TELECOM Digest OnLine - Sorted: Cell Phone Offerings Set to Boom in Next Four Years

Cell Phone Offerings Set to Boom in Next Four Years

Reuters News Wire (
Thu, 01 Feb 2007 21:15:12 -0600

The market for content and services on cell phones is expected to grow
to $150 billion by 2011, as access to the Web while on the move
becomes easier and faster, research from Informa Telecoms & Media

The research firm said on Thursday that applications such as messaging
led by traditional SMS messaging would still account for a lion's
share of this market, generating over half of this revenue in 2011.

Informa predicted messaging services comprising SMS, multimedia
messaging and instant messaging on cell phones will generate revenues
worth $93 billion globally by 2011 from $60 billion last year and an
expected $67.4 billion in 2007.

Entertainment services comprising games, music, TV, adult content and
gambling would grow to $38 billion by 2011 from around $18.8 billion
in 2006, it said.

"Mobile music will be a major contributor to the revenues achieved in
the mobile entertainment market in the next five years, although its
overall share of the market will fall from 40 percent in 2006 to 36
percent in 2011 as new forms of entertainment such as mobile TV and
video services begin to gain consumer interest," Informa said in its

Not all of the explosion in new services, although helped by the
availability of broadband speeds on cell phones, would go to cell
phone operators.

"The introduction of a whole host of new players into the value chain
presents new opportunities for growth in the mobile content and
services market, whilst simultaneously posing a threat to mobile
operators who face losing control of the billing relationship with
their customers," Informa said.

It also forecast areas such as user-generated content, the rage of the
Internet world in 2006, to come into the cell phone world in the years
ahead. Informa forecast user-generated content and communities to be
worth $13.2 billion by 2011.

Copyright 2007 Reuters Limited.

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