- 11 August 2005 -

Europe's 3G outpaces Japan

Strategy Analytics, released its Wireless Network Strategies updated global cellular market report, "Worldwide Cellular User Forecast 2005-2010," forecasting that the worldwide cellular user base will increase from 1.7bn by the end of
2005 to 2.5bn by the end of 2010, a 38% penetration rate.

With average revenues falling 7% to $30 per user per month in 2005, Strategy Analytics expects further weakness in global ARPUs as increasingly prepaid-centric and low-ARPU China, India and other emerging markets remain the engine for user growth.

Phil Kendall, report author and director of wireless operator research at Strategy Analytics, noted, "Voice usage will increase from 5.6trn minutes in 2005 to 12.6trn in 2010.

" GSM-based systems will continue to dominate the cellular landscape, accounting for 81% of subscribers and 76% of service revenues in 2010, though CDMA's more rapid evolution to 3G will see it dominate 3G subscriber volumes in the medium term."

David Kerr, VP of the Global Wireless Practice, added, "3G subscribers will pass 50m at the end of 2005. More importantly, European 3G markets are now outpacing Japan. The outlook for 3G is healthy provided that operators and their handset partners can expand beyond postpaid only users into the larger, but more price elastic, prepaid user segments."