NORWELL, Mass.-Europe’s mobile communications services market is expected to jump to $30 billion by 1998, while the continent’s mobile communications equipment market will see sales revenue of $8.1 billion by 1998, according to a survey by BIS Strategic Decisions Inc.
The cellular telephone market is currently the largest and fastest-growing segment of the European telecom market in terms of revenue, stated the research company in its “Mobile Communications Business Planning Report.”
However, the markets for wireline voice services and equipment will continue to remain the largest sectors of Europe’s telecom market through 1998, despite the maturity of those markets.
“Growth in the European mobile communications market will be stimulated by strong user demand for all forms of wireless technologies,” BIS said. “On the market supply side, rapid deregulation of geographic markets throughout Europe and the increasing availability of mobile licenses, services and affordable portable devices will drive growth.”
In 1993, total European sales of wireless communications services were valued at $10 billion, while corresponding sales of equipment totaled $4 billion. Sales revenue from cellular services and equipment is expected to grow by a compounded annual growth rate of 21 percent, BIS said. By comparison, cellular handset sales for 1993 accounted for 66 percent of the total revenue garnered from mobile communications equipment sales.
Sales of paging services and equipment are expected to remain stable through 1998, BIS said, mainly due to the influence of competition between mobile technologies, as well as fixed wireline services. “Although exhibiting many characteristics of maturity, significant challenges face the European paging market in order that operators and vendors can maintain current revenue levels,” the report stated.