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European Mobile Penetration to Reach 100%

According to a new forecast issued by market research firm Analysys, mobile phone penetration in Western Europe is expected to exceed 100 percent by 2007 -- The report predicted that penetration would grow from 90 percent this year to 98 percent by 2006 and 100 percent in 2007. Mobile penetration already exceeds 100 percent in several European countries, including Italy, Sweden and the U.K. Analysys said growth stagnated in some markets that have tried to stabilize ARPU (Average Revenue per User) by converting customers from pre-pay to contract, but added that 3G would be a catalyst for growth in Europe, with consumers buying new mobile phones and SIM cards to gain access to new services. "With the advent of 3G, operators have an opportunity to stabilize and potentially even grow voice ARPU by using the efficiency of the technology and offering large bundles of minutes," said analyst Alex Zadvorny.

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