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March 24th 1999

MEDIA INDUSTRIES WILL DRIVE UPTAKE OF THIRD-GEN MOBILE NETWORKS - Content-rich mobile multimedia services will be worth 24billion Euro in Western Europe by 2005, says new report from UMTS Forum
March 24th 1999: The IT, media and broadcast industries will be instrumental in creating a market for mobile multimedia services carried by tomorrow’s UMTS networks. This annual market will be worth 24billion Euro in Western Europe alone with an additional 10billion Euro in terminal revenues by the year 2005, says a new report* from cross-industry group The UMTS Forum.
With the first "third generation" mobile networks launching from 2002, UMTS (Universal Mobile Telecommunications System) will enable users to access high-value multimedia services at bit-rates of up to 2Mbit/sec. Global roaming agreements between mobile operators and providers of fixed and satellite-based networks will extend the footprint of UMTS-type services further, creating an entirely new market for access to content-based service delivery for mobile users worldwide.
The UMTS Forum has created a new Working Group specifically to promote "bridge building" and shared learnings with the IT, media and broadcast industries. Addressing the new group’s inaugural workshop held recently in San Francisco, Forum Chairman Dr Bernd Eylert welcomed participants and expressed his conviction that these sectors will be essential for the timely success of UMTS:
"UMTS and other third generation telecommunications represent a uniquely exciting channel for media, broadcast and content industries to deliver their services to a global mobile audience."
"Mobile multimedia users of tomorrow will be able to access the full capabilities of the Internet and Intranets, as well as a new tier of public and private communications services - unconstrained by their geographical location or the intrinsic limitations of fixed networks."
Visitors to the workshop heard how the IT, broadcast, media and content industries will play a pivotal role in ensuring the success of UMTS and other third-generation systems. The event attracted speakers from key players including Microsoft, CNN, AOL, IBM, 3COM, RIM, Wireless User Data Forum, GTE, Wireless Knowledge, Cyrix Corp., Intel, Handsprings and UC Berkeley**.
Presentations examined the respective roles of services, applications and terminals in creating a successful template for maximising revenues from third-generation mobile multimedia services,with an examination of other critical issues relating to delivery of content-based services to mobile users including billing and international copyright issues.
In its recent Report No.8*, The Future Mobile Market: Global trends and developments with a focus on Western Europe, the UMTS Forum has made a number of predictions for the world mobile market:
  1. The world market for users of terrestrial mobile services (including multimedia) will be 426m users by the year 2000, rising to 940m by 2005 and more than 1.7bn users by 2010.
  2. There will be 190m physical mobile users in N. America by 2005, rising to 220m by 2010.
  3. There will be 400m physical mobile users in Asia Pacific by 2005, rising to 850m by 2010.
  4. There will be 200m physical mobile users in Western Europe by 2005, rising to 260m by 2010. 32m of these will be mobile multimedia users in 2005, rising to 90m mobile multimedia users by 2010.
  5. In the Rest of the world, there will be 150m physical mobile users by 2005, rising to 400 million by 2010.
  6. The total Western European mobile market will be worth 104bn Euro per year in 2005, representing total traffic levels of 6,300m Mbytes/month.
  7. The mobile multimedia segment of this Western European market will be worth 24bn Euro per year in 2005, representing total traffic levels of 3,800m Mbytes/month. Terminal revenues in 2005 will add a further 10bn Euro per year to this European market value.
First UMTS networks will launch in Europe in 2002. Operator licensing for UMTS continues across Europe, with other license awards following Finland’s recent announcement expected during 1999.
*
The UMTS Forum’s Report No.8, "The Future Mobile Market: Global trends and developments with a focus on Western Europe" may be downloaded free of charge from the UMTS Forum website www.umts-forum.org
**
With acknowledgements to the rights of respective trademark owners



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