High Adoption Rates and Premium Prices Will Create a $10 Billion MMS Market by 2006 - reports

date: January 22, 2002

The deployment of multimedia messaging services (MMS) represents one of the most exciting advances in the history of the European mobile communications industry, according to the Yankee Group. Though MMS implementation will require new investment in infrastructure, applications, terminals, and systems integration, it is underpinned by a solid business case. For mobile operators, MMS will deliver significant ARPU uplift, improved customer retention, and partial justification for their heavy 3G investments. These are among the key findings presented in the Yankee Group's latest Wireless/Mobile Europe Report, "Multimedia Messaging in Europe: Let the Fun Begin."

"MMS is a radically new messaging technology that will take non-voice mobile communications beyond today's largely text-based services, toward a multimedia applications environment, where voice, text, images, and video applications can be integrated and exchanged between mobile and fixed terminals," according to Declan Lonergan, director of wireless research and consulting at the Yankee Group.

"Person-to-person messaging across all messaging system categories, from SMS to EMS and MMS, will continue to drive mobile service revenue growth in Europe. By 2006, messaging will generate $44 billion in annual service revenues. This will represent 24% of total revenues, a significant increase from the 7% produced by messaging applications during 2000. To generate this level of business growth, MMS technology will become increasingly important, since it will drive consumer adoption of a diverse set of premium-priced, multimedia applications. For handset vendors, MMS will also deliver important direct benefits, by stimulating handset upgrade decisions, and therefore helping to arrest the slide in handset sales that we witnessed during 2001," Lonergan added.

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