Mobile phone US$126bn profits by 2008
Mobile phone US$126bn profits by 2008
Research carried out by the ARC Group claims that mobile services will reach this profit margin worldwide by 2008, almost doubling from their 2003 level.
It is predicted that services such as messaging, games and music will burst into the mass market and reach a wider range of users.
Richard Jesty, from the ARC Group said: "We see the mobile services market developing from the early adopters and the youth sector to include the wider consumer mass market, as well as business users. This will mean an increase in total revenues for operators, as these new mobile services will offset the likely shift from voice calls to messaging."
The ARC also conducted an online survey where they found out the views of mobile telecom professionals about the future of mobile phone content. Jesty added: "The survey confirmed our view of the key revenue drivers for mobile services over the next five years, with messaging, music and games leading the way.
Entertainment is the second largest revenue creator for mobile phones, behind ringtimes and image downloads, and will be responsible for a fifth of the total profits of mobile phone services in 2008.
The ARC forecasts that office applications aimed at mobile businesses will be the third most popular aspect of mobile business after messaging and entertainment in 2008.
The only downside with the increase in services will mean having to link up with other businesses to provide the infrastructure required. The operators will need to partner with systems integrators and consultants in the business sector to cope with a more complex market.
But as the demand for more multimedia content grows, so will the revenues for the mobile phone operators and third parties.
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