Strategy Analytics has published a new report, that shows that business users accounted for only 20% of Western European cellular users in 2001, but they now comprise over 50% of service revenues. Despite dominating user volumes, Strategy Analytics predicts the consumer market will never account for more than 53% of service revenues in the region, despite dominating user volumes, during this period.
"The business market will continue to represent the core for cellular service revenues in Western Europe. Business users generate about $850 per annum, compared to just $225 from the average consumer. With ARPU stability beginning to crystallize in 2002, there is little chance of this divide being breached in any meaningful way," notes Phil Kendall, Director, Strategy Analytics Global Wireless Practice.
David Kerr, Vice President, added "Almost one third of the European workforce has its business cellphone use paid for by the company, with SME penetration of almost 40% around twice the corporate level. Business user growth slowed significantly in 2001, and we expect that business cellphone penetration will plateau at 35% in a few years."
The report says that the small business (0-9 employee) sector will remain a lead segment within the Small Medium Enterprise (SME) market as a result of a general greater level of mobility within the workforce, and a greater level of budget/expenditure flexibility. For companies with more than 100 employees within the SME sector, penetration is currently much lower. Strategy Analytics expects this to remain the case, with cellphone penetration in the corporate sector kept below 25%, due to a greater level of occupational diversity and financial scrutiny.'"
Posted to the site on 24th June 2002
Posted to: www.cellular-news.com/story/7013.php