Mobile phone companies will see their profits stagnate or even sink without trace if they do not take advantage of IP Multimedia Subnet (IMS) services, according to Ericsson.
"Data use is increasing but overall profits will eventually plateau or even decline in the mobile market," said a spokeswoman for Ericsson.
Keith Thomas, head of Ericsson's mobile team, told vnunet.com that IMS services available across a range of devices would help operators maintain their profits.
"People want to transfer the service experience from one device to another, whether that's a BlackBerry, mobile phone or television, and IMS can offer that experience across platforms," he said.
"Your friends will see when you switch on an IMS phone and that's going to bring a lot of new traffic that wasn't there before."
Ericsson believes that advertising will also play a key role in the new services, with targeted marketing across all formats. The company said it was possible that adverts could be switched off for a fee.
The company pointed to the £20bn advertising spend in the UK, which was expected to increase to £24bn by 2008.
"Mobile advertising doesn't appear in that figure yet but by 2010 four per cent of the advertising budget could be through mobile TV on your phone," the Ericsson spokeswoman said. "Four per cent of £24bn. You do the maths."
Ericsson pointed to Apple's dominance of the download music market and its negotiated 35 per cent fee for online sales as a warning that businesses had to understand what they were doing in new markets.
"If these business-savvy people can get it wrong so can we and we need to understand what conditions these outside players might impose," the spokeswoman said.
"Operators own the billing relationship which most people agree means they own the consumer relationship."
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