Hard cell

Citation

(2001), "Hard cell", Work Study, Vol. 50 No. 6. https://doi.org/10.1108/ws.2001.07950fab.008

Hard cell

Hard cell

The European mobile communications industry has been experiencing a dramatic slowdown in its expansion, but The Strategis Group believes that mobile investors should not lose confidence in the European Cellular Marketplace. Future growth will be attributed to subscribers upgrading handsets and services rather than new subscriber adoptions. The European market is suffering from a lack of "head room" as cellular markets start to saturate. In 1998 and 1999, growth stood at more than 40 per cent, but in 2000 that figure declined to 37.5 per cent and in 2001, it is expected to top out at 23 per cent. The Strategis Group forecasts that the decline will continue into 2002 and that European Cellular Markets will achieve only 11.2 per cent growth in total subscriptions. Beginning in the second half of 2001, Europe will start the move to 3G, working through 2.5G GPRS services. The overall growth rate will decline but the migration of users from "Basic GSM" to GPRS, and ultimately to W-CDMA (starting in 2003), will provide a new "revenue engine" for operators and manufacturers. "GPRS success by 4Q-2001 will be essential. If that doesn't occur, we are not going to see an upturn in investor confidence in the mobile communications arena for some time to come", said Jake Saunders, European director of the Strategis Group Europe.

For more information about Strategis, visit the Web site at http://www.StrategisGroup. com