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Mobile Data Services Are Booming Throughout Europe

According to the European Information Technology Observatory (EITO), the take-up of mobile data services has been stellar, with growth in Europe expected at 10% in both 2009 and 2010. The UK is Europe’s largest mobile broadband market in terms of revenues, and will account for EUR5.6 billion of the total mobile data services market valued at EUR32.6 billion in 2009. Mobile Internet usage has been largely driven by smartphones, while mobile broadband services on notebooks and netbooks have begun to take off.

The demand for mobile data services has never been so high. Following several boom years, providers in this segment are once again upping the ante throughout Europe. Both 2009 and 2010 will see the market grow by 10% – in spite of the economic crisis. This announcement was made by the international market research institute EITO in Berlin today. “More and more people are using the facilities offered by mobile Internet, whether via their cell phones or with a notebook computer,” said EITO chairman Bruno Lamborghini. “The Web is no longer regarded as a purely stationary PC application. Many users appreciate its diverse information and versatility when on the move.” Mobile business applications for companies and entertainment when on the move are a significant factor behind the growth of this market.

According to EITO, private individuals and companies across the EU will spend some € 32.6 billion this year and some € 36.0 billion in the coming year on mobile data services. Great Britain is expected to achieve the largest market volume in 2009 with some € 5.6 billion. Germany is in second place with € 5.2 billion, followed by Italy with just under € 5.2 billion and France with € 4.0 billion. As the fifth largest market, Spain will achieve € 3.2 billion. Mobile data services are experiencing their highest rates of growth in Italy (2009: 12.4%). “Mobile data services are the turbo for the telecom and Internet sector,” explains Lamborghini. In Germany, the sales achieved from mobile Internet access fees and mobile e-mail are now higher than the revenue generated from text and multimedia message services.

“Modern smartphones have helped mobile Internet use make its breakthrough,” says Lamborghini. Extensive Internet, e-mail and multimedia functions are already standard features, even in mid-range models. “For many people, their cell phone has become a mobile mini PC that can be customized and which combines all the various communication options.” Functions that are proving particularly popular are additional programs for cell phones, otherwise known as “apps”, which include location-based applications such as street maps and restaurant finders. The market for mobile data services is being further boosted by the fact that notebook and netbook computers are becoming increasingly cheaper to buy.

About EITO

Since 1993 the European Information Technology Observatory (www.eito.com) has been offering high quality and up-to-date information on European and global markets for information technology, telecommunications and consumer electronics. The EITO is managed by Bitkom Research GmbH, a wholly owned subsidiary of BITKOM, the German Association for Information Technology, Telecommunications and New Media. EITO collaborates with leading market research institutes including PAC, IDATE, GfK, and research activities of the EITO Task Force are supported by the European Commission and the OECD. EITO is sponsored by CeBIT, Deutsche Telekom, KPMG, Messe München, Red.es, Simo and Telecom Italia.