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Tue, Nov 27, 2001 - Page 24 News List

Market saturation puts an end to the mobile phone boom

THE OBSERVER , LONDON

The Gartner figures mark an end to an extraordinary time. The telecoms bubble -- and the mobile phone bubble in particular -- was far bigger and far more sustained than the internet bubble that blew up around it. As the industry enters a more mature, realistic phase, the question is how will the operators continue to drive revenue growth.

Their intention is to drive average revenue per user (Arpu). "Arpu was high in the early days, but as the operators have tried to drive penetration, it has plunged," says Peter Richardson, head of research with investment bank Soundview Technology.

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