Telephia: One out of Four European Mobile Users Replace Their Phone Every Year, with Spaniards an

Telephia (application/pdf Object) reports that "Twenty-seven percent of European mobile users replace their cell phones every year. This rate increases by more than twofold after 24 months, with roughly 60 percent of Europeans buying new phones by the two year mark." Telephia found that "new phone purchases take place most often during the end of contracts, with heavy purchase rates occurring during the 12, 24 and 36 month periods."

Telephia also noted that "mobile consumers in Spain and Italy demonstrate a faster rate of cell phone replacement as compared to other European countries; with new phone purchases occurring after 23 months." According to Telephia, "wireless users in the U.K. buy new phones on average after 24.2 months, while Swedish consumers replace their devices after 24.9 months. French and German mobile users make new phone purchases around 26.5 and 26.7 months, respectively. Across Europe, the average replacement cycle falls at the 25.1 month mark."

Bernard Brenner at Telephia said, "Europe is truly a mobile society. This mobility generates a constant consumer engagement with their phones. With the average lifespan of a phone lasting just two years before users want to upgrade, it puts pressure on the whole wireless industry ecosystem to continuously innovate their products and services portfolio to renew the 'wow' factor for consumers."

Table 1: European Cell Phone Replacement Cycle Rate by Country

Countries      Number of Months
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Spain                        23.2
Italy                        23.6
UK                           24.2
Sweden                       24.9
France                       26.5
Germany                      26.7
Pan Europe(a)                25.1
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Source: Telephia European Subscriber and Device Report Q1 2006
(a) Telephia Pan Europe market share data includes total share from
six European countries: United Kingdom, Germany, Sweden, France,
Italy, and Spain.

Telphia also found that "Teens age 15-17 purchase a new phone on average every 20 months, the fastest among all age groups, with 39 percent of teens purchasing at the one year mark. European young adults age 18-24 follow closely, buying new devices after 21 months. Thirty-five percent of 18-24 year olds buy at the one year timeframe. On the other end of the spectrum, older mobile users age 55 and over keep their cell phones an average of two and half years, with new purchases usually occurring around 31 months."

Brenner added, "Added to the social and consumer pressure of having the latest device, young mobile users are naturally more apt to adopt advanced data services. Teens and young adults are more than twice as likely as older users to use advanced services and applications such as MP3 and video downloads. This creates the need for more frequent replacement just to stay technologically current."

Table 2: European Cell Phone Replacement Cycle Rate by Age Demographic

Age Group     Number of Months
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15-17                         20.3
18-24                         21.6
25-34                         23.5
35-44                         25.8
45-54                         27.1
55+                           30.8
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Source: Telephia European Subscriber and Device Report Q1 2006