Mobile user base to exceed 1.78 billion by end of 2007 - report

June 21, 2004

Asia's enormous potential and Latin America and Africa's growth opportunities will drive the penetration of wireless and mobile services to 27.4 percent of the world's population by 2007, according to the Yankee Group report, Europe, Middle East, and Africa to Remain the World's Largest Regional Wireless Market.

This customer growth, combined with stabilizing or improving average revenue per user in most regions, will drive a compound annual growth rate of 8.7 percent in global wireless service revenue between 2002 and 2007. The highest growth rate (13.6 percent) will be in Asia-Pacific, which will account for 38 percent of total revenue by the end of the forecast period. However, EMEA will remain the largest regional market with almost 40 percent of revenue in 2007.

Mobile data services will make an important contribution to service revenue in all territories. In 2002, data accounted for only 8.5 percent of global revenue but by 2007, it will have increased to 25.9 percent. Asia-Pacific will be the most significant contributor to data revenue. In 2007, data will account for more than one-third of all wireless revenue in the region.

"The mobile communications industry is on track to reach its target of 2 billion customers worldwide," says Declan Lonergan, Wireless/Mobile Europe director. "The only uncertainty that remains is the timing for this next major milestone. At projected growth rates for the remainder of this decade, the industry will struggle to achieve 2 billion subscribers by 2010, but it will come close."