Western European Cellular “Mass” Market Experiences Further Staggering Growth, IDC Says

LONDON, AUGUST 23, 2000– According to recent research from IDC, the Western European cellular services subscriber base is set to grow from 154 million to over 200 million this year and is set to surpass 300 million by 2004. The European cellular services market is no longer a specialized market, as it might have been a few years ago. It is now a mass market in which more people will own a mobile phone than a fixed phone by 2004.


“Prepaid services, with their low acquisition costs and no-strings-attached contracts, are still the main reason for this widespread success,” said Tim Sheedy, senior research analyst from IDC’s Wireless and Mobile Communications program. Prepaid services are expected to account for 53% of the total subscriber base this year, and IDC expects this percentage to grow to 62% by the end of the forecast period.

Key Findings

· IDC expects the Western European cellular services market to be worth almost $86 billion by the end of this year and for it to rise to $115 billion by 2004.

· The average revenue per user (ARPU) will decrease slightly over the forecast period. The fall in prices of mobile phone telephony will start to be compensated for by the increased revenues generated by data and value-added services over the next few years.

· IDC expects average minutes of use (MOU) per month in Western Europe to rise from 18.2 billion in 1999 to 26.1 billion this year and almost 55 billion by 2004.

Western European Cellular Market Assessment – Forecast and Analysis, 1999-2004 (IDC #HW03G) analyzes the cellular services market, measuring the use of non-data cellular services by end users (consumers and business). Market sizing covers the spending by business and consumers on cellular services and is broken down by country, for both revenues and connections. Connections and revenues data are segmented by business size and consumer market as well as network type. In addition, subscriber numbers are analyzed and forecast by age and sex as well as by contract and prepaid. Revenue is analyzed and forecast by voice and other value-added services. This report is available to purchase from your local IDC office.

About IDC

IDC delivers dependable, high-impact insights and advice on the future of ebusiness, the Internet, and technology to help organizations make sound business decisions. IDC forecasts worldwide markets and trends and analyzes business strategies, technologies, and vendors, using a combination of rigorous primary research and in-depth competitive analysis. IDC provides global research with local content through more than 600 analysts in 43 countries worldwide. IDC's customers comprise the world's leading IT suppliers, IT organizations, ebusiness companies, and the financial community. Additional information can be found at http://www.idc.com.

IDC is a division of IDG, the world's leading IT media, research and exposition company.

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