German 3G Penetration Rate to Reach 60% by 2012

A report from Goldmedia says that 3G penetration rates will reach 60% in Germany by 2012 and revenues from data services on mobile devices, not including those from SMS and MMS, are expected to more than triple to Euro 5.7bn by 2012 from Euro 1.6bn in 2007.

While the number of subscribers continues to grow, total mobile revenues are actually decreasing. Average mobile revenue per user (ARPU) has declined constantly to 16.80 Euro per month. In Germany today it is one third below the ARPU in 2002.

Voice telephony is still important, but data services will catch up strongly during the coming years. Goldmedia forecasts that such services will make up 20 per cent of mobile revenues by the end of 2008 across Western Europe.

"Mobile video, mobile games, mobile music and mobile advertising alone will reach a market volume of around Euro 740m by 2012 in Germany", says Klaus Goldhammer, managing director of Goldmedia. "Mobile entertainment will account for about 13 per cent of total revenue generated by data services." In addition to mobile entertainment, mobile business services are playing an important role in market growth.

A large proportion of mobile entertainment is financed with mobile advertising. Revenue from ads on mobile devices is expected to triple and reach almost 300 million Euros by 2012 compared with Euro 96.9m forecast for 2008. Just like commercial TV, mobile entertainment can largely be financed through advertising, and so can be provided more cheaply.

The Internet makes entertainment and information available at any time and any place. Because of the mobile Internet, mobile phones are becoming more and more indispensable. Regarding mobile Internet penetration, the US (15.6 per cent), the UK (12.9 per cent) and Italy (11.9 per cent) are the leading countries worldwide. At the moment in Germany only 7.4 per cent of all mobile phone owners use mobile Internet. Furthermore 26m Germans own an Internet-ready mobile phone, but only 13 per cent of them use it.

"Mobile devices are the No.1 tool for organizing and structuring all our interpersonal private and business communication. Their importance will only increase further," emphasizes Goldhammer. "Although a deep spread of users and target groups exists, mobile handsets are indispensable for everybody. The use of mobile phones will markedly increase, particularly among today's under-thirties."

Posted to the site on 21st October 2008