The advent of various emerging mobile broadband wireless access technologies and the adoption of multimedia and user-generated content are going to create new growth momentum across the European mobile communications market.
"The mobile market in Europe is reaching saturation and maturity and is ready for innovative challenges," notes Frost & Sullivan. Research Analyst Saverio Romeo. "These challenges, namely next generation mobile networks, customised multimedia content and user-generated content, can combine to provide fresh impetus for growth in the mobile industry."
Penetration of 3G mobile networks has reached nearly 13 per cent in Western Europe. Mobile operators are investing strongly in next generation mobile networks, deploying HSDPA networks across many European countries. These networks will boost the adoption of multimedia and user-generated content in the mobile market. The growth of mobile data revenues confirms this trend. Mobile data revenue is becoming a crucial part of the mobile operators' total revenues.
However, the current market status presents a challenge in itself. Mobile penetration exceeds 100 per cent in many European countries. Despite this, the market is growing, although at a slower pace than in the past.
"The challenge is therefore to identify new ways of increasing revenues; exploring new business models for mobile premium content and user-generated content is one possible path," advises Romeo. "This opportunity can be exploited through the large-scale adoption of 3G and beyond 3G mobile networks."
The paradigm of the killer application is no longer applies to the mobile industry. Mobile operators have new consumers who have learnt to personalise and create content using the Internet and would like to do the same with their mobile phones.
"These users want customised solutions and the ability to personalise the use of their mobiles," notes Romeo. "The next mobile experience will be based on high-bandwidth mobile phones, where consumers can use a variety of applications and shape them based on specific needs."
European Mobile Communications Outlook is part of the Mobile and Wireless Growth Partnership Services, which also includes research in the following markets: Mobile WiMAX, xMax and 3G LTE - An Analysis of Potential Mobile Broadband Technologies.