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Mobile & Wireless

German mobile revenues to grow 1.5% in 2006 - study

Tuesday 5 September 2006 | 09:30 CET | News
Mobile service revenues in Germany grew 4.8% to EUR 5.22 billion in the second quarter, from EUR 5.01 billion in the first quarter of this year, but revenues were down from EUR 5.23 billion in the same quarter of 2005. In the first six months of 2006, mobile service revenues only increased by 0.6% to EUR 10.23 billion, from EUR 10.16 billion in the first six months of 2005, according to a new report, 'German Mobile Market 2006', by independent researcher Telecompaper. The report analyses developments in the German market for mobile communication, and analyses the market's performance in the second quarter of 2006, including a year to date analysis. The focus is on mobile network operators including T-Mobile, Vodafone, O2, and E-Plus, and their activities in the German mobile market. In the second quarter of 2006, the German mobile market grew 1.2% to 82.0 million customers, up from 81.0 million at the end of March 2006, and 74.1 million at the end of the second quarter of 2005. Mobile penetration grew to 99.4% at the end of June 2006, up from 98.2% at the end of March 2006 and up from 89.9% at the end of June 2005. T-Mobile connected the most postpay customers in the second quarter; whereas E-Plus is ahead on net-connections in prepay market. Mobile service revenues grew to EUR 5.22 billion in the second quarter, up from EUR 5.01 billion in the first quarter of this year, but slightly down from EUR 5.23 billion in the same quarter of 2005. In the first six months of 2006, mobile service revenues grew slightly (0.6%) to EUR 10.23 billion, from EUR 10.16 billion in the first six months of 2005. Vodafone led the pack with revenues of EUR 3.80 billion for the first six months, followed by T-Mobile with 3.67 billion. O2 generated revenues of EUR 1.46 billion, coming in third, and E-Plus comes in fourth with revenues of EUR 1.29 billion. Voice service revenues grew 4.8% to EUR 4.20 billion in the second quarter of 2006, up from EUR 4.01 billion in the first, but down from EUR 4.31 billion in the same quarter last year. Non-voice revenues grew 2.5% from the first quarter to just over EUR 1 billion in the second quarter, and are well up from the same quarter last year, when non-voice service revenues totalled EUR 924 million. Despite the market returning to growth in the second quarter after a seasonal decline in the first quarter, the recovery was relatively weak and not as strong as in the same quarter last year, when the market grew 6.0% quarter-on-quarter. Revenue growth in the first six months of 2006 was also weak in comparison with revenue growth in the first six months of 2005. Given these weak growth figures, we forecast that revenue growth in the German market will drop in 2006, and Telecompaper expects to see growth of 0.5% to 1.5% this year, down from 4.7% in 2005.

Categories: Mobile & Wireless
Companies: E-Plus / O2 Germany / T-Mobile Germany / Vodafone Germany
Countries: Germany
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