Mobile data is driving further growth in the mobile market in Western Europe, with consumers taking up ever more sophisticated applications. A report from the Yankee Group has forecast continued growth in wireless data revenue as consumers move beyond text messaging to using data content services and applications.
It estimates that mobile service revenue will rise from â‚Ź121 billion in 2003 to â‚Ź143 billion in 2007 across Western Europe. A total â‚Ź42 billion – 30% of the market – will come from mobile data. Non-text messaging revenue will grow to account for 40% of mobile data revenue, and it expects half the region’s mobile users to be regularly using data content services by 2007.
Data ARPU (average revenue per user) will rise from â‚Ź4.89 per month in 2003 to almost â‚Ź10 per month in 2007.
“Mobile network operators are in the unenviable position of having to stimulate and develop what is practically a completely new industry,” said Farid Yunus, senior analyst at Yankee Group Wireless/Mobile Europe.
But he warned that satisfying customers will become costly for mobile operators. “They face opposing pressures to both maintain voice service margins while investing in mobile data infrastructure. Although handset manufacturers, software developers, and content providers have interests and roles, carriers play the most critical role in setting customer expectations and fulfilling them.”
Recent figures from the Mobile Data Association showed that the popularity of text messaging had not been dented by newer applications (see Text Messaging Reaches Record Levels During 2003).
