Global Cellular Revenues To Reach $570 Billion This Year

LONDON — Global cellular phone revenues are set to reach $570 billion in 2005, according to market research company Strategy Analytics.

In addition, the worldwide cellular user base will increase from 1.7 billion people at the end of 2005 to 2.5 billion people by the end of 2010, a 38 percent penetration rate, the company said.

Meanwhile average revenues are set to fell 7 percent to $30 per user per month in 2005.

“Voice usage will increase from 5.6 trillion minutes in 2005 to 12.6 trillion in 2010. GSM-based systems will continue to dominate the cellular landscape, accounting for 81 percent of subscribers and 76 percent of service revenues in 2010, though CDMA's more rapid evolution to 3G will see it dominate 3G subscriber volumes in the medium term,” said Phil Kendall, director of wireless operator research at Strategy Analytics, in a statement.

“3G subscribers will pass 50 million at the end of 2005. More importantly, European 3G markets are now outpacing Japan. The outlook for 3G is healthy provided that operators and their handset partners can expand beyond postpaid only users into the larger, but more price elastic, prepaid user segments,” said David Kerr, vice president of the Strategy Analytics’ wireless division.