3G to reach mass market in five years

Mobile operators should not expect 3G uptake to pass 50% penetration until 2010, with MMS revenues expected to soar, according to new research. In its report European Wireless Forecast, 2005 To 2010, JupiterResearch forecasts that there will be 184 million subscribers with 3G multimedia handsets in Europe in 2010, up from 5.1 million in 2004. The JupiterResearch report finds that SMS revenues will decline from EU15.1bn in 2004 to EU12.7bn in 2010. Consequently, mobile operators must reduce their dependence on SMS for data revenues and seek to increase Average Revenue Per User (ARPU) with content services such as ring tones and games if they want to improve return on 3G network and license investments. Despite the decline, mobile messaging will remain the dominant data service, accounting for 68% of data revenues by 2010, driven by new mobile messaging services such as MMS, e-mail and instant messaging.

Read the rest of the article at netimperative.com.