Over 278 million Europeans With 'Wireless Feature Phones' by 2007

By the end of 2003, millions of Western Europeans will be accessing mobile data services over GPRS networks from one of the new breed of feature-rich 'smart' phones now available, according to a new report published by Analysys.

Inset is the author, Julie Robson of Analysys.

Sales of these new devices could stimulate demand in the mobile industry by reversing declining average revenue per user, renewing sales growth for operators and encouraging new equipment sales for vendors. The number of 'feature' phones in the market could reach over 278 million in five years.

The new study, Strategies for Mobile Device Evolution: meeting and creating market demand, states that by 2007, most of the features appearing on newly launched high-end handsets will be an integral part of a standard smart phone. These new features include color screens, Java gaming capability, digital cameras, picture messaging (MMS), digital music and polyphonic ringtones.

"With the introduction of new handsets like the Nokia 7650, the Sony Ericsson T68i and the Orange SPV (Sound Picture Video), we are finally seeing the kinds of devices that really enhance the desirability of non-voice services," said Julie Robson, the report's author. "These feature phones will play a vital part in transforming the role of the mobile handset, from voice device to voice and data device, and will stimulate revenue growth for operators and equipment sales for vendors."

According to Analysys, mobile data revenues in Western Europe are set to increase from around EUR14billion in 2002 (13.6% of mobile revenues) to EUR45billion (33% of mobile revenues) by 2007. New device features will be key to this growth as will network access speeds. Analysys anticipates that all new handsets will be GPRS- or UMTS-enabled by 2005.

The report provides an insight into how device features can be combined with services to create winning mobile propositions.