More people choose mobile over landlines

12 Feb 2007

More people are choosing to use mobiles over fixed-line telephony and this could result in over half of all voice traffic in Europe originating on mobile phones by next year, predicted Analysys.

According to a study by Analysys, mobile services are becoming increasingly affordable to consumers and this is having a substantial impact on the traditional distribution of voice revenues.

“Users are increasingly opting for the convenience and personalisation of mobile phones, even when a cheaper fixed phone is available,” said Dr Alastair Brydon, co-author of the report.

“Despite falling fixed and mobile prices, overall spend on voice services is holding up well as mobile users choose to make more expensive mobile calls instead of fixed calls.”

According to Analysys, mobile voice usage already far exceeds 50pc in countries like Austria, Finland and Portugal.

The percentage of households that are mobile-only in Finland is five times greater than in Sweden.

In early 2006, the proportion of total voice minutes that originated on mobile networks ranged from 18pc to 70pc across Western Europe.

The growing use of mobile phones has helped to increase overall voice traffic and maintain the level of spend on voice services in Western Europe, said Analysys.

“Our analysis shows definitively that the affordability of mobile voice calls is the key factor in the level of FMS in a particular country,” explained co-author Dr Mark Heath.

“Once mobile pricing becomes affordable, there is little that fixed operators can do to halt traffic migration. However, some mobile operators have damaged their revenue by cutting prices too much,” Heath said.

By John Kennedy