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Product category: Recruitment, Reports and Resources
News Release from: Strategy Analytics
Edited by the Electronicstalk Editorial Team on 25 January 2006

3G market offers silver lining

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Cellular operators in Western Europe should be prepared for another challenging year in 2006, according to new research.

Cellular operators in Western Europe should be prepared for another challenging year in 2006, according to the latest research from the Strategy Analytics Wireless Network Strategies service Competitive pressure saw average revenues weaken in 2005 with churn creeping up

In its latest report: "Western European cellular user forecasts, 2005-2010", Strategy Analytics predicts no relief at all in 2006, though 3G growth is highlighted as one bright spot for this industry.

After growth in 2003 and 2004, average revenues per active subscriber fell 1% in 2005 and are forecast to fall 2% in 2006.

2005 was the first year of single-digit service revenue growth in the history of the W European cellular market and these will grow by less than 4% in 2006.

"Regulatory and competitive environments are really squeezing the potential for West Europe's wireless industry", comments Phil Kendall, Director Global Wireless Practice.

"This is being felt most in the Nordic region - average revenues fell 11% in Finland in 2005, 6% in Norway and 5% in Sweden".

"Following market consolidation in Denmark, revenues grew there by 3%".

"It is no coincidence that Nordic operators are keen investors in the wireless markets of Eastern Europe and beyond".

David Kerr, Vice President, Global Wireless Practice, adds: "If there is a silver lining, it is in the 3G market".

"W-CDMA subscriber numbers quadrupled in 2005 in Western Europe to reach 25 million and they will more than double in 2006".

"Vodafone made strong inroads into Hutchison's 3G lead and has done much to raise the profile of 3G in the consumer space".

"We expect to see over 100 million WCDMA users in Western Europe by the end of 2007".

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