Slicing Pie June08 Limited Edition

Slicing Up the Mobile Services Revenue Pie
Portio Research Limited.

Published in June 2008 by Portio Research Limited © Copyright 2008.
This document is an excerpt from the market research report ‘Slicing up the Mobile Services Revenue Pie’
published by Portio Research Ltd in January 2008.
For more information, please visit www.portioresearch.com
For questions, please email us at info@portioresearch.com
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Contents
Worldwide Growth Market.......................................................................................................4
Introduction .......................................................................................................................................... 4
Market brief .......................................................................................................................................... 6
Data services ............................................................................................................................7
Worldwide Mobile Market ........................................................................................................9
Mobile Data Services .............................................................................................................16
Introduction ........................................................................................................................................ 16
Table of contents – data services analysis section. ........................................................................... 20
Mobile Handset Market ..........................................................................................................23
Market Overview ................................................................................................................................ 23
Also available from Portio Research Limited....................................................................................27
Mobile and Wireless in the US: Opportunities and Profits 2008-2012............................................... 27
The Next Billion: Strategies for driving growth and making profits in low-ARPU mobile markets....... 29

Slicing up the Mobile Services Revenue Pie
List of Figures
Figure 1: Comparison of Mobile Market with Other Sectors – Revenue (In USD Billion, In 2006)........ 4
Figure 2: Comparison of Mobile Market with Other Sectors – Y-o-Y Growth Rate (2006).................... 5
Figure 3: Comparison of Mobile Market with Other Sectors – Y-o-Y Growth Rate (2007E) ................. 5
Figure 4: Worldwide Mobile Subscribers (In Million, 2004-2012E) ....................................................... 9
Figure 5: Net Subscriber Additions – Regional Break-out (In Million, 2007E-2012E) ..........................10
Figure 6: Worldwide Mobile Revenue (In USD Billion, 2004-2012E)** ................................................11
Figure 7: Worldwide Service Revenue and Equipment Sales (In USD Billion, 2004-2012E)...............11
Figure 8: Worldwide Mobile Service Revenue – Regional Break-out (2004 and 2012E)...................12
Figure 9: Worldwide Mobile Service Revenue – Voice-Data Split (2004 and 2012E)..........................13
Figure 10: Worldwide Mobile Voice Revenue (In USD Billion, 2004-2012E) ....................................14
Figure 11: Worldwide Mobile Voice Revenue as a percentage of Service Revenue (2004-2012E) .14
Figure 12: Worldwide Data Services Revenue – Break-out (2006 and 2011E) ................................17
Figure 13: Worldwide Data Revenue Sharing Arrangement (2006 and 2011E) ...............................18
Figure 14: MNOs share in Data Revenue Break-out (2006 and 2011E)...........................................19
Figure 15: Worldwide Handset Shipments (In Million, 2006–2011E) ................................................23
Figure 16: Worldwide Handset Revenue (In USD Billion, 2006–2011E)...........................................24
Figure 17: Worldwide Market Share Comparison – by Handset Vendor (2005 and 2006) ...............25
List of Tables
Table 1: Regional Mobile Subscribers (In Million, 2004-2012E).........................................................10
Table 2: Average Revenue per Minute (RPM) (In USD, Q2 2007).....................................................15
Table 3: Quarterly Handset Shipments Worldwide (In Million, Q1, 2006 - Q3, 2007).........................24

Worldwide Growth Market
Introduction
In recent years, the mobile communication market has developed rapidly. Mobile services
have touched the lives of millions of people worldwide. From being only a voice
communication device, the mobile handset has gradually become part of the user’s
personality. The mobile handset has evolved into a device that provides information and is a
source of entertainment.
Apart from the growth of mobile services in western countries, there has been a surge in the
subscriber bases in the emerging economies of Asia, Eastern Europe, Latin America and
Africa. In the Asia-Pacific region, the mobile subscriber base has already reached the 1 billion
mark, with China and India being the largest markets in the region. Furthermore, the expected
exponential subscriber growth in countries such as Indonesia, Bangladesh, Ukraine, Brazil,
Mexico and Nigeria, will continue to stimulate the market in the coming years.
The worldwide mobile market was worth USD 718.4 billion at year-end 2006 in terms of The worldwide mobile market
operator revenues and is expected to exceed the 1 trillion mark in 2011. Upon comparison was worth USD 718.4 billion
with other services, the mobile telecommunications sector has clearly outperformed (in terms at year-end 2006 in terms of
of revenue) other sectors, such as financial services, pharmaceutical sales, travel and operator revenues, and is
tourism, and IT services. The mobile and wireless industry, despite being a comparatively expected to exceed the 1
young industry compared to the other sectors listed, has attained great height in a short span trillion mark in 2011.
of time. The following figure compares the revenue generated by different sectors for the
fiscal year 2006.
Figure 1: Comparison of Mobile Market with Other Sectors – Revenue (In USD Billion, In 2006)
800 718.4
672.3
Revenue (In USD Billion)
604.5
600
472.6
400
260.2 280.0
200
0
Semiconductor Consulting Financial Pharmaceutical IT services Mobile Market
Industry Services Services Sales
1
Source: Various, see footnotes
Moreover, for the year 2006, when the financial services and pharmaceutical sectors
witnessed growth of 3.5 percent and 8.0 percent, respectively, the worldwide mobile market
registered a growth rate of 16.6 percent. Figure 2, below, shows the year-on-year (y-o-y)
growth rate of different sectors in fiscal year 2006.
1
Sources: http://www.gartner.com/it/page.jsp?id=495223; http://wistechnology.com/article.php?id=4300;
http://www.edn.com/index.asp?layout=article&articleid=CA6436028; http://www.gartner.com/it/page.jsp?id=506001;
http://www.vault.com/store/book_preview.jsp?product_id=43631
4 © 2008, Portio Research. All Rights Reserved

Figure 2: Comparison of Mobile Market with Other Sectors – Y-o-Y Growth Rate (2006)
Mobile Market 16.6%
IT Services 6.4%
Travel & Tourism 4.6%
Pharmaceutical 8.0%
Financial Services 3.5%
0% 2% 4% 6% 8% 10% 12% 14% 16% 18%
Source: Portio Research Ltd.
According to our estimates, the mobile telecommunication sector achieved a y-o-y growth rate
of 11.9 percent in terms of revenue in 2007. Furthermore, the sector again outmatched the
semiconductor industry, consulting services and financial services sectors. Figure 3 shows a
comparison of different sectors in terms of the estimated y-o-y growth rate for fiscal year
2007.
Figure 3: Comparison of Mobile Market with Other Sectors – Y-o-Y Growth Rate (2007E)
Mobile Market 11.9%
Consulting Service 7.1%
Semiconductor Industry 8.1%
Financial Services 4.5%
0% 2% 4% 6% 8% 10% 12% 14%
E – Estimated
For more in depth analysis of trends in the fast growing mobile industry, please visit
www.portioresearch.com

Market brief
This short market brief is an excerpt from our full market report titled ‘Slicing up the Mobile
Services Revenue Pie’. The key features of the full report include the following:
• An introduction and overview of the worldwide mobile market. It analyses the worldwide
subscriber base (2004-2012), total worldwide mobile service revenues (2004-2012), the
break-out of the mobile service revenues into voice and data revenues, and the share of
various data services from total non-voice revenues.
• The revenue generated by mobile network operators from mobile services and the share
of various players, such as handset vendors, infrastructure providers, content providers,
etc. in this revenue pie.
• An overview of the data services market. It also highlights the revenue generated from
various data services in the period 2006 to 2011. A value chain analysis is done for
various data services, which provides break-out of the revenue pie amongst the players
involved in the value chain.
• Case studies – to understand the mobile data market in different countries.
• An overview of the worldwide handset market, the overall revenue generated from
handset shipments and the revenue generated by handset vendors from sales through
operators.
• An overview of the mobile infrastructure providers market.
Please visit http://www.portioresearch.com now to see further details of this report and the
other essential research reports we have available for you.

Data services
Revenue from mobile data services forms an important part of total mobile service revenues.
According to our estimates, in 2007, it contributed approximately USD 135.7 billion to the
overall mobile service revenue and is expected to contribute significantly in the coming years
as well. The maximum contribution to data service revenue in 2007 was from SMS, followed
by MMS. SMS contributed almost USD 66.5 billion in 2007 and is also expected to be the
highest contributor in 2011. MMS too will be one of the major contributors. Also, Data services
such as mobile music, mobile games, mobile video and mobile payments are expected to
contribute significantly to the overall revenue generated from data services in the next five
years.
The revenue generated from data services is shared among the players in the data services
value chain. Mobile network operators get the maximum share in the value chain. Other
players such as content owners and aggregators get a smaller share than do the operators. In
2006, the operators’ share in the value chain was almost USD 67.6 billion, which accounted
for almost 66 percent of the total revenue generated from data services. In 2011, it is
expected that the share retained by the operators out of total data services revenues will
decrease, and other players such as the content owners and aggregators, will get an increase
in their share of total non-voice service revenues.
The revenue generated from
The demand for data services is expected to shoot up worldwide in the next five years. To data services is shared among
provide the best service to their customers, mobile operators will invest heavily on the players in the data
infrastructure in the coming five years. This bodes well for the infrastructure vendors. The services value chain. As of
revenue generated in 2006 by infrastructure vendors was almost USD 60 billion and this is end-2006 the revenue sharing
expected to increase at a steady pace in the next five years. arrangement was largely in
favour of MNOs while other
The tremendous growth in the worldwide subscriber base and the demand for replacement players, such as content
handsets has helped the mobile handset market grow at a very fast pace. In 2006, the annual
owners and aggregators, got a
shipments of mobile handsets almost touched the one billion mark and it is estimated that full
smaller share of the total
year figures for 2007 will exceed that magical mark of one billion. In 2006, of the total revenue
revenue.
generated from the sale of mobile handsets, the maximum revenue came from sales to
operators. Sales to mobile operators accounted for almost 60 percent of the total sales in
2006. In the next five years, revenue from sales to mobile operators is expected remain
steady at 60 percent of the total sales.
With an increase in the subscriber base, the requirement of different kinds of data services
has increased significantly. Due to advancements in mobile technology, newer features are
being added to handsets. Subscribers now use their handsets to play games, listen to music,
read news headlines, surf the Internet and make payments. The mobile industry has
increasingly realised the need to explore the mobile data market and increase revenue by
providing innovative options to subscribers. This has driven players to introduce better and
more innovative concepts and services.
This short market brief is an extract from our full market report titled ‘Slicing up the Mobile
Services Revenue Pie’. The key features of the full report include the following:
• An introduction and overview of the worldwide mobile market. It analyses the worldwide
subscriber base (2004-2012), total worldwide mobile service revenues (2004-2012), the
break-out of the mobile service revenues into voice and data revenues, and the share of
various data services from total non-voice revenues.
• The revenue generated by mobile network operators from mobile services and the share
of various players, such as handset vendors, infrastructure providers, content providers,
etc. in this revenue pie.

• An overview of the data services market. It also highlights the revenue generated from
various data services in the period 2006 to 2011. A value chain analysis is done for
various data services, which provides break-out of the revenue pie amongst the players
involved in the value chain.
• Case studies – to understand the mobile data market in different countries.
• An overview of the worldwide handset market, the overall revenue generated from
handset shipments and the revenue generated by handset vendors from sales through
operators.
• An overview of the mobile infrastructure providers market.
The full report includes a detailed look at mobile data services, breaking out each major
service and offering you case studies of those services in specific countries, to help you
understand the different revenue sharing agreements in place. This analysis builds to show
you the major regional differences and the likely changes we face in the years ahead.
Case studies include:
The Indian SMS Market

The UK SMS Market
The US SMS Market
The US MMS Market
The UK MMS Market
The MMS Market in China
Italy’s Mobile TV Broadcasting Market
The South Korean Mobile TV Broadcasting Market
The Mobile Music Market in the UK
India’s Mobile Music Market
The US Mobile Music Market
Japan’s Mobile Gaming Market
The US Mobile Gaming Market
The Mobile Gaming Market in the UK
To see these case studies and the rest of the research, pleas purchase your own copy of this
full report by emailing us at sales@portioresearch.com or visit
http://www.portioresearch.com/Slicing_Pie.html
Please visit http://www.portioresearch.com now to see further details of this report and the
other research reports we have available.

Worldwide Mobile Market

The worldwide subscriber base has witnessed rapid growth in recent years and is expected to
reach the 50 percent penetration mark in early 2008. The increase from a 25 percent
penetration level to 50 percent has occurred in a short span of time. Although it took
approximately 15 years for mobile services to reach the first quarter of the world’s population,
it took less than five years to reach the next quarter of the world’s population. This rapid
growth has been witnessed in fast developing economies such as those in Europe, Asia, Latin
America and the Middle East.
Emerging markets such as China, India and Brazil, are expected to continue to grow at a The worldwide mobile
rapid pace. In addition, Africa will play a major role in the net subscriber additions in the subscriber base is expected to
future. reach approximately 4.9 billion
by end-2012.
Figure 4 shows the projected growth in the worldwide subscriber base from 2004 to 2012.
Figure 4: Worldwide Mobile Subscribers (In Million, 2004-2012E)
6000
4,906.9
Subscribers (In Million)
5000 4,589.7
4,254.3
3,901.3
4000 3,502.2
3,080.9
3000 2,650.2
2,169.7
2000 1,744.5
1000
0
2004 2005 2006 2007E 2008E 2009E 2010E 2011E 2012E
Year
E – Estimated
Figure 4 shows that the worldwide subscriber base grew at a compound annual growth rate
(CAGR) of 23.25 percent between 2004 and 2006. A reduction in tariffs and subsidies on
handsets has led to tremendous growth in the emerging countries. In terms of absolute
subscriber volume, China has emerged as the largest mobile market in the world at end-2006,
followed by the US and Russia. In 2007, India surpassed Russia and is now the third largest
mobile market in terms of subscriber base.

Table 1 shows the number of mobile subscribers by region.
Table 1: Regional Mobile Subscribers (In Million, 2004-2012E)
N&W C&E North Latin Middle Asia

Year Africa Total
Europe Europe America America East Pacific
2004 358.7 198.6 199.8 176.2 79.7 28.7 702.8 1,744.5
2005 391.6 295.3 224.8 225.9 129.8 44.8 857.5 2,169.7
2006 425.2 365.5 251.6 273.0 168.7 64.5 1,101.7 2,650.2
2007E 437.9 397.4 277.5 315.0 211.1 84.4 1,357.5 3,080.8
2008E 447.3 416.6 297.6 351.7 257.5 103.8 1,627.5 3,502.0
2009E 454.8 430.5 314.7 384.7 306.3 122.8 1,887.6 3,901.4
2010E 459.8 439.5 332.9 415.7 351.4 138.1 2,116.9 4,254.3
2011E 464.8 445.8 344.6 446.0 399.7 151.3 2,337.6 4,589.8
2012E 468.2 450.8 353.6 469.3 444.2 162.1 2,558.7 4,906.9

Projections in Table 1 show the growth rate of the worldwide subscriber base after it crosses
the 3 billion mark by end-2007. Operators worldwide are expected to add another 1.9 billion
subscribers by end-2012. As mentioned earlier, the majority of this subscriber growth is
expected to come from the Asia-Pacific region, followed by Africa and Latin America.
Figure 5 shows the regional division of the expected subscriber additions from end-2007 to
end-2012.
Figure 5: Net Subscriber Additions – Regional Break-out (In Million, 2007E-2012E)
1500
1,201.2
Subscribers (In Million)
1000
500
233.1
154.3
30.3 53.4 76.1 77.7
0
Western Central and Asia Pacific North Latin Africa Middle East
Europe Eastern America America
Europe
E – Estimated
If you would like to study this growth in much more detail, we have another research study
which looks at this growth much more in-depth. Please visit PortioResearch.com and see the
study The Next Billion: Strategies for driving growth and making profits in low-ARPU mobile
markets.

In terms of mobile revenues, the worldwide mobile market stood at 718.4 billion at end-2006.
It is expected to increase at a strong rate and reach 1,094.9 by end-2012, which is shown in
Figure 6**, below.
Figure 6: Worldwide Mobile Revenue (In USD Billion, 2004-2012E)**
1200 1,094.9
1,045.7
993.6
Mobile Revenue (In USD
936.0
874.3
803.7
800 718.4
616.4
Billion)
519.7
400
0
2004 2005 2006 2007E 2008E 2009E 2010E 2011E 2012E
Year
E – Estimated
** Please note that the revenue generated by operators worldwide constitutes service
revenue and equipment sales (i.e., from selling handsets and accessories). Revenues flowing
directly from consumers to handset vendors, accessories vendors and non-voice revenues
flowing directly to content providers are not included in these calculations.
Figure 7 shows the worldwide mobile service revenue and equipment sales.
Figure 7: Worldwide Service Revenue and Equipment Sales (In USD Billion, 2004-2012E)
1200
108.4
104.3
100.3
(In USD Billion)
95.7
800 91.1
85.8
81.2
69.3
61.9 941.4 986.5
840.3 893.3
400 717.8 783.2
637.2
457.8 547.1
0
2004 2005 2006 2007E 2008E 2009E 2010E 2011E 2012E
Year
Service Revenue Equipment Sales
E – Estimated
The worldwide service revenue is expected to increase at a CAGR 10.1 percent from 2004-
2012.

Figure 8 shows the change in contribution from various regions to the worldwide service
revenue for the years 2004 and 2012. As you can see, where Europe was the most valuable
market in 2004, by 2012 Asia will surpass Europe in terms of contribution, and North America
will take the second place above Northern and Western Europe.
Figure 8: Worldwide Mobile Service Revenue – Regional Break-out (2004 and 2012E)
2004
17.6% 5.0%
5.2%
3.3%
6.6%
29.7%
32.6%
2012E
6.7% 6.1%
24.0% 3.8%
6.3%
19.7% 33.4%
N&W Europe C&E Europe North America Latin America

Africa Middle East Asia Pacific
E – Estimated
For a more in-depth look at the massive contribution that North America adds to worldwide
mobile service revenues over the next 5 years, please see our other report Mobile and
Wireless in the US: Opportunities and Profits 2008-2012.
The revenue generated from mobile services consists of voice and data revenue. Initially,
mobile services meant mostly voice services. Over time, people have started using their
handsets for other purposes, such as sending SMS and MMS. As shown in Figure 9, below,
the maximum revenue generated from data services in 2004 stood at 12.8 percent and the
vast majority of total revenues were contributed by voice services. However, the trend is
changing and data is now contributing more to the overall service revenue picture. Operators
worldwide are focussing on compensating the declining voice ARPU by increasing the
adoption of data services among users. Data is expected to contribute approximately 25.5
percent to total worldwide mobile service revenues in 2012.

Figure 9: Worldwide Mobile Service Revenue – Voice-Data Split (2004 and 2012E)
2004
87.2%
12.8%
2012E
74.5%
25.5%
Voice Data
E – Estimated
As the figure above shows, voice services clearly represent a major portion of the mobile
services revenue pie. However, voice average revenue per user (ARPU) has been in decline
in most countries in recent years. It is believed that voice ARPU will further decrease and
voice revenue is expected to constitute 74.5 percent of the worldwide mobile service
revenues by 2012. Mobile network operators are increasingly facing more stringent
regulatory policy on mobile termination rates and, at the same time, competition on the price
front is also making it difficult for operators to maintain current voice ARPU. Moreover, the
continuing addition of low ARPU customers in emerging countries is contributing further to Voice revenue is expected to
this decline. See the last page of this study for more details of our report “The Next Billion”, constitute 74.5 percent of the
which looks in detail as forecast ARPU rates in fast growing emerging markets, worldwide mobile service
revenues in 2012.
Due to the rise in the subscriber base worldwide, the consolidated voice revenue is expected
to be USD 734.6 billion by 2012. Figure 10, below, shows total worldwide mobile voice
revenue from 2004 to 2012. If you need to see the full regional break-out for these figures,
please visit www.portioresearch.com and purchase the full study, or email us at
sales@portioresearch.com

Figure 10: Worldwide Mobile Voice Revenue (In USD Billion, 2004-2012E)
800 712.9 734.6

687.6
Mobile Voice Revenue (In
657.5
622.5
582.1
600 534.8
USD Billion)
468.2
399.1
400
200
0
2004 2005 2006 2007E 2008E 2009E 2010E 2011E 2012E
Year
E – Estimated
The figure above shows that mobile voice revenue grew at a compounded annual growth rate
(CAGR) of 15.7 percent between 2004 and 2006. However, the growth rate of voice revenue
is expected to slow down to a CAGR of 5.4 percent between 2006 and 2012.
As mentioned above, the contribution of voice revenue to the mobile service revenue pie is in
a period of steady decline. This is shown in figure 11.
Figure 11: Worldwide Mobile Voice Revenue as a percentage of Service Revenue (2004-2012E)
100
87.2 85.6 83.9 81.1 79.5 78.2 77.0 75.7 74.5
80
Percentage
60
40
20
0
2004 2005 2006 2007E 2008E 2009E 2010E 2011E 2012E
Year
E – Estimated

Revenue per Minute (RPM) is one effective method of comparing prices across carriers and
countries. The RPM rates have been declining worldwide for several years now.
Table 2, below, shows the average revenue per minute and the average consumer’s minutes
of usage per month for 10 selected countries.
Table 2: Average Revenue per Minute (RPM) (In USD, Q2 2007)
Average Revenue per

Average Consumer’s
Minute (Effective Price
Country Minutes of Use per
per Voice Minute, In
Month
USD)
Canada 0.10 429
France 0.17 258
Germany 0.21 101
Italy 0.19 134
Japan 0.25 140
Spain 0.23 163
UK 0.20 168
USA 0.04 823
South Korea 0.11 321
Mexico 0.11 144

Source: Merrill Lynch
It shows that the average RPM is the lowest in the US; the RPM has declined at the highest
rate in the country. American subscribers use an average of 823 minutes of mobile service
per month and this is nearly five times the use of an average mobile subscriber in an OECD
top 10 country.
The average monthly Minutes of Usage (MOU) is on the rise in the US. The average MOU in
2004 was 619 minutes, which increased to 789 minutes in 2006 and to 823 minutes in 2007. 2
However, in Japan, where the average RPM is higher than other countries listed in the table
above, the average MOU is declining—the average MOU were 167 minutes for year 2003
and 159 minutes for 2004. 3 The figure reduced further to 140 minutes in the second quarter of
2007. 4
In the emerging markets, MOU is not currently rising as fast as many operators would like. In
India rates have recently declined a little, and in China growth is steady, but quite slow. In a
nutshell, it can be said that the worldwide share of voice revenue in total service revenue is
expected to decline in the coming years. Operators are increasingly focusing on data services
to compensate for this decline.
Further discussion of this and other topics are available in the full report – please visit our site
at www.portioresearch.com to order your copy.
2
Sources: http://www.chetansharma.com/6.pdf; http://www.cwta.ca/CWTASite/english/pdf/WallWE.pdf;
http://files.ctia.org/pdf/080108_US-OECD_10_Comparison_Ex_Parte.pdf; http://www.chetansharma.com/6.pdf
3
Source:http://www.atis.org.sg/__C1256EEF000E5F2F.nsf/webStdContent/C2BD2F5157EA7C1E48256EFB0020239
3/$file/ATIE2004Obi.pdf
4
Source: http://files.ctia.org/pdf/080108_US-OECD_10_Comparison_Ex_Parte.pdf

Mobile Data Services
Introduction
Because of stiff competition among MNOs, the ARPU generated from voice services is
continuing to decline in many markets. Operators are increasingly relying on data services
and focussing on adopting advanced network technologies, such as EDGE, UMTS, EV-DO
1X and HSDPA, to offer advanced messaging and other value-added data services.
Wireless ARPU is declining even in countries such as Japan. Data services are currently an
important component in the overall service revenue generation of most operators. Until
recently, SMS has formed the mainstay of non-voice service revenues in most markets, with In 2006, the largest
Japan being the exception. Now, more advanced data services, such as mobile gaming, contribution to total worldwide
music downloads and mobile TV, have been the major contributors towards increasing data data services revenue came
ARPU for operators in the most mature markets. At the same time, revenue from basic data from SMS, which generated
services such as SMS, MMS, ring-back tones and information services, are increasingly approximately 58 percent of
becoming an important component in operators’ service revenue generation in emerging all revenues.
markets.
In 2006, the largest contribution to total worldwide data services revenue came from SMS,
which generated approximately 58 percent of all non-voice revenues. The next biggest
contributor to total non-voice revenue was MMS. However, the overall share of SMS and
MMS in worldwide revenues from data services is expected to decline by 2011. Contribution
from services such as mobile IM, mobile music, mobile games, mobile e-mail, mobile video,
and mobile payments is expected to increase over the same time period.
For a detailed break out of the worldwide value of each major service – SMS, MMS, email,
IM, mobile video services, mobile music services and mobile gaming, please purchase the full
study Slicing up the Mobile Services Revenue Pie from Portio Research – email us at
sales@portioresearch.com or call us on +44 (0)1249 656964 or go to

Figure 12 shows the share of various data services in the worldwide mobile data services
revenue pie in 2006 and the estimated break-out by 2011.
Figure 12: Worldwide Data Services Revenue – Break-out (2006 and 2011E)
2006
57.6%
13.3%
1.0% 14.5%
3.9%
2.5% 6.7% 0.4%
2011E
14.2% 2.2% 9.0%
3.5%
6.0%
7.9%
39.8%
17.5%
SMS MMS Mobile IM Mobile Music

Mobile Games Mobile e-mail Mobile Video Others
E – Estimated
The revenue generated from data services is split among the players involved in the services’
value chain. The maximum share of the data revenue goes to the mobile network operator;
however the share of other players in the value chain is rising. The figure below shows the
data services revenue split between operators and other players in the value chain in 2006,
as well as the estimated split in 2011.

Figure 13: Worldwide Data Revenue Sharing Arrangement (2006 and 2011E)
2006
66.1%
33.9%
2011E
49.2%
50.8%
MNO Other Players
E – Estimated
The share of revenues retained by the mobile network operators is expected to decline from
66.1 percent in 2006 to 50.8 percent in 2011 and conversely other players in the value chain
are expected to increase their share from 33.9 percent in 2006 to 49.2 percent in 2011.
Of the overall revenue
generated by mobile operators
We look further at the revenue sharing agreements for different services in different countries
from data services, the
in the full report, Slicing up the Mobile Services Revenue Pie. Please visit our site at
maximum share comes from
www.portioresearch.com for details and how to order your own copy of the full report, for all
this data in much greater detail. P2P (peer-to-peer) SMS and
MMS, and this trend is
expected to continue in the
Of the overall revenue generated by mobile operators from data services, the maximum next five years.
share comes from P2P (peer-to-peer) SMS and MMS, and this trend is expected to continue
in the next five years. In 2006, approximately 80 percent of the revenue generated by the
MNOs from data services came from P2P SMS and MMS. However, the revenue generated
from P2P SMS and MMS is expected to decline in the next five years as the revenue from
A2P SMS and MMS and other data services pick up. Revenue from P2P SMS and MMS is
expected to decline from 80 percent in 2006 to 69 percent in 2011.

Figure 14, below, shows the revenue generated worldwide by MNOs from P2P SMS and
MMS and from A2P SMS and MMS and other data services in 2006 and the estimated break-
out in 2011.
Figure 14: MNOs share in Data Revenue Break-out (2006 and 2011E)
2006
80.0%
20.0%
2011E
68.9%
31.1%
A2P - SMS, MMS & Other Data Services P2P - SMS & MMS
E – Estimated
As noted previously, you are reading an excerpt from our detailed market study Slicing up the
Mobile Services Revenue Pie. The full report includes a detailed look at mobile data services,
breaking out each major service and offering you case studies of those services in specific
countries, to help you understand the different revenue sharing agreements in place. This
analysis builds to show you the major regional differences and the likely changes we face in
the years ahead.
In the full report, each data service has been analyzed in detail. A worldwide market overview
is provided for each service and its value chain has been discussed in detail. The analysis
talks about the players in the value chain and their revenue sharing arrangements. The
revenue split among the players in the value chain is provided for the year 2006 and the
forecast split in the year 2011. Details of these sections are shown below, and a complete
Table of Contents can be found online, just click here.

Table of contents – data services analysis section.
Mobile Data Services

Introduction
SMS
Market Overview
Value Chain Analysis
Case Study 1 – India’s SMS Market
Case Study 2 – The UK’s SMS Market
Case Study 3 – The US’s SMS Market
MMS
Market Overview
Case Study 1 – The US’s MMS Market
Case Study 2 – The UK’s MMS Market
Case Study 3 – China’s MMS Market
Mobile E-mail
Market Overview
Mobile IM
Market Overview
Mobile Video Services (Mobile TV and Mobile Video Downloads)

Market Overview
Case Study 1 – Italy’s Mobile TV Broadcasting Market
Case Study 2 – South Korean Mobile TV Broadcasting Market
Mobile Music
Market Overview
Case Study 1 – UK’s Mobile Music Market
Case Study 2 – India’s Mobile Music Market
Case Study 3 – The US’s Mobile Music Market
Mobile Games
Market Overview
Case Study 1– Japan’s Mobile Gaming Market
Case Study 2 – The US Mobile Gaming Market
Case Study 3 – The Mobile Gaming Market in the UK
Other Services
Mobile Payment Services
Mobile Gambling
Location-based Services
Mobile Internet
List of figures included in this section of the full report:
Figure 15: Worldwide SMS Traffic Volumes (In Billion, 2006-2011E)

Figure 16: Worldwide SMS Revenue (In USD Billion, 2006-2011E)
Figure 17: Premium SMS – Value Chain

Figure 18: SMS-based Enterprise Services – Value Chain

Figure 19: India – Mobile Data Services Revenue (In USD Billion, 2004-2007E)
Figure 20: India – Mobile Data Services – Revenue Break-out (2006)
Figure 21: India – SMS Revenue Break-out (2006)
Figure 22: India – Revenue Sharing Arrangement – Premium SMS (2006 and 2011E)
Figure 23: India – SMS-based Enterprise Services – Revenue Break-out
Figure 24: UK – SMS Traffic Volumes (In Billion, 2004-2007E)
Figure 25: UK – SMS Traffic Volumes (In Billion, January-May 2007)
Figure 26: UK – SMS Revenue (In USD Billion, 2005-2007E)
Figure 27: UK – Premium SMS Revenue Sharing Large Content Owners (2006)
Figure 28: UK – Premium SMS Revenue Sharing Small Content Owners (2006)
Figure 29: UK – Premium SMS Revenue Sharing Arrangement (2011E)
Figure 30: US – Premium SMS Revenue Sharing Arrangement (2006)
Figure 31: US – Premium SMS Revenue Sharing Arrangement (2011E)
Figure 32: Worldwide MMS Traffic Volumes (In Billion, 2006-2011E)
Figure 33: Worldwide MMS Revenue (In USD Billion, 2006-2011E)
Figure 34: A2P MMS – Value Chain
Figure 35: US – Data Services Revenue Break-out (2006)
Figure 36: US – Revenue Sharing Arrangement – MMS (Except P2P) (2006, 2011E)
Figure 37: UK – Data Services Revenue Break-out (2006)
Figure 38: UK – Revenue Sharing Arrangement – MMS (2006)
Figure 39: UK – Revenue Sharing Arrangement – MMS (2011E)
Figure 40: China – Revenue Sharing Arrangement – MMS except P2P (2003 and 2006)
Figure 41: China – Revenue Sharing Arrangement – MMS except P2P (2011E)
Figure 42: Worldwide Mobile E-mail Revenue (In USD Billion, 2006-2011E)
Figure 43: Worldwide Mobile E-mail Subscribers (In Million, 2006-2011E)
Figure 44: Mobile Enterprise E-mail – Value Chain
Figure 45: Worldwide Mobile IM Subscribers (In Million, 2006-2011E)
Figure 46: Worldwide Mobile IM Revenue (In USD Billion, 2006-2011E)
Figure 47: Mobile TV (Broadcast Based) – Value Chain
Figure 48: Mobile TV (Cellular Based) – Value Chain
Figure 49: Mobile Video Download – Value Chain
Figure 50: Worldwide Mobile TV Subscribers (In Million, 2006, 2007E and 2010E)
Figure 51: Worldwide Mobile Video Services Revenue (In USD Billion, 2006-2011E)
Figure 52: Italy – Mobile TV Subscribers (In Million, 2006-2010E)
Figure 53: Italy – Mobile TV Broadcasting – Value Chain
Figure 54: SK Telecom – Mobile TV Broadcasting – Value Chain
Figure 55: Worldwide Mobile Music Revenue (In USD Billion, 2006-2011E)
Figure 56: Revenue Composition – Mobile Music (2006 and 2011E)
Figure 57: Worldwide Ringtone Revenue (In USD Billion, 2006-2011E)
Figure 58: Worldwide Streaming Audio Revenue (In USD Million, 2006-2011E)
Figure 59: Worldwide Full-track Mobile Music Download Revenue (2006-2011E)
Figure 60: Worldwide Ring-back Tone Revenue (In USD Million, 2006-2011E)
Figure 61: Mobile Music Services – Value Chain
Figure 62: Mobile Music Services – Revenue Sharing Arrangement (2006 and 2011E)
Figure 63: Penetration – Music-enabled Handsets
Figure 64: UK – Mobile Download Market – Break-out (2006)
Figure 65: UK – Revenue Sharing Arrangement of Polyphonic Tones (2006)
Figure 66: UK – Revenue Sharing Arrangement of True Tones (2006)
Figure 68: India – Mobile Music Download Break-out (2006)
Figure 69: Mobile Music Service – Revenue Sharing Arrangement (2006 and 2011E)
Figure 70: US – Mobile Music Revenue (In USD Million, 2004-2006)
Figure 71: US – Changing Patterns of Ringtone Service (2004-2006)
Figure 72: US – Revenue Sharing Arrangement of Polyphonic Tones (2006)
Figure 73: US – Revenue Sharing Arrangement of True Tones (2006)
Figure 75: Worldwide Mobile Gaming Revenue (In USD Billion, 2006-2011E)
Figure 76: Mobile Gaming – Value Chain
Figure 77: Worldwide Mobile Gaming – Revenue Sharing Arrangement (2006, 2011E)

Figure 78: Japan – Mobile Gaming Service Revenue (In USD Million, 2004–2006)
Figure 79: NTT DoCoMo – Revenue Sharing Arrangement – Mobile Games (2006)
Figure 80: US – Mobile Gaming Services Revenue (In USD Million, 2004–2006)
Figure 81: US – Mobile Gaming – Revenue Sharing Arrangement (2006, 2011E)
Figure 82: UK – Mobile Gaming – Revenue Sharing Arrangement (2006, 2011E)
Figure 83: Revenue from Other Data Services (In USD Billion, 2006–2011E)
Figure 84: Mobile Payment Services – Value Chain
Figure 85: South Korea – Mobile Payment – Revenue Sharing Arrangement (2006)
List of tables included in this section of the full report:
Table 6: Forecasted Worldwide Mobile E-mail Subscribers (In Million, 2006-2011E)

Table 7: Handset Vendors and Operating System Providers
Table 8: Worldwide Mobile IM Subscribers – Regional (In Million, 2006-2011E)
Table 9: Worldwide Mobile Music Services Revenue (In USD Billion, 2006-2011E)
For full details, and to order your report, please visit our site or email us at
sales@portioresearch.com

Mobile Handset Market
Market Overview
The worldwide mobile handset market is experiencing tremendous growth. It is estimated that
approximately 1,144 million handsets were shipped to customers worldwide in FY-2007, and
the market is expected to be worth USD 166.1 billion. In 2006, the number of handsets sold
worldwide exceeded 990 million. This number is expected to grow at a CAGR of just over
10.8 percent from 2006 to 2011.
Worldwide handset shipments from 2006 to 2011 are shown in Figure 15 Worldwide handset shipments
are expected to grow at a
CAGR of 10.8 percent, up
Figure 15: Worldwide Handset Shipments (In Million, 2006–2011E)
from 990 million in 2006 to
about 1.6 billion in 2011.
2000
1,657.2
Handset Shipments (In
1,556.4
1500 1,411.4
1,258.9
1,144.4
Million)
990.0
1000
500
0
2006 2007E 2008E 2009E 2010E 2011E
Year
E – Estimated
Handset shipments worldwide are being driven by the rapid growth in the number of
subscribers in the emerging markets of Asia, Africa and Latin America, as well as by
enhanced replacement sales in developed nations.
Driven by the rapid growth in
Although handset shipment numbers are increasing, the average selling price of handsets is the number of subscribers in
declining. This is mainly because the operators worldwide are now focussing on the emerging the emerging markets of Asia,
markets where subscriber additions will be the highest. Since growth in mobile services is Africa and Latin America, as
expected to come from the low-income segment, handset vendors are introducing more low- well as by enhanced
cost handsets, which is bringing down the average handset sales price. The worldwide replacement sales in
revenue from handset sales is expected to increase at a CAGR of 8.5 percent from USD developed nations, the
145.0 billion in 2006 to USD 217.9 billion by end-2011. worldwide handset market is
expected to reach USD 217.9
billion in 2011.
Total worldwide handset revenue from 2006 to 2011 is shown in Figure 16, below.

Figure 16: Worldwide Handset Revenue (In USD Billion, 2006–2011E)
300
Handset Revenue (In USD
210.5 218.0
193.3
200 174.9
166.1
Billion)
145.0
100
0
2006 2007E 2008E 2009E 2010E 2011E
Year
E – Estimated
Handset vendors worldwide sell their handsets either directly to mobile network operators or
to the end-customers through their wide sales networks of retail stores and third party
resellers. Operators account for a major share of the sales. In 2006, the revenue generated
from sales through mobile operators was approximately 60 percent of the total revenue In 2006, the revenue
generated from sales worldwide. generated from handset sales
through mobile operators was
Full details of handset revenues generated by operators and handset revenues that flow approximately 60 percent of
directly from mobile subscribers to handset vendors are available in the full version of this
the total revenue generated
report. Please visit our site to order your copy. The full edition also contains a broader overall
from handset sales worldwide.
analysis of the mobile handset industry.
In 2006, Nokia continued to dominate as the market leader in terms of the number of
handsets shipped worldwide. The total number of handsets shipped by the company during
the year was 347.5 million, accounting for almost 35 percent of the overall market. Motorola,
which shipped 217.4 million handsets, came in second. The other leading vendors were
Samsung, Sony Ericsson and LG. Together, these five companies accounted for almost 83
percent of the global market. As this report was being completed Kyocera Corporation has
signed a tentative agreement to acquire Sanyo Electric’s mobile handset business. If this deal
completes on target by April 2008, the new combined entity will have an approximate global
market share of 10 percent in the CDMA handset business, according to press reports.
Table 3 provides the handset shipments of leading handset vendors worldwide.
Table 3: Quarterly Handset Shipments Worldwide (In Million, Q1, 2006 - Q3, 2007)
Handset
Q1 2006 Q2 2006 Q3 2006 Q4 2006 Q1 2007 Q2 2007 Q3 2007
Vendor
Nokia 75.1 78.4 88.5 105.5 91.1 100.8 111.7
Motorola 46.1 51.9 53.7 65.7 45.4 35.5 37.2
Samsung 29.0 26.3 30.7 32.0 34.8 37.4 42.6

Sony
13.3 15.7 19.8 26.0 21.8 24.9 25.9
Ericsson
LG 15.6 15.3 16.5 17.0 15.8 19.1 21.9
Source: Company websites

Figure 17 depicts the market share comparison of the top five global handset vendors, based
on handset shipments in 2005 and 2006.
Figure 17: Worldwide Market Share Comparison – by Handset Vendor (2005 and 2006)
2005
17.9% 12.6%
6.3%
6.7%
32.4%
24.1%
2006
21.9%
11.9%
7.5%
6.5%
35.1%
17.0%
Nokia Motorola Samsung Sony Ericsson LG Others
In 2006, sales in Asia Pacific totalled approximately 301 million units, an increase of 47
percent over 2005. Sales in Eastern Europe, Middle East and Africa reached approximately
185 million units, an increase of 21 percent over 2005. In Western Europe, the increase in
handset sales over 2005 was approximately 7 percent and the number of units sold was 175
million. In North America, the annual sales in 2006 stood at 164.2 million units, whereas in
Latin America, it was 118 million units. In Japan alone, the sales figure in 2006 was
approximately 47.3 million units, an increase of 5 percent over the previous year.
Please note that you have been reading an excerpt from our popular market study Slicing up
the Mobile Services Revenue Pie. To read the full report, please visit our site, or call us on
+44 (0)1249 656964 or use the order form on the following page, thank you. We look forward
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Mobile and Wireless in the US:

Opportunities and Profits 2008-2012
Published in May 2008
Key features of this detailed new market study:
• Study the US market today - penetration, subscribers, revenues

• Examine growth to 2012 - subscribers, revenues, voice/data split, ARPU
• Major players - market share, ARPU, competition and consolidation
• Learn about the market – demographics covering age and ethnicity
• Trends in non-voice services, how these services are changing over time
• Understand the evolution of different network technologies in the US
• FREE bonus - Canadian market profile included with report
For full details of this new 92 page market study, please click here to see a full brochure.
About this market study
The US is expected to add more than 65 million mobile subscribers to the worldwide
subscriber base in the period 2007-2012. This might look relatively insignificant compared to
the massive numbers expected to be added from high-growth markets such as China (542
million) and India (282 million), but what makes the US mobile market an interesting market to
study is the observation that a new mobile subscriber in the US is expected to generate
between 3 and 13 times as much revenue expected from a new mobile subscriber in China,
India and the other emerging markets in the top 10 in 2012.
Compounding this aggressive growth is the high ARPU network operators in the US achieve
from their subscribers. Unlike many other mature mobile markets, where ARPU is in slow
decline, in the US ARPU is forecast to remain high, even increasing slightly from 2007 levels
as we move forward over the next 4 or 5 years. While the US will contribute only around 5.5
percent to the total number of new subscribers that are expected from the top 10 markets in
the period 2007-2012, in terms of revenue, the country will account for around 25.2 percent of
the total mobile service revenues generated by these 10 markets in 2012.
This significant revenue potential makes the US mobile market a very important market in the
worldwide scenario.
This report probes into the opportunities presented by the US mobile market through a holistic
understanding of the current state of the market and its expected future movement. The key
features of this report include the following:
• A detailed snapshot of the US mobile market comparing key parameters such as

mobile subscriber base, revenue and ARPU for the years 2006 and 2007.
• Demographic segmentation of the current US mobile subscriber base. This section
provides a break-out of the US mobile subscriber base by age and ethnicity. It also
provides some insights into consumer behaviour.
• Study of the competitive landscape in the US mobile market, covering subscriber
shares, revenue shares, voice and data revenue analysis, and ARPU analysis for
major US operators. This section also provides a brief snapshot of major US MVNOs
[mobile virtual network operators].

• A look into pricing trends and strategies adopted by operators to combat increasing
competition.
• Forecasts for subscriber base, revenue and ARPU for the period 2007-2012,
including estimated growth of mobile penetration in different age groups during the
same period. This section also looks into the possibility of the US mobile market
saturating in the near future.
• An overview of mobile technologies prevalent in the US market and information on
market consolidation, along with a perspective on emerging technologies and the
likely future impact of consolidation.
• For comparative purposes the report also includes a brief overview of the Canadian
mobile market, complete with key data points such as subscriber numbers, MNO
market shares, ARPU figures and more.
Table of Contents
For a full, detailed Table of Contents including List of Figures and List of Tables, please click
here.
The US in the Worldwide Mobile Market
Current US Market Scenario
US Mobile Subscribers’ Demographics

The US Mobile Subscriber Base—Segmented by Age
The US Mobile Subscriber Base—Segmented by Ethnicity
US Market Competitive Landscape

Voice and Data Revenue Analysis for Major Operators
ARPU Analysis for Major Operators
The US MVNO Landscape
Pricing Trends and Strategies

Voice Services Pricing
Data Services Pricing
Handset Pricing
Technologies in the US Mobile Market
Consolidation in the US Mobile Market
The Future of the US Mobile Market

Subscribers, Revenue and ARPU Forecasts
Changing Subscriber Demographics
Possible Saturation of the US Mobile Market
Changing Mobile Technology
Future Consolidation in the US Mobile Market
The Canadian Mobile Market – market profile
Conclusion
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The Next Billion: Strategies for driving growth and

making profits in low-ARPU mobile markets
Worldwide mobile penetration is due to pass 50 percent in early 2008, and now the wealthiest
half of the planet all have a mobile phone, the question is "who will the next billion be?" This
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have to spend. This report analyzes the world's top growth markets and the strategies mobile
network operators and handset vendors are using to drive penetration forward into low-ARPU,
rural markets. Click here to read full details and contents of this exciting new report.
Published in November 2007
Key features of this detailed new market study:
Understand where "the next billion" mobile subscribers are coming from:
• Who are they?

• Where do they live?
• How much money are they likely to spend over the next 5 years?
• Detailed regional growth forecasts highlight key growth markets
• Identify the top 10 growth markets, home to 1.5 billion future mobile subscribers
• Detailed demographic analysis
• Analyze ARPU and revenue forecasts to 2011
• Understand rural network deployment business models and new initiatives
• Low-cost handset market developments
For full details of this new 107 page market study, please click here to see a full brochure.
About this market study
Since the first mobile phones reached the hands of consumers at the end of the 1980s, it took
approximately 15 years for the first 25 percent of the human race to subscribe to mobile
services, then the next 25 percent look set to sign up in just 4 short years. By mid 2008 the
world is forecast to cross the highly significant 50 percent penetration mark. This detailed
market study looks at where the growth is set to come from after that. Who will be "the next
billion"? Who are they, where do they live and how much money will they have to spend on
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are using to penetrate those populations.
This report has studied the so-called 'next billion' in detail and we have identified the
following:
• They are actually 1.5 billion in number

• They will take the world from 50 percent penetration to 75 percent penetration in just
4 years
• 65 percent of them live in Asia, not in Africa as many previously expected
• Almost 70 percent of them live in largely rural communities

Table of Contents:
Introduction
Demographic Analysis: Defining the Next Billion, who they are and where they live
China
India
United States of America
Pakistan
Nigeria
Brazil
Indonesia
Bangladesh
Mexico
Iran
Business Models to Penetrate Low-Income Populations

Introduction
Case Study 1: America Movil
Case Study 2: Telefonica Moviles
Case Study 3: China Mobile
Case Study 4: Smart Communications
Case Study 5: Bharti Airtel
Case Study 6: Rural Payphones
Conclusion
Low-Cost Handset Initiatives

Overview
Initiatives by Handset Vendors
Initiatives by Chip-Set Vendors and other OEMs
Initiatives by Mobile Operators
Conclusion
Developments – Mobile Technology and Infrastructure

Case Study 1: Nokia Siemens Networks Village Connection
Case Study 2: Mobile Infrastructure Sharing
Case Study 3: Alternative Sources of Power
Case Study 4: Next Generation Mobile Base Stations
Case Study 5: Low Frequency Spectrum CDMA 450
Worldwide Regulatory Scenari

Regulatory Scenario – India
Regulatory Scenario – Pakistan
Regulatory Scenario – Nigeria
Conclusion
Please see further details online at http://www.portioresearch.com/Next_Billion.html


Portio Research Ltd is a 5-year old, specialist UK-based research company focusing on the
mobile space, providing reports, handbooks, directories and database products.
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Worldwide Mobile Market Statistics 2007
This detailed resource book offers you all the essential market data required for business
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Disclaimer and Legal Notices

© 2008, Portio Research. All Rights Reserved 1

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© 2008, Portio Research. All Rights Reserved 3

Worldwide Growth Market

4 © 2008, Portio Research. All Rights Reserved

Mobile Market 16.6%

Travel & Tourism 4.6%

Financial Services 3.5%

0% 2% 4% 6% 8% 10% 12% 14% 16% 18%

Source: Portio Research Ltd.

Mobile Market 11.9%

Consulting Service 7.1%

Semiconductor Industry 8.1%

Financial Services 4.5%

0% 2% 4% 6% 8% 10% 12% 14%

Source: Portio Research Ltd.

© 2008, Portio Research. All Rights Reserved 5

6 © 2008, Portio Research. All Rights Reserved

© 2008, Portio Research. All Rights Reserved 7

Case studies include:

The Indian SMS Market

8 © 2008, Portio Research. All Rights Reserved

Worldwide Mobile Market

Figure 4: Worldwide Mobile Subscribers (In Million, 2004-2012E)

Source: Portio Research Ltd.

© 2008, Portio Research. All Rights Reserved 9

Table 1 shows the number of mobile subscribers by region.

Table 1: Regional Mobile Subscribers (In Million, 2004-2012E)

N&W C&E North Latin Middle Asia

2005 391.6 295.3 224.8 225.9 129.8 44.8 857.5 2,169.7

2006 425.2 365.5 251.6 273.0 168.7 64.5 1,101.7 2,650.2

2007E 437.9 397.4 277.5 315.0 211.1 84.4 1,357.5 3,080.8

2008E 447.3 416.6 297.6 351.7 257.5 103.8 1,627.5 3,502.0

2009E 454.8 430.5 314.7 384.7 306.3 122.8 1,887.6 3,901.4

2010E 459.8 439.5 332.9 415.7 351.4 138.1 2,116.9 4,254.3

2011E 464.8 445.8 344.6 446.0 399.7 151.3 2,337.6 4,589.8

2012E 468.2 450.8 353.6 469.3 444.2 162.1 2,558.7 4,906.9

Figure 5: Net Subscriber Additions – Regional Break-out (In Million, 2007E-2012E)

Source: Portio Research Ltd.

10 © 2008, Portio Research. All Rights Reserved

Figure 6: Worldwide Mobile Revenue (In USD Billion, 2004-2012E)**

Source: Portio Research Ltd.

Service Revenue Equipment Sales

Source: Portio Research Ltd.

© 2008, Portio Research. All Rights Reserved 11

N&W Europe C&E Europe North America Latin America

Source: Portio Research Ltd.

12 © 2008, Portio Research. All Rights Reserved

Source: Portio Research Ltd.

© 2008, Portio Research. All Rights Reserved 13

800 712.9 734.6

Source: Portio Research Ltd.

Source: Portio Research Ltd.

14 © 2008, Portio Research. All Rights Reserved

Table 2: Average Revenue per Minute (RPM) (In USD, Q2 2007)

Average Revenue per

France 0.17 258

Germany 0.21 101

Italy 0.19 134

Phone No: _ Mobile No: _