LONDON-A new report compiled by The Strategis Group reveals per-minute revenues for
European wireless operators have declined substantially from 64 cents per minute in 1995 to 47 cents per minute in
1998. The average operating income per subscriber declined as well, from $390 in 1995 to $300 in 1998.
The
report, “European Wireless Financial/Operating Benchmarks: 1999-2003,” also indicates a significant
price differential still exists between fixed and mobile telephony. Revenues per minute in fixed telephony markets
decreased from 17 cents per minute in 1995 to 13 cents per minute in 1998.
This disparity between mobile and fixed
networks suggests further price declines in the wireless industry are likely to occur during the next five years. But the
report also found the industry is realizing economies of scale that are driving operating margins per subscriber to 38
percent in 1998.
