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Mobile & Wireless
30 Countries Passed 100% Mobile Phone Penetration in Q1
Informa Telecoms and Media Report Predicts Number to Reach 40 by Year's End
by Bob Wallace
Marking a major mobile milestone, 30 countries had exceeded 100% cell
phone penetration by the end of the first quarter of this year, according
to a report released today by Informa Telecoms and Media.
The group predicts that country count will reach 40 by year-end, noting
that some countries, such as the UK, Sweden and Italy have already
exceeded 110%.
Athletes often talk about giving 110%, but how does a country exceed
100% in mobile phone penetration?
From Aruba to Italy, the Czech Republic, Hong Kong and Kuwait, the list
of countries where the number of mobile phone subscriptions exceeds
the size of the population continues to grow. Informa predicts Russia will
join the list later this year.
"While the proportion of the population using mobile phones has stabilized
in most developed-world markets at around 80-85%, the trend among
many users for buying second or even third subscriptions shows no sign
of slowing," comments Devine Kofiloto, Principal Analyst at Informa
Telecoms and Media.
"Operators in these markets are actively encouraging the practice,
selling prepaid SIM cards with $5 or $10 of preloaded credit in order to
boost their subscription numbers, cut acquisition costs and promote
value-added services," continued Kofiloto.
Multiple SIM card ownership may be having a negative impact on
operator ARPU but it continues to help increase overall usage levels. This
in turn is helping operators in developed markets to stabilize revenues in
the face of competitive pressure on tariffs.
The phenomenon of multiple SIM card ownership is not restricted to the
developed world, but is also common in developing markets such as China
and Nigeria.
Informa Telecoms and Media forecasts that by the end of 2006 the
number of countries with mobile penetration over 100% will reach 40.
Additions to the list will include Russia, the third largest mobile market in
the world. Russia added more than 50 million mobile subscriptions in 2005 ,
but growth rates in the country are now slowing as penetration in
Russia’s regional markets climbs nearer to saturation point.
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