3G mobiles 'stalled' until 2010

The use of 3G mobiles will not pass 50 per cent penetration until 2010, according to a report by JupiterResearch. 

The research firm predicted 184 million subscribers with 3G multimedia handsets in Europe in 2010, compared with 5.1 million in 2004.

SMS use will decline, according to the report, with revenues down from €15.1bn in 2004 to €12.7bn in 2010.

However, this reduction in SMS revenue is expected to increase the average revenue per user as customers take advantage of content services including ring-tones and games.

Mobile messaging is expected to remain the dominant data service, accounting for 68 per cent of data revenues by 2010 as a result of MMS, email and instant messaging. MMS is predicted to grow from €253m to €721m over the forecast period.

The use of personalised and information content will grow 10 per cent and four per cent respectively, and so-called 'real' tones will replace polyphonic ring-tones.

"Despite mobile phone saturation in European countries, 3G has not taken off at the same rate of growth," said Thomas Hudson, a mobile analyst at JupiterResearch.

"It has been hampered by limited availability of small phones, lack of appeal of existing 3G services, incomplete network coverage and expensive, non-consumer oriented tariffs."

The perceived complexity of 3G is also a problem for many consumers, according to the report, but 3G sales are up nearly 20 per cent in the UK despite these issues.