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Purchasing by mobile phone on the rise
Posted: 05-Aug-2008 [Source: Juniper Research]

[Juniper Research releases new report forecasting 2.1bn mobile subscribers will purchase digital content and goods using their mobile phones by 2013.]

Hampshire -- A new analysis of the global mobile payments opportunity forecasts that 2.1bn mobile subscribers will "pay by mobile" for digital goods downloaded to their mobile phones by 2013. Juniper Research defines digital goods as music (ringtones and full tracks), tickets, TV, user-generated content, infotainment and games -- in fact any content bought by phone and delivered to the phone.

A region-by-region analysis by Juniper Research found that there is a significant growth opportunity not only for mobile payment systems, software, support and consultancy services vendors, but also for mobile operators to increase their ARPU as transaction frequencies accelerate.

Report author Howard Wilcox stated: "Many digital content goods and services are becoming basic 'must haves' -- particularly in the sub 35 age group. Devices like the iPhone -- even in its 3G incarnation -- are undoubtedly contributing to consumer awareness and usage of mobile music services. People who are 15 to 20 today will expect to buy directly with their phones and will drive this market over the next few years."

Highlights from the report include:

-- Users are forecasted to make at least two payment transactions per month for digital goods by 2013 -- Nearly half of all mobile phone users will have bought digital goods at least once with their phones by 2013 -- The two leading regions (Western Europe and Far East & China) will account for over 50% of the total digital goods gross transaction market value by 2013.

Howard Wilcox continued: "Even though typical transaction sizes will remain in the $3-$5 bracket a sufficient number of users will be using their mobiles to buy music, games, tickets, infotainment and the other digital goods sufficiently often to see gross transaction value grow nearly seven fold by 2013."

The report also focuses on purchases of physical goods -- ranging from gifts to household goods to electronics -- via the mobile web. It provides six-year regional forecasts of mobile payments for digital & physical goods, providing data on subscriber take-up, transaction sizes and volumes as well as detailed case studies from companies pioneering in this market. Juniper Research interviewed 37 senior executives across a wide range of vendors and operators.

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