Analysys has estimated that total mobile services revenue in Europe will grow at a compound average growth rate of 6.2%, from 138.4 billion euros in 2005 to 198.4 billion euros in 2011, largely due to the take-up of rich media services.
“We are now seeing a rapid acceleration in the number of full-track downloads and in streamed TV usage,” says report author Dr Windsor Holden. “Subscribers are becoming more familiar and comfortable accessing both on and off-portal content; as mobile broadband becomes more prevalent this growth is likely to continue.” Holden adds that that the longer term prospects for voice revenues are also encouraging…”Although voice ARPU has been adversely affected by falling termination rates and aggressive pricing strategies, this trend is forecast to reverse from 2007 as 3G adoption increases,” adds Holden. “Operators are beginning to take advantage of 3G’s greater capacity to offer lower-cost bundles, thereby accelerating fixed-mobile substitution.”
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