Average revenue per user (ARPU) is set to decline slightly over the next three years, according to anew report from ARC Group. However, substantial increases in mobile subscriber numbers, especially in the Asia Pacific region, mean that the total mobile services market in dollar terms will grow by more than 100% by 2007. Mobile data will also increase strongly over the next three years, rising from under 10% of operators' revenues in 2002 to over 20% in 2005, with further growth in prospect.
Key contributors to this growth trend will be new applications for both consumers and business users, including online games and location-based services. To achieve the kind of compelling content that will drive the mobile market forward, the key players in the value chain (network operators, content providers and service providers) will need to partner with each other, using transparent business and revenue models.
As a result, ARC Group believes that a significant area of opportunity will open up for content and service providers, as well as specialist suppliers of enabling middleware such as profile management systems.
Lead author of the report, ARC Group's Richard Jesty, says: "We see the mobile services market as being split into three main sectors - business to consumer (B2C), business to employee (B2E) and business to business (B2B). The B2B sector is a key enabler for this market, because it will enable many of the new mobile services. The more profitable these business services are for the providers, the more value will be generated in the market overall."
ARC Group envisages three waves of development in mobile services, each building on the previous. The first will be primarily driven by the need to communicate, with voice services being complemented by evolving forms of messaging such as MMS.
The second wave will be driven by new ways of making mobile payments, and the third will coincide with the rollout of 3G networks to a mass-market audience around 2005. An important factor in this three-wave development will be the need to manage 'internet chaos' as users move between networks offering different levels of service.
As the range of mobile services becomes broader and more advanced, ARC Group feels there will be a strong link between New Media and mobile marketing channels, allowing the kind of flexible response to programming and advertising which is already in place in parts of the Asia Pacific market.
Notes to editors:
ARC Group, part of the Informa Telecoms Group, provides a range of analysis, research, and consultancy services to leading clients around the world, with a team of full time consultants based in the UK supported by a global network of associates and analysts.
As an independent consultancy, ARC's core value lies in its ability to provide objective and original analysis in the form of a range of products spanning from strategic reports to bespoke consultancy projects. Covering the entire mobile value chain from networks through handsets to content and applications, ARC has built its reputation upon a commitment to analysing strategic issues, trends, and technologies from a realistic perspective that cuts through the hype.
For more information about this report, please contact :
Chrystelle Chalvin, Sales & Marketing Manager, ARC group
Tel: +44 (0) 1932 266 917 Fax:+44 (0) 1932 266 940
http://click.cminteractive.com/?2v9MLmBD=42178
