October 24, 2008

The Economic Downturn Sets Back The European Mobile Consumer Market

Mobile Data Growth Is On Hold As Consumers Turn To SIM-Only Deals

by Pete Nuthall

with Michelle de Lussanet, Paul Jackson, Laura Wiramihardja

Executive Summary (This is a document excerpt)

The economic downturn won't put a dent in the European mobile penetration rate of 84%, but mobile services providers are feeling the impact of reduced usage and spending as consumers review their regular outgoings. The price of core services — voice and SMS — is of growing importance to more mobile users, while advanced handsets and services are becoming less important to fewer mobile users than a year ago. Product strategy professionals are responding by de-emphasizing mobile data services and expanding the variety of SIM-only offers to better serve customers in tough times. The result will be a growing polarization of the mobile base.

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