed that just 34 percent of mobile phone users know that their current phone’s memory can be expanded, 28 percent know that they can watch videos, and 12 percent know they can access the Internet via Wi-Fi. Nearly a quarter (23 percent) were not sure if their phone included GPS, while a similar number (21 percent) were not sure if their handsets would play music.

The adoption of advanced handset features shows a gap between the usage of these features and the increasing sell through of devices supporting these features. According to NPD’s monthly Mobile Phone Track service from January through November 2008, 71 percent of all handsets purchased by consumers in the U.S. were capable of playing video, 60 percent had expandable memory, and 55 percent had GPS technology.

“Increasingly consumers are purchasing phones with advanced capabilities that go far beyond voice calling, but only those who take advantage of these features offer the best revenue potential for carriers,” said Ross Rubin, director of industry analysis for NPD. “Carriers and other handset retailers have an opportunity to educate customers as to the capabilities of their handsets in the wake of slower overall handset sales.”

Methodology: Information in the “Mobile Phone Usage Report” is based on an NPD online survey of pre-identified U.S. mobile phone owners aged 13 and older, which was fielded in August 2008. NPD Group’s Mobile Phone Track information service compiles and analyzes mobile device sales data based on more than 150,000 completed online consumer research surveys each month. Results are projected to represent the entire population of U.S.