Business Users Will Fuel Mobile Data Growth in Europe - Report

Despite slowing revenue growth in the European mobile enterprise market, the business sector will fuel mobile data revenues for the next five years due to its high profitability, low levels of churn, and strong demand for mobile data services, according to a new report from Pyramid Research.

Pyramid Research expects European mobile enterprise revenue will amount to EUR 16.3 billion (US$22.4 billion) in 2013, driven specifically by subscriber growth in mobile broadband computing services and M2M, notes Andrei Tchadliev, analyst at Pyramid Research and author of the report. "Total business subscriptions across Austria, the Czech Republic, Germany, Netherlands, Poland, Romania, and the U.K. are expected to grow from 33.9 million to 37.5 million from 2008 to 2013," he says. "While demand for voice services will remain robust, Pyramid Research expects data services to grow much faster, with mobile broadband computing subscriptions increasing at a CAGR of 8 percent from 2008 to 2013, while M2M subscriptions will grow at a CAGR of 7 percent over the same period."

In spite of its size, the mobile enterprise market benefits from churn levels that are approximately 3 to 4 percentage points lower than churn in postpaid consumer subscriptions. "Despite the deteriorating trading environment and the decrease in handset-based ARPS, mobile enterprise ARPS will remain twice as high as total market ARPS," Tchadliev says.

With the almost universal rollout of 3G networks in Europe, the focus is shifting to the ability of enterprises to synchronize fixed and mobile Internet capabilities. "With the explosive growth in mobile broadband, customers will be asking for integrated products that mesh fixed and mobile Internet access seamlessly. The biggest winners are those operators that can deliver a single communications package for all of their customers' needs," explains Tchadliev.

Posted to the site on 7th April 2009