Global Telecom, IT and media advisor Analysys has released a new report focusing on the growth of the Western European mobile market, predicting an average increase of 6 per cent per year that will push revenues to 198.4 billion Euros over the coming five years.
According to the report, titled The Western European Mobile Market: trends and forecasts 2006-2011, the industry's growth will be driven primarily by the continued adoption of rich media services - including streaming TV and music and an increased availability of mobile broadband services.
"We are now seeing a rapid acceleration in the number of full-track downloads and in streamed TV usage," commented the report's author, Dr Windsor Holden.
"Subscribers are becoming more familiar and comfortable accessing both on and off-portal content; as mobile broadband becomes more prevalent this growth is likely to continue."
Analysys suggests that mobile penetration, which reached 96.2 per cent at the end of last year in Western Europe, will continue to grow to 108.8 per cent by 2011, largely driven by operator' efforts to attract under-served segments including the older demographic.
The report concludes that, whilst the majority of the growth will stem from rich-media services and mobile Internet, the outlook for voice revenues is also highly encouraging.
"Although voice ARPU has been adversely affected by falling termination rates and aggressive pricing strategies, this trend is forecast to reverse from 2007 as 3G adoption increases," Holden added.
"Operators are beginning to take advantage of 3G's greater capacity to offer lower-cost bundles, thereby accelerating fixed-mobile substitution."
Further information on the research methodology and a full breakdown on the latest report can be found by visiting the Analysys website.