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World Cup Could Generate Extra $8.47 billion for Mobile Phone Industry
Posted: 26-Jul-2005 [Source: Wireless World Forum]

[A new report from Wireless World Forum says World Cup revenue has the potential to more than double the global mobile music market currently worth $4.1 billion.]

The World Cup revenue potential is more than double the entire global mobile music market worth $4.1 billion.

Received wisdom believes WC2006 to be a major showcase for the latest mobile phone technologies such as mobile video and 3G. However, contrary to this wisdom, the Wireless World Forum believes the most significant contributor to the extra revenues ($7.30 billion) will come from messaging services used to provide match updates, alerts or quick communication. The remaining $1.17 billion will come from non-messaging data services, with betting and music capturing the largest share of the extra revenue.

Ninety percent of the extra spending by consumers will occur in just two months, between June and July 2006.

The industry could well capitalize on the world cup, as disruption of existing pattern and changes in social interaction will create opportunities. The world cup provides a short window of opportunity in which to apply greater pressure to potential subscribers to join a mobile network.

Most mobile players are gearing up for WC2006 on the basis of building a high-end technology portfolio. This is a long term recipe for failure that will play into the hands of household names such as Adidas, Nike and McDonald's - companies with a stronger understanding of how and why behaviour will change during the World Cup.

Mr. Graham Brown, CEO, Wireless World Forum warned that, "Most companies will adopt a 'Product First' approach to the World Cup, the approach will view the World Cup as a 'showcase' for new technologies. However, the winning strategies are based on the 'Consumer First' approach. Only then will the mobile industry have access to the full $8.47 billion."


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