The number of worldwide mobile users will nearly reach 2 billion by the end of 2005 as penetration rates surpass 100 percent in some countries, according to a new study by Deloitte’s Technology, Media and Telecommunications group.
The study indicates voice will continue to be the primary moneymaker in wireless, accounting for more than 80 percent of revenues, but more users will take a second subscription for data or personal use. The most lucrative mobile content will continue to revolve around phone personalization, including ringtones, images and games, the report said.
“The mobile and wireless market will overall maintain a positive trajectory in 2005,” said Phil Asmundson, vice chairman and partner with Deloitte & Touche LLP.
While the vast majority of voice calls will take place on fixed-line networks, competition from low-cost mobile and Voice over Internet Protocol providers will force down profit margins, according to the report. Additionally, broadband penetration will continue to grow, with broadband connections outnumbering dial-up services in many countries.
Lastly, the report predicted a big year for radio-frequency identification technology, as major retail chains, defense contractors and automakers continue to require suppliers to use the technology. RFID applications will also be used in healthcare, construction and transportation, the study said.
