Wireless revenues to pass fixed lines in Europe — MobileMonday Global: Industry News

^{Voice becomes mobile} Wireless revenues to pass fixed lines in Europe

11 Oct 2003 at 19:10 GMT Timo Poropudas

Wireless revenue soon will overtake the total fixed switched-access market in Europe, says a new Yankee Group report. According to the report already between 20-40 percent of voice traffic originates on mobile networks.

"Bundling and targeted substitution packages have made mobile rates more competitive to the extent that price inelasticity exists," says Farid Yunus, Yankee Group Wireless/Mobile Europe senior analyst. "In more mature markets, there is no longer a specific price inflection point at which mobile phones displace fixed. Consumer surveys support this, with fixed lines remaining firmly entrenched in most households.

"Mobile cannot compete with fixed on price or performance, especially for data. However, the crux of mobility is convenience--access anytime, anywhere, which deserves a premium price. Aggressively targeting fixed traffic would be a step toward voice commoditization," says Yunus.

The Yankee Group recommends mobile operators should focus on revenue optimization and not landline displacement, bringing more data content services to market while maintaining average revenue per voice minute