Half of all calls will be on mobiles by 2008, says report

Half of all voice traffic will originate on mobile phones by 2008 in Western Europe, said telecoms analyst Analysys in a report.

Half of all voice traffic will originate on mobile phones by 2008 in Western Europe, said telecoms analyst Analysys in a report.

The growth is driven by fixed line to mobile substitution (FMS) said the analyst, but mobile operators will not necessarily benefit as average revenue per user (ARPU) is not keeping pace with the growth in some markets.

Mobile operators in Finland and Portugal have achieved significantly higher levels of FMS than in other countries but have sacrificed revenue to do so.

In Finland, the proportion of voice traffic originating on mobile phones rose from 55% in 2004 to 70% in 2006. The average spend per mobile minute dropped by 34% to 7p, but mobile usage per capita increased by only 23%, resulting in a net fall in ARPU, said Analysys.

In Austria, France and Spain, operators have succeeded in capturing a large proportion of voice traffic without substantial price cuts. In Spain, operators were able to achieve a 58% increase in mobile voice usage per capita in the period 2004–6, with a decline in voice spend per minute of only 7%.

“Home-zone pricing – low prices for calls made in the home but substantially higher prices for calls made elsewhere – has been successful in Germany, where the price premium of mobile over fixed was 351% in 2006,” said Mark Heath, co-author of the Analysys report.

“Eventually, the widespread introduction of femtocells (mobile base stations for individual buildings) will allow mobile operators to offer smart tariffs, while also boosting the quality of in-building coverage,” he said.

Indoor base stations emerge on mobile radar

Comment on this article: computer.weekly@rbi.co.uk

 

Comment on this article: computer.weekly@rbi.co.uk

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