New A.T. Kearney research recognises the mobile industry's substantial contribution to the European economy, identifies challenges for future growth

18 September 2008 — Today marks the publication by the GSM Association (GSMA), the global trade body for the mobile industry, of the European Mobile Observatory, the first of a series of reports documenting the state of the mobile industry. The report was prepared for the GSMA by international management consultancy, A.T. Kearney, based on an extensive research programme, which included close cooperation with 40 of the largest operators in Europe.

Key findings include:

• substantial impact on employment, with 3.3 million jobs dependent on the mobile industry in Europe (this includes more than just the employees of the operators themselves and considers the wider economic impact),
• total contribution to government funding of 125 billion euros p.a.
• usage of mobile communications by over 80% of the European population (95% for the younger age groups), some with 2 or more subscriptions
• mobile usage rapidly growing and already close to parity with fixed line telecoms at EU level, well beyond fixed line in many countries
• growth in mobile data services well established at 17% of total service revenues, offsetting the decline in prices for voice calls and extending mobile into multiple facets of users' daily lives

The A.T. Kearney project leader, Laurent Viviez, commented: "This report shows the European mobile industry at a crossroads: through innovation and further investment operators can maintain a growth path, albeit in a climate of intense competition which will require even more efforts on cost efficiency and industry consolidation".

A.T. Kearney telecoms practice partner, Mark Page, added: "The European mobile industry has been a tremendous success story, transforming the communications landscape and creating multiple global industry leaders in less than 2 decades. Yet the mobile industry's contribution to employment, productivity growth, innovation, social causes and public finances are often underestimated. This report marks a sign of the industry's maturity and openness to public scrutiny. It should also contribute to the wider debate on how best to ensure a healthy future for a sector on which more than 3 million European jobs depend."

The report is available at www.gsmworld.com.

Notes to editors:
A.T. Kearney is a leading management consultancy which serves global clients in all major industries as well as government agencies through its offices in 33 countries. The firm's telecoms practice works with the senior management teams of fixed line, mobile, cable and satellite operators as well as vendors on their most important strategic and operational challenges. More information is available at www.atkearney.com.

Initial queries about the European Mobile Observatory should be directed to the GSMA's Media Relations Manager, David Pringle, on +44 795 755 6069 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it . For more information on the GSM Association, refer to www.gsmworld.com.