Subject: [NEXTEL-1] Wireless revenues to overtake land lines in Europe - report

From: [email-masked]
Date: Tue, 07 Oct 2003 05:35:25 -0400

Wireless revenues to overtake land lines in Europe - report

A new Yankee Group report says between 20% and 40% of voice traffic originates on
mobile networks, and wireless revenue soon will overtake the total fixed
switched-access market. However, this supremacy and growing consumer dependence on
mobility will not lead to total displacement of fixed lines, at least until
several barriers are overcome.

"Bundling and targeted substitution packages have made mobile rates more
competitive to the extent that price inelasticity exists," says Farid Yunus,
Yankee Group Wireless/Mobile Europe senior analyst. "In more mature markets, there
is no longer a specific price inflection point at which mobile phones displace
fixed. Consumer surveys support this, with fixed lines remaining firmly entrenched
in most households.

"Mobile cannot compete with fixed on price or performance, especially for data.
However, the crux of mobility is convenience--access anytime, anywhere, which
deserves a premium price. Aggressively targeting fixed traffic would be a step
toward voice commoditization," says Yunus.

The Yankee Group recommends mobile operators should focus on revenue optimization
and not landline displacement,
bringing more data content services to market while maintaining average revenue
per voice minute

Posted to the site on 07-Oct-03

http://www.cellular-news.com/story/9864.shtml

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