The latest report from telecoms analyst Wireless Intelligence shows that total revenues generated by mobile operators in Western Europe reached 155 billion (123 billion) in 2007, a 3.32% increase on 2006. In EU15 countries, cellular revenues represent 1.5% of Gross Domestic Product.
In most countries, says Wireless Intelligence, mobile revenues have been growing faster than GDP, which demonstrates that the telecom sector has proven to be resilient to the general economic downturn.
In 2008, we expect to see a similar relatively healthy growth in mobile revenues, says Wireless Intelligence Senior Analyst, Joss Gillet.
Non-voice revenues appear to be driving growth, as voice revenues remain under strong pressure. As market penetration continues to rise, the report says, mobile operators are looking at increasing revenue share and focusing on customer retention.
In Western Europe, the top five operator groups (Vodafone, Orange, T-Mobile, Telefonica O2 and TIM) generated revenues of 106.6 billion, or 69% of the total revenues for the region. In markets such as Germany, Italy, Belgium, Switzerland and Austria, cellular revenues have decreased year on year, partly due to new European roaming regulations; domestic regulations, such as the Bersani Decree in Italy); weakened ARPU; and a decline in effective voice price per minute.
Operators are now focusing on revenue stimulation and fighting churn through key competitive factors such as price elasticity, network coverage, loyalty policy, quality of services, value added services and market segmentation, which includes MVNO development, concludes Gillet.
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