CAMBRIDGE, U.K.-Market research firm Analysys has released a new report warning European operators against a price war between fixed and mobile carriers as fixed-to-mobile service substitution continues. Such a battle could see the total voice market in Europe fall from $189.6 billion in 2002 to $174.3 billion in 2007.
If such a price war scenario occurred, fixed operators could see revenues decline by 14 percent from 2002 to 2007, with call minutes remaining static. Mobile operators would see revenues fall by 2 percent during the period despite a 69-percent increase in mobile call minutes.
“Fixed-mobile substitution is inevitable and will become more prevalent if the price difference between using a fixed and a mobile phone is eroded significantly,” said Eddie Murphy, author of the report “The Future for Fixed-Mobile Substitution: Options for Fixed and Mobile Operators.”
