A new report from Pyramid Research predicts that business users will fuel the growth of mobile data revenues in Europe for the next five years. This growth will be mainly due to high profitability, low levels of churn and strong demand for mobile data services among business users.

 

The report from Pyramid Research expects the European mobile enterprise revenue to reach $22.4 billion in 2013. This growth will be driven by subscribers in mobile broadband computing services and M2M. According to Andrei Tchadliev, an analyst at Pyramid Research who authored the report, the business subscriptions across European countries are expected to grow from 33.9 million in 2008 to 37.5 million in 2013. Data services are expected to grow faster with mobile broadband computing subscriptions increasing at a CAGR of 8 percent from 2008 to 2013. During the same period, M2M subscriptions are predicted to grow at a CAGR of  7 percent.

 

The mobile enterprise market will benefit from churn levels that are around 3 to 4 percentage points lower than churn in postpaid consumer subscriptions. The mobile enterprise ARPS is expected to remain twice as high as total market ARPS even during the decrease in handset-based ARPS. The launch of 3G networks in Europe has put the focus on the ability of enterprises to synchronize fixed and mobile Internet capabilities. Tchadliev also added that customers will now start asking for integrated products that mesh fixed and mobile Internet access seamlessly with the recent growth in mobile broadband.

 

The report from Pyramid Research is titled "Mobile Enterprise Services: Growth in Data Services Provides Resilience in Difficult Market". It explains the economic environment, overall mobile market trends and business segment developments. The impact on revenue and technology adoption in the Eastern and Western European markets by business and subscription type are also mentioned. The 15-page report also contains case studies that examine the following markets for mobile enterprise services: Czech Republic, Germany, Poland, and the U.K.

 

The report is part of Pyramid Research’s Europe Telecom Insider report series. Telecom Insiders contain trend analysis, market sizing and forecasting, competitor analysis, and case studies which enable a customer to make better business decisions.