The crowded highway
Following sharp falls from 2000 to 2002, the mobile industry began to display early signs of a stock market recovery at the end of 2002, with prices now appreciating relative to both the fixed-line industry and financial market averages. Continued optimism is supported by a global growth forecast of eight percent for the mobile industry between 2003-2008 (contrasted against a two-percent decline for fixed-line revenues in Western Europe). China, the Americas, Central and Eastern Europe are expected to grow the fastest. However, the positive overall growth prospects for the industry at large need to be seen in the context of increasing competition and high market penetration rates, which leave mobile operators fighting for each other's customers. With limited subscriber growth, mobile operators need new sources of revenue. To date, mobile data services have been the primary focus of attention, with mixed results. While initially enamored by the latest mobile technology, mobile consumers have become much more discerning in their choice of mobile services, often delaying new service adoption. A painful reminder of this is the disappointing uptake of 3G services launched by new market entrant "3" in Europe and Australia in 2003. With 3G consumers proving difficult to attract, "3" lowered voice tariffs to lure new customers away from the competition, with the aim of simultaneously boosting 3G service subscriptions. To read the complete study, download the PDF file at the top of this page. |
