1.5 Million i-Mode Users In Europe

1.5 Million i-Mode Wireless Users In Europe

Research released by Jupiter estimates that subscribers to i-mode services in Europe will grow to 1.5 million by the end of 2003, up from a total 270,000 at the end of 2002. Although i-mode will remain a niche mobile platform in Europe generating small revenues, the low cost of building an i-mode presence makes it a worthwhile investment for content and services providers.

Inset is Olivier Beauvillain, Analyst at Jupiter Research who is quoted below.

Growth in the European i-mode user base is being driven by three factors:

Firstly, i-mode is being heavily promoted by several mobile operators
including Bouygues Telecom in France and shortly by Telefonica Moviles in
Spain. Secondly, a wider choice of i-mode handsets is helping to make the
platform more attractive to consumers. Thirdly, a low price point of less
than ?100 for colour screen handsets has enabled i-mode to compete with
other network operators' MMS offerings.

For providers of content and other services targeted at i-mode users,
development and maintenance costs will be relatively low, averaging between
?20,000 and ?40,000 per year. Although potential revenues will be limited,
likely margins from such a relatively low investment should be high.
Experience from i-mode in Japan suggests that the most-popular content
providers will be likely to attract around five percent of total i-mode
users each month in any one country. Jupiter Research believes that i-mode
will remain a valuable but niche revenue stream for mobile operators and
will be recognised as a single part of a broader wireless strategy that
includes premium SMS and premium MMS.

Olivier Beauvillain, Analyst at Jupiter Research, said: "Although Vodafone
Live! will race ahead of its rival i-mode in Europe, content providers must
not ignore the i-mode platform, particularly in France and Spain, where it
will have the strongest penetration. Indeed, i-mode is a low risk business
and has created a learning path to develop a strong, long term mobile
strategy ahead of the rollout of next generation services."

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