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European Mobile Market Reaching Saturation Point

European Mobile Market Reaching Saturation Point

The number of mobile phone subscribers in Western Europe is set to level off around the 300 million mark, according to a new study from telecoms consultancy Analysys.

The report forecasts mobile subscriber growth of 6% for 2002, well down on the 17% growth achieved last year and the 53% growth in 2000. However, there are signs that the decline in average revenue per user (ARPU) has been arrested with operators now garnering more money from non-voice services.

“The industry has had a very slow year so far, with Western European subscriber numbers growing less than 3% in the first six months of 2002, and barely increasing at all in some countries, such as Germany,” said Katrina Bond, the main author of the report. “Most people in Western Europe who want a mobile phone already have one, but operators are starting to see some success in improving the amount of revenue they get from each customer.”

Analysys predicts that Western European operators will earn 13% of their revenue from non-voice services this year, compared to 8.8% in 2001 and 5.3% in 2000. “This is a positive trend, but for it to continue operators must succeed with the new messaging and entertainment services that are being introduced now,” commented Bond.

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