CAMBRIDGE, U.K.—Revenue for mobile services in Western Europe will reach $85.7 billion in 2002, only four percent more than in 2001, according to recent research by Analysys.
Mobile services revenue grew 12 percent between 2000 and 2001, and the research company cites fewer new subscribers and falling ARPU as reasons for this year’s expected slowdown. Analysys further suggests usage of non-voice services will be essential to a recovery in ARPU.
“Operators have been trying to increase ARPU to counter the effects on revenue of slowing subscriber growth, but it will be some years before ARPU returns to the levels seen in 2000 or even 2001,” added Katrina Bond, principal analyst and the report’s author.
According to the report, Western European Mobile Forecasts and Analysis 2002-2007, mobile revenue will grow slowly for the next few years, but the long term outlook is more positive with predictions that revenue will reach $119.3 billion by 2007, with 37 percent generated from non-voice services.
