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Mobile phone take-up exceeds global birth rate
Maxim Kelly

 


MOBILE operators are giving birth to more subscribers than humans are having babies.

Statistics from telecommunications analysis firm The Mobile World show that over 1,000 customers signed up to a mobile operator every minute in the first three months of 2007. The global birth rate was around 144 per minute.

There are now 2.85 billion mobile phone users worldwide, according to the telecommunications analysis firm, and that figure is expected to increase to 3.35 billion by year end, yielding a penetration rate per global population of more than 50%.

The Mobile World managing director John Tysoe said growing demand from China, India and Africa was driving the increase, and that the growth rate is still accelerating.

"It took over 20 years to connect the first billion subscribers, but only 40 months to connect the second billion. The three billion milestone will be passed in July 2007, " he said.

In Europe, penetration has surpassed 100% with 666 connections. Mobile penetration for Ireland is 112%, according to the latest figures from ComReg . . . 6% more than the OECD average.

The first three months of 2007 have seen the thirdlargest increase in the industry's history, after the fourth quarters of 2005 and 2006.

Tysoe expects that handset manufacturers will have to reassess their strategies for selling phones in developing markets as global penetration increases.

"If you want to tap into markets like India, Pakistan and Africa you need to offer 30 handsets, not 80, " he said.

The analyst believes this could pose problems for some manufacturers, notably Motorola, which he calculates sustains a loss of 18 on each sale of its cheapest phones. Nokia on the other hand makes a profit of around 15 per budget handset.

"There is a political sensitivity in the industry on this subject because of the unknown social and economic effects of prices going way below where they are now. It could lead to an invidious position for the world's unconnected if they are left in a minority."




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