Though the European mobile industry is still recovering from the recent economic downturn and faces a number of challenges in the future, the outlook is still positive, according to new analysis published by Frost & Sullivan.

 

According to the market research firm, the next generation of mobile wireless must respond to customers’ needs by offering not only communication but also a combination of entertainment, convergence, communication and applications in vertical markets.

 

Frost & Sullivan (News - Alert) recalled that the European mobile industry was at a turning point pre-recession: The market needed to be redefined and new revenue sources were essential. But the economic downturn exacerbated this situation and forced the industry to take up new initiatives and investigate new strategies.

 

After an immediate reaction through with cost reduction and resource optimization, the industry started looking increasingly at providing creative and innovative solutions to customers’ needs.

 

“Valuable business opportunities would come from market players’ collaboration,” said Saverio Romeo, Frost & Sullivan industry analyst, in a statement. “Resources optimization remains critical and increasing strategic partnerships can be extremely beneficial. This strong collaborative focus will make the life of the mobile industry easier in this final phase of the economic downturn.”

 

Romeo said the mobile market has already embarked on some valuable initiatives, such as the iPhone and the Apple (News - Alert) Apps Store, which launched a new model of delivering mobile content.  

 

Another example of success, Romeo said, is the mobile location services market. The market has evolved thanks to the availability of non-GPS based positioning technologies, the rise of the mobile Internet, the success of mobile social networking, and the use of advertising as a revenue model.