€5.6bn: The cost of 'screwing up' next-generation mobile services

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Mobile operators could end up missing out on 16 per cent of potential sales if they fail to pitch and price non-voice services properly, a leading consultancy has warned. Revenue from what Analysys calls MCE - messaging, content and entertainment - should reach E35bn by 2008, making up 23 per cent of all mobile operator revenue. However, that level won't be reached - with a possible shortfall of €5.6bn - especially if operators don't understand what works on 2.5G networks, before even deploying 3G, where MCE should shine. Analysys offers the following advice: - Form a common view of where the operator stands in respect of market position and reputation - Decide on a content strategy with respect to the openness of their network and their own approach to packaging and retailing content - Identify the appropriate pricing strategy based on a small number of key parameters - Set actual prices and levels based on a progressive programme of experimentation and optimisation of prices. Further information is available in the Analysys report: 'Pricing Mobile Messaging, Content and Entertainment Services'.