According to Informa Telecoms & Media, the number of mobile subscriptions worldwide will reach 2.14 billion by the end of 2005, having already surpassed the 1.8 billion mark. Building on record growth of 354 million in 2004, net additions are again expected to exceed 350 million in 2005. Rapid growth in key developing markets will not be offset by a decline in mature markets to the extent previously expected. Reductions in access fees in expanding markets such as Nigeria and Mexico have had an impact on short-term growth. The Russian mobile market grew by 89 percent in 2004 on the back of four previous years of annual growth in excess of 100 percent, and Russia alone is forecast to account for 43 percent of net additions in Central and Eastern Europe in 2005-2010. The Chinese mobile market, which exceeded the 400-million-subscription mark in March 2005, is forecast to grow by 65 percent by the end of 2010. Indonesia is forecast to exceed 50 million subscriptions in 2007. According to Informa the global penetration rate is just 28 percent, meaning that there are still more than four billion potential new mobile users worldwide.
The subscription business model has been one of the big success stories of the Internet era. From Netflix to Microsoft 365, more and more companies are moving towards recurring revenue streams by having customers pay for access rather than product ownership. The subscription economy cuts across many industries -- such as streaming services, software, media, consumer products, and even transportation with the rise of mobility-as-a-service. A new market study by Juniper Research highlights the central challenge facing subscription businesses -- reducing customer churn to build a loyal subscriber installed base. Subscription Model Market Development The Juniper market study provides an in-depth analysis of the subscription business model market landscape and associated customer retention strategies. A key finding is that impending government regulations will make it easier for customers to cancel subscriptions, likely leading to increased voluntary churn rates. The study report cites the