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Mobile to Surpass Wireline Revenue in 2006

Pyramid Research estimates there will be 2.6 billion mobile subscribers worldwide by year-end 2006, up from 2.3 billion in 2005. Between 2006 and 2010, it expects total mobile subscribers to increase at a compound annual growth rate (CAGR) of 8.7 percenet, topping 3.5 billion by year-end 2010. The number of mobile subscribers will top the 3 billion mark during late 2007, early 2008.

"We believe there is considerable upside potential for our forecasts pending the introduction of new business models focusing on low-end users" says Leslie Arathoon, Director of Product Strategy for Pyramid Research.

The latest forecasts indicate that Africa/Middle East will be the fastest growing region with a subscriber CAGR of 13.6 percent over the next five years. Asia Pacific and Latin America follow closely, posting CAGRs of 10.9 percent and 9.4 percent respectively. Western Europe will sustain an average growth of 2.8 percent per year, while North America is forecasted to post a 6.0 percent increase.

"Although penetration rates in Western and Eastern Europe have exceeded or neared 100 percent, thereby signaling limited growth potential from a subscription perspective in these markets, penetration in Africa/Middle East, Latin America and developing Asia Pacific has substantial room for growth," adds Arathoon.

Pyramid Research has a positive outlook for the growth prospects in the mobile communications market. It expects total mobile revenues to surpass total fixed communications service revenues in 2006 for the first time, with mobile operators generating $653 billion compared to fixed wireline operators' $608 billion.

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