Feeds

Data propels mobile telco growth

ARPU stabilises

  • alert
  • submit to reddit

Eight steps to building an HP BladeSystem

Mobile operators are finally halting their long-term decline in average revenue per user, thanks mainly to non-voice services, a new report claims.

Telecom consultancy and research company Analysys said on Wednesday in a new report, "Western European Mobile Forecasts and Analysis 2003-2008," that the major mobile operators in France, Germany, Spain and the UK all experienced growth in average revenue per user last year, as well as in their subscriber base. Falls were recorded in Sweden and figures were flat in Italy.

Average revenue per user, or ARPU, is considered a crucial figure to mobile industry watchers and analysts, as it gives a clear indication of revenue levels for mobile operators going forward. With the market now saturated and voice services thought to have little room for growth, it's generally agreed that data services are the best way to drive ARPU.

Analysys said that in 2002 ARPU in Western Europe averaged €31 per user per month, and that by the end of this year the number of mobile phone subscribers in the region will grow 5 per cent to 309 million. This means that if ARPU growth is flat this year, mobile operators in Western Euroope will be collecting almost €9.6 billion from customers every month until the end of 2003.

However, Analysys says that ARPU growth will not stagnate. In fact, the company says that in 2002, Western European operators drew just 12 per cent of their revenue from non-voice services, but by 2005 this figure will be closer to 24 per cent. By 2008, non-voice services should reach the 36 per cent of revenue mark, and growth in this segment will lead to higher ARPU numbers.

"The main reason operators have been able to improve ARPU is because they are achieving big gains in revenue from non-voice services, which include person-to-person messaging and mobile entertainment services," said Katrina Bond, lead author of the Analysys report.

"Person-to-person messaging has been responsible for most of the growth to date, and these services will continue to be important, but mobile entertainment services such as downloadable games will become increasingly significant revenue earners," Bond added.

Other details in the Analysys report included a forecast which said that person-to-person messaging will grow from €13bn in 2003 to €20bn in 2008 as this service extends from SMS to include large volumes of multimedia messages (MMS) and e-mail. Moreover, mobile entertainment services revenue will grow from less than €3bn in 2003 to nearly €11bn in 2008. © ENN

Securing Web Applications Made Simple and Scalable

More from The Register

next story
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
Apple orders huge MOUNTAIN of 80 MILLION 'Air' iPhone 6s
Bigger, harder trouser bulges foretold for fanbois
Bring back error correction, say Danish 'net boffins
We don't need no steenkin' TCP/IP retransmission and the congestion it causes
GoTenna: How does this 'magic' work?
An ideal product if you believe the Earth is flat
Samsung Z Tizen OS mobe is post-phoned – this time for good?
Russian launch for Sammy's non-droid knocked back
Telstra to KILL 2G network by end of 2016
GSM now stands for Grave-Seeking-Mobile network
Seeking LTE expert to insert small cells into BT customers' places
Is this the first step to a FON-a-like 4G network?
Yorkshire cops fail to grasp principle behind BT Fon Wi-Fi network
'Prevent people that are passing by to hook up to your network', pleads plod
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.