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Mobile Europe
18 January, 2007 15:01 print this article email this article to a friend

JupiterResearch forecasts that messaging will continue to dominate European mobile services revenues despite strong content growth

European mobile content, services and messaging revenues to total 28 billion euros in 2011

JupiterResearch, a leading authority on the impact of the Internet and emerging consumer technologies on business, reveals that messaging will still be the predominant data usage on mobile phones in 2011 despite a significant growth in mobile content and services usage over the next five years. According to a new JupiterResearch report, 'European Mobile Forecast, 2006 to 2011', 72 percent of premium mobile services revenues will derive from messaging in that year.

Total European Mobile Content, Services and Messaging revenues will grow from 21.9 billion euros in 2006 to 27.7 billion euros in 2011. Content and services will grow strongly - from 2.2 billion euros at the end 2006 to 7.9 billion euros by 2011 but messaging will remain the dominant source of non-voice revenue. Growth in MMS, e-mail and Instant Messaging will more than offset the decline in SMS revenues, while infotainment (video/TV, games, music, etc) will outperform maturing personalization revenues by a factor of nearly three-to-one.

The paying audience for mobile services will reach critical mass but not make the transition to mass market (i.e. more than 50 percent penetration rate) within five years. However some audiences, such as MMS and presence messaging, have the potential to break through into mainstream in the longer term if a number of structural issues are addressed.

"Mobile operators and new entrants in the mobile space must leverage the peer-to-peer nature of a personal communications platform to create a new form of content creation and consumption," says Thomas Husson, mobile analyst at JupiterResearch. "Entertainment will strongly differ on the 3rd screen and remains to be invented, bearing in mind that consumers' demand is still skewed toward younger demographics".

In the report, Europe includes France, UK, Ireland, Spain, Portugal, Greece, Italy, Netherlands, Belgium, Sweden, Norway, Finland, Denmark, Germany, Austria, Switzerland, Luxembourg. Revenues exclude data traffic.

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