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May 5 2006

Ten Mega Trends Will Turn The Mobile Industry Upside Down

Mega Trend 2: Declining profit margins on basic mobile services

Mega Trend 3: Outsourcing is one way to minimize OPEX

Mega Trend 5: Microsegmentation - "When Less Means More"

Mega Trend 6: Managing marketing costs is high priority

An epoch-making report about the future mobile market, how it will look and what will drive it. This report is your tool to navigate a market that in our opinion will go through a paradigm shift - we believe that all the players in the mobile value chain will have to redefine their roles on the market and the way they do business.

If you look back at the GSM market and how it has developed historically, the industry has not changed much in many areas since the first operators emerged. The focus has been on attracting and maintaining the number of customers required to run a profitable business. The tools have been a wide distribution of cheap subsidised telephones, combined with falling prices, which has changed the mobile telephone from being a luxury product reserved for just a few people, to becoming a product available to a large part of the world's population.

The market for mobile services started with primitive information services delivered via SMS. With the introduction of Nokia's smart messaging, a market for ring tones was created that was stimulated by premium SMS’s that worked across operators – with the introduction of one short code that worked across all operators.

What is the mobile services market about? It is about creating, developing, marketing and selling a wide variety of different services to many different customer segments that have a wide selection of different handsets, ranging from old simple mobile handsets to the latest new advanced smart phones.

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