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5/5/2005
09:54 AM
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Wireless Penetration To Pass 100% In Europe As Individuals Purchase Multiple Phones

As individual users purchase additional phones and acquire cellular voice service, a new study suggests wireless market penetration will exceed 100%.

Penetration of wireless technology in Western Europe will exceed 100 percent in the near future, according to a study released Thursday by U.K. market research firm Analysys.

Penetration will exceed 100 percent because individual users will increasingly purchase multiple phones and SIM cards for use in existing phones, according to the study. They are doing that because of the roll-out of 3G cellular data services, according to the study.

While average revenue per user (ARPU) from voice service have been sliding, the study also predicted that those revenues will stabilize or even grow if operators move toward pre-paid voice products. Overall, with data revenues thrown in, revenues collected by operators is expected to increase in coming years, the report concluded.

"With the advent of 3G, operators have an opportunity to stabilise and potentially even grow voice ARPU by using the efficiency of the technology and offering large bundles of minutes," Alex Zadvorny, a co-author of the report, said in a statement.

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