Cash-strapped 3G providers: bet the farm on entertainment

date: 19th February 2001, source by: netimperative.com

Mobile service providers wincing at the cost of 3G licences and infrastructure should look to entertainment not information services to boost their revenues, according to a report from Datamonitor.

Datamonitor predicts that global revenues from mobile content applications will rise from $2.5bn in 2001 to $31.8bn in 2005. At present, information services account for around 38% of the total, but this is predicted to fall to only 4% by 2005. Conversely, entertainment is forecast to more than double from 17% of the present total to 35.5% by 2005. According to the report, there will be no single killer application.

Datamonitor predicts that by 2005, revenues from advertising, sponsorship and commissions on transactions will make up an estimated 55% of global mobile content revenues.

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