The European mobile services market will be worth in excess of â‚Ź20 billion by 2005, according to a new study from market analysts Strand Consult.
The report,
How to make money on mobile services, examines the burgeoning wireless technology sector and suggests that there is great potential for growth. With mobile penetration reaching saturation in many European markets, operators are increasing looking to new business areas in search of new revenue streams.
EMS, MMS, WAP and Java based applications are just some of the technologies being banded around but opinions are divided on which services will prove most popular and henceforth profitable in the future. SMS has been the primary driver in the mobile data services market (see Mobile Data Services Help Stem Operator Losses) and Strand Consult has based its forecast on what consumers are prepared to pay at the current time.
According to the research, revenue from data remains small and growth will not be as pronounced as anticipated. This is less to do with a lack of demand than it is the failure of operators to introduce business models that will encourage partners to develop and market services based on emerging technological platforms.
A glass ceiling also applies in other areas with the report stating: “In the same way that there is a limit to the customers ability and incentive to spend more money on mobile services, there will also be a connection between the revenue derived from “voice” and non-voice” services.”
Strand Consult does not foresee an explosion in Value Added Services (VAS) revenue but envisages ongoing development that “will vary depending on which terminal the customers have now and will have in the future.” Partnerships with content providers and revenue sharing schemes are a prerequisite to growth in the European data services market. Based on current estimates, turnover from European mobile services is predicted to increase from â‚Ź1.6 billion in 2002 to â‚Ź23 billion by 2005. The ten major mobile service areas are listed below.
| 2005 Mobile Data Service Revenue Forecasts, By Category |
| |
|
| Category |
Revenue (â‚Źbn) |
| Games & Mobile Entertainment |
3.2 |
| News & Sport |
2.9 |
| Adult Entertainment |
2.7 |
| Contests, Competitions & Lottery |
2.48 |
| Community, Chat & Dating |
2.3 |
| Mail & Webmail |
1.7 |
| Directory & Location Based Services |
1.5 |
| TV Voting & Integration |
1.3 |
| VOD, AOD & Video Clips |
1.28 |
| Other |
1.6 |
| Source: Strand Consult, April 2003 |
