Gartner Says Mobile Data Revenues in Western Europe to Grow 31 Percent in 2003
In 2007, GPRS will be the most used technology generating 47 percent of the total mobile data revenue
Egham, UK, 18 August 2003 — Mobile data revenues in Western Europe will reach $16.5 billion in 2003, a 31 percent increase compared to 2002, according to forecasts from Gartner, Inc.
"After a slow start, mobile data services other than SMS messages are finally taking off," said Stephanie Pittet, analyst at Gartner. "GPRS, which was designed as an interim solution to bridge the gap between 2G and 3G networks, is set to stay and will become the main data technology through 2007. At the same time, the delays in launching 3G mean that the revenue generated by wideband code division multiple access (W-CDMA) will still be marginal by the end of our forecast period," said Pittet.
Table 1
Mobile Data Revenue by Technology: Western Europe, (Millions of US$)
2002
2003
2007
Total
12,582.8
16,445.1
39,703.0
SMS
94.8%
89.6%
35.5%
GSM (CS)
2.9%
2.6%
0.5%
HSCSD
0.1%
0.1%
0.0%
GPRS
2.2%
7.5%
47.0%
EDGE
0.0%
0.0%
5.6%
W-CDMA
0.0%
0.2%
11.3%
Source: Gartner (June 2003)
Although SMS message users and revenues are still increasing in Western Europe, its share of the total mobile data revenue market will decrease from 95 percent in 2002 to 35 percent in 2007. The volume of SMS messages will grow until 2006, but will start declining in 2007 when the availability of services on higher capacity networks will have attracted mass market.
Table 2
Number of SMS Messages per User per Month
2002
2003
2007
France
32.2
38.9
35.5
Germany
59.4
60.3
47.5
Italy
39.9
49.6
48.2
Spain
62.5
63.2
56.3
United Kingdom
44.7
49.3
48.8
Source: Gartner (June 2003)
Of the five biggest countries in Western Europe, Gartner said Germany and Spain are forecast to record the highest number of SMS messages sent per user per month in 2003, each sending about 60 messages a month.
It said France has always been later than most of the other Western European countries in using mobile phones or sending SMS messages, and a higher proportion of French mobile users have not yet developed that pattern of behaviour. However, it noted that the level of SMS use in 2003 in France is growing, and is similar to where the UK was two years ago.
Gartner forecasts the average number of SMS messages per user will decrease across Western Europe from 2005, with a slow decline in the SMS market and an increasing usage of MMS, mobile IM and mobile email.
For further information please contact Laurence Goasduff on + 44 1784 267 195 or email him at laurence.goasduff@gartner.com.
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