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News
Issue #2003 - 06 (February 2003)
(Updated Feb. 20, 2003)

MARKET OUTLOOK & TRENDS

Europeans Willing To Pay Extra For 3G Services - Report

Forty two per cent of European mobile phone users are interested in 3G services, according to the TNS Telecoms 3G 2003 report, carried out in 10 countries. But the good news for telecoms operators and manufacturers is that the majority of those users interested in 3G were prepared to pay extra for 3G handsets and services.

Half of these respondents who stated that they were interested in 3G services (21% of all mobile users), said they would pay an additional 6 to 10 euros per month for some 3G services such as MMS, high speed internet and emails. With the report showing that the average monthly invoice for a mobile phone user in Europe is currently at 26 euros (20 euros for prepaid and 37 euros for contract) operators have the potential to substantially increase their average revenue per user (ARPU).

Similarly, those interested in 3G services would also be happy to pay more for a 3G handset than they paid for their existing one. Across all countries surveyed, the majority of respondents would be willing to pay up to 330 Euros for a 3G handset. However this figure changes considerably by country, depending, among other reasons, on whether handsets are subsidised by the operators, as in France or the UK.

Alan Imbert, Senior Research Director, TNS Telecoms explains: “The fact that operators in many countries have subsidised mobile phone handsets could prove a major stumbling block for the uptake of 3G in some European countries. If operators chose not to subsidise 3G handsets then users may be shocked to find that they will have to pay many times more for the new 3G models than they do for existing handsets.”

Of those users across Europe that did express an interest in using 3G applications, most are interested in sending and receiving emails on their mobile phones (77%) or using videophones handsets (77%). They are least interested in downloading music files and viewing video clips (47% and 40% respectively were interested).

On average, 42% of all mobile phone users are interested in 3G. Interestingly, mobile phone users in Eastern Europe show more interest in using 3G applications than their counterparts in Western Europe. Fifty nine per cent of users in Turkey and 51% in Poland said they are ‘ interested’ compared to only 34% in the UK or in Germany. Forty eight per cent of men are interested in 3G compared to only thirty six per cent of women. 

Source: Cellular News
For more information: http://www.cellularnews.com

MobileInfo Comments and Advisory: We tend to agree that those consumers who want to use wireless Internet would pay a bit extra for 3G availability.42% of all mobile users are interested in the survey but interest is not equivalent to buying the service. In due course (may be 2006), some % (in a low teens, in our estimation) of mobile users will use 3G wireless Internet. The next question is how much they will use it. It will be the teenagers and twenty-plus who will lead the consumer march towards wireless Internet.

Note: This news release may contain forward-looking statements within the meaning of section 27A of the Securities Act of 1933 and section 21E of Securities Exchange act of 1934 in USA. Similar provisions exist in other countries. There is no assurance that the stipulated plans of vendors will be implemented. MobileInfo does not warrant the authenticity of the information. Readers should take appropriate caution in developing plans utilizing these products, services and technology architectures.  All trademarks used in this summary are the property of their respective owners.


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