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Copenhagen (pte025/13.02.2003/13:45) - European mobile consumers are still shopping for phones by brand name and price, and neglecting new services such as GPRS and MMS, as reported in a recent study by Danish market researchers Strand Consult http://www.strandconsult.dk/.
The Danish report on "How to make money on mobile services" cautions that providers may soon have to place services above phones in their list of marketing priorities. In Europe, many of the Nokia, Siemens, Motorola and Ericsson phones still purchased by consumers do not support the newer services which are essential to the future existence of mobile operators.
To stop the trend, analysts say operators would have to break the influence of terminal manufacturers on the customer's purchase decision. Until then, very little revenue will come from 2.5G mobile services - an area many providers hoped would soon be bringing in 30 per cent of their revenue.
The study suggests that the biggest challenge facing mobile operators will be to give the customer a solid reason for not buying a 2G phone. In the UK, Vodaphone has for example announced it will be launching its own brand of mobile phones, with colour screens and built in services that not found in terminal manufacturers phones. This should not only help Vodafone break away from the dominance of terminal manufacturers, but also give it a future advantage on the 2.5G mobile market.
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