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| Countries covered: Europe The prospect of a double-dip economic recession looms large in Europe. The mobile industry is not immune to its consequences, which will include high unemployment, shattered consumer confidence and reduced spending. Mobile players must move quickly to get ahead of the double dip. They should revamp offers and loyalty programs, innovate on value, continue cost-cutting and do everything possible to ensure their most profitable customers are still with them when the good times return. Highlights The mobile industry is not immune to economic recession.• Mobile ARPU in Western Europe declined by 9.1 percent cumulatively during 2009 and 2010—the first two years of the most recent recession. ARPU in the most economically challenged countries was impacted even more severely. For example, during the same two-year period, ARPU declined in Greece by almost 30 percent and by over 16 percent in both Ireland and Spain. Consumers will adjust their mobile consumption and spending behavior • again this time around. If Europe slips into recession again in 2012, customers will change their mobile usage and spending habits. Voice and messaging revenue will suffer most, while spending on the mobile Web and apps will hold up relatively well. Mobile players need to get ahead of the recession.• Operators and other mobile players shouldn’t wait around for the recession to hit. They can preempt changes in consumers’ spending priorities by innovating in value-oriented offers, revamping loyalty programs and creating new service features to lock in 18- to 35-year-old customers who represent one of the most lucrative customer segments in the long run. |
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