Cell phone content providers adult and otherwise should take heed: cell phone penetration in western Europe should reach 100 percent by 2007, according to a new study from Analysys, a British market analysis company that has predicted 90 percent penetration this year and 98 percent next.
Cell penetration is already reached 100 percent in several western European countries including Britain, Italy, and Sweden, the company said. "In countries such as France and Germany operators have an opportunity to increase penetration by marketing prepaid offerings, which is often the best way to attract certain segments of the population, but they should not lose sight of profitability," said Analysys analyst Alex Zadvorny, announcing the study he coauthored.
"Italy, where ARPU has been in line with the Western European market average and registered the slowest decline among the major European countries between 2000 and 2004, is a good example of how the prevalence of prepaid does not necessarily suppress ARPU," he added.
The report also said that, while growth stood still in some markets that are moving to stabilize average revenue-per-user by conversions from prepaid to contract service, Analysys continued, third-generation cell phone product and service would drive the expected growth.
"With the advent of 3G," Zadvorny said, "operators have an opportunity to stabilize and potentially even grow voice ARPU by using the efficiency of the technology and offering large bundles of minutes."
