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THE FUTURE OF MOBILE REVENUE |
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Written by Adam Gosling
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Friday, 12 August 2005 |
Tech industry research outfit IDC has released a report covering the Australian mobile phone market, which, predictably, predicts that future revenue growth will have to come from non-voice services.
Pushed along by the roll-out of 3G networks through the latter part of this year, IDC says non-voice revenues are the only saviours for mobile carriers which are pitched in a do or die capping battle to remain competitive.
The report, titled, "A Little Less Conversation: Australian Cellular Non-voice 2005-2009 Forecast and Analysis," found that mobile music. MMS and video/TV are the fastest growing mobile services.
Spending on non-voice services this year will total A$1.53 billion, says IDC but is predicting that this will grow at 10 times the rate of the voice market over the next five years.
"With the cellular market now exceeding 'natural saturation, Australian carriers must become innovative and competitive beyond messaging," noted Warren Chaisatien, Mobile & Wireless Research Manager for IDC Australia. He added the upcoming 3G services expected to hit Australia before the holiday season will promote a dramatic change in consumer mobile usage behaviour.
Of the 17.87 million mobile phone users at the end of 2004, 60% used SMS services, 9% used MMS services, 10% downloaded ring tones or graphics, and 3% were mobile data users, says IDC whichdemonstrates the room for growth in data oriented services.
Describing a mobile content value chain that incorporates mobile carriers as "facilitators," "aggregators" such as Jamster, iTouch, and BlueSkyFrog, and then "content developers" (e.g., ABC TV, Sony Music, and Atari), the report says the industry is based on a revenue-sharing model.
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