Yankee Group Survey Reveals that Data Services Will Drive the Mobile Market in Europe; Price will take a back seat as data adoption rates grow

Business Wire, August 24, 2005

BOSTON -- Yankee Group today revealed the results of the 2005 European Mobile User Survey. The results show that price has established itself as the number-one criteria for selecting a mobile service provider. However, advanced mobile data services are becoming more popular and will ultimately drive market leadership. Young people spark data adoption rates with more than one-third of 18 to 24 year olds spending EUR 5 or more per month on data services.

Additional compelling findings from the Yankee Group 2005 European Mobile User Survey include:

--Users choose not to "cut the cord"

--Picture messaging gains acceptance

--Advanced mobile data services like TV and music are the most appealing

--Necessity over new features drives handset replacement

"Cost and coverage are the driving force for the European consumer now," said Matt Hatton, Yankee Group senior analyst, Wireless/Mobile Europe, "but that is all going to change. For future success, operators must improve customer service and offer compelling data services now if they want to grow or even retain their subscriber base."

The Yankee Group 2005 European Mobile User Survey features a total of nearly 2,800 respondents, 18 years of age and older, who are evenly distributed across the five largest mobile markets in Western Europe: France, Germany, Italy, Spain and the UK. The survey provides an in-depth examination of the European mobile consumer, focusing heavily on wireless usage habits and spending drivers for products and services offering market strategies for both mobile operators and handset vendors.

NOTE TO EDITORS

For interviews contact:

--Elisa Roberts, 617-880-0214, eroberts@yankeegroup.com

--Gary Stringer, 44-20-7307-1074, gstringer@yankeegroup.com

YANKEE GROUP (www.yankeegroup.com)

At Yankee Group, we help our clients succeed by providing the knowledge, tools and support they need to make winning decisions when business opportunities intersect with technology solutions. In business more than 35 years, Yankee Group knows the importance of listening to and understanding the needs of our clients. We deliver value through authoritative, innovative and flexible research products and consulting services. Whether challenges are rooted in planning, executing or optimizing the use of technology, Yankee Group's world-renowned analysts transform market intelligence and practical, real-world experience into valuable decision support. Headquartered in Boston, Yankee Group research and sales staffs are located around the world, including North America, Europe, the Middle East, Africa, Latin America and Asia-Pacific.