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In-Stat report: wireless data services in Europe make insignificant arrival
Posted on 3-Jun-2003 07:45. | Tags Filed under: News.

With the exception of Short Messaging Services (SMS), wireless data in Europe, as in the Americas, has arrived with a whimper rather than a bang, reports In-Stat/MDR. The high-tech market research firm finds that, the prospects for 3G services, which are being launched during a seemingly unending telecom slump, look grim and newly launched messaging services such as Multimedia Message Service (MMS) and Instant Messaging (IM) will not reach double-digit (10%) penetration before 2007.

"Wireless IM, which provides a person's presence availability for correspondence, has a real potential for SMS cannibalization in Europe," says Ken Hyers, a Senior Analyst with In-Stat/MDR. "However, while the demand for wireless e-mail, SMS, and, potentially, IM is clear, interest in new and future messaging services, such as Enhanced Messaging Service (EMS), is not." Network upgrades and improvements, and messaging friendly devices will be the most crucial developments for success in the messaging industry, and, to a large degree, operators' data success rests in handset manufacturers hands.

In-Stat/MDR has also found that:

  • SMS Mobile Originate (MO) message volume and revenue will peak in 2003, before declining to approximately US$3 billion in 2007, a 2003-2007 CAGR decline of -24%. However, SMS will not be overtaken by another messaging format before 2006, when Wireless Instant Messaging (IM) and Multimedia Message Service (MMS) will take the lead.
  • SMS Centre (SMSC) spending will decline steadily through 2007, with a -10% CAGR through 2007. At the same time, MMS Centre (MMSC) spending will decline by -35% CAGR through 2007.
  • Initial demand for MMS has the most potential among business people, who, typically, possess the monthly deposable income for the higher priced messaging service. The average tariff per message, in 2003, is approximately US$0.40, and is expected to decline to approximately US$0.17 in 2007, implying a 2003- 2007 CAGR of 16%.

    The report, "The Best Has Yet to Come: Wireless Messaging Models for Europe" (#IN030931MD), provides a total overview of the potential and revenue opportunity for wireless messaging services in Europe. Messaging formats covered in this report are Short Message Service (SMS), Enhanced Message Service (EMS), Multimedia Message Service (MMS), Wireless Instant Messaging (IM) and e-mail. This report provides an explanation of how wireless data and messaging will continue to evolve in Europe. In Europe, messaging in general, and SMS in particular, is in a strong growth phase. Person-to-person (P2P) messaging is showing signs of plateauing in some countries (the UK, Germany, and Sweden, for example). The launch of MMS and IM highlight this ever-shifting market that will help drive revenues to the next level when the industry needs it most.

    The report price is US$3,995.

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