European Cellular Market Approaches Single-digit Revenue Growth Phase
Strategy Analytics - New Report Maps Road to Market Saturation
London, UK. Western European cellular service revenues will increase 20% to reach US$90 billion in 2001. As the region s cellular markets approach saturation, Strategy Analytics forecasts 2002 will represent the last year of double digit revenue growth.
As subscriber growth rates in W. Europe slow dramatically, prospects for service revenue growth for the region have been saved by strong signs that ARPUs are reaching the bottom of the curve. According to Phil Kendall, Director of the Strategy Analytics Global Wireless Practice, "Average revenues have fallen by one-third over the last three years to reach US$370 per subscriber. If that trend continued, prospects for the region would be particularly bleak. But with average voice expenditure levels stabilizing in many markets, and data expenditure continuing to grow strongly, ARPUs will creep up slowly after 2002."
Prospects for the handset market, however, are not as smooth. "Having increased by 46% in 2000, handset sales will contract by 13% in 2001 with only 120 million handsets sold. Subscriber growth was never going to get close to the 72 million net additions recorded in 2000, and the replacement market is failing spectacularly to fill this gap.
Operators cutting prepaid subsidy levels, and delays in the introduction of GPRS handsets and services, have all played a part. The good news is that the handset market should rebound quickly as users make those delayed replacement purchases in 2002," noted David Kerr, VP of the Strategy Analytics Global Wireless Practice.
These findings are presented in "W. European Cellular Market Forecast (2001-2006)," a study published recently by Strategy Analytics within its strategic advisory service, Wireless Network Strategies. This service provides leading players in the wireless industry with insights into key market, technology, and consumer behavior trends. Company Background:
Strategy Analytics, Inc. provides information and insights to help develop business strategies in broadband, consumer electronics and media, wireless communications, e-business supply, automotive electronics, energy technologies and enabling technology business. Working on a global basis, Strategy Analytics delivers planning support in published and consulting formats to meet the decision support needs of clients in North America, Europe, Japan and the Far East.
Contact: Strategy Analytics, Inc. Phil Kendall Tel: +44 1582 405678 pkendall@strategyanalytics.com David Kerr Tel: +1 262 646 8974 dkerr@strategyanalytics.com
Strategy Analytics, Inc.Phil Kendall
Tel: +44 1582 405678
pkendall@strategyanalytics.com
David Kerr
Tel: +1 262 646 8974
dkerr@strategyanalytics.com
E-mail: dkerr@strategyanalytics.com
