LONDON -- The total number of mobile subscribers in Central and Eastern Europe topped the 100 million mark during early October 2003, according to data published by industry newsletter Eastern Europe Wireless Analyst. The region continues to be the fastest growing wireless market in the world, representing an increase of over 22.5 million subscribers (or 29 percent growth) since the start of 2003, driven mainly by growth in Russia.
"Russia is the largest and by far the fastest growing market in Central and Eastern Europe with over 32 million subscribers at the end of October 2003," says Kester Mann, senior research analyst at data publishing house, EMC. Russia only overtook Poland as the largest market in Central and Eastern Europe in Q2 2002 but now has over 14 million more subscribers than Poland -- stimulated by the growth of its three 'national' operators expanding into the regional markets. Net subscriber additions in Russia were 10.1 million during 2002, a number that has already been surpassed during the first nine months of 2003.
According to data published by Eastern Europe Wireless Analyst, the total subscriber base in the region has now doubled since topping 50 million in December 2001 -- with the last 25 million subscribers added in just 10 months. "Central and Eastern Europe now accounts for 7.7 percent of the world's total mobile subscribers, compared with 26.9 percent for Western Europe and 39.2 percent for Asia Pacific," says Mann. Central and Eastern Europe was also the fastest growing region in the world during both 2001 and 2002.
Eastern Europe Wireless Analyst forecasts that Central and Eastern Europe will reach 139 million mobile subscribers in 2005, and 174 million by 2008, when annual growth will be running at 3.16 percent and penetration will stand at 51.6 percent.
"There is a great interest in Russia and other CEE markets not only due to the global technology slowdown, but mostly owing to the enormous market potential across all telecommunications, media and technology segments including cellular, fixed line, equipment, software and services," says Tatiana Tolmacheva, telecoms analyst at Russian management consultancy, J'son & Partners.
Konrad Sveceny, analyst at Austrian investment bank Ertse Bank, says that the ever increasing competition in the mobile business and increasing bandwidth capacities due to constant technology upgrades mean that customers will ultimately be the main beneficiary of growth. "But mobile operators will have to try hard to develop new services which the customer really needs and pays for," says Sveceny.
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